HomeMy WebLinkAbout4.11 ACAP Appropriate FundsSTAFF REPORT CITY CLERK
DUBLIN CITY COUNCIL File # 0 0 -[41
DATE: May 3, 2011
TO: Honorable Mayor and City Councilmembers
FROM:', oni Pattillo, City Manager
SUBJECT: Additional Appropriation of Funds for Associated Community Action Program
(ACAP) Contribution
Prepared By: Paul S. Rankin, Administrative Services Director
EXECUTIVE SUMMARY:
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At the City Council Meeting on April 5, 2011, the City Council appropriated up to $50,000 as the
City of Dublin's share of expenses needed to wind down the activities of Associated Community
Action Program (ACAP). The entity was formed under a Joint Powers Agreement, and was a
provider and administrator of social service related programs, serving the member jurisdictions.
Based on additional review by the City Managers and the Alameda County Chief Executive,
additional funding will be required from each of the member agencies to close out the
obligations of ACAP. This action will approve a budget change to appropriate additional funds
for the City of Dublin's estimated share of the program close-out funding.
FINANCIAL IMPACT:
The City's total share of the costs is estimated to be $146,539. This includes preliminary
estimates identified costs to wind -down ACAP's affairs, as well as an estimate of potential costs
and liabilities which are currently being researched by the Management Committee. The City
Council previously appropriated up to $50,000 on April 5, 2011. Staff recommends that the City
Council authorizes an additional appropriation of $96,539 from the City's unappropriated
reserves for the City of Dublin's share of costs associated with ACAP ceasing operations. The
costs are being shared equally by each member agency.
RECOMMENDATION:
It is recommended that the City Council authorize a budget change in the amount of $96,539.
Submitted By:
Administrative Services Director
Reviewed
Assistant Cify Manager
Page 1 of 3 ITEM NO. 41
DESCRIPTION:
On March 23, 2011, the Governing Board of ACAP, appointed Management Partners, Inc. to
serve as the administrator for winding down the activities and meeting the obligations of ACAP
with a goal of completing the wind-down process in 90 days.
As reported in the April 5, 2011 Staff Report (Attachment 1), both Joni Pattillo, City Manager
and John Bakker, City Attorney, have formally participated as part of an ad-hoc committee to
accomplish the tasks required and provide review over the close-out expenditures. The City of
Dublin is also serving as Fiscal Agent to collect and hold contributions from member agencies
and to distribute them as costs are substantiated.
Working with Management Partners', a preliminary plan was developed which identified and
prioritized the work to be accomplished. This plan was discussed with, and approved by, the
City Managers of the member agencies on April 20, 2011. The major categories of work to be
accomplished include:
1) Identify roles/responsibilities of the Governing Board and the Community Advisory Board
in the wind-down process. .
2) Prepare a communications plan
3) Assess operational needs to successfully wind-down ACAP
4) Organize and determine the future disposition of files and records
5) Inventory and dispose of all ACAP property
6) Terminate leases and vacate buildings occupied by ACAP
7) Evaluate all the various insurance programs and terminate the insurance plans when
appropriate
8) Complete a number of finance related tasks which will facilitate the payment of ACAP's
financial obligations and facilitate to the extent possible close-out requirements of all
agencies that provided grants to ACAP
9) Prepare all grant close-out documentation
10)Determine services required after the close-out of ACAP
Management Partners has estimated that the total preliminary costs to wind-down ACAP's
affairs, which includes the payment of back wages to former employees as well as repayment of
funds advanced by Alameda County, to be $1,880,000. Of this amount approximately
$1,280;000 has been estimated based on known obligations and estimates for required
services. In addition, the estimate for costs that the member agencies might be required to
bear related to potential liabilities that will not be known until after the close-out process is
$600,000. It is possible that this amount may be reduced, however, this is the best estimate
based on informafion available at this time.
Page 2 of 3
The ACAP Joint Powers Agreement provides that the debts, liabilities, and obligations of ACAP
shall be the debts, liabilities, and obligations of the signatories to the agreement, to be shared
equally.
The City of Dublin share of the estimated total costs is $146,539. Of this amount the City has
already paid $25,000. A second payment of $75,385 has been requested at this time. The
remainder will be invoiced as need is identified. This will allow ACAP to proceed on an orderly
path of close out and to pay those precise costs currently identified, and to have access to
funds to meet projected needs as those needs are specifically identified and documented.
