The URL can be used to link to this page

Home My WebLink About09-175 Resolution No. 09-175 RESOLUTION AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE AGREEMENT WITH KANE, MC KENNA AND ASSOCIATES, INC. FOR CONSULTANT SERVICES REGARDING THE BLUFF CITY QUARRY AREA PROPOSED TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall, City Manager, and Diane Robertson, City Clerk,be and are hereby authorized and directed to execute Amendment No. 1 to the agreement with Kane,McKenna and Associates,Inc.on behalf of the City of Elgin, for consultant services regarding the Bluff City Quarry Area Proposed Tax Increment Financing Redevelopment Project Area,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: August 12, 2009 Adopted: August 12, 2009 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk 7/6/09 AMENDMENT NO. 1 THIS AMENDMENT NO. 1 AGREEMENT is hereby made and entered into this 1A tA-) day of 2009, by and between the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as "City") and Kane, McKenna and Associates, Inc., an Illinois corporation(hereinafter referred to as "Consultant"). WHEREAS, City and Consultant previously entered into an agreement dated December 17, 2008 wherein the City engaged the Consultant to furnish certain professional services in connection with the proposed Bluff City Quarry Tax Increment Financing District referred to therein as the "Project" (such agreement is hereinafter referred to as the "Subject Agreement"); and WHEREAS, the parties have determined that it is necessary and desirable to increase the total fee for Phase I services from the current not-to-exceed amount of $15,000 to the not-to- exceed amount of$25,000 and to authorize Phase II services; and WHEREAS, the changes to the Subject Agreement as provided for in this Amendment Agreement are germane to the original contract as signed and the changes as provided in this Amendment Agreement are in the best interests of the City and authorized by law. NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein, and the mutual undertakings set forth in the Subject Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties hereto hereby agree as follows: 1. That Section lA of the Subject Agreement is hereby amended to read as follows: "Consultant shall perform the services for the Project as outlined in Consultant's letter of agreement dated September 4, 2008, a copy of which is attached hereto as Exhibit 1. Only Phase I and II services as outlined in Exhibit 1 are authorized pursuant to this Agreement. Authorization for Phase III services shall require a written amendment to this Agreement." 2. That Section 4A of the Subject Agreement is hereby amended to read as follows: "For services provided the Consultant shall be paid at the direct hourly rate of its personnel employed on the Project as set forth in Exhibit 1 attached hereto with the total fee for Phase I not-to-exceed $25,000 and the total fee for Phase II not-to-exceed $30,000 except as may be authorized in writing by the City." 1 ' 3. In the event of any conflict between the Subject Agreement and this Amendment Agreement,the terms of this Amendment Agreement shall supersede and control. 4. That except as specifically amended herein the Subject Agreement shall remain in full force and effect. IN WITNESS THEREOF, the parties hereto have entered into and executed this Amendment Agreement as of the date and year first written above. CITY OF ELGIN KANE, MCKENNA 414D ASSOCIATES INC. i /A B ,� C y B y ty Manager Its President Attest: City Clerk F:\L,egal Dept\Agreement\Kane McKenna-Amend 1-Bluff City TIF.doc 2 July 16,2009 .� itrauclnhp�a7E �'rYrrl�mcnJ TO: Mayor and Members of the City Council 0fy FROM: Sean R. Stegall, City Manager William A. Cogley, Corporation Counsel SUBJECT: Proposed Amendment to Agreement with Kane, McKenna and Associates, Inc. for Consultant Services in Connection with the Bluff City Quarry Area as a Proposed Tax Increment Financing Redevelopment Project Area PURPOSE The purpose of this memorandum is to submit to the Mayor and members of the City Council a proposed amendment to the agreement with Kane, McKenna and Associates, Inc. for consultant services in connection with the Bluff City quarry area as a proposed tax increment financing redevelopment project area. RECOMMENDATION It is recommended that the City Council authorize the proposed Amendment Agreement with Kane McKenna for additional consulting services in connection with the proposed Bluff City quarry area as a proposed tax increment financing redevelopment project area. BACKGROUND On September 10, 2008, the City Council adopted resolution 08-216 providing for a feasibility study on the designation of the Bluff City quarry area as a proposed tax increment financing redevelopment project area. On December 17, 2008, the City Council adopted resolution 08-294 authorizing an agreement with the consulting firm Kane, McKenna and Associates, Inc. for consulting services regarding the proposed TIF area. Phase I services involve a feasibility study including investigating the desirability and feasibility of using tax increment financing or other appropriate economic development incentives and funding for the proposed TIF district resulting in a TIF eligibility report. Phase II services will involve the preparation of a redevelopment plan and project. Phase III services would involve implementation of the redevelopment plan and project. The agreement as initially approved by the City Council authorized only Phase I services in an amount not-to-exceed $15,000. The feasibility study and discussions with the property owners Proposed Amendment to Agreement with Kane, McKenna and Associates, Inc. for Consultant Services in Connection with the Bluff City Quarry Area as a Proposed Tax Increment Financing Redevelopment Project Area July 16,2009 Page 2 have been more extensive than contemplated including as a result of the developer proposing to amend the TIF boundaries by excluding certain property previously developed and currently being mined. The proposed amendment agreement would amend the not-to-exceed amount of $15,000 for Phase I services to a not-to-exceed amount of$25,000. The proposed amendment agreement would also authorize Phase II services which involve the preparation of a redevelopment plan and project. The city is not incurring any costs in connection with the Kane McKenna agreement or otherwise in connection with the Bluff City quarry area study. The city and Gifford 300, LLC,the majority property owner within the Bluff City quarry area, have previously entered into a fees and costs reimbursement agreement whereby Gifford 300,LLC has agreed to reimburse the city its costs in connection with the Bluff City quarry area study including, but not limited to, the Kane McKenna agreement. The initial limit on such reimbursement pursuant to the agreement with Gifford 300, LLC is $75,000. Gifford 300, LLC has deposited an initial $20,000 with the city for payment of initial fees and costs. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Gifford 300, LLC. FINANCIAL IMPACT None at this time. The city's costs pursuant to the agreement with Kane McKenna will be reimbursed by Gifford 300, LLC. LFGAL IMPACT The original agreement with Kane McKenna was an exception to the city's procurement ordinance. The amendment agreement would likewise be considered an exception to the city's procurement ordinance thereby requiring approval of 2/3 of the members of the City Council now holding office. ALTERNATIVES 1. The City Council may choose to approve the proposed amendment agreement with Kane, McKenna and Associates as presented or in an amended form. 2. The City Council may choose not to approve the amendment agreement for the further study of the proposed Bluff City quarry area and not proceed with any further feasibility analysis for such area. Respectfully submitted for Council consideration. WAC/mg Attachment