HomeMy WebLinkAboutContracts & Agreements_73B-2026AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of Water Supply Development Impact Fee Update
("Agreement") is made and entered into this 25th day of May, 2026 ("Effective Date"), by and
between the City of Redlands, a municipal corporation ("City") and DTA Public Finance, Inc., a
California corporation. ("Consultant"). City and Consultant are sometimes individually referred
to herein as a "Party" and, together, as the "Parties." In consideration of the mutual promises
contained herein, City and Consultant agree as follows:
ARTICLE 1 — ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to provide Water Supply Development Impact Fee
Update services for City (the "Services").
1.2 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.
Consultant is not, unless otherwise stipulated, acting as the City's Municipal Advisor.
The services discussed herein do not constitute any financial advice or fall under the
category of municipal advisory services as defined by the SEC.
ARTICLE 2 — SERVICES OF CONSULTANT
2.1 The Services that Consultant shall perform are more particularly described in Exhibit
"A," titled "Scope of Services," which is attached hereto and incorporated herein by this
reference.
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in
the performance of this Agreement including, but not limited to, any applicable State
prevailing wage laws.
ARTICLE 3 — RESPONSIBILITIES OF CITY
3.1 City designates Monica Heredia, Municipal Utilities and Engineering Department
Director, as City's representative with respect to performance of the Services, and such
person shall have the authority to transmit instructions, receive information, interpret and
define City's policies and decisions with respect to performance of the Services.
ARTICLE 4 — PERFORMANCE OF SERVICES
4.1 Consultant shall perform and complete the Services in a prompt and diligent manner.
4.2 Consultant shall complete the Services by October 20, 2026, unless the Services are
terminated earlier as provided for herein.
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4.3 If Consultant's Services include deliverable electronic visual presentation materials, such
materials shall be delivered in a fonn, and made available to City, consistent with City
Council -adopted policy for the same. It shall be the obligation of Consultant to obtain a
copy of such policy from City staff.
ARTICLE 5 — PAYMENTS TO CONSULTANT
5.1 Compensation: Total compensation for Consultant's performance of the Services shall
not exceed the amount of Eighteen Thousand Two Hundred and Fifty dollars
($18,250.00). City shall pay Consultant on a time and materials basis up to the not to
exceed amount in accordance with Exhibit `B," titled "Fee Schedule," which is attached
hereto and incorporated herein by reference.
5.2 Consultant shall submit monthly invoices to City describing the Services performed
during the preceding month. Consultant's invoices shall include a brief description of the
Services performed, the dates the Services were performed, the number of hours spent
and by whom, and a description of reimbursable expenses related to the Services. City
shall pay Consultant no later than thirty (30) days after receipt and approval by City of
Consultant's invoice.
5.3 Any notice or other communication required, or which may be given, pursuant to this
Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date
of delivery in person; (ii) five (5) days after deposit in first class registered mail, with
return receipt requested; (iii) on the actual delivery date if deposited with an overnight
courier; or (iv) on the date sent by facsimile or electronic mail transmission (including
PDF), if confirmed with a copy sent contemporaneously by first class, certified,
registered or express mail; in each case properly posted and fully prepaid to the
appropriate address set forth below, or such other address as a Party may provide notice
in accordance with this section:
CITY:
City Clerk
City of Redlands
35 Cajon Street
P.O. Box 3005 (mailing)
Redlands, CA 92373
jdonaldson@cityofredlands.org
Phone: (909) 798-7531
CONSULTANT:
David Taussig, Chairman/Managing
Director
DTA Public Finance, Inc.
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
Phone: (800) 969-4382
ARTICLE 6 — INSURANCE AND INDEMNIFICATION
6.1 The following insurance coverage required by this Agreement shall be maintained by
Consultant for the duration of its performance of the Services. Consultant shall not
perform any Services unless and until the required insurance listed below is obtained by
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Consultant. Consultant shall provide City with certificates of insurance and endorsements
evidencing such insurance prior to commencement of the Services. Insurance policies
shall include a provision prohibiting cancellation or modification of the policy except
upon thirty (30) days prior written notice to City.
A. Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
City that Consultant is self -insured or exempt from the workers' compensation laws
of the State of California. Consultant shall execute and provide City with Exhibit "C,"
titled "Workers' Compensation Insurance Certification," which is attached hereto and
incorporated herein by this reference, prior to performance of the Services.
B. Comprehensive General Liability insurance with carriers acceptable to City in the
minimum amount 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. City shall be named as an additional insured and such
insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City.
C. Consultant shall secure and maintain professional liability insurance throughout the
term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim
made.
D. Business Auto Liability coverage, with minimum limits of One Million Dollars
($1,000,000) per occurrence, combined single limit bodily injury liability and
property damage liability. This coverage shall include all hired and non -owned
vehicles, and employee non -ownership vehicles. City shall be named as an additional
insured and such insurance shall be primary and non-contributing to any insurance or
self-insurance maintained by City.
E. Consultant is expressly prohibited from assigning or subcontracting any of the
Services without the prior written consent of City. In the event of mutual agreement
by the Parties to assign or subcontract a portion of the Services, Consultant shall add
such assignee or subcontractor as an additional insured to the insurance policies
required hereby and provide City with the insurance endorsements prior to any
Services being performed by the assignee or subcontractor.
6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed
officials, employees and agents from and against any and all claims, losses or liability,
including attorneys' fees, arising from injury or death to persons or damage to property
occasioned by any negligent act or omission by, or the willful misconduct of, Consultant,
or its officers, employees and agents in performing the Services.
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ARTICLE 7 — CONFLICTS OF INTEREST
7.1 Consultant covenants and represents that it does not have any investment or interest in
any real property that may be the subject of this Agreement or any other source of
income, interest in real property or investment that would be affected in any manner or
degree by the performance of Consultant's Services. Consultant further covenants and
represents that in the performance of its duties hereunder, no person having any such
interest shall perform any Services under this Agreement.
7.2 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law;
(ii) issue, deny, suspend or revoke any City permit, license, application,
certification, approval, order or similar authorization or entitlement;
(iii) authorize City to enter into, modify or renew a contract;
(iv) grant City approval to a contract that requires City approval and to which
City is a party, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item;
(vi) adopt, or grant City approval of, policies, standards or guidelines for City
or for any subdivision thereof.
B. Does not serve in a staff capacity with City and in that capacity, participate in
making a governmental decision or otherwise perform the same or substantially
the same duties for City that would otherwise be performed by an individual
holding a position specified in City's Conflict of Interest Code under Government
Code section 87302.
7.3 In the event City determines that Consultant must disclose its financial interests,
Consultant shall complete and file a Fair Political Practices Commission Form 700,
Statement of Economic Interests, with the City Clerk's office pursuant to the written
instructions provided by the City Clerk.
ARTICLE 8 — GENERAL CONSIDERATIONS
8.1 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 the
use of in-house counsel by a Party.
8.2 Consultant shall not assign any of the Services, except with the prior written approval of
City and in strict compliance with the terms and conditions of this Agreement. Any
assignment or attempted assignment without such prior written consent may, in the sole
discretion of City, result in City's immediate termination of this Agreement.
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8.3 Consultant is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor. Neither City nor any its agents shall
have control over the conduct of Consultant or Consultant's employees, except as herein
set forth. Consultant shall supply all necessary tools and instrumentalities required to
perform the Services. Assigned personnel employed by Consultant are for its account
only, and in no event shall Consultant or 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. Consultant
shall have no authority, express or implied, to act on behalf of City in any capacity
whatsoever as an agent, nor shall Consultant have any authority, express or implied, to
bind City to any obligation.
8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less
than five (5) days prior written notice to Consultant of City's intent to terminate. 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. Upon
receipt of a termination notice, Consultant shall immediately discontinue its provision of
the Services and, within five (5) days of the date of the termination notice, deliver or
otherwise make available to City, copies (in both hard copy and electronic form, where
applicable) of project related data, design calculations, drawings, specifications, reports,
estimates, summaries and such other information and materials as may have been
accumulated by Consultant in performing the Services. Consultant shall be compensated
on a pro-rata basis for Services completed up to the date of termination. Notwithstanding
the above, computer software (including without limitation financial models,
compilations of formulas and spreadsheet models) and products derived from such
software, prepared by Consultant are Instruments of Service of Consultant and shall
remain the property of Consultant. Consultant shall likewise retain all common law,
statutory and other reserved rights, including the copyright thereto. However, the fixed
final work product delivered by Consultant shall belong to City.
