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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.