CC SR 20230919 D - Kosmont Financial Consulting Services
CITY COUNCIL MEETING DATE: 09/19/2023
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to approve Amendment No. 1 to the Professional
Services Agreement with Kosmont Financial Services (KFS) for municipal advisory and
financial consulting services.
RECOMMENDED COUNCIL ACTION:
(1) Approve Amendment No. 1 to the original Professional Services Agreement with
KFS in the amount of $50,000, thereby increasing the agreement amount from
$25,000 to $75,000 for a one-year term concluding on June 29, 2024; and,
(2) Authorize the Mayor and City Clerk to execute the amendment in a form approved
by the City Attorney.
FISCAL IMPACT: Included in the FY 2023-24 Adopted Budget in the Capital
Infrastructure Program Fund.
Amount Budgeted: $1,025,000
Additional Appropriation: N/A
Account Number(s): 330-400-8503-8001
(CIP Fund – New Civic Center Complex – Prof/Tech Services) VR
ORIGINATED BY: Vina Ramos, Interim Director of Finance VR
REVIEWED BY: same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Amendment No. 1 to the Contract Services Agreement with Kosmont
Transactions Services, Inc. dba Kosmont Financial Services (page A-1)
B. Original Contract Services Agreement with Kosmont Transactions Services,
Inc. dba Kosmont Financial Services (page B-1)
BACKGROUND:
On June 29, 2023, the City Manager, under his signing authority, entered into a
professional services agreement (Agreement) in the amount of $25,000 with Kosmont
Transaction Services, Inc dba Kosmont Financial Services (KFS). The Agreement
includes assisting the city in determining the potential mix of resources available to fund
the Civic Center Master Plan Project. The range of services include assessing City
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reserves, operational and capital budget, potential third-party resources, as well as
identifying potential financing scenario options via proforma analyses and cash flow
modeling. As part of this engagement, the deliverables are financing pathways, financing
cost analysis, and gap funding options.
On July 20, and August 3, 2023, the KFS deliverables, along with the Conceptual Master
Site Plan, Conceptual Schedule, and Conceptual Cost Estimate , were presented to the
Financial Advisory Committee (FAC) and Civic Center Advisory Committee (CCAC) at
their respective meetings. At this point, KFS’ remaining deliverables include additional
financing scenarios and the final presentation of the potential funding options at a joint
workshop between the FAC and CCAC, and a City Council meeting. Although the majority
of the deliverables have been fulfilled, KFS continues to work with Staff on the scheduled
bi-weekly Committee meetings. The work performed by KFS has exceeded the work
budgeted in the original Agreement and the City Council is now being asked to consider
an amendment to their Agreement to complete this financing assignment for the Civic
Center Master Plan project.
DISCUSSION:
After the initial meeting with the FAC on July 20, 2023, discussions ensued, and to better
assess the potential funding options, the FAC requested for Staff and KFS to provide
additional information and analyses. On July 27, 2023, Staff and KFS presented the
requested information, which included the process and costs associated with a General
Obligation Bond. Staff also presented various trends and a 10-year financial forecast such
as unallocated reserves, cash flow patterns, and the financial impact of the potential
funding options in the General Fund and the Capital Infrastructure Program (CIP) Fund
as requested by FAC.
On July 27, 2023, the FAC requested Staff and KFS to come back to their August 31,
2023 meeting with a new scenario using the most current phasing schedule approved by
CCAC. The updated scenario also included several adjustments to the previous potential
financing mix options. These changes include a 30% of capital campaign as a funding
source, revisiting the estimated interest earnings for the proposed prefunding source, and
removing on-site revenues due to their unpredictable nature at this time.
At the conclusion of August 31, 2023, the FAC requested for an additional scenario of the
proforma analysis and cashflow modeling, this time, using a 30-year timeframe. This
information will be jointly prepared by Staff and KFS and to be presented on the next FAC
meeting on September 14, 2023.
In brief, since the inception of the contract, the following deliverables were received from
KFS:
• Prepared Financing Pathways, Financing Cost Analysis, and Gap Funding
Options which involved:
o Developed and updated of five (5) scenarios requiring 10 unique sets of
proforma analyses.
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o Updated proforma analyses and cashflow modeling based on
Committee’s requests.
• Prepared and presented the process and costs associated with a General
Obligation Bond.
• Attended public meetings and presented deliverables to the FAC (July 20,
2023, July 27, 2023, and August 31, 2023 – with pending meetings to follow
including a joint meeting between the FAC and CCAC, as well as the City
Council)
• Collaborated with Staff to discuss analyses and prepare information for the
public meetings.
Considering the deliverables generated to date, in addition to the original amount of
$25,000, KFS is estimating an additional cost for the services in the amount of $37,085.
This amount includes an additional six (6) distinct optional financing scenarios to be
prepared (which would require 12 unique sets of proforma analyses) and two anticipated
public meetings.
Based on the level and amount of work that may be required in the upcoming months,
KFS is formally requesting for an increase in the original budget, from $25,000 to $50,000,
for a total Agreement of $75,000. Staff believes that this amount would ensure that
adequate resources are available to continue to develop and prepare financing scenario
options via proforma analyses and cashflow modeling until the final presentation to the
City Council later this fall.
CONCLUSION:
Staff recommends the City Council approve Amendment No. 1 with KFS from $25,000 to
not-to-exceed $75,000 to continue to work with Staff and Committees in developing the
potential financing options for the Civic Center Master Plan Project.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action s are available for
the City Council’s consideration:
1. Do not approve Amendment No. 1 to the PSA with KFS and direct staff to solicit
additional proposal.
