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HomeMy WebLinkAboutR01-Redevelopment Agency . " o " o o o - - -~ ~ o o o ..~~ ;. t. ~~ . . ~ ~<O""f.~" Ste_ H.1lIWtt ~~ Redevelopment Agency . City of San Bernardino 3OONanh"D"Saeot. _Floor. Smll<mlnlmo, Calif..... 92418 (714) 384-.5081 FAX (714) ....9413 ~~.! JUNE 30, 1989 PROPOSED KATZ, HOLLIS, COREN AND ASSOCIATES CONTRACT AMENDMENT SynoDsls of Previous Commission/Council/committee Act'on: 6/5/89 6/22/89 6/29/89 committee continued to 6/22/89 committee continued to 6/29/89 Committee forwarded matter to commission (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: a. That the Commission approve a proposed amendment to the contract with Katz, Hollis. Coren & Associates, Inc. to provide for expanded services over a one-year term at a cost not to exceed $42,500. - or - b. That the Comm'sslon approve a proposed amendment to the contract with Katz, Hollis, Coren & Associates, Inc. to provide for expanded services over a one-year term at a cost not to exceed $82,500. Supporting data attached: Yes FUNDING REQUIREMENTS: $37,500 Hard: All Project: All commission Notes: SD:lc.p: 1362S Agenda of: July 5. 1989 Item No. I o '0 o o o o o Redevelopment Agency STAFF RE P 0 R T This Is to request that the Commission approve a proposed amendment to the contract with Katz, Hollis, Coren & Associates, Inc. <Katz Hollis) to provide for expanded services over a one-year term at a cost not to exceed $42,500. BACKGROUND On March 20, 1989, the Commission authorized approval of a contract with Katz Hollis to assist In the development of a long-term financial plan for the Agency. It was anticipated that the majority of the work program could be accomplished within 90 days of execution of the contract, and thus the Information would be available by the start of the new fiscal year. Katz Hollis has completed a preliminary assessment and on May 3D, 1989 arrived at several Initial findings/recommendations. These findings/recommendations are summarized below: 1. Agency staff's tax Increment revenue monitoring and verification procedures require some expansion and modification to provide more timely and complete results; 2. Substantial modification to Agency staff's assumptions and methodologies relative to tax Increment revenue projections Is necessary; 3. A systematic analysis of Agency obligations <through bonds or otherwise) and proper accounting for these obligations must be prepared; 4. The Agency needs to modify Its accounting and financial management procedures; and 5. Agency counsel needs to review existing documentation to ascertain whether the Agency Is In conformance with recent housing requirement legislation. AB:mv:1753R 2 o o o o o o o R~"~~memA~D~ In conducting their preliminary assessment of the Agency's fiscal activities. Katz Hollis encountered a number of limitations which delayed their progress In completing the work program as originally scheduled. Among these Issues were the following: a lack of consolidated Information relative to project area development activities that are not Agency assisted and are needed to analyze accurate tax Increment projections; complicated and In some cases unclear language relative to the allowable tax Increment limits that require legal review In several of the project area plans; Inconsistencies In some of the revenue estimates prepared by staff; a lack of comprehensive listings of Agency obligations necessary for accurate cash flow projections; a lack of adequate accounting methodologies and systems to Identify fund balances; and a lack of current or complete financial statements relative to each project area. For your Information. on June 19. 1989. Agency staff provided Katz Hollis with an Initial response to their preliminary findings which In certain areas differs with Katz Hollis. Under the amended contract Katz Hollis will be required to reconcile any differences. Nevertheless. as a result of the above. It has become necessary for Katz Hollis to perform time consuming Independent research and Investigation In order to gather and format the voluminous base data/Information necessary to complete their analysis and projections. At the outset of the contract. It was Intended that Katz Hollis would only review and verify the available staff work and proposed recommendations or modifications to staff's projections. 