(5)AR 122209 First Amendment/Urban Futures, Inc.

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ITEM NO. 0 5 STAFF REPORT DATE: DECEMBER 22, 2009 TO: HONORABLE CHAIRPERSON AND BO FROM: ROD FOSTER, EXECUTIVE DIRECTORrer,,, PREPARED BY: CANDACE E. CASSEL, ECONOMIC DEVELOPMEN DIRECTOR SUBJECT: APPROVAL OF FIRST AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH URBAN FUTURES, INC IN THE AMOUNT OF $25,000 TO PROVIDE FINANCIAL ADVISEMENT SERVICES TO THE AGENCY. RECOMMENDED ACTION It is recommended that the Agency Board approve the attached First Amendment to the Professional Services Agreement (PSA) with Urban Futures, Inc. (UFI) to provide financial advisory services to the Agency. GOAL STATEMENT The proposed action will support the City's goal to ensure that it is adequately informed and advised of financial conditions surrounding its Redevelopment Agency. BACKGROUND On October 10, 2007, the Agency Board entered into a PSA with CSG to serve as the Agency's financial advisor with respect to the bond issuance the Agency was contemplating. On June 8, 2008, the First Amendment to the PSA was approved to add housing consultation to the scope of services. The Second Amendment was approved on December 8, 2008 to increase funding for the housing consultant services and to amend the scope to allow for financial review of some electric utility issues. On July 21, 2009, the PSA was extended (Third Amendment) through June 30, 2010 to include both financial and housing consultant services. Although the bond issuance never materialized, CSG continued to serve as the Agency's financial advisor given it was working with staff to negotiate a settlement with the San Bernardino Valley Municipal Water District for the outstanding pass-through obligation due for the Santa Ana River Redevelopment Project. ISSUES/ANALYSIS On November 24, 2009, the Agency entered into a Professional Services Agreement with Urban Futures, Inc. to provide professional services to prepare the Agency's 2010-2014 Implementation