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HomeMy WebLinkAbout8.1 LeglSvsPlesntnRepmtDB ExtProj . . CITY OF DUBUN AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 9, 1994 :::: Authorization To Obtain Special Legal Counsel Services Related To Agreement With The City of Pleasanton Providing For Repayment of Funds Used On Dublin Blvd. Extension Project (Prepared by: Paul S. Rankin, Assistant City Manager) SUBJECT: EXHIBITS ATTACHED: None RECOMMENDA TI~N: uthorize Staff to secure special legal counsel services from the firm of Brown and Wood in an amount not to exceed $7,500. I . FINANCIAL STATEMENT: Estimated Cost would not exceed $7,500. Funds are available in the City Attorney Contract Services Account of the Adopted 1993/94 Budget. DESCRIPTION: In 1991, the City of Dublin, the City of Pleasanton, and the Alameda County Surplus Property Authority entered into an agreement, which provided for the construction of a "Two Lane Access Road" between the Southern Pacific Railroad and Tassajara Road. The roadway was required by the Federal government as a condition to the opening of the new Hacienda Drive interchange. The improvements were within the jurisdiction of the City of Dublin, although the interchange was designed and proposed to be constructed through an assessment district located in the City of Pleasanton. The agreement was designed as a unique cooperative effort to complete the project in a manner benefitting each of the parties. The Project Manager from the City of Pleasanton is preparing to close-out the project. In order to complete this task, the City of Pleasanton representatives have suggested certain amendments to the current agreement. The intent of the original agreement was to have future assessment districts, within Dublin's jurisdiction, repay the cost of the project. Since the time that the original agreement was drafted there have been changes to tax laws regulating the issuance of tax exempt assessment bonds. The City Attorney has suggested that given the complexities and specialization in this field, it would be beneficial to have legal expertise from a firm which specializes in bond transactions. The purpose of this project is to assure that the agreement continues to reflect the original intent. Staff has contacted representatives of the firm of Brown and Wood, which is the firm that served as the City's Bond Counsel on the 1993 Civic Center COP Refinancing. This firm has expertise in both the area of tax law and assessment district financing. The legal assistance would be provided by their San Francisco Office. As explained earlier, the focus of this project would be to review the agreement and any proposed amendments and assess the ability to carry out the original intent under current tax laws. Staff wants to avoid recommending an amendment which would preclude the potential for reimbursement from future assessment districts. Likewise, there may be modifications required as a result of tax law changes subsequent to the drafting of the original agreement. It seems most appropriate to consolidate all amendments at this time. Given that the current scope of the engagement does not immediately anticipate the formation of an assessment district, Staff is requesting authorization to secure these services on an hourly basis with a not to exceed amount of $7,500. Brown & Wood representatives have indicated that they would charge $150 per hour for these services. In the event that they were later selected as the bond counsel for an actual assessment district associated with these issues, they would credit the City up to one half of the fees paid under this engagement. Staff will work with the City Attorney's Office to develop a more detailed scope of work, which would be approved by the City Manager, prior to work proceeding. In order to close-out the project elements carried on the City of Dublin financial records, it is important to obtain assistance as soon as possible. This will also allow Staff to present the City Council with a complete report on any outstanding issues or amendments. Staff recommends that the City Council authorize the City Manager to secure legal counsel services from the firm of Brown & Wood in accordance with this report. COPIES TO: CITY CLERK FILE ~ ITEMNO.~