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HomeMy WebLinkAbout05.B- City Manager RESOLUTION (ID # 3332) DOC ID: 3332 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION AF N Agreement/Contract Amendment From: Allen Parker M/CC Meeting Date: 08/18/2014 Prepared by: Tanya Romo, (909) 384-5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the Execution of a Fifth Amendment to the Consultant Services Agreement Between Urban Futures Inc. and the City of San Bernardino. (#3332) Current Business Registration Certificate: Yes Financial Impact: Motion: Adopt the Resolution. Synopsis of Previous Council Action: June 4, 2012 - Resolution 2012-95 was approved authorizing an agreement for$150,000.00 with Urban Futures LLC and the City of San Bernardino for Finance Restructuring and Fiscal Services Analysis Services. October 1, 2012 - Resolution 2012-241 was approved authorizing execution of an amendment #1 for$115,200.00 with Urban Futures LLC and the City of San Bernardino for an interim Public Works Director. October 1, 2012 - Resolution 2012-242 was approved authorizing execution of an amendment #2 for$214,000.00 with Urban Futures LLC and the City of San Bernardino for Finance Restructuring and Fiscal Services Analysis Services. April 1, 2013 - Resolution 2013- 62 was approved authorizing execution of an amendment#3 for$100,000.00 with Urban Futures LLC and the City of San Bernardino for Finance Restructuring and Fiscal Services Analysis Services. August 5, 2013 - Resolution 2614 was approved authorizing execution of an amendment#4 for $600,000.00 with Urban Futures LLC and the City of San Bernardino for Finance Restructuring and Fiscal Services Analysis Services. Background: Activities related to the bankruptcy and demands placed on the City by various creditors continues to keep both City staff and UFI expert witnesses busy,working directly with CalPERS and bond insurers, discussions with creditors and the City's bankruptcy counsel and the City Manager. The number and time required for court appearances and creditors meetings, and demand for documents (24/7) cannot be predicted. There are many challenges to moving forward without additional resources. Updated: 8/13/2014 by Georgeann"Gigi"Hanna Packet Pg. 14 3332 Moving forward, it is anticipated the need to continue to work closely with the City Manager's office and legal counsel. Urban Future's work plan includes the preparation of various financial models and service delivery analysis leading to the development of the Plan of Adjustment, a comprehensive review of the City's unfunded obligations for internal service funds, capital maintenance and vehicle / equipment replacement. To satisfy the additional bankruptcy demand the services of an experienced CPA with audit, cost allocation and financial modeling experience. The resolution and Scope of Work were unavailable from the originating department at the time of agenda production. It will be available under separate cover at the time of the Mayor and Common Council meeting. City Attorney Review: Supporting Documents: Updated: 8/13/2014 by Georgeann"Gigi"Hanna Packet Pg. 15 RESOLUTION NO. 1 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIFTH 3 AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT BETWEEN URBAN FUTURES INC AND THE CITY OF SAN BERNARDINO. 4 5 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 6 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and 8 directed to execute on behalf of said City a Fifth Amendment to Consultant Services 9 Agreement between Urban Futures Incorporated (UFI) and the City of San Bernardino 10 11 regarding Restructuring and Fiscal Analysis Services, a copy of which is attached hereto 12 marked Exhibit "A" and incorporated herein by reference as fully as though set forth at 13 length. 14 SECTION 2. The Finance Department is hereby authorized to issue an amended 15 purchase Order to Urban Futures Incorporated for consultant services for a total amount not to 16 exceed $602,000.00 for Fiscal Year 2014-15. 17 18 SECTION 3. The authorization granted hereunder shall expire and be void and of no 19 further effect if the Agreement is not executed by both parties and returned to the Office of the 20 City Clerk within sixty(60) days following the effective date of this Resolution. 