2. Direct Staff to curtail or cease work, including the financial modeling, for the Civic
Center Master Plan project.
3. Take other action, as deemed appropriate.
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AMENDMENT NO. 1
TO PROFESSIONAL SERVICES AGREEMENT FOR
CIVIC CENTER FINANCING PLAN SERVICES
THIS AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES
(“Amendment No. 1”) by and between the CITY OF RANCHO PALOS VERDES (“City”) and
KOSMONT REAL ESTATE SERVICES, INC, a California corporation dba KOSMONT
REALTY (“Consultant”) is effective as of September 19, 2023.
RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services
dated June 29, 2023 (“Agreement”) whereby Consultant agreed to Civic Center financing plan
services (the “Services”) until completion of the Services but not exceeding one year from the
effective date of the Agreement, for a Contract Sum of $25,000.
B. City and Consultant now desire to amend the Agreement to expand the scope of
services related to the Consultant’s Services, and increase the Contract Sum from $25,000 to
$75,000.
TERMS
1. Contract Changes. The Agreement is amended as provided herein. Deleted text is
indicated in strikethrough and added text in bold italics.
a. Section 2.1, Contract Sum, of the Agreement is hereby amended as
follows:
“For the services rendered pursuant to this Agreement, Consultant shall be
compensated in accordance with the “Schedule of Compensation” attached hereto as
Exhibit “C” and incorporated herein by this reference, but not exceeding the
maximum contract amount of $75,00025,000 (Twenty Seventy Five Thousand
Dollars) (“Contract Sum”).”
b. Section I of Exhibit “A” is hereby amended as follows:
“Consultant will perform the following services in connection with the Civic Center
project, namely assisting the City to develop a comprehensive financial, ownership,
and operating structure that will enable the financing of Project costs and to
determine how best to utilize the City’s various assets, in order to bring the project to
completion.
Task 1: Orientation/Kick-Off Meeting
Consultant will organize and administer an initial Project Kick-Off meeting with the
appropriate City personnel to review the Civic Center program summary; discuss
specific City goals, objectives, and considerations; review the budget and master plan
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(when completed) for phasing of construction/installation of improvements; and
establish parameters and expectations of the City for the funding, installation and
operation of the Project, including Surplus Land Act (“SLA”) compliance
considerations and procedures as may be required (if requested, separate service to
be provide by Kosmont Realty on a to-be-agreed-upon budget).
Task 2: Develop Financing, Ownership and Operating Structure Options
Based on the information provided by the City in the initial Kick-Off meeting and
subsequent correspondence, Consultant will develop and present a proposed project
funding plan for consideration by the City.
Deliverable: a memorandum or PowerPoint presentation that will include proforma
cashflow analyses and descriptions of the strengths and weaknesses of the proposed
funding plan developed for consideration by the City and the Finance Advisory
Committee, Civic Center Advisory Committee, and City Council. Consultant will
attend 3 or 4 meetings in person at City’s discretion to present and discuss the
proposed funding plan, as follows: one Finance Advisory Committee, up to 2 joint
Finance Advisory Committee/Civic Center Advisory Committee, and one City
Council meeting.
Task 2A: Continue Efforts to Develop Financing, Ownership and Operating
Structure Options
Based on the information provided by the City to date, feedback and requests
received thus far from the City’s Financial Advisory Committee (FAC) and
anticipated to be received from the City Council, Consultant shall continue to
develop, modify and present various financing, ownership and operating structure
options for consideration by the City as requested.
Consultant shall continue to attend various public hearings by videoconference as
may be requested by the City, in addition to preparatory phone calls or
videoconference meetings with City staff. City has estimated that another two (2)
public meetings (e.g., FAC and City Council) and accompanying preparatory
meetings may be required.
In addition to attendance of various meetings, deliverables shall include proforma
cashflow analyses and PowerPoint presentations, if requested, that are expected to
include the results of said analyses and possible revisions to previously prepared
descriptions of the strengths and weaknesses of each identified optional scenario
developed by Consultant for consideration by the City staff, City Council, the FAC
and other City departments or committees as deemed appropriate by City staff.
In ongoing support of the foregoing, Consultant shall continue to develop and
prepare financing scenario options via proforma analysis and cashflow modeling.
City staff has advised Consultant that it anticipates the FAC and City Council to
request an additional six (6) distinct optional financing scenarios to be prepared
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(which would require 12 unique sets of proforma analyses) at the two anticipated
public meetings.
Task 3 (Optional): Transactional Assistance with Issuance of Securities
At the request of the City’s Contract Officer, Consultant shall assist the City with the
process of issuing municipal securities to acquire tax-exempt (or taxable, as may be
applicable) financing to fund Project costs in accordance with the chosen Project
structure. Such optional tasks would be performed under a separate agreement and
would include, in general, the following tasks:
• Provide understanding of the regulations and rules governing the issuance of
tax exempt of debt
• Determine, based on the preferred financing mechanism chosen from Task
12, which financing vehicles and corresponding terms would be most
beneficial to the City and Project, as applicable or appropriate, including but
not necessarily limited to:
o Term (length) of the financing
o Optimal amortization structures
o Coverage requirements
o Additional bonds tests
o Tax Exempt or Taxable structures
o Call features (length, price)
o Parity tests
o Subordinate debt
o Reserve funds, surety bonds, capitalized interest
o First coupon/principal payment
o Cash flow analysis
o Senior/subordinated structures
o Other pledges and covenants as may be applicable or advisable
• Develop and prepare credit analysis of the chosen structure to properly
market the issue to capital markets
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• Assist in preparation/revision of legal documents (resolutions, official
statements, indentures, etc.) to ensure requisite provisions are contained
therein, protecting the City’s interests and addressing:
o Accuracy of security features
o Compliance with disclosure rules as necessary
o Compliance with industry standards
o Eligibility for tax exemption, where applicable
• Negotiate with the underwriter on behalf of the City regarding pricing levels”
2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after the
date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean
the Agreement, as amended by this Amendment No. 1 to the Agreement.