8ased upon the above limitations. Katz Hollis will only be able to complete their analysis of the Agency's tax Increment revenues and bond obligations as of June 30. 1989. within the current contract limit of $25.000. To provide a reconciliation of their Initial findings relating to the accomplishment of the overall work program and staff's response to those findings as well as certain financial advisory services In relationship to pending bond Issues. It Is proposed that the contract be amended to provide for completion of the work over a one-year period at a cost not to exceed $42.500. For your Information the proposed contract amendment also contains several additional or special work activities that may need to be performed. The decision to carry out these activities and the assessment of their cost(s) will be dependent on the results of Katz Hollis' reconciliation of their and Agency staff's Inlt'al findings/responses. If as a result additional resources are required. an appropriate contract amendment can be recommended later. 3 o o o o llll o o o 'PI ~ - . .ent Agency II is Important to note that the purpose of the alternatIve motIon lIsted ..tie cover sheet Is to allow the CommIssIon the optIon of IncludIng an ~ttonal $40,000 In the contract amendment. These addItIonal funds -..fd pay for the several addItIonal or specIal work actIvIties that may "leIded. The proposed contract amendment that would Implement thIs a1teraatlve Is also attached (Exhibit 2). Although thIs alternatIve was ~sed wIth the Redevelopment CommIttee at their meetIng on June 29, 1111. It Is now staff's belIef that the Agency wIll be better served by IWOCeIdlng wIth a smaller contract amendment InItIally and consIder fiwtier amendments If the results of Katz HollIs' reconcilIatIon of theIr ... Agency staff's InItIal fIndIngs/responses justIfIes such an effort. lie attached proposed contract amendment(s) and revIsed work program (Attachment I) to complete the fInancIal analysis beIng performed by Katz tiUs has been approved, as to form and legal content and executed by CItz Rollls. It Is, therefore, requested that the CommIssIon approve the attached amendment to the Katz HollIs contract and authorIze the Executive DIrector to execute the agreement. 118:1IV:1753R 4 o o o o '0 RedevelopmeDt Ageuty REDEVELOPMENT AGENCY CITY OF SAN BERNARDINO CONTRACT AMENDMENT Amendment No. 01 THIS AMENDMENT TO AGREEMENT made this day of . 1989. by the Redevelopment Agency of the City of San Bernardino. hereinafter called the "Agency". and Katz. Hollis. Coren & Associates, hereinafter called the "Contractor". WITNESSETH THAT: o WHEREAS, the Agency and the Contractor previously entered Into an original Agreement on March 20. 1989; and WHEREAS, It now becomes necessary to amend said Agreement and both parties are desirous of such amendment. NOH. THEREFORE. In consideration of the mutual undertakings herein. the parties agree that said Agreement be amended as follows: 1. Section 1. PurDose. The purpose of this Agreement Is to allow Agency to procure the services of an experienced professional firm to develop a long-term financial plan for each of Agency's redevelopment prOject areas and to provide other technical assistance In furtherance of Agency's plans. projects and programs. 2. Section 2. Mission. Agency hereby retains Consultant for the provision of services as authorized In writing by the Executive Director of Agency. Such authorization shall be based on estimates of scheduling and compensation as shall have been mutually agreed upon by the Executive Director and Consultant. Services may Include but need not be limited to those described In Attachment I. IIork Program. Consultant hereby accepts such responsibility as described herein. 