21 ill 22 23 HI 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 1 SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIFTH 2 AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT BETWEEN URBAN FUTURES INC AND THE CITY OF SAN BERNARDINO. 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 4 5 and Common Council of the City of San Bernardino at a meeting 6 thereof, held on the day of , 2013,by the following vote,to wit: 7 Council Members: AYES NAYS ABSTAIN ABSENT 8 MARQUEZ 9 10 BARRIOS 11 VALDIVIA 12 SHORETT 13 NICKEL 14 JOHNSON 15 MULVIHILL 16 17 18 Georgeann Hanna, City Clerk 19 20 The foregoing Resolution is hereby approved this day of 12013. 21 22 R. Carey Davis, Mayor 23 City of San Bernardino 24 Approved as to form: Gary D. Saenz, City Attorney 25 26 By: 27 28 I FIFTH AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE 2 CITY OF SAN BERNARDINO AND URBAN FUTURES,INC. REGARDING 3 RESTRUCTURING AND FISCAL ANALYSIS SERVICES 4 5 THIS FIFTH AMENDMENT is made and entered into as of August 18, 2014 by and 6 between the CITY OF SAN BERNARDINO, a charter city ("CITY") and URBAN FUTURES, 7 INC. ("CONSULTANT") as to restructuring and fiscal analysis services only. In consideration 8 of the mutual covenants and conditions set forth herein,the parties agree as follows: 9 1. This Amendment is made with respect to the following facts and purposes: 10 a. On June 4, 2012 CITY and CONSULTANT entered into a certain agreement 11 entitled "CONSULTANT SERVICES AGREEMENT" in the amount of 12 $150,000 for consultant services, $86,000 of said$150,000 was specifically for 13 restructuring and fiscal analysis services and $64,000 of said $150,000 was 14 specifically for Interim Public Works Director services. 15 b. On October 1, 2012 the CITY and CONSULTANT entered into the First 16 Amendment to Consultant Services Agreement Regarding Interim Public 17 Works Director Services which increased the amount for those services only by 18 $115,200. 19 c. On October 1, 2012 the CITY and CONSULTANT entered into the Second 20 Amendment to Consultant Services Agreement Regarding Restructuring and 21 Fiscal Analysis Services which increased the amount for those services only by 22 $214,000. 23 24 d. On April 1,2013 the City and Consultant entered into the Third Amendment to 25 Consultant Services Agreement Regarding Restructuring and Fiscal Analysis 26 Services which increased the amount for these services by $100,000.00. 27 i 28 r I e. On August 5, 2013, the CITY and CONSULTANT entered into the Fourth 2 Amendment to Consultant Services Agreement Regarding Restructuring and 3 Fiscal Analysis Services which increased the amount for those services only to 4 an amount not to exceed$600,000. 5 f. The parties now desire to increase the payment for restructuring and fiscal 6 analysis services in the amount of$602,000 for Fiscal Year 2014-15 and amend 7 the Agreement as set forth in this Amendment. 8 2. Section 2. Compensation of the Agreement is hereby amended to read as follows: 9 City hereby agrees to pay Consultant a sum not to exceed a total of$602,000 (Six 10 Hundred and Two Thousand Dollars and no cents) for restructuring and fiscal I1 analysis services for Fiscal Year 2014/15, through June 30, 2015. City shall pay 12 Consultant for services rendered pursuant to this Agreement at the time and in the 13 manner set forth herein. Any terms in Exhibit A other than the payment rates and 14 schedule of payment are null and void. The Fifth Amendment amount shall not 15 exceed $602,000.00 for additional consulting services regarding restructuring and 16 fiscal analysis services. 17 18 3. Except for the changes specifically set forth herein, all other terms and conditions of 19 the Agreement shall remain in full force and effect. 20 21 22 23 ill 24 25 26 27 2 28 I FIFTH AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE 2 CITY OF SAN BERNARDINO AND URBAN FUTURES,INC.REGARDING 3 RESTRUCTURING AND FISCAL ANALYSIS SERVICES 4 5 IN WITNESS THEREOF, the parties hereto have caused this Amendment to be executed 6 by and through their respective authorized officers, as of the date first above written. 7 8 CITY OF SAN BERNARDINO, CONSULTANT A Municipal Corporation 9 10 Allen Parker, City Manager Michael Busch, President 11 12 APPROVED AS TO FORM: 13 Gary D. Saenz, City Attorney 14 By: -� 15 16 17 18 19 20 21 22 ?3 24 25 26 27 3 28