SR-01-22-2013-3H 213-007/213-0020(y of City Council Report
Santa Monica
City Council Meeting: January 22, 2013
Agenda Item: J H
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Fiscal agent services for business improvement district
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a five -year professional services agreement with five (5), one -year options to
renew with:
1) Weil & Company, LLP, a California -based company, in an annual amount not to
exceed $6,000, to provide fiscal services for the Montana Avenue Merchant
Association Business Improvement District to be paid by the Montana Avenue
Business Improvement District, and
2) the Main Street Business Improvement District for fiscal management of its
assessment funds in an amount that will be paid by the Main Street Business
Improvement District.
Executive Summary
Fiscal agents provide financial services to business improvement districts (BIDs) such
as reconciling bank accounts, preparing monthly financial reports and preparing annual
tax returns. Staff recommends Weil & Company to provide fiscal agent services for the
Montana Avenue Merchant Association Business Improvement District (Montana
Avenue BID). The Main Street Business Improvement Association (Main Street BID)
would provide its own fiscal agent services. Both parties have a successful track record
for providing such services.
Background
The City created the Montana Avenue BID in 1974 and the Main Street BID in 1984.
The City collects a special assessment from the businesses within each BID based on a
formula created for that BID. The City retains five percent of the amount collected for its
administrative expenses, and passes through the remainder to a fiscal agent to be used
by the BID Board of Directors for programs and projects that benefit their members.
1
Fiscal agents:
1) receive assessments from the City and deposit them into the BID's bank
account;
2) prepare, sign and mail checks for the BID upon receiving approved invoices;
3) provide monthly checking account and money market account reconciliation
statements;
4) provide monthly financial statements and cash flow statements to both the BID
and the City, and
5) may prepare the BID's annual tax returns
In FY2011 -12, the City collected approximately $88,000 from businesses in the
Montana Avenue BID and $108,000 from businesses in the Main Street BID.
Discussion
At its January 24, 2006 meeting, Council authorized an agreement with
Weil & Company to provide fiscal agenda services for the Montana Avenue BID.
The Montana Avenue BID's Board of Directors is pleased with the fiscal agent services
provided by Weil & Company and has voted annually for the City to renew its contract
with Weil & Company. The current contract with Weil & Company expires on
February 23, 2013. Staff solicited proposals for Montana Avenue BID fiscal services
and recommends that Weil & Company be awarded a contract to continue to provide
such services.
Weil & Company is a certified public accounting firm that has been in existence since
1953. The firm was located in Santa Monica for over 30 years before it relocated to
Century City in 2007. It is a full- service firm with a large business management practice
and has the experience to fully serve the financial and administrative needs of the
Montana Avenue BID. Weil & Company proposes to provide all fiscal agent services in
an amount not to exceed $6,000 per year, which is paid by the Montana Avenue BID
through their assessments and is an appropriate price for the services provided.
Pa
At its September 13, 2005 meeting, Council authorized an agreement with the Main
Street BID to administer its assessment funds. Because it has a paid Executive
Director, the Main Street BID is able to administer and manage its assessment funds.
The Main Street BID provides monthly and annual accounting reports to the City.
The agreement between the City and the Main Street BID to administer its assessment
funds has expired and staff is seeking Council authorization to enter into a new
agreement with the Main Street BID. Staff recommends that the base term of both
contracts be five years with five (5), one -year options to renew.
Contractor /Consultant Selection
On November 28, 2012, a Request for Proposals (RFP) for fiscal agent services for the
Montana Avenue BID was posted on the City's online bidding website and was sent
to 19 firms. Staff received one proposal from the current fiscal agent, Weil & Company.
The bid was evaluated based on price, services provided, and compliance with City
specifications. Based on these criteria, Weil & Company is recommended as the best
bidder to provide fiscal agent services for the Montana Avenue BID.
Financial Impacts & Budget Actions
There are no financial /budgetary impacts to the City as a result of action on this
recommendation. Each BID pays for the fiscal agent services from the BID assessment
funds they receive.
Prepared by: Erika, Cavica nte, Senior Development Analyst
Approved:_
Andy Agle, Director=
Housing and Economic Development
W
Forwarded to Council:
Rod Gould
City Manager
Reference Agreement
Nos. 9688 (CCS) and
9689 (CCS).