Report to Carson Reclamation Authority
Tuesday, April 02, 2024
Consent
SUBJECT:
Title
CONSIDER AMENDMENT NO. 2 TO THE AGREEMENT WITH DAVID TAUSSIG AND ASSOCIATES, INC., D/B/A DTA, TO PROVIDE CFD RESTRUCTURING AND SPECIAL TAX CONSULTING SERVICES TO THE CARSON RECLAMATION AUTHORITY, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXTEND THE TERM OF THE AGREEMENT TO MARCH 27, 2025
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I. SUMMARY
The agreement for contract services with David Taussig and Associates, Inc. dba DTA, was approved September 27, 2022. The agreement is for $61,000. CRA staff and the Authority counsel have worked with DTA and the then-prospective property owners on the Site (CAM-Carson, LLC and Carson Goose Owner, LLC) on the revision of Community Facilities District 2012-1 (CFD 2012-1) and the potential termination of Community Facilities District 2012-2 (CFD 2012-2). The first CFD was established to provide a funding stream for the long-term operation and maintenance of the remedial systems on the site, and the second CFD was established as a mechanism to refund the original developer of the site, Carson Marketplace, for the construction of the public infrastructure through the issuance of bonds.
Work with all the parties has proceeded but is complex. Ultimately, the product by DTA will be a revised Rate and Method of Allocation (“RMA”) for the CFD, essentially the way the assessment is levied against the various private owners of the site. Considerable effort has gone into future budget projections, as well as understanding all the other costs (such as admin, regulatory oversight, and insurance) that will also be necessary to pay after completion. The “method” of allocation will also change to be more equitable - based on acreage rather than differential rates for different land uses. (Since the installation of liner and landfill gas wells is relatively uniform over the site and not dependent on land use.)
Under the terms of the Agreement, the Executive Director has some ability to approve minor changes to the Agreement, but any amendment to the term over 90 days must be approved by the CRA Board. The Director extended the original term of the agreement administratively (by letter) by ninety days, and the CRA Board approved an extension request that extended the Term of the Agreement to March 27, 2024, anticipating the work would be done by then. However, several additional issues arose in negotiating the CFD changes described above, and the parties need more time to resolve them. This request is to extend the contract term by an additional year. This would extend the term only and add no additional funds to the contract or change the overall scope of work.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE AMENDMENT NO. 2 TO AGREEMENT BETWEEN THE CARSON RECLAMATION AUTHORITY AND DAVID TAUSSIG AND ASSOCIATES, INC. D/B/A DTA, A CALIFORNIA CORPORATION, EXTENDING THE TERM TO MARCH 27, 2025
2. AUTHORIZE the Executive Director to execute the Agreement in a form acceptable to the Authority Counsel.
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III. ALTERNATIVES
Take another action deemed appropriate by the Board.
IV. BACKGROUND
See Summary.
V. FISCAL IMPACT
None.
VI. EXHIBITS
1. Agreement with David Taussig and Associates, Inc, d/b/a DTA (pgs. 3-61)
2. Amendment No. 2 to Contract Extending Term to March 27, 2025 (pg.62)
Prepared by: John S. Raymond, Executive Director