01/18/2000 RA RPT 03 - Laserfiche WebLink

Home

CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: January 18, 2000 Item No.: 3 Subject: Final Contract Adjustments with GRC Redevelopment Consultants Concerning the Recently Completed Arlington Project Area Amendment and Expansion Background The recently completed amendment and expansion of the Arlington Project Area was accomplished with substantial professional services assistance from the firm of GRC Redevelopment Consultants. GRC's contract was for an amount not to exceed $90,345 for all consulting services and basic expenses. The contract also acknowledged that there would be closeout expenses if the expansion effort were ultimately approved. Those expenses would be for services such as map and legal description preparation, final documentation, and filings with the State of California. The doseout expenses were not included in the original authorization. Current Issue Final billings in connection with the Arlington Project Area amendment and expansion have now been compiled by the consultant and forwarded to the Agency. The billings, amounting to $14,923.19, have been reviewed and found to correctly represent expenses for work that GRC should be reimbursed. Because the consultant paid for those expenses out-of-pocket, it is appropriate for the Agency to allocate the needed funds and approve a reimbursement to GRC. Analysis GRC's request is in line with expectations from two points of view: First, a major redevelopment area expansion effort is expected to cost about $100,000 in total consulting expenses. The Arlington amendment and expansion should be slightly more than that because of extra community meetings included in the original scope of work. GRC's original contract amount, plus the closeout billings, total very close to what would normally be expected. Second, reimbursable expenses in professional services contracts are routinely included at a 15% level. Although the current reimbursement request represents about 16.5% of the original $90,345 contract amount, it is for work · that typically involves significant out-of-pocket expenses. Therefore, staff again finds the reimbursement request to be in line with expectations. Fiscal Impact Funds for the reimbursement are available in previously budgeted Professional Services Account No. 2800000- 421000. Alternatives GRC successfully performed its work on the Arlington amendment and expansion, including advancing certain expenses on behalf of the Agency, with the expectation of being reimbursed at the end of the contract. Staff believes the Agency's only viable alternative is to honor the reimbursement request consistent with the original contract's expectations. 3-1