2003 AGN JUN 17 I17 - Laserfiche WebLink

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Item #17 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF, JUNE 17, 2003 TO: HONORABLE. MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR kk� SUBJECT: AMMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT WITH BONNIE JOHNSON FOR PROFESSIONAL SERVICES IN THE AMOUNT OF $20,000. DATE: JUNE 9, 2003 BACKGROUND: The City Council approved the budget for the City of Colton on June 10, 2003, which includes a component to explore the possibility of a new revenue measure. ANALYSIS/DISCUS SION: On June 10, 2003, the City Council approved a $22.7 million General Fund budget. To reach a balanced budget, the City Council and staff had to make difficult fiscal decisions, which included staffing reductions. There are a couple of issues that is the driving force behind Colton's fiscal challenges. These are, increased PERS rates and the State's fiscal crisis. Although 2003/2004 will be challenging, the City faces greater hurdles in 2004/2005, due to higher PERS costs primarily for safety. To mitigate these challenges, which will result in deficits, staff has begun the process of exploring options for a new revenue source. This task is time consuming and complex, and requires the assistance of professional consultants. The first phase of this process calls for analysis of data, report preparation and presentations. Staff is proposing to hire Ms. Bonnie Johnson a Certified Public Accountant (CPA), to assist the City in performing these tasks and make a presentation to the Council on July 15, 2003. Section 3.08.060 of the California Municipal Code allows the City Council, by majority vote, to dispense with bidding requirements for professional services when it would be impracticable or uneconomical and the public welfare would be promoted ALTERNATIVES: Reject staff proposal, and direct staff to handle the additional tasks with existing staff. This however will add extra burden to the existing staff, which could create a delay in bringing to the Council a proposal for a new revenue measure. This delay could hinder timely action on the City's part, which in tum could jeopardize a possibility of a new revenue measure to stabilize the fiscal crisis. ENVIRONMENTAL IMPACT: None