OCII approves $350,000 amendment for specialized legal services on Hunters Point and Candlestick land transfers

The Commission on Community Investment and Infrastructure on April 7 approved a $350,000 sixth amendment to the agency's long-standing legal-services contract with Schutte Mahali and Weinberger LLP to support land-transfer work tied to the Hunters Point Shipyard and Candlestick Point redevelopment.

Agency staff and Tamsen Drew, senior project manager on the Hunters Point and Candlestick Point project, told commissioners the work is specialized: it includes implementing multiple land-transfer agreements with the California Department of Parks and Recreation and the State Lands Commission, resolving public-trust designations on formerly submerged lands, and advising on revenue accounting and lease terms tied to public-trust constraints. "These land transfer agreements act together to consolidate the current patchwork of interest in land use restrictions," Drew said during the presentation.

Staff said the firm first began work for the agency in 2008 and the amendment would raise the contract total to a not-to-exceed $1,950,000. Commissioners pressed staff on procurement and sole-source justification. Commissioner Singh asked whether other bidders had been considered; staff said the original arrangement predates current staff and, given the technical nature of state public-trust and State Lands work, the agency treated the engagement as a sole-source procurement. A compliance specialist noted the firm has provided similar specialized services on related Bay-area redevelopment projects.

Staff further told the commission the previous (fifth) amendment had been exhausted because transactional and litigation work had been provided under a single contracting authority; litigation work had consumed a portion of the available funds. The agency said it would handle future litigation under a separate contract to preserve transactional authority.

Commissioner Mondejar moved to approve the amendment; Commissioner Singh seconded. The measure passed on a 3–0 roll call with Commissioner Bustos absent. Staff warned that without the additional authority, key closings tied to Alice Griffith and Candlestick Point could be delayed. "Without lifting the public-trust use restrictions off of these parcels, on Candlestick, we would not be able to move forward with the development, as proposed, for those housing units," a staff presenter said.

The commission did not set hourly rates on the record but staff said the rates were competitive for major development work. Staff also said the agency will review its purchasing policy and consult with general counsel about future competitive solicitations for specialized legal services.

The commission approved the amendment; staff said Schutte Mahali and Weinberger LLP and agency staff are available to answer follow-up questions.