AgdaPkt 2002-01-14 - Laserfiche WebLink

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~.//~.,~ negotiated. As part of their service to the Agency, KMA prepared a "Reuse Valuation Study", which is an analysis of the proposed offer and what the Agency is getting for what it is giving. This report was presented to the public and the Agency Board as part of the DDA approval process. The DDA was approved on January 29, 2001 by the Agency Board. Why This Amount and This Form of Agreement? As to the form of agreement, the Agency has typically had what is termed a 'not to exceed' agreement with KMA. The agreement has specified a dollar amount, which cannot be exceeded without seeking further Board approval, but staff has assigned the specific services performed under the agreement, as the different projects have evolved. This has provided the ultimate cost control to the Board but has allowed a considerable flexibility to staff to assign the consultants services to whatever projects are then most active. As to the amount, staff has suggested an additional 'not to exceed' cap of $100,000 to provide sufficient funds to be able to complete the Retail-Cinema project, including continued analysis of the project financial parameters and any revisions to the DDA that may become necessary. It will also provide sufficient capacity to essentially keep KMA 'on retainer' for whatever other projects emerge over the next 6-12 months. It is important to emphasize that under this form of agreement, staff provides KMA with an authorization to expend on a particular activity; and that without such authorization, no funds are spent. Under the current agreement, executed on July 8, 1999, the Retail-Cinema negotiations consumed about half of the requested $100,000 and is expected to require a similar amount over the next two years as well. The Franklin Street and Rolison Road project activities consumed the remainder of the amount in the current budget. What Other Projects? We know KMA will prepare the Reuse Valuation Study and assist with DDA negotiations for the future development of the remainder of the Franklin Street project. It is very hard to develop typical costs for redevelopment activities. During some periods we have gone for six months without using KMA. This agreement will ensure that the Agency has the services of KMA when the need arises. Fiscal Impact Funds are appropriated for professional services in the 2001-2002 Agency budget sufficient to fund this amendment to the agreement. As proposed, this agreement would continue into the next fiscal year and would come back to the Agency Board for further action when the not-to-exceed cap had been reached. At that time the agreement would require another amendment if KMA services were still needed. Alternatives · Approve the agreement with a lower not-to-exceed cap. A consequence of this alternative would be that the agreement would be presented to the board for amendment with greater frequency. · Direct staff to seek proposals from other economic consultants. 2