PREPARED BY: SARAH MAROOF DATE OF MEETING: 08/05/2024
SUBJECT:
TITLE
CONSIDER ADOPTING TWO (2) RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AND ONE (1) RESOLUTION OF THE SAN PABLO LOCAL SUCCESSOR AGENCY, INCLUDING:
1) RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEGAL SERVICES AGREEMENT BETWEEN THE CITY AND MURPHY & ASSOCIATES FOR ECONOMIC DEVELOPMENT LEGAL SUPPORT IN AN AMOUNT NOT TO EXCEED $100,000 OVER TWO (2) FISCAL YEARS (FISCAL YEAR 2024-25 AND FISCAL YEAR 2025-26), SUBJECT TO FUNDING AVAILABILITY;
2) RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEGAL SERVICES AGREEMENT BETWEEN THE CITY AS HOUSING SUCCESSOR AND MURPHY & ASSOCIATES REGARDING HOUSING SUCCESSOR ACTIVITIES IN AN AMOUNT NOT TO EXCEED $60,000 OVER TWO (2) FISCAL YEARS (FISCAL YEAR 2024-25 AND FISCAL YEAR 2025-26), SUBJECT TO FUNDING AVAILABILITY; AND
3) RESOLUTION OF THE SAN PABLO LOCAL SUCCESSOR AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A LEGAL SERVICES AGREEMENT BETWEEN THE LOCAL SUCCESSOR AGENCY AND MURPHY & ASSOCIATES FOR ACTIVITIES AND OBLIGATIONS OF THE SUCCESSOR-IN-INTEREST TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN PABLO IN AN AMOUNT NOT TO EXCEED $60,000 OVER TWO (2) FISCAL YEARS (FISCAL YEAR 2024-25 AND FISCAL YEAR 2025-26), SUBJECT TO FUNDING AVAILABILITY
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolutions
Body
Compliance statements
The major policy goals Expand Housing Options and Focus on Economic Development and Fiscal Diversification are consistent with the City of San Pablo City Council Priority Workplan for FY 2023-25 adopted/effective May 1, 2023 as most recently amended on March 18, 2024.
BACKGROUND
C. Nicole Murphy has been providing legal services to the City and former Redevelopment Agency since 1998 and is very familiar and knowledgeable about the operations and projects of the former Redevelopment Agency; the ongoing redevelopment dissolution process mandated by the State, including the Long-Range Property Management Plan and financial reporting on the ROPS forms submitted to the California Department of Finance; housing projects; and previous bond financings. Particularly, with retirements and new personnel, Ms. Murphy’s institutional memory is critical.
With the redevelopment dissolution process, there are now three entities involved in economic development and redevelopment: 1) the City, 2) the City as Housing Successor, and 3) the Local Successor Agency to the former Redevelopment Agency of the City of San Pablo. For budgeting and invoicing purposes, it was determined that three separate contracts would be beneficial.
Because the three (3) separate contracts with Murphy & Associates, PC, dated and effective July 1, 2022, have been nearly fully expended, staff recommends that the City Manager/LSA Executive Director be authorized to execute three (3) new legal services agreements with Murphy & Associates, each in a form to be approved by the City Attorney that does not substantially alter the City/LSA’s rights or responsibilities from those set forth in the attached draft agreements.
FISCAL IMPACT
The proposed contracts are for the following amounts, which are estimates as staff cannot predict with certainty what legal issues will arise:
City Economic Development - Up to $50,000 for Fiscal Year 2024-25 and up to $50,000 for Fiscal Year 2025-26, for a total contract amount not to exceed $100,000, to be paid from the General Fund Economic Development budget (100-1320-44000).
Housing Successor - Up to $30,000 for Fiscal Year 2024-25 and up to $30,000 for Fiscal Year 2025-26, for a total contract amount not to exceed $60,000, to be paid from the Housing Assets account (250-1741-43600).
Local Successor Agency - Up to $30,000 for Fiscal Year 2024-25 and up to $30,000 for Fiscal Year 2025-26, for a total contract amount not to exceed $60,000, which payment would be sought from the former tax increment revenue allocated through the ROPS process with the California Department of Finance (402-6110-43600).
These contracts have been budgeted through the regular City budget process for the next two fiscal years, and are subject to funding availability. In addition, the City/Local Successor Agency/Housing Successor reserves the right to cancel the contracts at any time for any reason.
ATTACHMENTS
Att A - Resolution authorizing the City Manager to execute a legal services agreement between the City and Murphy & Associates for economic development legal support in an amount not to exceed $100,000 over two (2) fiscal years (Fiscal Year 2024-25 and Fiscal Year 2025-26), subject to funding availability;
Att B - Draft Contract with Murphy & Associates for City economic development activities, for services beginning July 1, 2024
Att C - Resolution authorizing the City Manager to execute a legal services agreement between the City as Housing Successor and Murphy & Associates regarding Housing Successor activities in an amount not to exceed $60,000 over two (2) fiscal years (Fiscal Year 2024-25 and Fiscal Year 2025-26), subject to funding availability;
Att D - Draft Contract with Murphy & Associates for Housing Successor activities, for services beginning July 1, 2024
Att E - Resolution of the San Pablo Local Successor Agency authorizing the Executive Director to execute a legal services agreement between the Local Successor Agency and Murphy & Associates for activities and obligations of the successor-in-interest to the former redevelopment agency of the City of San Pablo in an amount not to exceed $60,000 over two (2) fiscal years (Fiscal Year 2024-25 and Fiscal Year 2025-26), subject to funding availability
Att F - Draft Contract with Murphy & Associates for Local Housing Agency activities, for services beginning July 1, 2024