October 21, 2003
SUBJECT: Amendment of Existing Contract for Downtown Development Economic Analysis and Approval of Budget Modification No. 13 (F0310-24)
REPORT IN BRIEF
Approval is requested for the amendment of an existing contract with Keyser Marston Associates, Inc., of San Francisco for Downtown development economic analysis services for the Department of Community Development Economic Development Division and Budget Modification No. 13 to fund the successful completion of the project.
BACKGROUND

On July 22, 2003, the Redevelopment Agency approved Budget Modification No. 5 (RTC 03-005) which authorized the use of savings derived from bond refunding to fund needed Agency projects, including $49,000 for Downtown development economic analysis. 

Subsequently, the City entered into a time and expenses contract with Keyser Marston Associates, Inc., in an amount not to exceed $49,000 for Downtown development economic analysis.  The scope of services included analyzing the proformas of the developer and devising financing strategies which will benefit the Agency.
EXISTING POLICY

None.

DISCUSSION

Since July, Keyser Marston has worked extensively with staff in the analysis of the proformas of the Forum Development Group and in preparing and conducting lengthy negotiations with Lehman/Forum.  A. Jerry Keyser has also participated in numerous briefings of the Redevelopment Agency.

Work to date has exhausted the funds Council authorized for this purpose.  In order to successfully complete the negotiations, staff recommends that Council authorize additional funding in the amount of $50,000 to complete this project under the existing contract.
FISCAL IMPACT

Staff requests that Council authorize Budget Modification No. 13 to appropriate $50,000 from General Fund Non-Recurring Events to fund the contract amendment of the Downtown Development Economic Analysis project.

BUDGET MODIFICATION NO. 13

FISCAL YEAR 2003/2004

 

Current

 

Increase

(Decrease)

 

 

Revised

Redevelopment Agency Fund

 

 

 

 

 

Expenditures:

Downtown Development Economic Analysis project # 822450

 

       $ 49,000

 

 

$50,000   

 

 

$    99,000 

 

 

 

 

 

 

General Fund

 

 

 

 

 

Reserves:

 

 

 

 

 

Non-Recurring Events

$995,932

 

($50,000)

 

$945,932

PUBLIC CONTACT
None.
ALTERNATIVES
None.
RECOMMENDATION

It is recommended that Council take the following actions:

1.  Authorize the amendment of an existing contract with Keyser Marston Associates, Inc.,  in substantially the same form as the attached draft, and increase authorized expenditures by $50,000, making a total contract not-to-exceed amount of $99,000; and

2.  Approve Budget Modification No. 13.

Prepared by:

Elaine Wesely

Purchasing Officer

 

Reviewed by:

Mary Bradley

Director, Finance

 

Reviewed by:

Robert Paternoster

Director, Community Development

 

Approved by:


Robert S. LaSala

City Manager

ATTACHMENTS

A. Existing Consultant Services Agreement

B. Draft Amendment to Consultant Services Agreement