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Home My WebLink About09 - BA-006 - Appraisal of Commercial Tidelands UsesITEM 9 TO: Members of the Newport Beach City Council FROM: Tony Melum, Division of Harbor Resources SUBJECT: Budget Amendment ( #BA _) — Appraisal of Commercial Tidelands Uses RECOMMENDED ACTION: 1. Accept the proposal submitted by George Hamilton Jones, Inc. for an appraisal to establish an annual permit fee and lease fee for commercial use of City tidelands. 2. Approve a budget amendment (BA# _) in the amount of $55,000 to fund the appraisal. BACKGROUND: Chapter 17.33 of the Newport Beach Municipal Code requires the City to charge an annual fee for commercial tidelands use. City Council Policy H -1 requires that this fee be recalculated every ten years pursuant to an appraisal. The last appraisal was done in April of 1989. In September of 1999, the City Council directed staff to prepare a Request for Proposals for a tidelands appraisal that would classify and assign a market rental rate to various tidelands users including: • Public and private marinas that lease slip spaces to tenants. • Marinas that rent space to commercial harbor operations. • Piers that abut residences. • Commercial boat service operations, including gas docks, boat repair facilities and boat rental operations. • Boat moorings, including shore moorings and offshore moorings. The RFP was mailed on September 27,1999. Responses were poor and costly, probably a result of the expansive scope of work in an area that few appraisal firms have expertise. As a result staff redrafted the RFP and narrowed the scope of work to just commercial harbor uses (Attachment A). We mailed the revised RFP in May of 2000. We received five (5) proposals from the following firms: 1. Richard A. Fuller 2. Pacific Real Estate Consultants 3. George Hamilton Jones, Inc. 4. Wm. R. Hansen 5. Wm. V. Shrewsbury Newport Beach City Council Appraisal of Commercial Tidelands Use Responses to RFP October 10, 2000 We reviewed and ranked the submitted proposals based upon fees, qualifications, experience and technical approach. We then interviewed the top three firms. Based on the submitted proposals and the interviews, we selected George Hamilton Jones, Inc. Although their fee was highest of the top three, they had considerably more experience in marina appraisals and a superior grasp of the unique situation involving Newport Beach tidelands. No funds were budgeted for this appraisal in the 2000 /2001 fiscal year so a budget amendment for $55,000 is needed. ATTACHMENTS: Attachment A- Revised RFP Attachment B - Budget Admendment Newport Beach City Council ATTACHMENT A Request for Proposals APPRAISAL OF COMMERCIAL HARBOR USES SYNOPSISOFRFP: The City of Newport Beach seeks to improve the management of its harbor properties. It therefore invites proposals for consultant services to perform a classification and appraisal of specific City -owned or managed tidelands assets within and surrounding Newport Harbor. This asset class includes, but is not limited to: • Public and private marinas that lease slip spaces to tenants. • Marinas that rent space for commercial harbor operations. • Commercial boat service operations, including gas docks, boat repair facilities, and boat retail operations. The selected consultant shall have a particular expertise in the valuation of harbor facilities and any amenities adjoined to the harbor facilities. As a part of the consultant' s Scope of Work, the consultant shall value or appraise the market rental rate applicable to the specific commercial harbor uses identified in Attachment A. SCOPEOFWORK The Scope of Work reflecting this Appraisal shall include: 1) Asset Classification: Develop or group harbor uses in Attachment A into asset classes. 2) Valuation of Classifications. The consultant shall appraise the fair market value of the asset class for the purpose of establishing an annual fee or lease term by classification. In conducting this appraisal, the consultant may include the following factors: • The consultant' s prior appraisal experience; • Values and /or rates charged within other comparable harbors (assuming this factor is used, the consultant shall include an explanatory exhibit showing such rates and values), • Amenities - such as parking, other on -shore facilities, and more - that contribute to or affect the value of the tideland properties; • Any other factors identified by the consultant as unique to Newport Harbor; and • Application of all appropriate appraisal methods and techniques. 3) Appraisal Report. The selected consultant shall prepare and complete an Appraisal Report. The Report shall be concise, descriptive (using examples where appropriate), and suitable for formal presentation to the City Council of the City of Newport Beach. This Report shall be addressed to the City Manager, and shall include ten copies. RFP — Appraisal of Corowrcial Harbor Uses April 19, 2000 SCOPEOFWORK 4) Council Meeting Attendance. As needed, the consultant shall be available to (cont'd) attend any City Council meeting where the consultant's Appraisal Report is discussed. During these meetings, the consultant may be asked to answer questions about the Consultant's work and /or present the Report itself. SELEMONPROCESS.