REPORT TO COUNCIL
SUBJECT
Title
Approve the Second Amendment to Outside Counsel Agreement with Goldfarb Lipman for Town Center Development Matters and Approve Budget Modification No. 4 to appropriate $100,000 to the Project Management for Town Center Development Agreement Project
Report
REPORT IN BRIEF
Approval is requested for a Second Amendment to the Outside Counsel Agreement with the law firm of Goldfarb Lipman to assist the Agency Counsel with legal matters pertaining to the former Redevelopment Agency of the City of Sunnyvale (former Redevelopment Agency), the development of the Town Center Project and related real estate matters and other advisory services that may be needed by the Agency Counsel. This Second Amendment is needed to cover the costs associated with the above work and will increase the not-to-exceed amount of the Agreement by $100,000.00 for a new not-to-exceed amount of $200,000.
BACKGROUND
Karen Tiedemann, a partner in the law firm Goldfarb Lipman in Oakland, is a lawyer specializing in the areas of redevelopment law, redevelopment dissolution law, real estate transactions, affordable housing, nonprofit organization and environmental law. Ms. Tiedemann and her firm were retained by the Agency Counsel to represent the Successor Agency and provide legal services, consultation and advice concerning matters related to the former Redevelopment Agency, including the Town Center Project. The Agreement was originally entered on June 20, 2013, with an original not-to-exceed amount of $50,000. In March 2016, a first amendment was executed, which increased the not-to-exceed amount by another $50,000 for a total compensation amount of $100,000, and extended the term to June 30, 2019.
DISCUSSION
The Goldfarb Lipman law firm has represented the City and the former Redevelopment Agency since 2001, and with dissolution of the former Redevelopment Agency pertaining to the redevelopment of the downtown area and related real estate matters. This assistance has been particularly valuable in conjunction with the Town Center Project.
The Goldfarb Lipman law firm will continue to provide specialized legal services in the areas of law discussed above and any issues arising from the 2016 Modified and Restated Amended Disposition and Development and Owner Participation Agreement (2016 MRADDOPA) and its approval by the Oversight Board for the Successor Agency and the State Department of Finance.
It is anticipated that the Successor Agency may incur an additional $100,000 in legal fees for provision of the work discussed above. Therefore, it is necessary to amend the Agreement to increase the not to exceed amount by $100,000, for a new not-to-exceed amount of $200,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b) (4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Budget Modification No. 4 appropriates $100,000 from the Redevelopment Successor Agency (RSA) Fund Balance reserve to the Project Management for Town Center Developer Agreement project budget. The RSA Fund accounts for revenues and expenses related to the dissolution of the Sunnyvale Redevelopment Agency. A critical piece of the dissolution process is the determination of enforceable obligations for payment from the former property tax increment allocation. Obligations related to the Amended Disposition and Development and Owner Participation Agreement are enforceable obligations. Therefore, it is anticipated that the additional costs appropriated in this Budget Modification will be reimbursed by property tax increment.
Budget Modification No. 4
FY 2016/17
Current Increase/ Revised
Decrease
Redevelopment Successor Agency Fund
Project Costs
824571 - Project $25,000 $100,000 $125,000
Management for Town
Center Developer
Agreement
Reserves
RSA Fund Balance $2,171,512 ($100,000) $2,071,512
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the Agency Counsel to execute a Second Amendment, in substantially the same form as Attachment 1 to the report, to the Outside Counsel Agreement with the law firm of Goldfarb Lipman to increase the not-to-exceed amount by $100,000, for a new not-to-exceed contract amount of $200,000.
Staff
Prepared by: Nichole Anglin, Paralegal
Reviewed by: Brice McQueen, Senior Management Analyst
Reviewed by: Deanna J. Santana, City Manager
Reviewed and Approved by: John A. Nagel, Agency Counsel
ATTACHMENT
1. Draft Second Amendment to Outside Counsel Agreement