3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and
Consultant each ratify and reaffirm each and every one of the respective rights and obligations
arising under the Agreement. Each party represents and warrants to the other that there have been no
written or oral modifications to the Agreement other than as provided herein. Each party represents
and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.
Consultant represents and warrants to City that, as of the date of this Amendment No. 1, City
is not in default of any material term of the Agreement and that there have been no events that, with
the passing of time or the giving of notice, or both, would constitute a material default under the
Agreement.
City represents and warrants to Consultant that, as of the date of this Amendment No. 1,
Consultant is not in default of any material term of the Agreement and that there have been no events
that, with the passing of time or the giving of notice, or both, would constitute a material default
under the Agreement.
4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 1.
5. Authority. The persons executing this Amendment No. 1 on behalf of the parties
hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to
execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this
Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv)
the entering into this Amendment No. 1 does not violate any provision of any other agreement to
which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and
year first-above written.
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
____________________________________
Barbara Ferraro, Mayor
ATTEST:
_________________________________
Teresa Takaoka, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_________________________________
William W. Wynder, City Attorney
CONSULTANT:
KOSMONT REAL ESTATE SERVICES,
INC, a California corporation
By: ________________________________
Name: Larry J. Kosmont
Title: Chief Executive Officer
By: ________________________________
Name: Brian Moncrief
Title: Vice President
Address: 2301 Rosecrans Ave., Suite 4140 _
El Segundo, CA 90245
Two corporate officer signatures required when Consultant is a corporation, with one signature required from
each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES
SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY
BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR
REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2023 before me, ________________, personally appeared ________________, proved to me on the
basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could
prevent fraudulent reattachment of this form .
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
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01203.0002/922075.1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2023 before me, ________________, personally appeared ________________, proved to me on the
basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could
prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
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CITY OF RANCHO PALOS VERDES
PROFESSIONAL SERVICES AGREEMENT FOR
CIVIC CENTER FINANCING PLAN SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (herein “Agreement”) is made and
entered into on June 29 , 2023, by and between the CITY OF RANCHO PALOS VERDES,
a municipal corporation (“City”) and KOSMONT TRANSACTIONS SERVICES, INC. dba
KOSMONT FINANCIAL SERVICES, a California corporation (“Consultant”).
NOW, THEREFORE, the parties hereto agree as follows:
1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all of the terms and conditions of
this Agreement, the Consultant shall perform the work or services set forth in the “Scope of
Services” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant
warrants that it has the experience and ability to perform all work and services required
hereunder and that it shall diligently perform such work and services in a professional and
satisfactory manner.
1.2 Compliance With Law. All work and services rendered hereunder shall
be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the
City and any Federal, State or local governmental agency of competent jurisdiction.
1.3 California Labor Law. If the Scope of Services includes any “public
work” or “maintenance work,” as those terms are defined in California Labor Code section 1720
et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total
compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and
comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq.,
and all other applicable laws.
1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its
sole cost and expense such licenses, permits, and approvals as may be required by law for the
performance of the services required by the Agreement.
1.5 Special Requirements. Additional terms and conditions of this
Agreement, if any, which are made a part hereof are set forth in the “Special Requirements”
attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a
conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the
provisions of Exhibit “B” shall govern.
2. COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement,
Consultant shall be compensated in accordance with the “Schedule of Compensation” attached
hereto as Exhibit “C” and incorporated herein by this reference, but not exceeding the maximum
contract amount of $25,000 (Twenty Five Thousand Dollars) (“Contract Sum”).
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2.2 Invoices. Each month Consultant shall furnish to City an original invoice
for all work performed and expenses incurred during the preceding month in a form approved by
City’s Director of Finance. By submitting an invoice for payment under this Agreement,
Consultant is certifying compliance with all provisions of the Agreement. The invoice shall
contain all information specified in Exhibit “C”, and shall detail charges for all necessary and
actual expenses by the following categories: labor (by sub-category), travel, materials,
equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed
by such categories. Consultant shall not invoice City for any duplicate services performed by
more than one person.
City shall independently review each invoice submitted by the Consultant to determine
whether the work performed and expenses incurred are in compliance with the provisions of this
Agreement. Except as to any charges for work performed or expenses incurred by Consultant
which are disputed by City, City will use its best efforts to cause Consultant to be paid within
forty five (45) days of receipt of Consultant’s correct and undisputed invoice; however,
Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot
guarantee that payment will occur within this time period. In the event any charges or expenses
are disputed by City, the original invoice shall be returned by City to Consultant for correction
and resubmission. Review and payment by the City of any invoice provided by the Consultant
shall not constitute a waiver of any rights or remedies provided herein or any applicable law.
2.3 Additional Services. City shall have the right at any time during the
performance of the services, without invalidating this Agreement, to order extra work beyond
that specified in the Scope of Services or make changes by altering, adding to or deducting from
said work. No such extra work may be undertaken unless a written order is first given by the
Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum
for the actual cost of the extra work, and/or (ii) the time to perform this Agreement, which said
adjustments are subject to the written approval of the Consultant. Any increase in compensation
of up to ten percent (10%) of the Contract Sum but not exceeding a total contract amount of Five
Thousand Dollars ($5,000) or in the time to perform of up to sixty (60) days may be approved by
the Contract Officer. Any greater increases, taken either separately or cumulatively, must be
approved by the City Council. No claim for an increase in the Contract Sum or time for
performance shall be valid unless the procedures established in this Section are followed.
3. PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this
Agreement.
3.2 Schedule of Performance. Consultant shall commence the services
pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all
services within the time period(s) established in the “Schedule of Performance” attached hereto
as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant,
extensions to the time period(s) specified in the Schedule of Performance may be approved in
writing by the Contract Officer but not exceeding thirty (30) days cumulatively.
3.3 Force Majeure. The time period(s) specified in the Schedule of
Performance for performance of the services rendered pursuant to this Agreement shall be
extended because of any delays due to unforeseeable causes beyond the control and without the
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fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public
enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions,
riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency,
including the City, if the Consultant shall within ten (10) days of the commencement of such
delay notify the con Officer in writing of the causes of the delay. The Contract Officer shall
ascertain the facts and the extent of delay, and extend the time for performing the services for the
period of the enforced delay when and if in the judgment of the Contract Officer such delay is
justified. The Contract Officer’s determination shall be final and conclusive upon the parties to
this Agreement. In no event shall Consultant be entitled to recover damages against the City for
any delay in the performance of this Agreement, however caused, Consultant’s sole remedy
being extension of the Agreement pursuant to this Section.
3.4 Term. Unless earlier terminated in accordance with Article 7 of this
Agreement, this Agreement shall continue in full force and effect until completion of the services
but not exceeding one year from the date hereof, except as otherwise provided in the Schedule of
Performance (Exhibit “D”).
4. COORDINATION OF WORK
4.1 Representative of Consultant. Larry J. Kosmont, CRE, is hereby
designated as being the representative of Consultant authorized to act on its behalf with respect
to the work and services specified herein and make all decisions in connection therewith. All
personnel of Consultant and any authorized agents shall be under the exclusive direction of the
representative of Consultant. Consultant shall utilize only competent personnel to perform
services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain
the stability and continuity of Consultant’s staff and subcontractors, and shall keep City informed
of any changes.
4.2 Contract Officer. Brittany Ruiz, Interim Finance Director, or such
person as may be designated by the City Manager, is hereby designated as being the
representative the City authorized to act in its behalf with respect to the work and services
specified herein and to make all decisions in connection therewith (“Contract Officer”).
4.3 Prohibition Against Assignment. Consultant shall not contract with any
entity to perform in whole or in part the work or services required hereunder without the express
written approval of the City. Neither this Agreement nor any interest herein may be assigned or
transferred, voluntarily or by operation of law, without the prior written approval of City. Any
such prohibited assignment or transfer shall be void.
4.4 Independent Consultant. Neither the City nor any of its employees shall
have any control over the manner, mode or means by which Consultant, its agents or employees,
perform the services required herein, except as otherwise set forth. Consultant shall perform all
services required herein as an independent contractor of City with only such obligations as are
consistent with that role. Consultant shall not at any time or in any manner represent that it or
any of its agents or employees are agents or employees of City, or that it is a member of a joint
enterprise with City.
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5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages. Without limiting Consultant’s indemnification of
City, and prior to commencement of any services under this Agreement, Consultant shall obtain,
provide and maintain at its own expense during the term of this Agreement, policies of insurance
of the type and amounts described below and in a form satisfactory to City.
(a) General liability insurance. Consultant shall maintain commercial general
liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01,
in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily
injury, personal injury, and property damage. The policy must include contractual liability that
has not been amended. Any endorsement restricting standard ISO “insured contract” language
will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury
and property damage for all activities of the Consultant arising out of or in connection with
Services to be performed under this Agreement, including coverage for any owned, hired, non -
owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each
accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall
maintain professional liability insurance that covers the Services to be performed in connection
with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any
policy inception date, continuity date, or retroactive date must be before the effective date of this
Agreement and Consultant agrees to maintain continuous coverage through a period no less than
three (3) years after completion of the services required by this Agreement.
(d) Workers’ compensation insurance. Consultant shall maintain Workers’
Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at
least $1,000,000).
(e) Subcontractors. Consultant shall include all subcontractors as insureds
under its policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall include all of the requirements stated
herein.
(f) Additional Insurance. Policies of such other insurance, as may be required
in the Special Requirements in Exhibit “B”.
5.2 General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a waiver of subrogation
endorsement for workers’ compensation. Insurance certificates and endorsements must be
approved by City’s Risk Manager prior to commencement of performance. Current certification
of insurance shall be kept on file with City at all times during the term of this Agreement. City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
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(b) Duration of coverage. Consultant shall procure and maintain for the
duration of this Agreement insurance against claims for injuries to persons or damages to
property, which may arise from or in connection with the performance of the Services hereunder
by Consultant, its agents, representatives, employees or subconsultants.
(c) Primary/noncontributing. Coverage provided by Consultant shall be
primary and any insurance or self-insurance procured or maintained by City shall not be required
to contribute with it. The limits of insurance required herein may be satisfied by a combination
of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or
be endorsed to contain a provision that such coverage shall also apply on a primary and non -
contributory basis for the benefit of City before the City’s own insurance or self -insurance shall
be called upon to protect it as a named insured.
(d) City’s rights of enforcement. In the event any policy of insurance required
under this Agreement does not comply with these specifications or is canceled and not replaced,
City has the right but not the duty to obtain the insurance it deems necessary and any premium
paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient
to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(e) Acceptable insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact business of insurance
or that is on the List of Approved Surplus Line Insurers in the State of California, with an
assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger)
in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by
the City’s Risk Manager.