Since the expenditures for these activities were not included in the adopted Budget, a. budget
change is required. Attachment 1 is a Budget Change for the City of Dublin appropriating an
additional of $96,539 to be provided to the ACAP fiscal agent trust fund. This amount, plus the
appropriation of $50,000 previously approved on April 5, 2011, will fund the estimated City
share of $146,539.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS: 1. April 5, 2011 Staff Report
2. Budget Change
Page 3 of 3
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~~~ ~' ~~~ STAFF REPORT . C I T Y C L E R K
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` 1~~~~::~ DUBLIN CITY COUNCIL File # 0~0~-['~i~
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DATE: April 5, 2011 ~
TO: Horiorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJE : Appropriation of Funds for Associated Community Action Program (ACAP)
Contribution and Authorization for the City Manager to execute Agreements' and
Authorizing the City of Dublin to serve as Fiscal Agent
Prepared By: Paul S. Rankin, Administrative Services Director
EXECUTIVE SUMMARY:
Alameda County and twelve cities in the county (each incorporated city except Berkeley and
Oakland) formed Associated Community Action Program (ACAP) to provide and administer
social service related programs. The City Managers and the Alameda County Chief Executive
have determined that there are administrative and legal issues that must be resolved in the
operation of ACAP leading to the agency ceasing its operations. The City of Dublin has initially
accepted responsibility as fiscal agent to collect and account for contributions from all agencies
and to coordinate administrative .services. This action will appropriate funds for the City of
Dublin's share of the contribution and authorize Staff to perform certain fiscal agent functions.~
FINANCIAL IMPACT:
In order to address the immediate needs of the ACAP Joint Powers Agency and the winding
down of its operations, each member is contributing $25,000. These funds were not included in
the City of Dublin's adopted budget and a Budget Change is required. The Cit~r Council is
requested at this time to administratively allow the City Manager to approve additional
appropriations of up to $25,000, without further action by the City Council.
RECOMMENDATION:
It is recommended that the City Council 1) Authorize a budget change in the amount of $25,000
with approval for the City. Manager to administratively increase this amount up to an additional
$25,000, based on the cooperating agencies determination that additional contributions from
the member are required; 2) Authorize the City Manager, in consultation with the City Attorney,
to execute a cooperafion agreement with the other members of ACAP; and 3) Confirm and
authorize the City Manager to enter into contracts to be funded fram contributions made by the
member agencies to a special.trust fund held by the City of Dublin.
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, Submitted By: ; Reviewed B •'
Administrative Services Director Assistant City anager
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Page 1 of 2 ~ ATTACHMENT 1
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DESCRIPTION:
The Chief Executives from the member agencies, along with agency legai counsels, have
.reviewed the best manner to address the ACAP organization and provide a structured means
for its operations to be completed. A Management Committee was formed which includes Joni
Pattillo, City Manager and John Bakker, City Attorney as well as representatives from the City of
Hayward and the City of Livermore. The Committee has been delegated decision making
authority for ACAP operations. The day to day work involved with the winding down of ACAP is
being performed through an executive management services agreement with Management
Partners Inc. The arrangement for the close-out activities have also been presented to the
ACAP Board of Directors for their approval. All of the participating agencies will be executing a
joint cooperation agreement which will outline the roles and responsibilities that are
contemplated.
In addition to the City Manager serving on the Management Committee, the City of Dublin will
be acting as Fiscal Agent. In the City financial records, a separate trust fund has been
established to record the collection of contributions from member agencies which are held for
disbursement of payments for ACAP obligations. In this role the City will be issuing payments in
accordance with a cooperation agreement between the member agencies and as reviewed by
the Management Committee. One of the initial tasks for the City of Dublin was to enter into a
Professional Services Agreement with Management Partners Inc. The costs incurred for this
agreement will be paid from the new trust fund and the initial agreement is not to exceed
$100,000. The Trust Funds are to held by the Cit~r of Dublin as the fiscal agent and shall be
used solely for the tasks and expenses required to close-out the business activities of ACAP.
The initial contribution being made by each of the agencies is $25,000. In the case of Alameda
County they have previously granted loans to ACAP and their initial contribution will be in the
form of reducing their claim for the loans by $25,000. Attachment 1 is a Budget Change for the
City of Dublin appropriating an initial contribution from reserves of $25,000 to be provided to the
ACAP fiscal agent trust fund. In making this appropriation, the City Council is also requested to
authorize the City Manager to administrative increase the appropriation by an additional
$25,000 without further action by the City Council.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS: 1. Budget Change
Page 2 of 2
CITY OF DUBLIN
BUDGET CHANGE FORM FY 2010 / 2011
CHANGE FORM #
New Appropriations (Ciry Council Approval Required): Budget Transfers:
X From Unappropriated Reserves (*) -From Budgeted Contingent Reserve (1001.1901.81101)
From New Revenues"`*
Other
Within Same Department Activity
_Between.Departments (City Council Approval Required)
Name: EXPENSE - GENERAL
- FUND -Social SerYices - Contract
, ~ Seroices General $ 96,539
Acct #: 1001. 5501. 64001.
REASON FOR BUDGET CHANGE ENTRY:
The City of Dublin is a participating agency in the Joint Powers Agency - Associated Community Action
Program (ACAP). In order to administratively wind down the organization each agency is
sharing equally in the costs. A report presented to the City Council May 3, 2011 identified the
City of Dublin share as $146,539. On April 5, 2011 $50,000 was appropriated towards these
costs. This additional appropriation will provide the additional funding for the total.estimated
City share of expenses. The funding will be General Funds from unappropriated reserves.
Fin Mgr/ASD: .\~~'`~,~ Date: y 27~'
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City Manager:
Signatu
Date: ~ ~ Z~~~~
As App~-oved a~ #he GEtj~ Counc~l Meeting on ~~ ~ ~~ Date ~ 5/312011
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Mayor: Date:
Signature
Posted By:
. Date:
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