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HomeMy WebLinkAbout2006 CON MBIA Muniservices - Consulting CDC ConsolidationSCOPE OF WORK INTERIM ADMINISTRATIVE CONSULTING SERVICES FOR THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY This scope of work is dated February 1, 2006, and is between the City of National City ("City"), a California Municipal Corporation, and MBIA MuniServices Company ("MMC"), Delaware Corporation with an office at 7335 N. Palm Bluffs Ave, Fresno, CA 93711. By this reference this scope of work is incorporated into the Consultant Services Agreement (the "Agreement") between MMC and City dated June 21, 2005. BACKGROUND On January 24, 2006, Mayor and City Council adopted a resolution directing that the administration of the Community Development Commission of the City of National City ("CDC") be consolidated with the administration of the City of National City ("City") under the supervision of the City Manager. The following specific recommendations were formally approved with the City Council resolution: 1) Merge the administrative operations of the CDC into the City organization while maintaining the current CDC model for conducting the business of the Redevelopment Agency and Housing Authority. 2) Appoint the City Manager as Executive Director of the CDC. 3) Transfer all CDC staff into the City personnel system continuing "at will" status for certain management staff and bringing "rank and file" staff under appropriate public employee union representation. 4) Consolidate the financial management functions of the CDC into the City Finance Department. 5) Consolidate the personnel management functions of the CDC into the City Human Resources Department. 6) Solicit proposals to hire an outside contractor to conduct a CDC Comprehensive Compensation Analysis in order to equitably integrate existing represented and unrepresented positions into the City personnel system. 7) Solicit proposals to hire an outside contractor to prepare a CDC Reorganization Implementation Plan. City desires to have MBIA MuniServices Company ("MMC") consult with City administration to implement the preceding set of recommendations. MMC possesses the professional expertise required to provide the consultation services. Administrative Consulting Services 1 TERMS 1. Services. For no more than 180 days after February 1, 2006, MMC professional staff, including but not limited to Hank Cunningham and Patricia Nunn, will work with City administration and former CDC staff on the following tasks. • Assist with negotiations, entitlements and permitting on existing redevelopment projects. • Assist the City to solicit development proposals on various redevelopment opportunity sites. • Review terms and conditions of existing DDAs and OPAs and make recommendations for improving the City/CDC financial position while achieving its long-term revitalization objectives, and submit report of relevant findings • Review existing and currently planned debt issuances — Tax Allocation Bonds, Community Facilities District Bonds, Housing Revenue Bonds, or other debt instruments for appropriateness and feasibility, and submit report of relevant findings. • Review existing economic development programs — Business Improvement Districts, commercial rehabilitation loans, facade rebates, etc. for appropriateness and feasibility, and submit report of relevant findings. • Review existing housing programs — Low/Mod-Income Set -side Fund, rehabilitation loans, first-time buyer loans, rehabilitation loans, facade rebates/grants, etc., and submit report of relevant findings. • Review existing consultant contracts and make recommendations for change and/or termination as appropriate. • Assist City Manager/Executive Director by meeting with staff to advise staff on redevelopment projects and by preparing Council/Board agenda reports, developer and community relations, and required reports to outside agencies such as the State Controller, State Legislation and affected taxing entities. • Prepare and conduct a strategic planning and implementation workshop with participants including the Mayor and Council, City Manager and key staff members. • Assist with the job description and recruitment of an additional executive at the department director level to supplant, all or in part, the duties formerly undertaken by the CDC Executive Director and two Deputy Director positions. • Coordinate with outside contractor selected to prepare a CDC comprehensive compensation analysis. • Coordinate with outside contractor selected to prepare a CDC reorganization plan. 2. Compensation. 2.1 Hourly Fee. City shall pay MMC for services performed under this scope of work on an hourly basis as follows: • Principal: $250 per hour • Technical Advisor: $175 per hour • Project Manager: $150 per hour • Administrative Support: $50 per hour Administrative Consulting Services 2 2.2 Expenses. In addition, MMC will be reimbursed for reasonable out of pocket expenses in an amount not to exceed $3,000 for the project. 