8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer period required by law, from the date of final payment to
Consultant pursuant to this Agreement. Such books shall be available at reasonable times
for examination by City at the office of Consultant. Any information reviewed and/or
copied during an audit shall be treated as confidential and shall not be subject to release
as part of a Public Records Act Request, except as required pursuant to subpoenas, court
orders, or where withholding such information would be contrary to applicable law.
8.6 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 verbal agreements relating to such
matters are superseded by this Agreement. Except as otherwise provided for herein, any
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amendment to this Agreement shall be in writing, approved by City and signed by City
and Consultant.
8.7 This Agreement shall be governed by and construed in accordance with the laws of the
State of California, without regard to its conflicts of laws provisions. The Parties agree
that all actions or proceedings arising in connection with this Agreement shall be tried
and litigated only in the state courts located in San Bernardino County, California, and
the federal courts located in Riverside County, California.
8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this
Agreement is declared invalid, void or unenforceable by a court of competent
jurisdiction, the same shall be deemed severable from the remainder of this Agreement
and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or
sections contained herein, unless to do so would deprive a Party of a material benefit of
its bargain under this Agreement.
IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have
signed in confirmation of this Agreement.
CITY OF REDLANDS
By:
Charles M. Duggan, Jr., ager
ATTEST:
nne Donaldson, City Clerk
DTA PUBLFINANCE,C
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EXHIBIT "A"
SCOPE OF SERVICES
The following Scope of Work details the task that the Consultant shall complete with respect to
updating the City's Water Supply Development Impact Fee (DIF).
Work products stemming from the tasks described below shall include Draft and Final Reports.
Task 1— Development of Project Strategy and Kickoff Call
The Consultant shall meet with City staff in a project kickoff meeting to finalize the details of
the DIF update, deliverables, timetables, and tasks, discuss the fee methodologies and best
practices, identify needed information, and prepare the final revision.
Task 2 — Update Water Demand Projections
The Consultant shall review and update the existing and future residential dwelling unit
information and non-residential development from the City's 2023 impact fee study. It is not
anticipated that any changes are needed to the flow rates by land use. The water demand
projections resulting from this task shall be used to calculate fee levels for the proposed water
supply fee.
Task 3 — Review Water Supply Needs and Levels of Service
The Consultant will work with the City staff and City legal counsel to determine the volume of
water and costs that would be assigned to new development.
Task 4 — Develop Methodology for Calculating New Fee Amounts
The Consultant shall work with City staff and City legal counsel to finalize a methodology that
meets the nexus or benefit requirements of AB 1600, which requires that there be a nexus
between the fees imposed, use of the fees, and development projects on which the fees are
imposed.
The Consultant shall coordinate with City staff and City legal counsel regarding their review of
the justification of costs and other items as required under the applicable legal codes as well as
take into account the recent Supreme Court case Sheetz v. El Dorado County. City legal counsel
shall review all aspects of the fee calculation methodology and provide the necessary feedback to
the Consultant so that such fees are in compliance with the latest legal codes and court cases.
Task 5 — Determine Fee Levels
The Consultant shall calculate the fee amounts based upon the development projections
completed in Task 2, costs determined in Task 3, and the methodology described in Task 4.
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Task 6 — Prepare Draft and Final Reports
Based on the work completed in Tasks 1-5, the Consultant shall prepare the Draft Report for
review and consideration by City staff and City legal counsel. The Consultant shall prepare the
Final Report for presentation to City Council and City staff.
Deliverables: Draft and Final Reports
Task 7 — Attend one In -Person Meeting Plus Virtual Meetings, as needed
The Consultant shall attend one (1) in -person meeting with City staff, City legal, focus groups,
stakeholders, or the City Council to present information regarding the status of the impact fee
program, Draft Fee Study, or Final Report to obtain input. The Consultant can attend additional
in -person meetings on a time and materials basis at additional cost, as requested by the City.
