05/15/2001 RA RPT 02 - Laserfiche WebLink

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4\ CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: May 15,2001 2 Subject: Request Authorization to Enter into an Extension to the Annual Professional Services Agreement with Diane Hadland dba DHA Consulting to Provide Financial and Project Management Services on an As-Needed Basis for Fiscal Year 2001102 Background Each fiscal year, the Agency is asked to approve various annual consultant contracts, including financial and project management consultants. Consultants are necessary to provide the professional opinions and reviews required by the Community Development Law. These services may also be needed during the development review and analysis stage to assist staff in structuring development proposals. In all cases, the professional services are driven by the volume and complexity of development projects under consideration and are only utilized on an as-needed basis. DHA Consulting was selected to provide financial and project management services as a result of an Agency "Request for Proposals" solicitation of three firms conducted in August 1999 for fiscal year 1999/2000. The current agreement was approved by the Agency on September 21, 1999. Current Issue The current agreement allows the term to be extended for up to three additional twelve-month periods by mutual consent of the parties. This extension would extend the term of the current agreement for a second additional twelve-month period for fiscal year 2001/02 (July 1,2001 through June 30, 2002). The extension also includes increases to the hourly compensation rates. Analysis The Redevelopment Agency has contracted with DHA Consulting to provide financial and project management services since March 1998. This firm has provided financial and project management services as needed for various department projects including preparing project area implementation plans, five-year cash flow analysis for each project area, the Arlington Project Area Plan Amendment including expansion of the project area, financial analyses in support of Redevelopment bond issues, and researching property acquisitions, appeals and assessments. In the current fiscal year, 2000/01, DHA Consulting assisted the Agency with the Casa Blanca Plan amendment, updated project area cash flows, preparation of continuing bond disclosure tables, analysis of property tax appeals and assessment anomalies, and financial analysis for the University Village and California Tower projects. Services to be provided in fiscal year 2001/02 include the plan amendment for the Casa Blanca Project Area, continuing bond disclosures, updating project area cash flows, and other financial analysis and project management as needed. It is estimated that the annual need for fiscal year 200]/02 for these services will not exceed $65,000. The agreement authorizes the Executive Director, or his designee, to approve increases in total compensation by the change order process up to a cumulative 25 percent ofthe original contract amount. This authorization will avoid delays in projects if the amount of services needed exceeds the original estimate. Any increase exceeding 25 percent of the original contract amount must be made by a written supplemental agreement and approved by the Agency Board. 2-1 ..