December 20, 2022
Community Development
DATE: December 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Subject: Contract Amendment No. 1 with Macias Gini & O'Connell, LLP
FINANCIAL IMPACT: The costs associated with this contract will be paid for using Housing Admin Fund, account string 12031063-
400201.
PREVIOUS COUNCIL
ACTION:
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STATEMENT OF THE
ISSUE:
As part of the Neighborhood Stabilization Program, the
Housing Division created the Richmond Neighborhood
Stabilization Program Corporation, a non-profit
corporation to implement program elements. The
corporation is required to complete income tax filings on an annual basis. City staff is requesting City Council
authorization to execute a contract amendment no. 1 with Macias Gini & O’Connell, LLP (MGO) to increase the
contract amount by $15,250 for a total amount not to
exceed $25,250 to continue to assist in the preparation of federal and state income tax returns for the Richmond
Neighborhood Stabilization Corporation.
RECOMMENDED ACTION:
APPROVE contract amendment no. 1 with Macias Gini &
O’Connell, LLP (MGO) to increase the contract limit by
$15,250, for a total amount not to exceed $25,250, and to extend the term to December 31, 2024, to continue to
assist in preparing federal and state income tax returns for the Richmond Neighborhood Stabilization Corporation – Community Development Department (Lina Velasco
510-620-6706).
AGENDA
REPORT
December 20, 2022
DISCUSSION:
As part of the Neighborhood Stabilization Program (NSP), the Housing Division created the Richmond Neighborhood Stabilization Program Corporation (Richmond NSP Corporation or Corporation), a non-profit, public benefit corporation to implement program elements. The corporation is required to complete income tax filings on an annual basis. Unfortunately, due to staffing changes and loss, the Richmond NSP Corporation has been in bad standing for several years for failing to submit income tax returns. The Richmond NSP Corporation continues to own one vacant property in the City, and in order to sell the property, the Corporation needs to be in good standing and get its status reinstated.
City staff members executed a short form contract with MGO to complete the federal tax returns for the Richmond NSP Corporation back in December 2021 after completing an informal solicitation. In the process of completing the reinstatement process, additional tax filings were identified as being needed. Therefore, City staff members are requesting City Council authorization to amend the current contract with MGO to increase the contract amount by $15,250, for a total amount not to exceed $25,250, to continue to assist in the preparation of the remaining federal and state income tax returns for the Richmond Neighborhood Stabilization Corporation. MGO assisted the City previously in preparing the federal income tax returns for tax years ending December 31, 2019, 2020, and 2021. The additional funds will cover the costs of preparing the State tax filing for tax years 2017-2022 and federal form for tax year 2022.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 1
Attachment 2 – Short Form Contract