SUBJECT/RECOMMENDATION:
Title
Approve not-to-exceed increase of $125,000 to Hilltop Securities Inc. (Hilltop) for spring training deal structure consulting services provided by ICON Venue Group, LLC d/b/a CAA ICON (CAA ICON) as subconsultant to Hilltop per Amendment 1 to the agreement dated April 17, 2019 between Hilltop and CAA ICON, approve a not-to-exceed administrative fee increase of $5,000 to Hilltop per the agreement between Hilltop and the City, bringing the total for contract No. 900622 to $188,059.17 and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
In the Spring of 2019, the City requested assistance from the City’s financial advisor, Hilltop Securities (Hilltop), with professional analysis of the proposed Phillies spring training terms. In April 2019, the City contracted with Hilltop for the services of a subconsultant, CAA ICON. Hilltop contracted with CAA ICON on behalf of the City. Payments to Hilltop for CAA ICON consulting fees and related expenses totaled $53,059.17, with another $5,000 in Hilltop administrative and consulting fees under contract #900622. With this increase the total not-to-exceed amount for services under the contract will total $188,059.17
The City has determined that additional CAA ICON consulting services are needed during negotiations of a new spring training lease agreement with the Phillies. CAA ICON has proposed a fee of $25,000 per month for a minimum of 3 months, plus travel expenses, etc. Staff is requesting a not-to-exceed increase of $125,000 to provide a buffer if negotiations exceed the three-month timeframe. Additionally, not-to-exceed increase of $5,000 is requested for Hilltop administrative and consulting fees as needed.
APPROPRIATION CODE AND AMOUNT:
A third quarter budget amendment will provide a transfer of $130,000 from General Fund reserves to capital improvement project 93618, Misc. Parks and Recreation Contracts, to fund this contract.
USE OF RESERVE FUNDS:
Funding for this contract will be provided by a third quarter budget amendment allocating General Fund reserves in the amount of $130,000 to capital improvement project 93618, Misc. Parks and Recreation Contracts. Inclusive of this item if approved, a net total of $2,694,294 of General Fund reserves has been appropriated by Council to fund expenditures in the 2019/20 operating budget. The remaining balance in General Fund reserves after the 8.5% reserve is approximately $24.8 million, or 16.3% of the current General Fund operating budget.