Title
Recommendation to Approve a Sixth Amendment to the Agreement with Keyser Marston Associates (KMA), Inc. for Financial Services through June 30, 2017, and Adding $78,000, for a Total Budget Amount of $277,500. (Community Development 70272)
Body
To: Honorable Chair and Members of the Successor Agency
From: John A. Russo, City Manager
Re: Approve a Sixth Amendment to the Agreement with Keyser Marston Associates, Inc. for Financial Services through June 30, 2017, and Adding $78,000, for a Total Budget Amount of $277,500
BACKGROUND
On February 1, 2012, all redevelopment agencies in the State of California were dissolved pursuant to AB X1 26. The Successor Agencies created by the legislation are charged with winding down former agency operations, overseeing the dissolution process in an orderly manner, and meeting regular reporting requirements. Successor Agencies need to take a number of administrative actions, which must be approved by the Oversight Board, in order to comply with the legislation and ensure payment of enforceable obligations. In addition, on June 27, 2012, the Legislature passed, and the Governor signed, AB 1484. The primary purpose of AB 1484 was to make technical and substantive amendments to AB X1 26. AB 1484 took effective immediately.
On March 1, 2012, the Successor Agency to the Community Improvement Commission of the City of Alameda (Successor Agency) entered into a $29,500 agreement with Keyser Marston Associates, Inc. (KMA) to provide financial services to support Successor Agency staff. On August 1 2012, the Successor Agency approved an amendment to the original agreement adding $44,500, expanding the work scope and extending the term to June 30, 2013. A second amendment was entered into on April 17, 2013, adding $15,000. A third amendment extending the agreement to September 30, 2013, was approved on July 1, 2013. A fourth amendment adding $60,000, and extending the agreement to June 30, 2014, was approved on September 17, 2013. A fifth amendment adding $50,000 and extending the agreement to June 30, 2015 was approved October 21, 2014.
It is recommended that a sixth amendment (Exhibit 1) be approved adding $78,500, for a total budget amount of $277,500, and extending the term to June 30, 2017.
DISCUSSION
KMA has been providing financial consulting services to staff since the initial passage of AB x1 26. Financial reporting and other obligations have increased pursuant to AB 1484. KMA helps staff prepare the Recognized Obligation Payment Schedule (ROPS), calculate amounts due on specific enforceable obligations, reconcile prior period expenses, provides support on meet and confer requests and other documentation requested by the Department of Finance (DOF), assists with preparation of the required Long Range Property Management Plan, and attends Oversight Board meetings as requested. KMA continues to provide critical technical expertise to staff in unwinding the affairs of the former redevelopment agency and complying with the requirements of State legislation. At its February 24, 2015 meeting, the Oversight Board approved a resolution authorizing the Successor Agency to approve the sixth amendment to the KMA agreement. Approval of the sixth amendment to the agreement allows the Successor Agency to carry out its financial reporting and other obligations during the next two fiscal years.
FINANCIAL IMPACT
Approving a sixth amendment to the KMA agreement does not impact the General Fund. AB X1 26 and AB 1484 provide for an administrative cost allowance to be funded from Redevelopment Property Tax Trust fund monies (former tax increment monies) to pay for staff and third party consultant costs. There are sufficient funds in the Successor Agency's administrative cost allowance to fund the KMA agreement.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The sixth amendment has been prepared consistent with ABX126 and AB1484 and was approved by the Oversight Board.
ENVIRONMENTAL REVIEW
In accordance with CEQA Guidelines section 15378(b)(4) approval of this agreement is exempt from CEQA as a government fiscal activity.
RECOMMENDATION
Approve a sixth amendment to the agreement with Keyser Marston Associates, Inc. for financial services through June 30, 2017, and adding $78,500, for a total budget amount of $277,500.
Respectfully submitted,
Debbie Potter
Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Sixth Amendment to Agreement with KMA