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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).