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HomeMy WebLinkAbout25 - Tidelands Appraisal Request for Proposal• E ITEM ..2s TO: Members of the Newport Beach City Council FROM: Dave Kiff, Deputy City Manager SUBJECT: Request for Proposals (RFP) - Tidelands Appraisal RECOMMENDED ACTION: Direct staff to issue Request for Proposals as presented. BRIEF At its 1999 Goal Setting session in January and at a Study Session on March 8, SUMMARY: 1999, City staff presented the Council with information about the administration of the City's tidelands (submerged and tidal lands in and around Newport Bay and the Pacific Ocean). At the conclusion of the second meeting, the City Council directed staff to return to the Council with a Request for Proposals (RFP) that would ask respondents to bid on an appraisal of City -owned and managed tidelands -such an appraisal would assign a market rental rate to various use classifications in Newport Harbor. These uses will likely include public and private marinas, piers, moorings, boat service operations, and more. This item contains the RFP and asks for the Council's approval of the RFP's scope of work, selection process, and proposal format. BACKGROUND: "Tidelands" refers to land owned by the State of California but administered by the City pursuant to various legislative grants. About 1,168 acres of the City/s 10,700 acres are tidelands (roughly 10 %). Tidelands are those lands that, on the date of California's admission to the United States, were below the line of mean high tide, subject to changes due to natural processes. Tidelands are subject to a public trust for navigation, commerce and fishing. Beginning in 1919, the State granted certain tidelands to the City (tideland grants). The tideland grants covered only tidelands within our corporate limits so City tidelands are, with few exceptions, limited to Lower Newport Bay. The tideland boundaries in Lower Newport Bay were, for the most part, established by judgments issued in a number of Superior Court lawsuits filed in the late 1920s and early 1930s. Tidelands may be used for any purposes consistent with the trust. In some cases, such as portions of Beacon Bay and the Balboa Bay Club property, the Legislature has removed trust restrictions subject to certain conditions including a requirement that revenue generated by the property be used for tideland Newport Beach City Council Page 2 BACKGROUND: purposes. Some of the permitted uses are described in the most comprehensive (cont'd) legislative grant commonly known as "the Beacon Bay Bill." . At the City Council's March 8,1999 meeting, the Council heard an hourlong staff presentation on several issues relating to the City's administration of tidelands. These issues included: O Administration -is the City's use of the tidelands grant consistent with the "general statewide interest" of the trust? • Equity -has the City set up a payment system that is equitable for specific classes of tidelands users, like mooring penmittees, those entities on full tidelands leases, and commercial and residential harbor permittees? • Monitoring -does the City appropriately monitor its tidelands permits and leases to ensure that permittees and lessees are complying with the permit and lease requirements? • Current Cost Recapture -is the City appropriately recapturing its costs relating to current tidelands activities? ® Future Cost Recapture - what future costs should the City recapture through permits and leases? The Council directed staff to begin work on Issue 2 -Equity -by preparing an RFP for a tidelands appraisal that would classify and assign a market rental rate to the various tidelands uses. These uses include: • 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 retail operations. • Boat moorings, including shore moorings and offshore moorings. In preparing the RFP, we have asked qualified respondents to assist the City not just in assigning a monetary value to the harbor's uses, but in developing a classification system for each use. Using the classification system, the City will be able to administer each of the six, seven, or eight anticipated classes in a uniform manner, The attached RFP (Attachment A) includes the scope of work anticipated by the successful respondent, the selection criteria that the City will use to judge the respondents, and the format in which City staff requires respondents to submit their proposals. As the Council will note from the RFP, staff will present a final recommended respondent to the Council for the Council's formal approval. This agenda item asks the City Council's approval to issue the attached RFP. ATTACHMENT: Exhibit A - Proposed Request for Proposals (RFP) • 0 0 Exhibit A - Proposed RFP Page 3 Request for Proposals CITY OF NEWPORT BEACH CITY MANAGER'S OFFICE Dave Kiff, Deputy City Manager 949/644 -3002 CLASSIFICATION AND APPRAISAL OF HARBOR USES SYNOPSISOFRFR.. 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 activity will lead to the development of a rate structure and property management plan for these assets. A map of these properties is included as Attachment A. These asset classes include, but are not limited to: • 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 retail operations. • Boat moorings, including shore moorings and offshore moorings. 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 propose to the City a classification system reflecting the variety of Harbor uses, shall compare and discuss various systems of administering these classifications (via permits or leases, for example), and shall value or appraise the market rental rate applicable to each classification where appropriate. SCOPEOFWORK The Scope of Work reflecting this Appraisal shall include: 1) Identification of Harbor Uses. The selected consultant shall comprehensively identify the types or classes of harbor uses under City jurisdiction and /or management. For example, the City currently is aware of mooring uses, boat sales and repair uses, charter" party" boat uses, public and private marinas, yacht clubs, and several more types of harbor uses. As a part of this component of the Scope of Work, the consultant need not individually identify each specific property or property owner, instead basing the class identification in part on the inventory provided (Attachment B - "Leases'" and Attachment C - 'Commercial permits'). 2) Classification of Harbor Uses. After identifying these uses, the consultant shall select a category of use that appropriately names and classifies common or related I NOTE: The consultant shall only review properties identified in BOLD m the 'Leases' Exhiibit and any or all properties identified m the 'Conm weal Permits" extak • RFP — Ctasshcatlon andAppraisa! of Harbor Uses September 27, 1999 Page 2 SCOPEOFWORK uses. Secondly, the consultant shall compare and discuss alternative (cont'd) administrative tools to manage each classification (such as permits or leases). 