2.3 Invoicing. MMC will invoice the City monthly based on actual work performed and expenses incurred in accordance with the Agreement. 2.4 Payment after termination. CITY shall pay MMC for services performed through the effective date of termination for which MMC had not been paid. City's obligation to pay MMC for services performed before the effective date of termination survives termination of this scope of work and the Agreement. 3. Termination. This scope of work terminates automatically 180 days after February 1, 2006. 4. Excuse for performance. If MMC reasonably believes that performing any item of work under this scope of work may lead to a conflict of interest, MMC is excused from that performance. Such excused performance is not a breach of this scope of work or the Agreement. 5. Data. To the extent reasonable, MMC will verify the data that it uses to provide the services under this scope of work. However, it is understood that in some instances MMC will be using reports supplied by third parties. In such cases, MMC cannot necessarily verify the accuracy of the data. MMC will also be relying on information provided by the City. City represents that it understands that any reports MMC produces under this scope of work are prepared for the City and not for the benefit of any other person and that MMC will not accept any duty to any other party who may view some or all of the reports and will not be liable for any loss, damage or expense of any nature that is caused by the reliance of another party on any portion of MMC's reports. EXECUTED as of the day and year first above stated. MBIA MuniServices Company/MMC By: Marc Herman Title: President CITY OF NATIONAL CITY A Municipal Corporation Administrative Consulting Services 3 By: ATTEST: vin Cerutti CI Y tt ERK Title: Chief Financial Officer Administrative Consulting Services 4 MuniServices Company February 9, 2006 Lin Wurbs Assistant City Manager City of National City 1243 National City Blvd. National City, CA 91950 7335 N. Palm Bluffs Ave. Fresno, CA 93711 559 271 6800 (p) 559 275 0171 (f) Re: Contract with MBIA MuniServices Company for Interim Administrative Consulting Services Dear Ms. Wurbs: Enclosed are three partially signed copies of the agreement between the City of National City and MBIA MuniServices Company (MMC) for the provision of Interim Administrative Consulting Services. The agreement is incorporated by reference into the Consultant Services Agreement between MMC and City dated June 21, 2005 Please have these copies of the agreement signed and retum one fully signed copy to me. If MMC has not received a fully signed copy of the agreement within 90 calendar days from the date on this letter, the offer embodied in the agreement is automatically revoked. If you have any questions or concerns please feel free to contact me by phone at 559.271.6878, by fax at 559.312.2878, or by email at eric.myers@muniservices.com Sincerely yours, Eric Myers Corporate Counsel Enclosures: (3) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 March 21, 2006 Mr. Eric Myers, Corporate Counsel MBIA, MuniServices 7335 N. Palm Bluffs Avenue Fresno, CA 93711 Dear Mr. Myers, On February 21, 2006, Resolution No. 2006-36 was passed and adopted by the City Council of the City of National City, authorizing the Mayor to execute an agreement with MBIA MuniServices to provide interim administrative consulting services for the Community Development Commission of the City of National City. We are forwarding a certified copy of the above Resolution and one fully executed original agreement. Sincerely, Mitaerl. I3atIalbtC Gaily Clerk Enclosure cc: City Manager Finance CDC File No. C2006-I ® Recycled Paper RESOLUTION NO. 2006 - 36 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH MBIA MUNISERVICES TO PROVIDE INTERIM ADMINISTRATIVE CONSULTING SERVICES FOR THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the City desires to employ a consultant to provide interim administrative consulting services for the Community Development Commission of the City of National City; and WHEREAS, the City has determined that MBIA MuniServices is qualified by experience and ability to perform the services desired by the City, and the MBIA MuniServices is willing to perform such services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Agreement with MBIA MuniServices to provide interim administrative consulting services for the Community Development Commission of the City of National City. Said Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 21st day of February, 2006. ATTEST: Mi hael R. ii all . f ity Ierk APPROVED AS TO FORM: % ram.. `Zr George H. iser, III City Attorney Passed and adopted by the Council of the City of National City, California, on February 21, 2006, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of Natignal City, California 4 City Clerk of the City National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-36 of the City of National City, California, passed and adopted by the Council of said City on February 21, 2006. