HomeMy WebLinkAboutContracts & Agreements_255-2005_CCv0001.pdf AGREEMENT TO FURNISH CONSULTING SERVICES FOR THE
ESTABLISHMENT OF A SCHEDULE OF DEVELOPMENT IMPACT FEES
FOR INFRASTRUCTURE AND PUBLIC FACILITY DEVELOPMENT
This Agreement is made and entered into this 20thday of December 2005 by and
between the City of Redlands, a municipal corporation ("City"), and MuniFinancial
("Consultant"), who are sometimes individually referred to herein as a "Party," and collectively,
as the "Parties."
In consideration of the mutual promises contained herein, City and Consultant agree as
follows:
ARTICLE I - ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to perform professional services in connection with the
establishment of a schedule of development impact fees for infrastructure and public
facility development in the City (the "Services").
L,) The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of services.
ARTICLE 2 - SERVICES OF CONSULTANT
2.1 The Services which Consultant shall perform are more particularly described in Exhibit
"A," entitled "'Project Services," which is attached hereto and incorporated herein by this
reference.
2.2 Consultant shall comply with all applicable Federal, State and local laws and regulations
in the performance of this Agreement including, but not limited to, the Americans with
Disabilities Act and the Fair Employment and Housing Act.
ARTICLE 3.- RESPONSIBILITIES OF CITY
3.1 City shall make available to Consultant information in its possession that is pertinent to
the performance of Services.
3.2 City will make provision for Consultant to enter upon City-owned property, as required
by Consultant, to perform the Services.
3.3 City designates Ronald C. Mutter to act as its representative with respect to the Services
to be performed under this Agreement.
d�maareelprs>te sinal services okd by DAI k-2(X)g
ARTICLE 4 - PERIOD OF SERVICE
4.1 Consultant shall perform the Services in a prompt and diligent manner and in accordance
with the schedule set forth in Exhibit "B," entitled "Project,Schedule."
ARTICLE 5 -_PAYMENTS TO THE CONSULTANT
5.1 The total compensation for Consultant's performance of the Services shall not exceed the
amount of $73,750.00. City shall pay Consultant on a time and materials basis up to the
not to exceed amount, in accordance with Exhibit "C," entitled "Project Fee," and based
upon the hourly rates shown in Exhibit "D," entitled "Rate Schedule."
5.2 Consultant shall bill City within ten days following the close of each month by
submitting an invoice indicating the portion of the Services performed, who performed
the Services and the detailed cost of all Services, Including backup documentation.
Payments by City to Consultant shall be made within thirty (30) days after City's receipt
and approval of Consultant's invoice, by warrant payable to Consultant.
5.3 All notices shall be made in writing and may be given by personal delivery or by mail.
Notices, sent by mail shall be addressed as follows:
City Consultant
Ronald C. Mutter Robert D. Spencer
Public Works Department Principal Consultant, MuniFinancial
City of Redlands 1700 Broadway, Sixth Floor
35 Cajon Street, Suite 222 Oakland, CA 94612
PO Box 3005 (mailing)
Redlands, CA 92373
When so addressed, such notices shall be deemed given upon deposit in the United States
Mail. Changes may be made in the names and addresses of the person to who notices and
payments are to be given by giving notice pursuant to this section.
ARTICLE 6 - INSURANCE AND INDEMNIFICATION
6.1 All insurance required by this Agreement shall be maintained by Consultant for the
duration of this Agreement and shall be primary with respect to City and non-
contributing to any insurance or self-insurance maintained by City. Consultant shall not
perform any Services pursuant to this Agreement unless and until all required insurance
listed below is obtained by Consultant. Consultant shall provide City with Certificates of
Insurance and endorsements evidencing such insurance prior to commencement of the
Services. All insurance policies shall include a provision prohibiting cancellation of the
policy except upon thirty 30) days prior written notice to City, ten days notice if
cancellation is due to nonpayment of premium.
6.2 A. Consultant shall secure and maintain Workers' Compensation and Employer's
Liability insurance throughout the duration of this Agreement in amounts which meet
statutory requirements with an insurance carrier acceptable to City.
B. Consultant expressly waives all rights to subrogation against City, its
I elected
officials, employees and volunteers for losses arising from work performed by Consultant
for City by expressly waiving Consultant's immunity for injuries to Consultant's
employees and agrees that the obligation to indemnify, defend and hold harmless
provided for in this Agreement extends to any claim brought by or on behalf of any
employee of Consultant. This waiver is mutually negotiated by the Parties. This waiver
shall not apply to any damage resulting from the negligence of City, its agents and
employees. To the extent any of the damages referenced herein were caused by or
resulted from the concurrent negligence of City, its agents or employees, the obligations
provided herein to indemnify, defend and hold harmless is valid and enforceable only to
the extent of the negligence of Consultant, its officers, agents and employees.