3) Valuation of Classifications. In this step, the consultant shall make a general appraisal of the market rental rate of the assets within each category or 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 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. The purpose of this appraisal is to assign a market rental rate appropriate for each category or classification. Any assigned value shall be flexible enough to allow the City to reasonably reflect minor variations in harbor uses WITHIN specific classifications and to adjust any lease rate accordingly. The valuation analysis shall further compare and discuss the market rental rate applicable under the various alternative administrative systems identified in Step 2. 4) Appraisal Report. The selected consultant shall prepare and complete an Appraisal Report reflecting all portions of this Scope of Work. 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. 5) Council Meeting Attendance. As needed, the consultant shall be available to attend any City Council meeting where the consultants Appraisal Report is discussed. During these meetings, the consultant may be asked to answer questions about the Consultants work and /or present the Report itself. 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. RFP — Classification and Appraisal of Harbor Uses September 27, 1999 Page 3 FROPOSALFORMA'P`. Proposers must submit responses to this RFP in the following 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 harbor - related 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 firm's expected payment schedule. CLOSINGTEMEAND Your signed proposal must be submitted in a single envelope addressed to and DATE marked as follows: RFP #99 -1(CM) - Classification and Appraisal of Harbor Uses Attn: Dave Kifff, Deputy City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 OPENING The envelope with completed proposal must be received at the above address on PROCEDURE or before 5:00 p.m. on October 21,1999. Late proposals will not be accepted. There will be no public opening of proposals. Prices and other proposed 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 bids. CONIRACFAWARD The City anticipates awarding a contract on or before November 8, 1999. The DAT$FROJBCrEND consultant shall complete the Scope of Work within 90 days of Award of Contract. DATE-,INFORMATION The City encourages proposers to contact the City for further information. Please direct your inquiries to Dave Kiff at 949/644 -3002. ATTACHMENTS: Attachments A (Map); B (Tidelands Leases); and C (Commercial Permits) • • Request for Proposals CITY OF NEWPORT BEACH CITY MANAGER'S OFFICE Dave Kiff, Deputy City Manager 949/644 -3002 CLASSIFICATION AND APPRAISAL OF HARBOR USES SYNOPSLSOFRFR 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 activity will lead to the development of a rate structure and property management plan for these assets. A map of these properties is included as Attachment A. These asset classes include, but are not limited to: • 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 retail operations. • Boat moorings, including shore moorings and offshore moorings. • 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 propose to the City a classification system reflecting the variety of Harbor uses, shall compare and discuss various systems of administering these classifications (via permits or leases, for example), and shall value or appraise the market rental rate applicable to each classification where appropriate. SCOPEOFWORK The Scope of Work reflecting this Appraisal shall include: 1) Identification of Harbor Uses. The selected consultant shall comprehensively identify the types or classes of harbor uses under City jurisdiction and /or management. For example, the City currently is aware of mooring uses, boat sales and repair uses, charter "party" boat uses, public and private marinas, yacht clubs, and several more types of harbor uses. As a part of this component of the Scope of Work, the consultant need not individually identify each specific property or property owner, instead basing the class identification in part on the inventory provided (Attachment B - "Leases'" and Attachment C - "Commercial Permits "). 2) Classification of Harbor Uses. After identifying these uses, the consultant shall select a category of use that appropriately names and classifies common or related NOTE The consultant shall only review properties tdmtified N BOLD m the'Leases' Exldbit and any or all properties identified on the'Comm=W Permits' exlublL RFP — Classification and Appraisal of harbor Uses September 27, 1999 Page 2 SCOPEOFWORK uses. Secondly, the consultant shall compare and discuss alternative . (cont'd) administrative tools to manage each classification (such as permits or leases). 3) Valuation of Classifications. In this step, the consultant shall make a general appraisal of the market rental rate of the assets within each category or 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 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. The purpose of this appraisal is to assign a market rental rate appropriate for each category or classification. Any assigned value shall be flexible enough to allow the City to reasonably reflect minor variations in harbor uses WITHIN specific classifications and to adjust any lease rate accordingly. The valuation analysis shall further compare and discuss the market rental rate applicable under the various alternative administrative systems identified in Step 2. 4) Appraisal Report. The selected consultant shall prepare and complete an Appraisal Report reflecting all portions of this Scope of Work. 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. 5) Council Meeting Attendance. As needed, the consultant shall be available to 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. SELECITONPROCESS. 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. 0 RFP — Classification and Appraisal of Harbor uses September 27,1999 Page 3 • PROPOSALIORMAT: Proposers must submit responses to this RFP in the following 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 harbor- related 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 firm's expected payment schedule. CLOSINGTIMEAND Your signed proposal must be submitted in a single envelope addressed to and DATE: marked as follows: RFP #99 -1(CM) -Classification and Appraisal of Harbor Uses Attn: Dave Kiff, Deputy City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 OPINING The envelope with completed proposal must be received at the above address on PROCEDURE or before 5:00 p.m. on October 21, 1999. Late proposals will not be accepted. There will be no public opening of proposals. Prices and other proposed 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 bids. CONTRACTAWARD The City anticipates awarding a contract on or before November 8, 1999. The DAT$PRO)ECTEND consultant shall complete the Scope of Work within 90 days of Award of Contract. DATE MaORMATION The City encourages proposers to contact the City for further information. Please direct your inquiries to Dave Kiff at 949/644 -3002. 40 ATTACHMENTS: Attachments A (Map) • B (Tidelands Leases); and C (Commercial Permits) NOT INCLUDED IN CITY COUNCIL PACKET