During these meetings, the Consultant shall take into account community and stakeholder input.
Limitations of Scope of Work:
Additional work requested by the City beyond the tasks identified within the Scope of Services
shall be considered out of scope and will be billed on a time and materials basis at the hourly
rates identified in Table 1 of Exhibit B.
The Scope of Services include attendance at one in -person meetings with City staff, plus periodic
conference calls with City staff. Attendance at more than one in -person meeting, detailed written
responses to resolve disputes involving third parties, or the preparation of more than one set of
major revisions to the Draft Report will be classified as additional work and may require further
billing at the hourly rates identified in Table 1 of Exhibit B if the maximum fee level has been
exceeded. Similarly, in -person meetings shall require additional charges, as noted in Table 1 of
Exhibit B. Other examples of additional work shall include:
• Additional analyses based on revised assumptions requested by the City or legal
counsel, including possible changes in the fee methodology, overall approach,
needs list, infrastructure costs, population projections, future land uses, and
related data once the preparation of the Draft Report has been initiated, as well as
adjustments to assumptions once the Draft Report has been approved;
■ More than one major iteration of the fee model;
• Additional meetings or lengthy negotiations with stakeholders, including
representatives of the BIA;
• Tasks related to litigation by stakeholders should it occur once the DIF Study has
been completed;
• Additional time and coordination related to obtaining applicable data from the
City;
• Any work related to litigation or any claim or liability arising out of or incident to
the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El
Dorado asking the California courts to reevaluate impact fees adopted under the
California Mitigation Act to ensure they do not violate the U.S. Constitution's
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Fifth Amendment Takings Clause, including but not limited to expert witness
services; and
• Actual implementation of the fee program(s).
The maximum fee listed above assumes the review and implementation of the fee program with
a schedule between initiation of services and the Council meeting to approve the new fee that is
no longer than six (6) months.
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EXHIBIT "B"
FEE SCHEDULE
The Consultant's maximum compensation for the completion of the tasks identified in the Scope
of Services is $17,500, plus $750 in out-of-pocket expenses. The City shall be charged on a
time and materials basis according to the hourly rates shown in the table below, with invoices
being submitted on a monthly basis.
Table 1: Fee Schedule
Labor Category: Labor Rate:
President/Managing Director $290/Hour
Senior Vice President
$245/Hour
Vice President
$245/Hour
Manager
$200/Hour
Senior Associate
$190/Hour
Associate III
$170/Hour
Associate H
$170/Hour
Associate I
$155/Hour
Research Associate II
$145/Hour
Research Associate I
$130/Hour
Additional in -person meetings for the Scope of Services of this engagement [more than one in -
person meeting specified in the Scope of Work, plus attendance at a virtual kickoff meeting]
shall be billed on a time and materials basis, not to exceed $2,500 per additional in -person
meeting. The Consultant shall also schedule standing conference calls or virtual meetings (i.e.,
bi-weekly) with City staff to stay on track with tasks and deliverables, to the extent allowable
proposed under the maximum budget.
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EXHIBIT "C"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of
the following ways:
(a) By being insured against liability to pay compensation by one or more insurers
duly authorized to write compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self -insure, either as an individual employer, or as one employer in a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self -insure and to pay any compensation that
may become due to his or her employees.
CHECK ONE
I am aware of the provisions of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workers' Compensation or to undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such provisions
before commencing the performance of the work and activities required or permitted under this
Agreement. (Labor Code §1861).
I affirm that at all times, in performing the work and activities required or permitted under
this Agreement, I shall not employ any person in any manner such that I become subject to the
workers' compensation laws of California. However, at any time, if I employ any person such
that I become subject to the workers' compensation laws of California, immediately I shall
provide the City with a certificate of consent to self -insure, or a certification of workers'
compensation insurance.
I certify under penalty of perjury under the laws of the State of California that the information
and representations made in this certificate are true and correct.
r:
Date:
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