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