3. Section 3. Terms. This Agreement shall commence as of the day and year first above shown and shall remain In full force and effect for a period of one year unless sooner terminated as provided herein. The Executive Director of Agency or his or her designee Is authorized to extend this Agreement for up to 30 days and approve line Item adjustments to the Agreement's program bUdget as long as either of such amendments are upon the same terms and conditions as specified herein. o o '0 o o o o o XEROX TIL.ECCIPIIR a. I ??-?'1-??; 77:?? -nl M 3D .89 15:48 "~ATZ H':U.IS L.A. hu CCIlY 03 . I . . ~.Z""Z -.~A Rede,tJOjllllfJlt AIeIeY .. 4. sectiOn C. Consultlnt RlsPOnslbllltl!1. LlwrenCI 3. ArclnllUX. 3r., PrIncIpal. Is added to tilt list of . cCIIIlttld personnll. 5. SectIon (. Oomoensatlon. . DurIng th. tel'll of this Agr'lIfnt, Ager.cy shall ply Consultant on an hourly basIs In accordance with thl schedull descrlbld In Attachlllfnt II. 8udglt. SaId cOlll/llnsatlon shall bI considered full and cClllpI.tl rrlllbursellfnt 'or all of Consultant's cost. assocIated wIth the services provided her.under. The ...Iu celpensltlon for s.rvlc... IncludIng all Consultant's costs. under the tltlS of this Agrefllnt. shall not .xc.ed $42.500.00. 6. All other t.1'lIS and condItIons of saId Agrtt.nt shill r'llln In full forCI and .f'lct. IN NITNESS NHEREOF. thl Agency and the Contractor. through th.lr duly authorlZld off1c.rs, hlv, ,xlcuted thIs amendltnt IS of tht dlte first above wrItten. APPROVED AS 10 FOIlIl . AND LE~L CONTENT: REDEVELOPMENT AGfIlCY OF THE CITY rs SAN IERNARDINO BY """'"ExecutIve Dir.ctor APPROVED AS TO PIlOGRAH: REDEVElQPHOO AGENCY Of THE em Of SAM BERltARDlNO CONTRACTOR BY~4~~ TInE~ BY Adltntstratlv. O.puty o o o o l o o o Redevelopment Agency ATTACHMENT I WORK PROGRAM The Consultant wIll develop for the Redevelopment Agency of the CIty of San BernardIno (Agency) a long-term fInancIal plan for Its redevelopment project areas and provIde other technIcal assIstance In furtherance of the Agency's plans, projects and programs. Hor~ actIvItIes shall be accomplIshed In accordance wIth the schedule descrIbed below. Prlorltv GrouD No. 1 1. VerIfy the Agency's tax Increment revenues (to the extent records are avaIlable) by analysIs of Agency staff's exIstIng data base and a sIgnIfIcant sample test on a parcel by parcel basIs of the secured and unsecured tax rolls for the redevelopment project areas for the base year and current year. ThIs process wIll IdentIfy and reconcIle dIscrepancIes between taxable values exIstIng In the project areas and those values as reported by the County. Subsequent to thIs verIfIcatIon, the Consultant shall analyze and prepare tax Increment revenue projectIons over a fIve to ten year perIod. 2. RevIew all actIve bonded debt havIng prIorIty lIens on the flow of tax Increment revenue. Prepare a cash flow analysIs IncludIng IncorporatIon of tax revenue projectIons and a documented cash flow suItable for general presentatIon. 3. Prepare a wrItten summary of InItIal fIndIngs relatIng to the accomplIshment of the overall wor~ program descrIbed hereIn (completed on May 30, 19B9). The above three tas~s shall be completed by July I, 19B9 at a cost not to exceed $25,000. Prlorltv GrouD No.2 1. RevIew Agency staff's June 19, 19B9 response to Consultant's InItIal fIndIngs and consult wIth and revIew addItIonal InformatIon to be made avaIlable from the staff of the Agency's AccountIng and Development DIvIsIons and assess balance of work necessary to contInue completIon of the Agency's long-term fInancIal plan. Based upon thIs assessment, the Consultant shall provIde an updated report relatIve to the InItIal fIndIngs submItted to the Agency on May 30, 1989, and cost estImates relatIve to the balance of the planned wor~ assIgnments contaIned hereIn. - 1 - o o o o o o o Redevelopment Agency Services provided pursuant to this work task shall be completed by July 15, 1989 at a cost not to exceed $2,500. 2. Review and assess all active development agreements relative to their liens against the flow of tax Increment funds. Update the cash flow analysis which was prepared under Item #2 of Priority #1 to Include these junior lien data. The cost and scheduling of this work task shall be as mutually agreed upon sUbsequent to the completion of work task #1 of this second priority groupin9. 