(f) Waiver of subrogation. All insurance coverage maintained or procured
pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or
appointed officers, agents, officials, employees and volunteers or shall specifically allow
Consultant or others providing insurance evidence in compliance with these specifications to
waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery
against City, and shall require similar written express waivers and insurance clauses from each of
its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant
acknowledges and agrees that any actual or alleged failure on the part of the City to inform
Consultant of non-compliance with any requirement imposes no additional obligations on the
City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or
limits contained in this section are not intended as a limitation on coverage, limits or other
requirements, or a waiver of any coverage normally provided by any insurance. Specific
reference to a given coverage feature is for purposes of clarification only as it pertains to a given
issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other
coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums
shown above, the City requires and shall be entitled to coverage for the higher limits maintained
by the Consultant. Any available insurance proceeds in excess of the specified minimum limits
of insurance and coverage shall be available to the City.
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(i) Notice of cancellation. Consultant agrees to oblige its insurance agent or
broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for
nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each
required coverage.
(j) Additional insured status. General liability policies shall provide or be
endorsed to provide that City and its officers, officials, employees, and agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations. None of the coverages
required herein will be in compliance with these requirements if they include any limiting
endorsement of any kind that has not been first submitted to City and approved of in writing.
(l) Separation of insureds. A severability of interests provision must apply for
all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to the insurer’s limits of
liability. The policy(ies) shall not contain any cross-liability exclusions.
(m) Pass through clause. Consultant agrees to ensure that its subconsultants,
subcontractors, and any other party involved with the project who is brought onto or involved in
the project by Consultant, provide the same minimum insurance coverage and endorsements
required of Consultant. Consultant agrees to monitor and review all such coverage and assumes
all responsibility for ensuring that such coverage is provided in conformity with the requirements
of this section. Consultant agrees that upon request, all agreements with consultants,
subcontractors, and others engaged in the project will be submitted to City for review.
(n) Agency’s right to revise specifications. The City reserves the right at any
time during the term of the contract to change the amounts and types of insurance required by
giving the Consultant ninety (90) days advance written notice of such change. If such change
results in substantial additional cost to the Consultant, the City and Consultant may renegotiate
Consultant’s compensation.
(o) Self-insured retentions. Any self-insured retentions must be declared to
and approved by City. City reserves the right to require that self-insured retentions be eliminated,
lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these
specifications unless approved by City.
(p) Timely notice of claims. Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from Consultant’s performance
under this Agreement, and that involve or may involve coverage under any of the required
liability policies.
(q) Additional insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own judgment may be
necessary for its proper protection and prosecution of the work.
5.3 Indemnification. To the full extent permitted by law, Consultant agrees to
indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified
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Parties”) against, and will hold and save them and each of them harmless from, any and all
actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or
property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or
threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or
entity arising out of or in connection with the negligent performance of the work, operations or
activities provided herein of Consultant, its officers, employees, agents, subcontractors, invitees,
or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from
Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or
indemnitors’ negligent performance of or failure to perform any term, provision, covenant or
condition of this Agreement, except claims or liabilities occurring as a result of City’s sole
negligence or willful acts or omissions. The indemnity obligation shall be binding on successors
and assigns of Consultant and shall survive termination of this Agreement.
6. RECORDS, REPORTS, AND RELEASE OF INFORMATION
6.1 Records. Consultant shall keep, and require subcontractors to keep, such
ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other
documents relating to the disbursements charged to City and services performed hereunder (the
“books and records”), as shall be necessary to perform the services required by this Agreement
and enable the Contract Officer to evaluate the performance of such services and shall keep such
records for a period of three years following completion of the services hereunder. The Contract
Officer shall have full and free access to such books and records at all times during normal
business hours of City, including the right to inspect, copy, audit and make records and
transcripts from such records.
6.2 Reports. Consultant shall periodically prepare and submit to the Contract
Officer such reports concerning the performance of the services required by this Agreement or as
the Contract Officer shall require.
6.3 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in
performance of this Agreement shall be considered confidential, unless such information is in the
public domain or already known to Consultant. Consultant shall not release or disclose any such
information or work product to persons or entities other than the City without prior written
authorization from the Contract Officer.
(b) Consultant shall not, without prior written authorization from the Contract
Officer or unless requested by the City Attorney, voluntarily provide documents, declarations,
letters of support, testimony at depositions, response to interrogatories or other information
concerning the work performed under this Agreement. Response to a subpoena or court order
shall not be considered “voluntary” provided Consultant gives the City notice of such court order
or subpoena.
(c) If Consultant provides any information or work product in violation of this
Agreement, then the City shall have the right to reimbursement and indemnity from Consultant
for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of
Consultant’s conduct.
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(d) Consultant shall promptly notify the City should Consultant be served
with any summons, complaint, subpoena, notice of deposition, request for documents,
interrogatories, request for admissions or other discovery request, court order or subpoena from
any party regarding this Agreement and the work performed thereunder. The City retains the
right, but has no obligation, to represent Consultant or be present at any deposition, hearing or
similar proceeding. Consultant agrees to cooperate fully with the City and to provide the City
with the opportunity to review any response to discovery requests provided by Consultant.
6.4 Ownership of Documents. All studies, surveys, data, notes, computer
files, reports, records, drawings, specifications, maps, designs, photographs, documents and other
materials (the “documents and materials”) prepared by Consultant in the performance of this
Agreement shall be the property of the City and shall be delivered to the City upon request of the
Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim
for further employment or additional compensation as a result of the exercise by the City of its
full rights of ownership use, reuse, or assignment of the documents and materials hereunder.
