Laserfiche WebLink
6.A. - Page 6 of 80 <br />FISCAL IMPACT <br />HdL Companies and HdL Coren and Cone have agreed to discounted service fees and contingency fees for <br />the first two years of our contracts. By the third year of the contracts, the City will be paying the full <br />amounts for service fees. Therefore, by the third year, the City will be paying approximately $16,000 more <br />in service fees than was paid during FY 2019-20. Even with this additional amount, these charges are <br />within the current (FY 2020-21) budget for Administrative Support Services. It is anticipated that no <br />additional budget will be needed to cover the expected service fees associated with these contracts. <br />While it is very difficult to estimate at this time, it is expected that the contingency fees paid under this <br />new contract will increase when compared to the contingency fees paid during the last five years. During <br />the last five years, payments of contingency fees averaged approximately $86,000 per year. The <br />contingency fee structure under this new contract is very similar to the structure paid to MuniServices, <br />LLC. Therefore, should this amount increase under the new contract, revenues will also increase <br />accordingly. <br />Should the City decide to extend the contracts for the additional 1 -year terms, the not to exceed cost for <br />each contract will be requested in the operating budget for the Administrative Services Department in the <br />appropriate fiscal year. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />ALTERNATIVES <br />The City Council could choose to not approve the contracts with HdL and HdL Coren & Cone. This would <br />require Redwood City staff to undertake a new RFP process. Due to the limited number of firms providing <br />revenue enhancement consulting services, the results of such a process would not likely to be significantly <br />different in terms of costs, unless the Scope of Work was modified. <br />Page 6 of 7 <br />.,A . <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />15 <br />