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT 'MEETING DATE5 February 21, 2006 AGENDA ITEM NO. 21 ITEM TITLE Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement with MBIA MuniServices to provide interim administrative consulting services for the Community Development Commission of the City of National City. (Funded by the Community Development Commission) (City Manager/Executive Director) PREPARED BY Chris Zapata EXPLANATION 619-336-4240 City Manager See attached Agreement. DEPARTMENT Environmental Review ✓ N/A Financial Statement Community Development Commission funds will be utilized for this contract. STAFF RECOMMENDATION Approve Resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution Proposed Contract A-200 (9/80) Account No. N/A Resolution No. RESOLUTION NO. 2006 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH MBIA MUNISERVICES TO PROVIDE INTERIM ADMINISTRATIVE CONSULTING SERVICES FOR THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the City desires to employ a consultant to provide interim administrative consulting services for the Community Development Commission of the City of National City; and WHEREAS, the City has determined that MBIA MuniServices is qualified by experience and ability to perform the services desired by the City, and the MBIA MuniServices is willing to perform such services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Agreement with MBIA MuniServices to provide interim administrative consulting services for the Community Development Commission of the City of National City. Said Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 21 st day of February, 2006. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney /IIIBIA MuniServices Company February 9, 2006 Lin Wurbs Assistant City Manager City of National City 1243 National City Blvd. National City, CA 91950 7335 N. Palm Bluffs Ave. Fresno, CA 93711 559 271 6800 (p) 559 275 0171 (f) Re: Contract with MBIA MuniServices Company for Interim Administrative Consulting Services Dear Ms. Wurbs: Enclosed are three partially signed copies of the agreement between the City of National City and MBIA MuniServices Company (MMC) for the provision of Interim Administrative Consulting Services. The agreement is incorporated by reference into the Consultant Services Agreement between MMC and City dated June 21, 2005 Please have these copies of the agreement signed and return one fully signed copy to me. If MMC has not received a fully signed copy of the agreement within 90 calendar days from the date on this letter, the offer embodied in the agreement is automatically revoked. If you have any questions or concerns please feel free to contact me by phone at 559.271.6878, by fax at 559.312.2878, or by email at eric.myers@muniservices.com Sincerely yours, Eric Myers Corporate Counsel Enclosures: (3) SCOPE OF WORK INTERIM ADMINISTRATIVE CONSULTING SERVICES FOR THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY This scope of work is dated February 1, 2006, and is between the City of National City ("City"), a California Municipal Corporation, and MBIA MuniServices Company ("MMC"), Delaware Corporation with an office at 7335 N. Palm Bluffs Ave, Fresno, CA 93711. By this reference this scope of work is incorporated into the Consultant Services Agreement (the "Agreement") between MMC and City dated June 21, 2005. BACKGROUND On January 24, 2006, Mayor and City Council adopted a resolution directing that the administration of the Community Development Commission of the City of National City ("CDC") be consolidated with the administration of the City of National City ("City") under the supervision of the City Manager. The following specific recommendations were formally approved with the City Council resolution: 1) Merge the administrative operations of the CDC into the City organization while maintaining the current CDC model for conducting the business of the Redevelopment Agency and Housing Authority. 2) Appoint the City Manager as Executive Director of the CDC. 3) Transfer all CDC staff into the City personnel system continuing "at will" status for certain management staff and bringing "rank and file" staff under appropriate public employee union representation. 4) Consolidate the financial management functions of the CDC into the City Finance Department. 5) Consolidate the personnel management functions of the CDC into the City Human Resources Department. 6) Solicit proposals to hire an outside contractor to conduct a CDC Comprehensive Compensation Analysis in order to equitably integrate existing represented and unrepresented positions into the City personnel system. 