Moreover, Consultant with respect to any documents and materials that may qualify as “works
made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed
“works made for hire” for the City.
7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and
governed both as to validity and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or matter arising out of or in
relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles,
State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively
in the Central District of California, in the County of Los Angeles, State of California.
7.2 Disputes; Default. In the event that Consultant is in default under the
terms of this Agreement, the City shall not have any obligation or duty to continue compensating
Consultant for any work performed after the date of default. Instead, the City may give notice to
Consultant of the default and the reasons for the default. The notice shall include the timeframe
in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but
may be extended, if circumstances warrant. During the period of time that Consultant is in
default, the City shall hold all invoices and shall, when the default is cured, proceed with
payment on the invoices. If Consultant does not cure the default, the City may take necessary
steps to terminate this Agreement under this Article.
7.3 Legal Action. In addition to any other rights or remedies, either party
may take legal action, in law or in equity, to cure, correct or remedy any default, to recover
damages for any default, to compel specific performance of this Agreement, to obtain
declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this
Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory
claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any
legal action under this Agreement.
Except with respect to rights and remedies expressly declared to be exclusive in this
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
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different times, of any other rights or remedies for the same default or any other default by the
other party.
7.4 Termination Prior to Expiration of Term. This Section shall govern any
termination of this Contract except as specifically provided in the following Section for
termination for cause. The City reserves the right to terminate this Contract at any time, with or
without cause, upon fifteen (15) days’ written notice to Consultant, except that where
termination is due to the fault of the Consultant, the period of notice may be such shorter time as
may be determined by the Contract Officer. In addition, the Consultant reserves the right to
terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to
City, except that where termination is due to the fault of the City, the period of notice may be
such shorter time as the Consultant may determine. Upon receipt of any notice of termination,
Consultant shall immediately cease all services hereunder except such as may be specifically
approved by the Contract Officer. Except where the Consultant has initiated termination, the
Consultant shall be entitled to compensation for all services rendered prior to the effective date
of the notice of termination and for any services authorized by the Contract Officer thereafter in
accordance with the Schedule of Compensation or such as may be approved by the Contract
Officer. In the event the Consultant has initiated termination, the Consultant shall be entitled to
compensation only for the reasonable value of the work product actually produced hereunder, but
not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit
“C”. In the event of termination without cause pursuant to this Section, the terminating party
need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.
7.5 Termination for Default of Consultant. If termination is due to the
failure of the Consultant to fulfill its obligations under this Agreement, City may, after
compliance with the provisions of Section 7.2, take over the work and prosecute the same to
completion by contract or otherwise, and the Consultant shall be liable to the extent that the total
cost for completion of the services required hereunder exceeds the compensation herein
stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City
may withhold any payments to the Consultant for the purpose of set-off or partial payment of the
amounts owed the City as previously stated.
8. MISCELLANEOUS
8.1 Covenant Against Discrimination. Consultant covenants that, by and for
itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall
be no discrimination against or segregation of, any person or group of persons on account of
race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin,
ancestry, or other protected class in the performance of this Agreement. Consultant shall take
affirmative action to ensure that applicants are employed and that employees are treated during
employment without regard to their race, color, creed, religion, sex, gender, sexual orientation,
marital status, national origin, ancestry, or other protected class
8.2 Non-liability of City Officers and Employees. No officer or employee of
the City shall be personally liable to the Consultant, or any successor in interest, in the event of
any default or breach by the City or for any amount, which may become due to the Consultant or
to its successor, or for breach of any obligation of the terms of this Agreement.
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8.3 Notice. Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the other party or any other person
shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of
the City, to the City Manager and to the attention of the Contract Officer (with her/his name and
City title), City of Rancho Palos Verdes, 30940 Hawthorne Boulevard, California 90275, and in
the case of the Consultant, to the person(s) at the address designated on the execution page of
this Agreement. Either party may change its address by notifying the other party of the change of
address in writing. Notice shall be deemed communicated at the time personally delivered or in
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
8.4 Integration; Amendment. It is understood that there are no oral
agreements between the parties hereto affecting this Agreement and this Agreement supersedes
and cancels any and all previous negotiations, arrangements, agreements and understandings, if
any, between the parties, and none shall be used to interpret this Agreement. This Agreement
may be amended at any time by the mutual consent of the parties by an instrument in writing.
8.5 Severability. In the event that part of this Agreement shall be declared
invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such
invalidity or unenforceability shall not affect any of the remaining portions of this Agreement
which are hereby declared as severable and shall be interpreted to carry out the intent of the
parties hereunder unless the invalid provision is so material that its invalidity deprives either
party of the basic benefit of their bargain or renders this Agreement meaningless.
8.6 Waiver. No delay or omission in the exercise of any right or remedy by
non-defaulting party on any default shall impair such right or remedy or be construed as a
waiver. A party’s consent to or approval of any act by the other party requiring the party’s
consent or approval shall not be deemed to waive or render unnecessary the other party’s consent
to or approval of any subsequent act. Any waiver by either party of any default must be in
writing and shall not be a waiver of any other default concerning the same or any other provision
of this Agreement.
8.7 Attorneys’ Fees. If either party to this Agreement is required to initiate
or defend or made a party to any action or proceeding in any way connected with this
Agreement, the prevailing party in such action or proceeding, in addition to any other relief
which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees,
whether or not the matter proceeds to judgment.