3. Preparation of a financing plan/bond plan for each project area that will either eliminate cash and scheduling flow shortfalls or generate additional financing opportunities. The cost and scheduling of this work task shall be as mutually agreed upon subsequent to the completion of work task #1 of this second priority grouping. 4. Provide financial advisory services to the Agency for new bond Issuances or for the refundIng of outstanding bond Issues on an as needed basis (currently estimated to be three Issuances). ServIces to be provIded Include document review (verificatIon of the compatibility between the provisions contained In the resolutIon of Issuance and the amounts and timing of revenue receipts), review and analysis of tax sharing agreements which may Impact the Agency'S ability to pledge tax Increment revenue, attendance at any meetings related to bond Issuance, and representation of the Agency In meetings with bond rating agencies and bond Insurance companies. Services provided for this activity shall be at a cost not to exceed $5,000 per Issue. Scheduling of these services shall be as mutually agreed upon by the parties. Priority Group No. 3 The work tasks listed below shall be undertaken during the term of the contract upon a schedule mutually agreeable to the parties. The cost and scheduling of these work tasks shall be as mutually agreed upon subsequent to the completion of work task #1 of the second priority groupIng. 1. Review and recommend necessary adjustments to the Agency's accounting and financial management methodologIes and systems. In fulfilling this task, the Consultant may be requIred to . engage the services of one or more qualified Certified Public Accounting firms as subconsultant(s) to assist In developing appropriate recommendations. Such subconsultants must be approved In writing by the Agency'S Executive Director prior to the Initiation of any work. - 2 - o '0 o o o o o Redevelopment Agency 13525 2. Provide assistance In reviewing other related Issues Including, but not limited to, the following: a. Potential use of pre-1986 bond proceeds In the furtherance of Agency programs; and b. Impact of recent court rulings ordering the reassessment of railroad property on Agency finances; and - 3 - o o 10 o Redevelopment Agency PrIorIty Group 2 3 I o o o ATTACHMENT II KATZ HOlLI S 19B9 Hourly Rate Schedule Principals Senior associates Associates Senior Analysts Analysts Research Analysts Secretarial/Administrative $120 per hour $100 per hour $ BO per hour $ 70 per hour $ 55 per hour $ 50 per hour $ 35 per hour BUOGET BY NORK ACTIVITY Actlvltv No. Cost 1 Included In subtotal 2 Included In subtotal 3 Included In subtotal Subtotal $25.000 1 $ 2.500 2 To be determined 3 To be determined 4 f15.000 Subtotal 17 . 500 1 To be determIned 2 To be determIned Subtotal To be determIned Grand Total $42.500 . , . o o o o o o o XEROX TELECOPIER 295 I ??-??-??l??:????l CCITT 03 + JlJ'I28 '69 13:35 KAlZ HOLLIS L..A. ~~ 1/ 2 P.2/3 EXHIBIT 2 " IJJ)SVILOPJf!HT AGlNCY CITY 0' IAN lI"'''AlUlllfO COHbACt AMIIInHIItt 6--~A..at Mo. 01 tillS AlfIKDK!Ift' %0 ~ 11&4. tb1. .., of . 1M'. ., t:b a.4.,,010pseot Aa-, of clIe Ctt:)' of Sac larurlllDO. ur.1ufC.r c&ll&4 tile .Aaac,.. ..d lata. BoWo, Cora '''oOC1&C.o, bnll1&.ftu ca11e4 u. .CoDU'eetu.. IfU'lIISSUIl !Ill! I l1li'''''1. t:b ".DC, ..el the COIIneecor prcYioual, 8IlCere4 iDCo ... "1&1u1 Aar_t OIl MArcb 20, 19891 p4 tiIIDLU. 1c - MCClINO 1I.c....Z)' to ,,01l4 .del "reunc D4 \loth puttoo ar. 40011'0_ of .ucb aaeo4uat. lOll, TB!U7OU, iD coulel.:rauClll of che autu.l1m4e:rtald..o bl'.iD. tile pOl'tl.. qr.. tllec eale1 Aa:ro_t lie .......4.4 .e followol 1. S.CUOI1 1. Pllnoae. !he 'lI1'pOIe Of thh Acl'o..nt s_ CO ellov ".DC,'t:o p:rocue the "l"Ilc.. of all tzperl.llC.d prof...Sow fll'l1 to 4uel., . 