6.3 Consultant shall secure and maintain in force throughout the duration of this Agreement
comprehensive general liability insurance with carriers acceptable to City. Minimum
coverage of one million dollars ($1,000,000) per occurrence and two million dollars
($2,000,000) aggregate for public liability, property damage and personal injury is
required. Consultant shall obtain an endorsement that City shall be named as an
additional insured.
6.4 Consultant shall secure and maintain professional liability insurance throughout the
duration of this Agreement in the amount of one million dollars ($1,000,000) per
occurrence and two million dollars ($2.000,000) annual aggregate.
6.5 Consultant shall have business auto liability coverage, with minimum limits of one
million dollars ($1,000,000) per occurrence, combined single limit for bodily injury
liability and property damage liability. This coverage shall include all Consultant-owned
vehicles used in connection with the Services, hired and non-owned vehicles, and
employee non-ownership vehicles. Consultant shall obtain an endorsement that City
shall be named as an additional insured.
6.6 Consultant is expressly prohibited from subletting or assigning any of the Services
covered by this Agreement without the express prior written consent of City. In the event
of mutual agreement between Parties to sublet a portion of the Services, Consultant shall
add the subcontractor as an additional insured and provide City with the insurance
endorsements prior to any Services being performed by the subcontractor. Assignment
does not include printing or other customary reimbursable expenses that may be provided
in this Agreement.
6.7 Consultant shall defend, indemnify and hold harmless City, its elected officials, officers,
employees and agents, from and against any and all actions, claims, demands, lawsuits,
losses and liability for damages to persons or property, including costs and attorney fees,
that may be asserted or claimed by any person, firm, entity, corporation, political
subdivision or other organization arising out of or in connection with Consultant's
negligent and/or intentionally wrongful '-acts or omissions under this Agreement; but
negligent Zn 1 10
excludim,, such actions, claims, demands, lawsuits and liability for damages to persons or
property arising from the negligence or wrongful intentionally acts of City, officials,
employees or agents. I Zn I
ARTICLE 7 - GENERAL CONSIDERATIONS
7.1 In the event any action is commenced to enforce or interpret any of the terms or
conditions of this Agreement the prevailing Party shall, in addition to any costs and other
relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for in-
house counsel of the Parties at rates prevailing in San Bernardino County, California.
7.2 Consultant's key persons to perform the Services are Robert Spencer, Principal, Joshua
Polston, Project Manager, and Marshall Eyerman, Analyst. Consultant agrees that these
key people shall be made available and assigned to perform the Services and that they
shall not be replaced without concurrence from City.
7.3 All documents, records, drawings, designs, cost estimates, electronic data files, databases,
and other documents developed by Consultant pursuant to this Agreement, and any
copyright interest in such documents, shall become the property of City and shall be
delivered to City upon completion of the Services, or upon the request of City. Any reuse
of such documents and any use of incomplete documents will be at City's sole risk.
7.4 Consultant is for all purposes an independent contractor. Consultant shall supply all tools
and instrumentalities required to perform the Services described in this Agreement. All
personnel employed by Consultant are for its account only, and in no event shall
Consultant or any personnel retained by it be deemed to have been employed by City or
engaged by City for the account of, or on behalf of City.
7.5 Unless earlier terminated, as provided for below, this Agreement shall terminate upon
completion and acceptance of the Services by City.
7.6 This Agreement may be terminated by City, without cause, by providing five (5) business
days prior written notice to Consultant (delivered by certified mail, return receipt
requested) of intent to terminate.
7.7 If this Agreement is terminated by City, an adjustment to Consultant's compensation shall
be made, but (1) no amount shall be allowed for anticipated profit or unperformed
services, and (2) any payment due Consultant at the time of termination may be adjusted
to the extent of any additional costs to City occasioned by any default by Consultant.
7.8 Upon receipt of a termination notice, Consultant shall 0) immediately discontinue all
services affected, and (2) within five (5) days of the date of said termination notice,
deliver or otherwise make available to City, copies (in both hard copy and electronic
form, where applicable) of any data, 9
design calculations, drawings, specifications,
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reports, estimates, summaries and such other information and materials as may have been
accumulated by Consultant in performing the Services required by this Agreement.
