Resolution 09940CITY OF ALAMEDA RESOLUTION NO. 9940
AUTHORIZING EXECUTION OF AN AMENDMENT TO THE AGREEMENT
WITH PIEDMONT ASSOCIATES FOR SERVICES RELATIVE TO THE
COMMUNITY DEVELOPMENT DISTRICT
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ALAMEDA that
the proposal of Piedmont Associates dated October 19, 1982, a
copy of which is attached, revising the fee arrangement for its
services relative to the Community Development District, is
hereby accepted' and
BE IT FURTHER RESOLVED that the Mayor is hereby authorized
to execute and accept, and the City Clerk to attest, said
Proposal on behalf of the City and
BE IT FURTHER RESOLVED that said Proposal and this Resolution
shall constitute the amended contract of the parties hereto.
Attest:
Mayor,er the City of Alameda
PIEDMONT ASSOCIATES
Community Planning, Finance and Development Services
October 19, 1982
Mr, J. Bruce Rupp
City Manager
City of Alameda
Room 301 - City Hall
Santa Clara at Oak Street
Alameda, CA 94501
Dear Mr. Rupp:
1:40T 2 o 1982
CITY MANAGE' OFHCE
CITY OF ALAMEI)A
In October of 1981 we submitted a proposal to the city of Alameda
concerning the establishment of the West End Community Improve-
ment Project. At that time, we hoped to complete the project by
the Fall of 1982, and estimated the total costs to establish the
project to be approximately $60,000. Of that amount, the
Piedmont Associates work was set at $45,000. The remaining
$15,000 was an estimate for legal services, a map and legal
description, and various filing fees and newspaper
advertisements.
On the basis of this estimation AMVA agreed to underwrite up to
$60,000 for the City to pursue the project, requesting to be
repaid from tax-increment monies if the project is successfully
established.
However, a substantial amount of legal and financial analysis has
been required up-front due to the charter, Patton Way and other
factors, and it is now apparent that we will be working on the
project until at least the spring of 1983.
The net bottom line is that we are faced with a situation in
which the original $60,000 estimate will most probably be
exceeded, due in most part to legal expenses. At this time the
estimated budget is as follows:
Minimum Maximum
Piedmont Associates $ 45,000 $ 45,000
Orrick, Herrington 18,000 25,000
State Board of Equalization )
Certified Mailings
Newspaper Ads and ) 3,500 4,500
Preparation of Official Map )
and Legal Description
$ 66,500 $ 74,500
271 23rd Street, P.O. Box 1170, Oakland, CA 94604 415/839-6944
PIEDMONT ASSOCIATES
Mr- J. Bruce Rupp
- 2 - October 19, 1982
Per discussions with John Erving, AMVA is willing to increase
their "loan" to the City to $63,000. Repayment would be
expected from the first tax-increment revenues received by the
City (Commission)- However, this amount could leave a net
shortfall of $3,500 to $11,500 in the current estimated budget.
Due to the past and expected legal and financial complexities, we
feel that no "shortcuts", especially for legal services, should
be taken merely to keep within the $63,000 budget being under-
written by AMVA. On the other hand, we do not expect the City
to pay "out of pocket" for any amount beyond that being under-
written.
Therefore, Piedmont Associates is willing to defer a portion of
its fee due from the City until tax-increment revenues are re-
ceived, which should be in December, 1984. Should the Project
not be adopted, the deferred fees would be waived and not
collected.
Further, orrick, Herrington is willing to limit their total fee
to a not•to-exceed amount of $25,000, and also to defer any
amount over $18,000, with the same arrangement as for Piedmont.
Accordingly, Piedmont Associates herewith suggests amending its
contract with the City to establish, essentially, a third place
position for collection of its initial fee. Of the $63,000
figure, Orrick, Herrington would receive up to $18,000. The
Board of Equalization fee, the costs of mailings and newspaper
ads, and the cost of preparing the map and legal description
would also be subtracted. The remaining amount, up to $45,000,
would then be due to Piedmont. The difference between the
remaining amount and the $45,000 amount would be the amount to be
deferred.
I regret having to suggest these modifications in the fee ar-
rangement, but due to the extreme complexity of both the legal
and financial work that has been required, this project is
proving to require far greater time and analysis than had been
anticipated. In essence, we and Orrick, Herrington are offering
to work on a contingent basis and defer part of our fees so that
the full and required amount of work can be completed within the
amount of funding available from AMVA. As per the present
Piedmont Associates and Orrick, Herrington contracts with the
City, our portions of the $66,500 to $74,500 amount are for the
work required to help establish a Community Improvement Project
in the City of Alameda, through the point of adoption of a Final
PIEDMONT ASSOCIATES
Mr. J. Bruce Rupp October 19, 1982
Plan for said Project. Should further work be desired by the
City we would of course appreciate the opportunity to be of
assistance.
I hope that this revised fee arrangement will be acceptable to
the City of Alameda, especially since the City will still not
incur any direct costs. If this arrangement is satisfactory,
the Letter of Agreement between the City and AMVA should be
revised by you and signed by AMVA, to reflect the change from
S60,000 to $63,000. Further, sometime in the next few weeks we
can discuss amending our contract with the City.
Sincerely,
7/01
Robert M. Stewart
President
RMS:MAC:at
cc: Richard C. Salladin, Esq.
John Erving
I, the undersigned, hereby certify that the foregoing Resolution
was duly and regularly adopted and passed by the Council of the
City of Alameda in regular meeting assembled on the 7th of December, 1982,
by the following vote to wit:
AYES: Councilmen Didme0t, Gorman, Sherratt, Stone and President Corica - 5.
NOES: None'
ABSENT: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 8th day of December, 1982.