8.8 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or against either
party by reason of the authorship of this Agreement or any other rule of construction which
might otherwise apply.
8.9 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall constitute one and the same
instrument.
8.10 Warranty & Representation of Non-Collusion. No official, officer, or
employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any
official, officer, or employee of City participate in any decision relating to this Agreement which
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may affect his/her financial interest or the financial interest of any corporation, partnership, or
association in which (s)he is directly or indirectly interested, or in violation of any corporation,
partnership, or association in which (s)he is directly or indirectly interested, or in violation of any
State or municipal statute or regulation. The determination of “financial interest” shall be
consistent with State law and shall not include interests found to be “remote” or “noninterests”
pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that
it has not paid or given, and will not pay or give, to any third party including, but not limited to,
any City official, officer, or employee, any money, consideration, or other thing of value as a
result or consequence of obtaining or being awarded any agreement. Consultant further warrants
and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or
collusion that would result in the payment of any money, consideration, or other thing of value to
any third party including, but not limited to, any City official, officer, or employee, as a result of
consequence of obtaining or being awarded any agreement. Consultant is aware of and
understands that any such act(s), omission(s) or other conduct resulting in such payment of
money, consideration, or other thing of value will render this Agreement void and of no force or
effect.
Consultant’s Authorized Initials
8.11 Corporate Authority. The persons executing this Agreement on behalf of
the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing
this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the
entering into this Agreement does not violate any provision of any other Agreement to which
said party is bound. This Agreement shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties.
[Signatures On The Following Page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year first-above written.
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
Ara M. Mihranian, City Manager
ATTEST:
Teresa Takaoka, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
William W. Wynder, City Attorney
CONSULTANT:
KOSMONT TRANSACTIONS
SERVICES, INC., dba KOSMONT
FINANCIAL SERVICES, a California
corporation
By:
Name: Larry J. Kosmont
Title: CEO
Address: 2301 Rosecrans Ave, Suite 4140
El Segundo, CA 90245
Two corporate officer signatures required when Consultant is a corporation, with one signature required
from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2)
Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S
SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE
INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed
the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On , 2023 before me, , personally appeared , proved to me on
the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature:
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could
prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_
TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
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01203.0002/901232.6
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed
the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On , 2023 before me, , personally appeared , proved to me on
the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature:
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could
prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
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EXHIBIT “A”
SCOPE OF SERVICES
I. Consultant will perform the following services in connection with the Civic Center
project, namely assisting the City to develop a comprehensive financial, ownership,
and operating structure that will enable the financing of Project costs and to
determine how best to utilize the City’s various assets, in order to bring the project
to completion.
Task 1: Orientation/Kick-Off Meeting
Consultant will organize and administer an initial Project Kick-Off meeting with the
appropriate City personnel to review the Civic Center program summary; discuss specific
City goals, objectives, and considerations; review the budget and master plan (when
completed) for phasing of construction/installation of improvements; and establish
parameters and expectations of the City for the funding, installation and operation of the
Project, including Surplus Land Act (“SLA”) compliance considerations and procedures
as may be required (if requested, separate service to be provide by Kosmont Realty on a
to-be-agreed-upon budget).
Task 2: Develop Financing, Ownership and Operating Structure Options
Based on the information provided by the City in the initial Kick-Off meeting and
subsequent correspondence, Consultant will develop and present a proposed project
funding plan for consideration by the City.
Deliverable: a memorandum or PowerPoint presentation that will include proforma
cashflow analyses and descriptions of the strengths and weaknesses of the proposed
funding plan developed for consideration by the City and the Finance Advisory
Committee, Civic Center Advisory Committee, and City Council. Consultant will attend
3 or 4 meetings in person at City’s discretion to present and discuss the proposed funding
plan, as follows: one Finance Advisory Committee, up to 2 joint Finance Advisory
Committee/Civic Center Advisory Committee, and one City Council meeting.
Task 3 (Optional): Transactional Assistance with Issuance of Securities
At the request of the City’s Contract Officer, Consultant shall assist the City with the
process of issuing municipal securities to acquire tax-exempt (or taxable, as may be
applicable) financing to fund Project costs in accordance with the chosen Project
structure. Such optional tasks would be performed under a separate agreement and would
include, in general, the following tasks:
• Provide understanding of the regulations and rules governing the issuance of tax-
exempt of debt
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• Determine, based on the preferred financing mechanism chosen from Task 2,
which financing vehicles and corresponding terms would be most beneficial to the
City and Project, as applicable or appropriate, including but not necessarily
limited to:
o Term (length) of the financing
o Optimal amortization structures
o Coverage requirements
o Additional bonds tests
o Tax Exempt or Taxable structures
o Call features (length, price)
o Parity tests
o Subordinate debt
o Reserve funds, surety bonds, capitalized interest
o First coupon/principal payment
o Cash flow analysis
o Senior/subordinated structures
o Other pledges and covenants as may be applicable or advisable
• Develop and prepare credit analysis of the chosen structure to properly market the
issue to capital markets
• Assist in preparation/revision of legal documents (resolutions, official statements,
indentures, etc.) to ensure requisite provisions are contained therein, protecting
the City’s interests and addressing:
o Accuracy of security features
o Compliance with disclosure rules as necessary
o Compliance with industry standards
o Eligibility for tax exemption, where applicable
• Negotiate with the underwriter on behalf of the City regarding pricing levels
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01203.0002/901232.6
II. As part of the Services, Consultant will prepare and deliver the following tangible
work products to the City: See Section I, above.