1011&-"3 flll81ldel ploll fol' oeeh of AleDC,'. :r~e1ope..t project .ru_ p4 to provide eth.:r techlllcl1 ...Uuac. b fUl'ch.:rallcO of "'DC,' _ plau, proj.ct. &ll4 pro....... 2. SecUOD 2. lUa_SOll. .l.aey h.:reby nU1ll. Coo_lllt..t to:r th. Pl'oviOSOII of .erneoo .. &utborh.cl !D. wr1tlll. by the laocutl"e Dlrecto:r of .....,. Such euthorSaotioD _h&11 bo be..d Oil ..tl..t.o of ocba4u11D1 &D4 coapeuatl011 .. .haU bave II.. IIIltuaU, 0'1'..4 UpoII by t:he l:.cUt:l"o 1l1lr.ctor ao4 COMllleut. Sorviceo _, 1DClu4. \lot ueel DOC 110 11l11c.4 to cbooo deac:rilleel 1ll .lttac:llllnt 1. Work ':0'1''', COllollltaat lIe:.1I1 .cceptl .1Icll ro.poll.U.Ult, .. 4eecdbe4 huUD. .s. SccUoo 3. '1'0_. '1'UI Acreoant ahall C_DCe at of cho d.,. a= ,...1' Ur.t .bo"o .bow &Il4 lhall 1'_10 ~D full fuca &Del affect for . ,.1'104 ot ou YO.I' UIll... .00Der t.~lD&tad .. provld.. urate. 7:1ao E..cutl"o D1rectol' of AlaDC,. 01' 1110 Dr lit.. '..ta... 18 authod.ee1 to pted thi_ AIr_DC 'Dr up ~D 30 4.,.. c4 app:rove lba ltaA adjuataellta 1'0 tb Aan_at'l ~I'o,l'aa kda.t .0 lena OIl aithor of _..ell ........llU .re UJlOll tllo .... t.n. .04 coDd1tloOl .. .p,clf1c4 hal'a111. o o ,0 o J o o o l<ERC)K TEl..ECllPlER 295; ??-??-??,??????, JUi 2S '89 13':36 KATZ HOU.IS L..A. celTT 03 .. .3 f=lA"'AA{~~ffi P.3/;:l . 4. "eUOll 4. Couultallt .a'~OIItilolliCill.. Law_e J. Afe_US, Jr., 'Ulldpal, 1. &44e4 h eha lht of collll1 teed pel'loaae1. 5. 'lIet1= 6. C_IleUIIUOtI. Dlirlq the cera of thl. .'"IlUllC, A,eall7 .11 ,., c-ultlllt 011 &ll bour17 N.l' ill accorduca w1th the tcWlIla 4alcl'ille4 ill Att'.'Dt U, Ju4,e,. 'aU c_e_dOll .1IaU .. cOll.14ere4 full aU COIlpl.ta rl1a1:lur''''llt fol' aU .f CoDllultlllt'a eo.t. ...odec.d cth the acme.. '1'0Y14e4 hu.a4ar. %U"z1aua cOIIpea.at1n fOl' ""UII. 1ulu4tlll aU Couu1tat'. coat., w:adu the e.1'U of eM. 411'.....'. aha11110t uoa.4 *12,500.00. 6. AU othlll' elll'8l l1li4 e0Dd1Uou of Hld "'r_e .hell 1'...11> 111 full forell aU .tfact. IN mMSS lIlDI01, the AaIDe)' ucI the CODtrector, tbzw.ll thelr duly .uthodud offte.re, have a.euted tlth _duet .. .f th. elate ftl'at .hov. 1II:1etall. AP'-OVID AS %0 lOIH AHl) u.cw. COJImtl IDEVItOl'M!KT MBIICY or m CUT or IAII -v'nllO JY~ ./ A.ellll7 el n !Secutlve Dlrectol' APPlOVID AS fO l'D1It'.JAIfI lIDlVILOhIMt Miler 0' m CIty 01 SAlf anvAIJIlRO IT MalD1atrath. hput, lUIS o o o o o o o Redevelopment Agency ATTACHMENT I WORK PROGRAM The Consultant wIll develop for the Redevelopment Agency of the CIty of San BernardIno (Agency) a long-term fInancIal plan for Its redevelopment project areas and provIde other technIcal assIstance In furtherance of the Agency's plans. projects and programs. Work actIvItIes shall be accomplIshed In accordance wIth the schedule descrIbed below. Prlorltv GrouD No.1 1. VerIfy the Agency's tax Increment revenues (to the extent records are avaIlable) by analysIs of Agency staff's exIstIng data base and a sIgnIfIcant sample test on a parcel by parcel basIs of the secured and unsecured tax rolls for the redevelopment project areas for the base year and current year. ThIs process wIll IdentIfy and reconcIle dIscrepancIes between taxable values exIstIng In the project areas and those values as reported by the County. Subsequent to thIs verIfIcatIon. the Consultant shall analyze and prepare tax Increment revenue projectIons over a fIve to ten year perIod. 2. RevIew all actIve bonded debt havIng prIorIty lIens on the flow of tax Increment revenue. Prepare a cash flow analysIs IncludIng IncorporatIon of tax revenue projectIons and a documented cash flow suItable for general presentatIon. 3. Prepare a wrItten summary of InItIal fIndIngs relatIng to the accomplIshment of the overall work program descrIbed hereIn (completed on May 30. 1989). The above three tasks shall be completed by July 1. 1989 at a cost not to exceed $25.000. Prlorltv GrouD No. 2 1. RevIew Agency staff's June 19. 1989 response to Consultant's InItIal fIndIngs and consult wIth and revIew addItIonal InformatIon to be made avaIlable from the staff of the Agency's AccountIng and Development DIvIsIons and assess balance of work necessary to contInue completIon of the Agency's long-term fInancIal plan. Based upon thIs assessment. the Consultant shall provIde an updated report relatIve to the InItIal fIndIngs submItted to the Agency on May 30. 