8G Consent 2011 0502 - Laserfiche WebLink

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Additional Required Contributions for ACAP Wind -Down 3 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 Financial Impact Management Partners has estimated that the preliminary estimated cost to wind -down ACAP's affairs, which includes the payment of back wages to former employees, is approximately $1,280,000. The member agencies have requested that Management Partners also provide an 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. Management Partners has provided a rough estimate of $600,000 for such potential liabilities. These two components result in a total preliminary estimate of $1,880,000. It is possible that this amount may be reduced by the proceeds of the disposal of ACAP's assets and outstanding grant claims from ACAP, if such grant claims are paid by the grant funders. However, it is Mr. Arnbrose's best estimate at this time. The total estimated wind -down cost of $1,880,000 includes the previously paid contribution from the member agencies of $300,000. (Each of the cities made an initial cash contribution of $25,000, for a total of $300,000.) 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. Alameda County has loaned ACAP $366,200.96 over the last few years, $50,000 of which was paid back to the County by ACAP. In addition, the County was credited with $25,000 as their participation in the initial round of partner payments as described above, leaving a balance owing to the County of $291,200.96. That balance will be further reduced by their continued participation in the close out of ACAP as one of the thirteen responsible member agencies. It will be necessary for all thirteen agencies that are members of ACAP to fund the remaining estimated close -out cost $1,580,000 (which is the amount over the initial $300,000 contributed). This contribution would be paid in two parts, as follows: • The first part, $75,385 would cover the $980,000 in remaining close -out costs, which has been invoiced and is due immediately. • 1 Each of the twelve member cities is being asked to make cash contributions; the amount owed Alameda County will be reduced by comparable amounts to the cities' cash contributions.