June 18, 2024
Community Development
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Subject:
Contract Amendment No. 2 with Macias Gini & O'Connell,
LLP
FINANCIAL IMPACT: The costs associated with this contract will be paid for using Housing Admin Fund (12031063-400201).
PREVIOUS COUNCIL
ACTION:
December 20, 2022
STATEMENT OF THE
ISSUE:
To maintain the Richmond Neighborhood Stabilization
Corporation’s non-profit status, the corporation is
required to complete annual income tax filings. A contract amendment with Macias Gini & O’Connell, LLP is
requested to continue assisting in the preparation of
federal and state income tax returns for 2023-2025.
RECOMMENDED ACTION:
APPROVE a second contract amendment with Macias
Gini & O’Connell, LLP to increase the contract limit by $9,900, for a total amount not to exceed $35,150, and to extend the term to December 31, 2026, with two
additional one-year options not to exceed an additional $9,900 per extension to potentially increase the total not- to-exceed contract amount up to $54,950, to continue
assisting in preparing federal and state income tax
returns for 2023-2025 for the Richmond Neighborhood
Stabilization Corporation – Community Development
Department (Lina Velasco 510-620-6706).
AGENDA
REPORT
June 18, 2024
DISCUSSION:
As part of the Neighborhood Stabilization Program (NSP), the Housing Division created the Richmond Neighborhood Stabilization Corporation (“Richmond NS Corporation” or “Corporation”), a non-profit, public benefit corporation to implement program elements.
The 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 is required to complete income tax filings on an annual basis.
City staff executed a short form contract in December 2021 to complete certain tax returns. After beginning the reinstatement process, additional tax filings were identified as being needed; therefore, City staff prepared a first amendment for City Council approval to add additional funds to complete the required federal and state tax returns in December 2022. Reinstatement of the Corporation was achieved in 2023; however, its good standing must be maintained. Therefore, City staff is requesting City Council authorization to amend the current contract with Macias Gini & O’Connell, LLP to increase the contract amount by $9,900, for a total amount not exceeding $35,150, with two additional one-year options not to exceed an additional $9,900 per extension, to potentially increase the contract amount up to $54,950 to continue assisting in preparing the federal and state income tax returns for the Corporation. The additional funds will cover the costs of preparing the Federal and State tax filing for tax years 2023-2025.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 2
Attachment 2 – Original Contract and Amendment No. 1