III. In addition to the requirements of Section 6.2, during performance of the Services,
Consultant will keep the City updated of the status of performance by delivering the
following status reports: NOT APPLICABLE
IV. All work product is subject to review and acceptance by the City, and must be
revised by the Consultant without additional charge to the City until found
satisfactory and accepted by City.
V. Consultant will utilize the following personnel to accomplish the Services:
A. Larry Kosmont, CEO
B. Dan Massiello, Senior Managing Director
C. Will Soholt, Senior Vice President
B-17
DocuSign Envelope ID: CD87D3E9-9BE5-4CAF-BD8B-3C91BD0F8AC6
EXHIBIT “B”
SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
Added text is indicated in bold italics, deleted text is indicated in strikethrough.
I. Section 5.1, Insurance Coverages, is amended to read:
5.1 Insurance Coverages. Without limiting Consultant’s indemnification of City, and
pPrior to commencement of any services under this Agreement, Consultant shall obtain, provide
and maintain at its own expense during the term of this Agreement, policies of insurance of the
type and amounts described below and in a form satisfactory to City.
(a) General liability insurance. Consultant shall maintain commercial general liability
insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an
amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury,
personal injury, and property damage. The policy must include contractual liability that has not
been amended. Any endorsement restricting standard ISO “insured contract” language will not
be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile insurance at
least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property
damage for all activities of the Consultant arising out of or in connection with Services to be
performed under this Agreement, including coverage for any owned, hired, non-owned or rented
vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall maintain
professional liability insurance that covers the Services to be performed in connection with this
Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy
inception date, continuity date, or retroactive date must be before the effective date of this
Agreement and Consultant agrees to maintain continuous coverage through a period no less than
three (3) years after completion of the services required by this Agreement.
(d) Workers’ compensation insurance. Consultant represents that it has no
employees. In event Consultant’s employee status changes during the Term of the Agreement,
Consultant shall be required to obtain and maintain Workers’ Compensation Insurance
(Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each subcontractor.
All coverages for subcontractors shall include all of the requirements stated herein.
(f) Additional Insurance. Policies of such other insurance, as may be required in the
Special Requirements in Exhibit “B”.
01203.0002/901232.6 B-1
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II. Section 5.3, Indemnification, amended to read:
5.3 Indemnification. To the full extent permitted by law, Consultant agrees to
indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified
Parties”) against, and will hold and save them and each of them harmless from, any and all
actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or
property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or
threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or
entity arising out of or in connection with the negligent performance of the work, operations or
activities provided herein of Consultant, its officers, employees, agents, subcontractors, invitees,
or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from
Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or
indemnitors’ negligent performance of or failure to perform any term, provision, covenant or
condition of this Agreement, except claims or liabilities occurring as a result of City’s sole
negligence or willful acts or omissions. The indemnity obligation shall be binding on successors
and assigns of Consultant and shall survive termination of this Agreement for a period of four
(4) years from the date of completion of the Services, or the date of termination or expiration
of the Agreement, whichever occurs later.
01203.0002/901232.6
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01203.0002/901232.6
EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. Consultant shall perform the following Services at the following rates:
Additional expenses:
o Out-of-pocket expenditures, such as travel and mileage, professional
printing, and delivery charges for messenger and overnight packages will be
charged at cost.
o Project/Market data sources for support of evaluation and analysis e.g.,
ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest, Refinitiv and other based on
quoted project cost.
o Approved subcontractors’ fees and cost will be billed at subcontractor’s
rates, but in no event at rates higher than the above.
o Consultant’s attendance or participation at any public meeting, whether
such participation is in person, digital, video and/or telephonic (e.g., City Council,
Planning Commission, Public Agency Board, other) requested by Client and are
beyond those specifically identified in the Scope of Work will be billed at the
above rates.
II. A retention of ten percent (10%) shall be held from each payment as a contract
retention to be paid as a part of the final payment upon satisfactory completion of
services. NOT APPLICABLE
III. Within the budgeted amounts for each Task, and with the approval of the Contract
Officer, funds may be shifted from one Task subbudget to another so long as the
Contract Sum is not exceeded per Section 2.1, unless Additional Services are
approved per Section 2.3.
C-1
B-20
President & CEO
Sr. Managing Director/ Sr. Vice President/ Senior Advisor
Vice President
Senior Project Analyst
Project Analyst / Project Research
Assistant Project Analyst / Assistant Project Manager
Project Promotion/Graphics/GIS Mapping Services
Clerical Support
$445.00/hour
$350.00/hour
$225. 00/hour
$195.00/hour
$165 .00/hour
$125.00/hour
$ 95.00/hour
$ 70 .00/hour
DocuSign Envelope ID: CD87D3E9-9BE5-4CAF-BD8B-3C91BD0F8AC6
01203.0002/901232.6
IV. The City will compensate Consultant for the Services performed upon submission of
a valid invoice. Each invoice is to include:
A. Line items for all the work performed, the number of hours worked, and the
hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting
documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials,
and travel properly charged to the Services.
V. The total compensation for the Services shall not exceed the Contract Sum as
provided in Section 2.1 of this Agreement.
VI. Consultant’s billing rates for all personnel are attached as Exhibit C-1. NOT
APPLICABLE
B-21
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01203.0002/901232.6
EXHIBIT “D”
SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services timely in accordance with the following
schedule:
Deadline Date
A. Task 1 July 13, 2023
B. Task 2 August 15, 2023
C. Task 3 (Optional) TBD
II. Consultant shall deliver the following tangible work products to the City by the
following dates. See Exhibit “A” Scope of Work, Section I.
III. The Contract Officer may approve extensions for performance of the services in
accordance with Section 3.2.
D-1 B-22