• The successful proposer will be chosen by City staff and recommended to the City Council for formal approval and later Award of Contract. Staff may conduct interviews of the best - qualified consultants if deemed necessary. The proposals shall be evaluated on the following criteria: • Qualifications of the consultant, including appropriate appraisal licensing, certification, experience, and familiarity with California harbor property and facility valuation. Past history with the City may be considered, but should not deter proposers from responding to this RFP. • Responsiveness to this RFP. • Ability to complete the Scope of Work within the time constraints identified. • Cost of engagement. • References from other California governments and agencies. PROPOSAL Proposers must submit responses to this RFP in the following format: SUBMLSSION FORMAT: • Cover Letter/Introduction. Within not more than two pages, please introduce your firm and summarize your proposal. Describe your general understanding of the Scope of Work and your general approach to responding to the City's requirements. Please include the name, telephone and fax number, and e-mail address of the primary contact for the proposal. • Qualifications. Include specific information regarding knowledge and experience in conducting valuations or appraisals of commercial harbor uses for other California jurisdictions. Include names of clients and descriptions of assignments of a nature similar to this Scope of Work. Include the names and telephone numbers of these clients if your firm has served these clients within the last three years. • Technical Approach and Work Plan. Provide a detailed work plan, methodology, and schedule for the Scope of Work described within this RFP. Suggest progress review meetings where appropriate, specific output generated at various steps, major milestones, and an assessment of any City staff time that may be required to assist your firm in its work. • Staffing. Identify the project leader and list the individuals who will participate in the project. Identify direct experience with similar Scopes of Work for each participant and the project leader. Include phone numbers and e-mail addresses for these individuals. • Fees. State all fees and charges for the proposed services and work products, including the details of any "extras" or "add -ons' with your firms expected payment schedule. RFP - Appraisal of Corowrcial Harbor Uses April 19, 2000 MARINGAND)OR Your signed proposal must be submitted to and marked as follows: DELIVERYOF PROPOSAISc RFP #00-1 (CM) - Appraisal of Commercial Harbor Uses Attn: Tony Melum, Deputy Fire and Marine Chief City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 The envelope with completed proposal must be received at the above address on or before 5:00 p.m. on July 7, 2000. Late proposals will not be accepted. OPENING There will be no public opening of proposals. Prices and other proposed PROCEDURE information will be made public after the proposal is awarded. At that time, the executed contract will become public information. The City reserves the right to reject all proposals. CONIRACTAWARD The City anticipates awarding a contract on or before August 7, 2000. The DATF,PROJECTEND consultant shall complete the Scope of Work within 120 days of Award of DATEM4FORMATION Contract. The City encourages proposers to contact the City for further information. Please direct your inquiries to Tony Melum at 949/644 -3044. City of Newport Beach BUDGET AMENDMENT 2000 -01 EFFECT ON BUDGETARY FUND BALANCE: Description Increase Revenue Estimates X Increase Expenditure Appropriations Account Transfer Budget Appropriations SOURCE: Division Number from existing budget appropriations PX from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- 006 AMOUNT: S55,000.00 Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations for appraisal of commercial tidelands use responses. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account D(PENDITURE APPROPRIATIONS (3603) Description General Fund Balance Description Amount Debit Credit $55,000.00 $55,000.00 Aummstk System Entry. Signed: ACS' --?—d a F' a cial proval: Administrativ rvices Director Date Signed: �, O J Administrative Approv CityTAanager ate Signed: City Council Approval: City Clerk Date Description Division Number 2371 City Manager - Harbor Resources, Tidelands Account Number 8080 Services - Professional & Technical Division Number Account Number Division Number Account Number Division Number Account Number Amount Debit Credit $55,000.00 $55,000.00 Aummstk System Entry. Signed: ACS' --?—d a F' a cial proval: Administrativ rvices Director Date Signed: �, O J Administrative Approv CityTAanager ate Signed: City Council Approval: City Clerk Date