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Title:
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Approval of an Amendment to an Existing Professional Services Agreement with Macias Gini & O’Connell LLP to Perform Due Diligence Reviews as Required by AB 1484.
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City of Culver City, California
Agenda Item Report
Meeting Date: 10/22/2012 Item Number: C-1
BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE CULVER CITY
REDEVELOPMENT AGENCY AGENDA ITEM: Approval of an Amendment to an
Existing Professional Services Agreement with Macias Gini & O’Connell LLP to
Perform Due Diligence Reviews as Required by AB 1484.
Contact Person/Dept.: Jeff Muir,
Finance
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (10/18/12); Successor
Agency (10/17/12)
Department Approval:
Jeff Muir (10/12/12)
Successor Agency General Counsel Approval:
Carol Schwab (by H. Baker) (10/15/12)
Chief Financial Officer Approval:
Jeff Muir (10/12/12)
Executive Director Approval:
John Nachbar ()
RECOMMENDATION:
Staff recommends the Board of Directors of the Successor Agency to the Culver City
Redevelopment Agency (the “Successor Agency”) approve an amendment to the
existing professional services agreement with Macias Gini & O’Connell LLP in the
amount not-to-exceed $100,000 to perform the due diligence reviews as required by
AB 1484.
BACKGROUND / DISCUSSION:
Pursuant to Health and Safety Code Section 34179.5, each successor agency must
employ a licensed accountant, approved by the county auditor-controller and with
experience and expertise in local government accounting, to conduct a due diligence
review to determine the unobligated balances available for transfer to taxing entities.
Each review must determine the net balance of the Low and Moderate Income
Housing Fund (the “LMIHF”) and specifically the amount of cash and cash
equivalents determined to be available for allocation to taxing entities as of June 30,
2012 (the “Due Diligence Review”). Section 34179.5 also requires a similar review
of all other funds and accounts held by the successor agency to determine
unobligated balances available for transfer to taxing entities.
Health and Safety Code Section 34179.6 requires each successor agency to submit
the Due Diligence Review to the oversight board for the oversight board’s review
and approval.
City of Culver City, California
Agenda Item Report
Due to the short time constraint to complete the Housing due diligence review, a
contract for $30,000 was approved by the Executive Director with the firm of Macias
Gini O’Connell (MGO). The final cost of the Housing due diligence review was
$33,000. The additional cost for the second due diligence review for all non-housing
assets will be much more comprehensive and is estimated at up to $67,000.
Therefore, staff is recommending the Successor Agency Board approve an
amendment to the existing agreement, making the not-to-exceed amount $100,000.
FISCAL ANALYSIS:
The total cost for both required due diligence reviews is not expected to exceed
$100,000. This amount will be funded by the Administrative Cost Allowance.
ATTACHMENTS:
None
MOTION:
That the Successor Agency Board:
1) Approve an amendment to the existing professional services agreement with Macias
Gini & O’Connell LLP in the amount not-to-exceed $100,000 (a $70,000 increase) to
perform the due diligence reviews as required by AB 1484;
2) Authorize Successor Agency General Counsel to review/prepare the necessary
documents; and
3) Authorize the Executive Director to execute such documents on behalf of the
Successor Agency.