7) Solicit proposals to hire an outside contractor to prepare a CDC Reorganization Implementation Plan. City desires to have MBIA MuniServices Company ("MMC") consult with City administration to implement the preceding set of recommendations. MMC possesses the professional expertise required to provide the consultation services. Administrative Consulting Services 1 TERMS 1. Services. For no more than 180 days after February 1, 2006, MMC professional staff, including but not limited to Hank Cunningham and Patricia Nunn, will work with City administration and former CDC staff on the following tasks. • Assist with negotiations, entitlements and permitting on existing redevelopment projects. • Assist the City to solicit development proposals on various redevelopment opportunity sites. • Review terms and conditions of existing DDAs and OPAs and make recommendations for improving the City/CDC financial position while achieving its long-term revitalization objectives, and submit report of relevant findings. • Review existing and currently planned debt issuances — Tax Allocation Bonds, Community Facilities District Bonds, Housing Revenue Bonds, or other debt instruments for appropriateness and feasibility, and submit report of relevant findings. • Review existing economic development programs — Business Improvement Districts, commercial rehabilitation loans, facade rebates, etc. for appropriateness and feasibility, and submit report of relevant findings. • Review existing housing programs — Low/Mod-Income Set -side Fund, rehabilitation loans, first-time buyer loans, rehabilitation loans, facade rebates/grants, etc., and submit report of relevant findings. • Review existing consultant contracts and make recommendations for change and/or termination as appropriate. • Assist City Manager/Executive Director by meeting with staff to advise staff on redevelopment projects and by preparing Council/Board agenda reports, developer and community relations, and required reports to outside agencies such as the State Controller, State Legislation and affected taxing entities. • Prepare and conduct a strategic planning and implementation workshop with participants including the Mayor and Council, City Manager and key staff members. • Assist with the job description and recruitment of an additional executive at the department director level to supplant, all or in part, the duties formerly undertaken by the CDC Executive Director and two Deputy Director positions. • Coordinate with outside contractor selected to prepare a CDC comprehensive compensation analysis. • Coordinate with outside contractor selected to prepare a CDC reorganization plan. 2. Compensation. 2.1 Hourly Fee. City shall pay MMC for services performed under this scope of work on an hourly basis as follows: • Principal: $250 per hour • Technical Advisor: $175 per hour • Project Manager: $150 per hour • Administrative Support: $50 per hour Administrative Consulting Services 2 2.2 Expenses. In addition, MMC will be reimbursed for reasonable out of pocket expenses in an amount not to exceed $3,000 for the project. 2.3 Invoicing. MMC will invoice the City monthly based on actual work performed and expenses incurred in accordance with the Agreement. 2.4 Payment after termination. CITY shall pay MMC for services performed through the effective date of termination for which MMC had not been paid. City's obligation to pay MMC for services performed before the effective date of termination survives termination of this scope of work and the Agreement. 3. Termination. This scope of work terminates automatically 180 days after February 1, 2006. 4.. Excuse for performance. If MMC reasonably believes that performing any item of work under this scope of work may lead to a conflict of interest, MMC is excused from that performance. Such excused performance is not a breach of this scope of work or the Agreement. 5. Data. To the extent reasonable, MMC will verify the data that it uses to provide the services under this scope of work. However, it is understood that in some instances MMC will be using reports supplied by third parties. In such cases, MMC cannot necessarily verify the accuracy of the data. MMC will also be relying on information provided by the City. City represents that it understands that any reports MMC produces under this scope of work are prepared for the City and not for the benefit of any other person and that MMC will not accept any duty to any other party who may view some or all of the reports and will not be liable for any loss, damage or expense of any nature that is caused by the reliance of another party on any portion of MMC's reports. EXECUTED as of the day and year first above stated. MBIA MuniServices Company/MMC CITY OF NATIONAL CITY A Municipal Corporation By: Marc Herman Title: President Administrative Consulting Services By: Title: 3 By: ATTEST: vin Cerutti CITY CLERK Title: Chief Financial Officer Administrative Consulting Services 4