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CONTRACT 5859A Amendment CLOSEDAgreement No. 5859A FIRST AMENDMENT TO AGREEMENT NO. 5859 BETWEEN THE CITY OF EL SEGUNDO AND KOSMONT & ASSOCIATES, INC. THIS FIRST AMENDMENT ("Amendment") is made and entered into this 18th day of May, 2021, by and between CITY OF EL SEGUNDO, a general law city and municipal corporation existing under the laws of California ("City"), and KOSMONT & ASSOCIATES, INC., doing business as KOSMONT COMPANIES, a California Corporation ("Consultant"). Pursuant to Sections 11 and 33 of Agreement, the parties desire to amend Sections 1.4 and 1.5 of the exhibit to the agreement as described in the attached Exhibit A. 2. Pursuant to Section 33 of Agreement Section I (C) is amended to increase the amount of the Agreement by Forty Four -Thousand Dollars ($44,000.00), for Consultant's services. 3. This Amendment may be executed in any number of counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date. 4. Except as modified by this Amendment, all other terms and conditions of Agreement No. 5859 will remain the same. IN WITNESS WHEREOF, the parties hereto have executed this Amendment the day and year first hereinabove written. CITY OF EL SEGUNDO for Scott Mitnick, City Manager ATTEST: for Tracy Weaver, City Clerk APPROVED AS TO FORM: U3 � Lc-;< for Mark D. Hensley, City Attorney KOSMONT & ASSOCIATES. INC. Larry J. Kosmont Chairman & CEO Agreement No. 5859A A' kos;6n. con,,nl March 11, 2021 EXH I BIT A Scott Mitnick City Manager City of El Segundo 350 Main Street El Segundo, CA 90245 Re: Proposal for Real Estate Project Advisory Services — Amendment to Agreement Dear Mr. Mitnick: Kosmont & Associates, Inc. doing business as Kosmont Companies ("Consultant" or "Kosmont") is pleased to present this proposal for real estate advisory and project funding consulting services to the City of El Segundo ("Client" or "City") for general real estate economics / finance and related transactional advisory and implementation services to support various projects, including, but not limited to, a downtown revitalization program. This proposal serves as an Agreement when executed and returned by Client to Kosmont. I. BACKGROUND AND OBJECTIVE Kosmont understands that the Client is seeking generalized real estate, economic development and real estate public and private financing services for a variety of projects including, but not limited to, its downtown area. On March 12, 2020 Client and Consultant entered into an original agreement to provide Real Estate Project Advisory Services. At this time, Client and Consultant wish to amend that agreement to increase the total budget of $44,000 by $35,000 to $79,000. II. SCOPE OF SERVICES Approach to Scope of Services: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client, including its elected officials, appointed officials and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position. 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.,kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 2 of 9 Task 1: Due Diligence Activities A. SITE/PROJECT ASSESSMENTS a. Conduct preliminary property/project due diligence. b. Identify physical conditions affecting land use and value. c. Consider alternative sites for public facilities as needed. B. MARKET EVALUATIONS a. Evaluate market value / pricing ranges. b. Confirm/Review developer demand evaluations and proposed tenant mix. Task 2: Project Implementation A. DEVELOPER SCREENING ACTIVITIES: Economic Analysis, Deal Structure and Negotiation Assistance a. Consultant will assist City in the recruitment and perform outreach with commercial developers. Activities will include targeted developer outreach, preparation and dissemination of marketing, due diligence and site material. b. Consultant will conduct financial, pro forma evaluation, market and proposed transaction structure evaluations including fiscal / economic benefit studies as needed to assist City in structuring an acceptable public private transaction with a selected developer (to be determined). B. ACQUISITION AND TRANSACTION ACTIVITIES a. Assist City to identify relevant considerations / strategies pertinent to the acquisition or disposition of the properties as it pertains to the revitalization of the Downtown focus area. b. If needed, Kosmont Real Estate Services ("KR", licensed California Brokerage Service Firm) will represent the City in the negotiation of formal property acquisition / disposition activities. c. KR shall work with the City on potential terms and conditions of any disposition or ground lease of public agency owned properties (e.g. preferred transaction structure and price range objectives). Task 3: Other Projects (as assigned) a. As assigned and mutually agreed with City, Consultant can provide assistance with real estate evaluation and advisory services as related to projects, development agreements and other strategic and transactional matters. b. As requested, Consultant will provide real estate and related public finance (through Kosmont Transaction Services, "KTS") and brokerage services (through KR). KTS and KR services may require separate agreement pursuant to licensing requirements. KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #362, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 3 of 9 III. SCHEDULE AND REQUIRED DATA Consultant is prepared to commence work upon receipt of executed Agreement. Client will provide Consultant with relevant existing project data including information on real estate and financial evaluation projects. IV. COMPENSATION Compensation for real estate and project finance services activities shall be on a time and materials basis with project budgets established for each assignment. Compensation for Tasks 1 through 3, is estimated at $35,000 (which is in addition to the original budget of $44,000, for a total of $79,000). All professional services (hourly) fees will be invoiced at Consultant's billing rates as shown on Attachment A. