SR-213-007 (11)
To: Mayor and City Council
From: City Staff
Subject: Authorize the City Manager to Negotiate and Execute a Contract with
Weil & Company to Provide Fiscal Services for the Montana Avenue
Merchant Association Business Improvement District
Introduction
This report recommends that the City Council authorize the City Manager to
negotiate and execute a contract with Weil & Company for the administration of
the Montana Avenue Merchant Association Business Improvement District funds.
Discussion
On September 13, 2005, the Council approved terminating the contracts with the
Valley Economic Development Center (VEDC) for fiscal services for the Main
Street Business Improvement Association and Pico Improvement Organization
business improvement districts (BID), and authorized contracts with the Main
Street BID to administer its own funds and with Weil & Company to administer
the funds of the Pico Improvement Organization BID. At the time, the Montana
BID was not in a position to change fiscal agents because it had not yet
incorporated and the organization relied on VEDC for Board of Director’s and
event insurance coverage. In December 2005, the Montana BID submitted the
incorporation documents to the State Franchise Tax Board, which are expected
to be completed within the next month.
On December 5, 2005, VEDC provided written notification to the City to cancel
Fiscal Services Contract No. 7910 for the Montana BID. The contract requires
90-days written notice for termination. The Montana BID has asked the City to
enter into an agreement with Weil and Company to replace VEDC for fiscal agent
services for their organization. Incorporation will be completed before a contract
with Weil & Company is executed.
Weil & Company is a full service public accounting firm with a business
management practice based in Santa Monica. It has the staff and the experience
to fully serve the financial and administrative needs of the Montana BID and the
company is the current fiscal agent for the Pico BID. As the fiscal agent, Weil &
Company will receive the assessments from the City, pay the BID’s invoices,
provide monthly bank reconciliation statements, provide monthly budget reports,
and prepare the tax returns. Weil & Company will bill at an hourly rate ranging
from $85 to $130 per hour, not to exceed $5,000 per year, the same rates Weil &
Company charges for the Pico BID.
Staff recommends that the City enter into an Agreement with Weil & Company for
fiscal services for the Montana BID.
Budget/Financial Impact
There are no financial/budgetary impacts to the City as a result of action on this
recommendation as BID assessments will be used to pay for the services of the
fiscal agent.
Recommendation
Staff recommends that the City Council authorize the City Manager to:
1. Accept VEDC’s termination letter for fiscal services for the Montana
Avenue Merchant Association BID; and
2. Authorize the City Manager to negotiate and execute an Agreement with
Weil & Company for the administration of funds on behalf of the Montana
Avenue Merchant Association BID, at hourly rates set forth in its proposal,
with a not-to-exceed amount of $5,000 per year, for a one-year period,
with options to renew for three additional one-year periods.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Steve Stark, Director of Finance Department
Miriam Mack, Economic Development Division Manager
Erika Cavicante, Sr. Administrative Analyst
Reference Contract No. 8552 (CCS)