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05. Agreement - Jones Lang LaSalle Brokerage, Inc.File #: 3370 Claremont City Council Agenda Report TO: TARA SCHULTZ, CITY MANAGER FROM: CHRISTOPHER M. PAULSON, ASSISTANT CITY MANAGER DATE: JUNE 23, 2020 SUBJECT: Item No: 5. Reviewed by: City Manager: TS Finance Director: AP AUTHORIZATION TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH JONES LANG LASALLE BROKERAGE INC., FOR PROFESSIONAL ECONOMIC DEVELOPMENT AND BROKERAGE CONSULTING SERVICES (FUNDING SOURCE: GENERAL FUND) SUMMARY The City entered into a professional services agreement with Jones Lang Lasalle, Inc. (JLL) to provide professional economic development and brokerage consulting services to the City of Claremont in 2016. Since then, JLL has assisted the City in coordinating marketing efforts for commercial properties and drive new retailer interest. The current agreement is set to expire on June 30, 2020; therefore, a new agreement is necessary to continue utilizing the services of JLL. Staff recommends the City Council authorize the City Manager to enter into a new one-year professional services agreement with JLL in an amount not to exceed $36,000, with two optional one-year extensions in the amount of $36,000 each. Total compensation over the maximum potential three-year term will not exceed $108,000. RECOMMENDATION Staff recommends that the City Council authorize the City Manager to enter into a one-year professional services agreement with Jones Lang Lasalle Brokerage, Inc. for professional economic development and commercial real estate brokerage consulting services in the amount of $36,000, with two optional one-year extensions in the amount of $36,000 each. CLAREMONT Page 1 of 3 Printed on 6/18/2020 ALTERNATIVES TO RECOMMENDATION In addition to the staff recommendation, there are the following alternatives: A. Request additional information. B. Take no action. FINANCIAL REVIEW The cost of the agreement is $36,000 per year, does not require bidding, and complies with all City and State guidelines. Funding for the initial one-year agreement is included in the 2020-21 Administrative Services Department budget. The staff cost to prepare this report and administer the agreement is estimated at $464, and is included in the operating budget of the Administrative Services Department. ANALYSIS Jones Lang LaSalle Brokerage, Inc. (JLL) has provided economic development and brokerage services to Claremont since 2016, and the current team assigned to Claremont has provided these services since 2010. JLL has assisted the City in coordinating marketing efforts for commercial properties, helped initiate new retail businesses, assisted staff with recruiting and retaining businesses in the community through the Job Creation and Business Incentive program, and supported efforts to move developments forward. Since the existing professional services agreement term expires June 30, 2020, a new agreement is necessary to continue utilizing the services of JLL. Staff is currently working with JLL to make minor revisions to the agreement, including the scope of work, to better represent the projects the firm is assisting with. The annual cost of the agreement will remain the same during this term. Staff recommends entering into a one-year professional services agreement with JLL for an amount not to exceed $36,000, with two optional one-year extensions in the amount of $36,000 per year. LEGAL REVIEW The professional services agreement will be reviewed and approved as to form by the City Attorney prior to execution. RELATIONSHIP TO CITY PLANNING DOCUMENTS Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds the following: Council Priorities - This item addresses the following Council Priorities "Maintain Financial Stability" and "Increase Livability in our Neighborhoods and Expand Opportunities for our Businesses". Economic Sustainability Plan - This item relates to the Economic Sustainability Plan by helping to ensure the success of our business community. CLAREMONT Page 2 of 3 Printed on 6/18/2020 General Plan - The item addresses Measure 1-22 relating to Business Retention and Attraction Program of the General Plan. 2020-21 Budget - The item meets the Administrative Services Department Work Plan Goal CM -11: Direct all department activities to ensure implementation of City Council policies. CEQA REVIEW This item (entering into a contract for consulting services) is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a "project" as defined in Section 15378). CEQA Guidelines Section 15378(b)(2), (4), and (5) excludes "[c]ontinuing administrative ... activities," "government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment," and "[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment" from its definition of "project." Even if this item were a "project," it is covered by the general rule that the CEQA applies only to projects that have the potential for causing a significant effect on the environment in accordance with Section 15061(b)(3) of the Guidelines. Entering into a contract for consulting services will not, in and of itself, result in any physical changes to the environment. Thus, no additional environmental review is needed at this time. PUBLIC NOTICE PROCESS Due to the current health orders related to the COVID-19 pandemic, parts of the City's regular agenda distribution process have been suspended as public review copies cannot be placed at their regular locations due to facility closures, or limited access. The agenda and this staff report are available on the City's website. If you desire a copy, please contact the City Clerk's Office. Submitted by: Prepared by: Christopher M. Paulson Jamie Earl Assistant City Manager Assistant to the City Manager CLAREMONT Page 3 of 3 Printed on 6/18/2020