1989, and cost estImates relatIve to the balance of the planned work assIgnments contaIned hereIn. - 1 - o o o o o o o Redevelopment Agency Services provided pursuant to this work task shall be completed by July 15. 1989 at a cost not to exceed $2,500. 2. Review and assess all active development agreements relative to their liens against the flow of tax Increment funds. Update the cash flow analysis which was prepared under Item #2 of Priority #1 to Include these junior lien data. The cost and scheduling of this work task shall be as mutually agreed upon sUbsequent to the completion of work task #1 of this second priority grouping. 3. Preparation of a financing plan/bond plan for each project area that will either eliminate cash and scheduling flow shortfalls or generate additional financing opportunities. The cost and scheduling of this work task shall be as mutually agreed upon subsequent to the completion of work task #1 of this second priority grouping. 4. Provide financial advisory services to the Agency for new bond Issuances or for the refunding of outstanding bond Issues on an as needed basis (currently estimated to be three Issuances). Services to be provided Include document review (verification of the compatibility between the provisions contained In the resolution of Issuance and the amounts and timing of revenue receipts), review and analysis of tax sharing agreements which may Impact the Agency'S ability to pledge tax Increment revenue, attendance at any meetings related to bond Issuance. and representation of the Agency In meetings with bond rating agencies and bond Insurance companies. Services provided for this activity shall be at a cost not to exceed $5,000 per Issue. Scheduling of these services shall be as mutually agreed upon by the parties. Prlorltv Group No.3 The work tasks listed below shall be undertaken during the term of the contract upon a schedule mutually agreeable to the parties. The cost and scheduling of these work tasks shall be as mutually agreed upon sUbsequent to the completion of work task #1 of the second priority grouping. 1. Review and recommend necessary adjustments to the Agency's accounting and financial management methodologies and systems. In fulfilling this task, the Consultant may be required to engage the services of one or more qualified Certified Publfc Accounting firms as subconsultant(s) to assist In developing appropriate recommendations. Such subconsultants must be approved In writing by the Agency's Executive Director prior to the Initiation of any work. - 2 - o o o o - o o o Redevelopment Agency 2. Provide assistance in reviewing other related Issues including, but not limited to, the following: a. Potential use of pre-1986 bond proceeds In the furtherance of Agency programs; and b. Impact of recent court rulings ordering the reassessment of railroad property on Agency finances; and Priority GrouD No.4 1. Carry out any other tasK related to the worK program or mission of this Contract. In addition, the financial resources contained In the budget that are allocated to this priority group may also be used (through a budget transfer approved by the Agency's Executive Director) to cover the costs of activities 2 and 3 In the second priority group and 1 and 2 In the third priority group once their costs are determined. 13525 - 3 - o o o o Redevelopment Agency PrIorIty Group 2 3 4 - - - o o o ATTACHMENT II KATZ HOllI S 1989 Hourly Rate Schedule PrIncIpals SenIor assocIates AssocIates SenIor Analysts Analysts Research Analysts SecretarIal/AdmInIstratIve $120 per hour $100 per hour $ 80 per hour $ 70 per hour $ 55 per hour $ SO per hour $ 35 per hour BUDGET BY WORK ACTIVITY Actlvl ty No. Cost 1 Included In subtotal 2 Included In subtotal 3 Included In subtotal Subtotal $25,000 1 $ 2,500 2 To be determIned 3 To be determIned 4 $15.000 Subtotal $17 ,500 1 To be determIned 2 To be determIned Subtotal To be determIned $40.000 Subtotal $40,000 Grand Total $82.500