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time. Services will be invoiced monthly at Consultant's standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for out-of-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client's prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out -of -area travel, if any, requires advance funding of flights and hotel accommodations. Consultant will also include in each invoice an administrative services fee to cover in- house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant's monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum. For the convenience of Kosmont's clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment: 1. Fill in the "Make a Payment' form when you go to the link (htt s:l/kosmont, aid et.cor-n), or 2. Call Kosmont Companies' accounting desk (Ms. Charo Martinez; (424) 297-1072) to make a credit card payment Consultant is prepared to commence work upon receipt of executed Agreement. DISCLOSURE: Compensation for possible future transaction -based services or brokerage services. The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client. KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 4 of 9 When assignments involve real estate/property brokerage services, such transaction - based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty ("KR") is licensed by the State of California Department of Real Estate (License# 02058445). Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value ("BOV') services on a fixed fee basis. When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Transactions Services, Inc. ("KTS"). KTS is registered with the Securities and Exchange Commission (CIK# 0001769359) and the Municipal Securities Rulemaking Board as a Municipal Advisor (ID# K1256). SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators. V. OTHER PROVISIONS A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full. B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge. The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non -appealable and may be entered in any court having jurisdiction. C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered. KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382. Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 5 of 9 D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement. E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement. F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party. G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. H. Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement. I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law. J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph. K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein. L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement. KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #362, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 6 of 9 M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law. N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature. O. Disclaimer. Consultant's financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client's reliance on Consultant's analysis must consider the foregoing. Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client's understanding and by execution of this Agreement, acknowledgement that Consultant's services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant. Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement. P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client. Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide -spread power failures and wide -spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay. R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire. S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #362, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 8 of 9 VI. ACCEPTANCE AND AUTHORIZATION If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement. Read, understood, and agreed to this Day of 2021 City of El Segundo Kosmont & Associates, Inc. doing business as "Kosmont Companies" By: (Signature) By: (Signature) Name: Name: Ken K. Hira (Print Name) Its: Its: President (Title) KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com Agreement No. 5859A City of El Segundo Real Estate Project Advisory Services — Amendment to Agreement March 11, 2021 Page 9 of 9 ATTACHMENT A Kosmont Companies 2021 Public Agency Fee Schedule Professional Services Chairman & CEO $375.00/hour President $345.00/hour Senior Vice President/Senior Advisor $305.00/hour Vice President $210.00/hour Senior Project Analyst $195.00/hour Project Analyst/Project Research $165.00/hour Assistant Project Analyst/Assistant Project Manager $125.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 70.00/hour 0 Additional Expenses In addition to professional services (labor fees): 1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus 2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) If Kosmont retains Third Party Vendor(s) for Client (with Client's advance approval), fees and cost will be billed to Client at 1.1 X (times) fees and costs. 4) 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 professional services (hourly) fees as shown on this Attachment A. Charges for Court/Deposition/Expert Witness -Related Appearances Court -related (non -preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum. Rates shall remain in effect until December 31, 2021, KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #362, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com