Consultant shall be compensated on a pro-rata basis for work completed up until notice of
termination.
7.9 Consultant shall maintain books and accounts of all payroll costs and expenses related to
the Services. Such books shall be available at all reasonable times for examination by
City at the office of Consultant.
7.10 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained
herein, and any prior negotiations, written proposals or oral agreements relating to such
matters are superseded by this Agreement. Any amendment to this Agreement shall be in
writing, approved by City and signed by City and Consultant.
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7.11 This Agreement shall be governed by and construed in accordance with the laws of the
State of California.
IN WITNESS WHEREOF, duly authorized representatives of the City and Consultant
have signed in confirmation of this Agreement.
CITY OF REDLANDS MUNIFINANCIAL
By:
Bv:
Jon./'Harrison, Mayor Anne Pelej, Vice Pri"es"ident
Attest:
Cay. lerk, Lor. P
Cri
-- PROJECT SERVICES
This scope of services includes preparing the documentation necessary to adopt the following nine
(9) impact fees:
• Street Construction • Storm Drain
• Traffic Signal • Parks and Open Spaces
• Public Facilities F^ees for:
— Civic Center — City Yard
I:.,ibrary — Pol.ice F'acilities
Fire Facilities
We will work in concert with the City to adjust our scope of services as needed during the course of
the study.
TASK 1 : IDENTIFYAND RESOLVE POLICY ISSUES
0l et,tilw Identify and resolve polio issues raised by the study and determine appropriate
facility>,and fee categories. "
Deseripliota: To initiate this task, we will review documentation related to adoption of
development impact fees. We will deliver information requests as appropriate. We
will explain policy issues to City staff and seek guidance prior to proceeding. Polio-
issues include:
• F xistence of ordinances, Policies, and plans supporting the imposition of impact
fees;
• Planning horizon for facility- needs and growth projections;
• band use categories for imposition of fees;
• Allocation of cost burden to nonresidential land uses;
• Types of facilities to be funded by each fee, including the possibility, of merging
separate fees into a single fee;
• Method for determining facility standard;
• Adequacy of existing studies and plans to identify needed facilities;
• Potential alternative funding sources, if needed;
• Funding existing deficiencies,if identified; and
• Implementation concerns and strategies.
1.1et,>?n s One (1) meeting to initiate the project, discuss data needs, and address policv issues.
De%'irJc'r rf>1frs: (1) Information requests, (2) revised project scope and schedule Of needed) 3`i brief
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summary of policy decisions (if needed).
TASK 2: IDENTIFY EXISTING DEVELOPMENT AND FUTURE GROWTH
Ob1et'11're: (1) ldcntifN, est'-
I 11nates of existing levels of development, and (2) identifiT '.I projection
of future growth consistent with current planning pollcv.
Desc.nplion: L'xisting levels of development provide a basis for calculating existing facility
standards, the basis for most development impact fees. P'uture growth to a defined
planning horizon, such as 2025, provides a basis for calculating the amount of new
facilities needed. The lkf�'P indicated that build out of the City would be the
appropriate planning horizon. However, depending on the facility type this may
delay funding of needed facilities on a pay-as-you-go basis. We will discuss this Issue'
with the City during'I'ask 1.
l',xisting estimates and projections should be expressed in terms of dwelling units,
population, employment generators, and other measures of the service population
for facility planning. Certain fees will be based on alternative measures such as
Impervious surface for storm drains, and vehicle trips for streets and traffic signals.
We will work with the City planning department staff to obtain planning horizon
development numbers over which the costs will be apportioned. We will evaluate
projections from regional metropolitan planning agencies and other available
sources. We will obtain approval of the future development quantities from the
department. .
We will obtain approval of estimates of existing development and development
projections from the City prior to proceeding. These estimates and projections are
essential inputs to the funding plan and fee calculation model constructed in the
tasks that follow. Consequently, changes to these estimates or projections by the Cita-
following approval could result in a change in this scope of services and increase in
our professional fees.
Aleelili'os: None.
Delirerablt,s: Memorandum to City staff summarizing estimates of existing development and
projections for new development.
TASK 3: CALCULATE FACILITY STANDARDS
Note: We will conduct Tasks 3, 4 and 5 separately for each facility, and fee tN"pe. "I'hese tasks
are conducted in an iterative approach. because of the influence of facility- standards,
facility needs and alternative funding on each other, the funding plan, and the
maXiMLIM justifiable impact fee.
0�)eaire: Determine standards to identify facilities required to accommodate growth.
