CITY COUNCIL STAFF REPORT
Meeting Date: April 04, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 AUTHORIZING THE CITY
MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE
PROFESSIONAL SERVICES AGREEMENT FOR FY 2020/21-2022/23
WITH RSG, INC. FOR FINANCIAL AND ADMINISTRATIVE SERVICES
FOR THE REDEVELOPMENT AND HOUSING SUCCESSOR
AGENCIES
SYNOPSIS
The proposed resolution grants authorization for the City Manager to execute an amendment to an existing professional services agreement with RSG, Inc. to perform financial analysis and provide financial and administrative support for the Successor Agency to the Pleasant Hill Redevelopment Agency (Successor Agency) and the Housing Successor Agency to the Redevelopment Agency (Housing Successor Agency).
DISCUSSION
Background
The Redevelopment Successor Agency (“RSA”) oversees the winding down of financial affairs of the former Redevelopment Agency, including payments of remaining debt obligations incurred by the Redevelopment Agency. The Housing Successor Agency (“HSA”) oversees the former Redevelopment Agency’s affordable housing assets and obligations.
RSG, Inc., was selected in 2015 as the RSA and HSA administrative and financial consultant through a competitive process and has successfully and satisfactorily completed the scope of their original and subsequent contracts.
RSG has completed the scope work authorized under Year 1 (FY 2020/21) and a substantial portion of work authorized under Year 2 (FY 2021/22) of the existing agreement. Over the first half of FY 2021/22, there has been an increased amount of housing related activities that were not originally anticipated, such as reviewing middle-income housing proposals, and additional compliance monitoring of existing and future affordable housing within the City. Thus, the City would like RSG to conduct additional HSA-related work to assist with compliance monitoring; assist with the SAHA construction loan; perform due diligence on two Habitat for Humanity projects; and perform other related tasks as needed, such as review middle-income housing proposals.
Additional funding of $12,500 for Year 2 and $15,000 for Year 3 for a new a total not to exceed amount of $163,500 is necessary to complete the additional scope of work described in the First Amendment to the agreement (attached) and listed below:
Item Year 1
(2020/2021)
Year 2
(2021/2022)
Year 3
(2022/2023)
TOTAL
Affordable Housing $36,000 $25,000
$37,500
$15,000
$30,000
$76,000
$103,500
Successor Agency $20,000 $20,000 $20,000 $60,000
TOTAL $56,000 $45,000
$57,500
$35,000
$50,000
$136,000
$163,500
Analysis
RSG is specially trained, experienced, and competent to perform the scope of work and has demonstrated expertise specific to Pleasant Hill’s Successor Agencies. RSG has proposed to complete the expanded scope of work for the remaining 14 months of the agreement at the cost described above, which staff believes is a reasonable and competitive cost. Staff is therefore requesting the City Council’s authorization to amend the agreement with RSG by $27,500.
FISCAL IMPACT
Adoption of the proposed resolution and execution of the proposed agreement will result in an amended multi-year professional services agreement with a not-to-exceed cost of $163,500 budgeted in the RPTTF - Successor Agency Fund and the Low and Moderate Income Housing Asset Fund. The Successor Agency receives $250,000 of property tax revenue annually from the Contra Costa County Auditor-Controller and California Department of Finance to cover the Successor Agency’s administrative expenses, including staff time and the cost of professional services agreements. Housing related work will be funded from the Low and Moderate Income Housing Fund.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - First Amendment to the Agreement
Prepared by: Danielle K. Habr, Principal Management Analyst Reviewed by: Troy Fujimoto, City Planner
Ethan Bindernagel, Community Development Director/Assistant City Manager (and Executive Director of the Redevelopment Successor Agency) Approved by: June Catalano, City Manager