SUBJECT: RESOLUTION AUTHORIZING A FIRST AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE OAKLAND REDEVELOPMENT AGENCY AND AEGIS REALTY PARTNERS TO INCREASE THE COMPENSATION BY AN AMOUNT NOT TO EXCEED $50,000 FOR A NEW CONTRACT AMOUNT OF $773,000 FOR THE PREPARATION OF COST ESTIMATES AND CONSTRUCTION DOCUMENTS FOR THE 17TH STREET AND SAN PABLO AVENUE GARAGE

PURPOSE AND SCOPE

In accordance with the Measure H Charter Amendment, which was passed by the voters at the General Election of November 5, 1996, we have made an impartial financial analysis of the accompanying Council Agenda report and Draft Resolution. Our analysis was limited to evaluating the reasonableness of the amounts involved and verifying that funds are available.

BACKGROUND

At its meeting held on November 21,2001, the Council approved a resolution authorizing the Agency Administrator to negotiate and execute a contract for an amount not to exceed $723,000 with Aegis Realty Partners to prepare schematic designs, cost estimates and construction documents for the 17th Street and San Pablo Avenue Garage. The garage is required as part of the Rotunda Building Disposition and Development Agreement.

Aegis Realty Partners was the lowest responsible bidder for the project. The proposed resolution would increase the contract amount by $50,000, for a new contract amount of $773,000.

FINANCIAL IMPACT

The additional $50,000 will be used as follows:

Design roof garden adjacent to the Adcock-Joiner Apartments	$16,715
Design direct entrance to the Dufwin Building	$ 7,960
Security risk analysis and system design	$ 9,590
Design 16th Street façade and stair canopies	$ 9,200
Additional graphics for Planning Commission and Design Review Committee	$ 4,000
Total	$47,465

AVAILABILITY OF FUNDS

Funds are available from the following sources:

Fund	Organization	Account	Project	Amount
9504	94800	54411	P125920	$103, 366
9553	94800	54411	P125910	$324,852
Total				$428,218

CONCLUSION AND RECOMMENDATION

We believe that the proposed resolution is reasonable, and merits favorable consideration by the Council. We recommend that it be approved.

Prepared by:

Jack McGinity, CPA

Approved by:

Roland E. Smith, CPA
City Auditor

December 31, 2002

Report Number:03-046