CITY COUNCIL STAFF REPORT
Meeting Date: May 01, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 AUTHORIZING THE CITY
MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT FOR FY 2023/24-2025/26 WITH RSG, INC. FOR
FINANCIAL AND ADMINISTRATIVE SERVICES FOR THE
REDEVELOPMENT AND HOUSING SUCCESSOR AGENCIES
SYNOPSIS
The proposed resolution authorizes the City Manager to execute a professional services agreement with RSG, Inc. (RSG) for the next three fiscal years to provide continued financial and administrative services to the Pleasant Hill Redevelopment and Housing Successor Agencies.
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 is specially trained, experienced, and competent to perform the scope of work required and has demonstrated expertise on the ongoing long-term projects specific to Pleasant Hill’s Redevelopment and Housing Successor Agencies.
RSG will complete the scope of the existing contract by June 30, 2023. The City would like to enter into a new contract with RSG for FY 2023/24 through FY 2025/26 to perform the scope of work included with the attached draft professional services agreement.
Staff is therefore requesting the City Council’s authorization to enter into a multi-year agreement with RSG for a total not to exceed amount of $180,000 over three fiscal years as shown below.
Item Year 1
(2023/2024)
Year 2
(2024/2025)
Year 3
(2025/2026)
TOTAL
Housing Successor Agency
Services
$35,000 $35,000 $35,000 $105,000
Redevelopment Successor
Agency Services
$25,000 $25,000 $25,000 $75,000
TOTAL $60,000 $60,000 $60,000 $180,000
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. RSA services are all related to the wind-down of the former redevelopment agency and include: the preparation of the annual reports and schedules; responding to inquiries from staff, the County Oversight Board, the Department of Finance, and the County Auditor-Controller; computation and assistance with reimbursement payments; and the preparation of materials for meetings. Housing services include preparation of the HSA annual report, compliance monitoring (for The Post Apartments negotiated in May 2022); annual compliance monitoring for existing and new affordable housing projects approved by the City (including projects resulting from the City’s Housing Element); assistance with affordable housing projects with Habitat for Humanity (“Habitat”) and Satellite Affordable Housing Associates (“SAHA”); and general advisory services as needed.
RSG has proposed to complete the scope of work for a total cost not-to-exceed $180,000 over the three-year contracting period ending June 2026, which staff believes is a reasonable and competitive cost.
FISCAL IMPACT
Adoption of the proposed resolution and execution of the proposed agreement will result in a new multi-year professional services agreement with a not-to-exceed cost of $180,000 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 Asset 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
Professional Services Agreement
Prepared by: Danielle K. Navarro, Principal Management Analyst/City Clerk 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