Dest-nplion: I'acility standards provide a critical link Ili documenting the nexus between growth,
the facilities required to accommodate it, and a defensible impact fee. We will use
one of three standard approaches to determining facility standards: (1) existing
inventors 21 system (existing plus planned facilities), existing
or (3) planned facilities only.
lye will identify the appropriate demand factor for each facility type included in this
study. Demand factors include, for example, service population, vehicle trip
generation,
1 1
or utility use. We will use the demand factors identified in the Rf 1) unless
we find any problems with the suggested approach and after discussion with City
staff.
Depending on the approach being taken to calculate facility standards we may need
lists of existing and/or planned facilities. Alternately we may need documents that
indicate City policy and facility planning assumptions regarding standards (master
plans, specific plans,general plans, etc.).
We will express facility standards as measures of demand by land use category. These
measures, such as "equivalent dwelling units" or "population and employment
densities", apportion facility costs to development projects and generate the fee
schedule. .A range of reasonable and technically defensible approaches exists for this
purpose. We will select the appropriate approac'l-i for each facility standard based on:
• Available local data on facility demand by land use category;
• Approaches used by other agencies; and
• Support for other City policy oNectives.
None.
Delit,embles.- None.
TASK 4: DETERMINE POTENTIAL FACILITY NEEDS AND COSTS
Identify the ty3 pe amount and cost of facilities required to accommodate growth and
correct deficiencies,if anv.
I)es(7iPlioll: The facility standards developed in Task 3 will also be integral to estimating facility
needs. If the "system" or "planned facilities only" approach is used to develop
facility standards (see Task 3) we will need a list of specific planned facilities from
existing facility master plans or other C' documents. If the "existing inventory"1tv
approach is used then we will only need an indication of the initial projects
anticipated for the use of fee revenues. We will coordinate facility needs with the
appropriate agencies in addition to the City, such as the San Berna rdinoA ssociated
Governments and the San Bernardino Countv, Flood Control District.
rict.
ilk critical component of this task that we will complete will be to distinguish. between
the following:
(1) Facilities needed to serve growth (that can be funded by impact fees); and
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(2) Facilities needed to correct existing deficiencies for the existing service
population (that cannot be funded by fees).
To the extent possible we will use facility standards (I'ask 3) applied to planned
projects to identify existing deficiencies. This scope of work does not include
additional engineering analysis if needed to identify deficiencies. If not already
accomplished this work typically includes, for example, modeling of vehicle trips or
utility demand. We can amend our scope and budget to provide those services if
needed.
TO estimate costs for new facilities, we will identify unit cost components such as
design costs, land acquisition, and construction as appropriate, kX"e will develop
planning level estimates for each unit cost based on actual City experience, other
local cost data such as land values, consultant team experience from prior projects,
and industry cost indices.
None.
Oelirerables.- None.
TASK 5: IDENTIFY FUNDINGAND FINANCING ALTERNATIVES
0l?Ieain?: Determine the extent of alternative (non-fee) funding available for new facilities.
Oesi,Hplion: If impact fees are going to only partially fund a capital project, the zllliligalion Fee ,,Ja
requires that the agency report on the anticipated source and timing of the additional
funding every five years. There are two (22) types of alternative funding sources that
we will identify:
1. Funding from non-impact fee Sources to correct existing deficiencies;
and.
2. Funding from new development other than impact fees that must be
credited against new development's Impact fee contributions, possibly
including taxes paid to finance facilities.
V,Te will identify anticipated alternative funding based on information from agency
staff, or note that funds are still to be identified. In the case of the latter, we will note
probable funding alternatives.
We understand from the R1 that certain facilities will be funded on a pay-as-you-go
basis while others will be debt financed. For the latter, we will apportion financing
costs to the fee program based on the appropriate share of total'costs. \,Vc do not
expect the tinning of fee revenues to affect financing costs so a cash flow analysis is
not included in this scope of work.
None.
Oelivembles.- None.
TASK 6: PREPARE REPORT
0l5jeclhv: Provide technically defensible fee report that comprehensively documents project
assumptions, methodoloWes, and results.
Oest7ipli�m: Based on the results of prior tasks we will first prepare a package of draft report
tables for City staff to review. The tables will document each step of the analysis.
The tables will culminate in a schedule indicating the rnaxitriurn justified fee amount
by land use category.
Following one round of comments from City staff on the quantitative analysis and
fee schedule, we will prepare an administrative draft report. Following one round of
comments on the administrative draft we will prepare a public draft for presentation
to interested parties, the public, and the CAN- Council. kX,"e will prepare a final report if
neccssan, based on one round of comments received on the public draft report. \VC
will submit tip to 10 bound copies of each report as requested by the (-'ltN'. We can
also post the report on our web site for access via the Internet.
I'he final report will include a discussion of program implementation issues,
including fee credits and reimbursements as mentioned in the RI'll.
If requested, we will provide legal counsel with copies of fee resolutions and
ordinances used bv other Jurisdictions.
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9.
Meeliti Two (2) meetings: one (1) to review the initial project results; and one (1) to present
the report at a public hearing for adoption).
DeliivrabI6,s: Administrative draft report, public draft report, final report (if needed), and slide
presentation (if needed).
MEETINGS
The project manager will attend meetings accompanied by the principal-in-charge and analysts, as
needed. We will work with City staff to set up meetings to keep the project on schedule. Phone
conferences are not considered meetings for the purposes of this scope. Additional meetings may be
requested for an additional fee based on our hourly billing rates.
REQUIRED AGENCY STAFF SUPPORT
To complete our tasks on schedule, we will need the cooperation of agency staff We suggest that
the City assign a key individual as project manager for the City.
We will expect the City's project manager to (1) help resolve policy issues, (2) coordinate responses
to requests for information, and (3) coordinate review of work products. To meet the schedule
outlined on the next page we will expect responses to policy
issues and information requests within
five (5) business days. If there are delays on the part of theCity, we will need to adjust our Project
schedule accordingly.
We will keep the City's project manager informed of data or feedback we need to keep the project
on schedule. Munil'inancial will endeavor to minimize the impact on City staff in the completion of
this project.
EXHIBIT B - PROJECT SCHEDULE
This project is fairly complex with updates to nine (9) impact fees including extensive effort to
develop current lists of facility needs and costs. Based on our experience conducting over 100
studies of this type, an aggressive schedule would be the delivery of the draft report tables described
at the beginning of Task C within four (4) months after receiving authorization to proceed. We will
deliver the administrative draft report within one (1) month following review and approval by City
staff of the report tables. Achieving this schedule will require close cooperation with City staff and
timely responses to information requests.
As requested, we will provide the City of Redlands with a detailed project schedule within two (2)
weeks of notice to proceed. The detailed schedule will contain milestones, activities and delivery
dates. We can work with the City, to shorten this schedule if necessarv.
Month Month Month
Team 1. identify and resolve f' Ii
Issues
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Task 2_ Identify Existing
Development and Future Growt
Task 3. Calculate Facility I
Standards [
Task 4, Determine Potential Facility y
Needs and Costs
Task 5. Identify Funding ars
Financing Alternatives °
Task 6. Prepare Report
EXHIE31T
MuniFinancial will provide the services described in Exhibit A for the fixed price fee of
$73,750. The project budget below is the basis of our fee quote.
City of Redlands Development Impact Fee Stud
Team Member&Hourly Rate
Staff
R.Spencer J.Polston Analysts
(Principal-In- (Project M.Eyerman (Analytical
bare Mana r) ((Analyst) SptJ Total
Task $ 170 $ 150 $ 100 $ 80 Hours Cost
Hours
Task 1 Identify&Resolve Policy Issues 4 20 20 4 48 $ 6,000
Task 2 Identify Existing Development&Growth 2 10 30 12 54 5,800
Task 3 Calculate Facility Standards 8 12 100 32 152 15.720
Task 4 Determine Potential Facility Needs&Costs 8 12 100 32 152 15,720
Task 5 Identify Funding&Financing Alternatives 4 12 80 24 120 12,400
Task 6 Prepare Report 12 40 60 16 128 15.320
Subtotal MuniFinancial Labor Costs 38 106 390 120 654 $ 70,960
Reimbursable Expenses $ 2,500 $ 290 2,790
Total Cost $ 73,750
Our fee for services assumes the following:
• Additional analysis beyond the facility fee program categories identified in 1?xhibit A may
require a cost adjustment
• We will not need to conduct additional engineering anah-sis, such as traffic or storm
modeling to identify nett.- facilities,
• We will not need to prof-ide engineering expertise to update facility cost estimates.
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EXHIBIT D — RATE SCHEDULE
I\tuniFinancial's current hourly consulting rates are:
Division Manager � $190
Principal Consultant —�-
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Senior Project Manager -- _ $150
Project Manager
Senior Project Analyst
Senior raise _ t
00
Analyst
Analyst Assistant Property Owner Services Representative
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