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HomeMy WebLinkAboutContract_Fee Study_FINALCity of San Luis Obispo Professional Services Agreement Page 1 CITY OF SAN LUIS OBISPO PROFESSIONAL SERVICES AGREEMENT This agreement (Agreement) is made and entered into in the City of San Luis Obispo on by and between the City of San Luis Obispo, a municipal corporation and charter city (City) and MGT of America Consulting, LLC (Consultant) (collectively referred to as the WITNESSETH: WHEREAS, on February 24, 2023, City requested proposals for a User Fee and Impact Fee Study; and WHEREAS, the City wants to review and update existing user fees, identify new fees, and review and update adopted impact fees for transportation, parks and recreation, police, fire, water and wastewater ; and WHEREAS, Consultant is qualified to perform this type of Services and has submitted a written proposal to do so, which has been accepted by City; and NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the Parties hereto agree as follows: 1.TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until June 30, 2024, or upon acceptance and completion of said Services, whichever occurs sooner. 2.INCORPORATION BY REFERENCE. Notice Requesting Proposals for Consulting Services to conduct a Citywide User and Impact Fee Study (including Addendum), and Consultant's proposal dated March 30, 2023 are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. The in and made part of this Agreement, attached as part of Exhibit B. To the extent that there are agreed otherwise in writing signed by both Parties. 3.For providing services as specified in this Agreement, City will pay and Consultant shall receive therefor compensation as set forth in Exhibit A. 4.For and in consideration of the payments and agreements herein before mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement including that work as set forth in Exhibit A. City of San Luis Obispo Professional Services Agreement Page 2 5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that Consultant is required to pay. 6. LICENSES AND PERMITS. At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement. 7. COMPLIANCE WITH LAW. The Consultant shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by Consultant or in any way affect the performance of the Services pursuant to this Agreement. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Failure to comply with local ordinances may result in monetary fines and cancellation of this Agreement. 8. COMPLIANCE WITH INDUSTRY STANDARD. Consultant shall provide services acceptable to City in strict conformance with the Agreement. Consultant shall also provide in accordance with the standards customarily called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other representative of City is required, it is understood to be general approval only and does not relieve Consultant of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices. 9. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. City of San Luis Obispo Professional Services Agreement Page 3 10. PRESERVATION OF CITY PROPERTY. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City or restored at Consult condition as good as when the Consultant began the work. 11. IMMIGRATION ACT OF 1986. The Consultant warrants on behalf of itself and all subconsultants engaged for the performance of the Services that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the Services hereunder. 12. NON-DISCRIMINATION. In the performance of the Services, the Consultant agrees that it will not engage in, nor permit such subconsultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 13. PAYMENT TERMS invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Consultant (Net 30). Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non- disputed fees. If the City disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this Agreement shall be made within forty-five (45) days of receipt of an invoice, therefore. 14. INSPECTION. City shall at all times have the right to inspect the work being done under this Agreement and Consultant shall furnish City with every reasonable opportunity and assistance required for City to ascertain that the Services of the Consultant are being performed in accordance with the requirements and intentions of this Agreement. All work done, and all inspection of such work shall not relieve Consultant of any of its obligations under the Agreement. 15. RELEASE OF INFORMATION. a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not, without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work City of San Luis Obispo Professional Services Agreement Page 4 performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. b. Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless Consultant is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to Consultant in such proceeding, Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 16. CONFLICTS OF INTEREST. Consultant covenants that neither they nor any officer or principal of their firm have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the Services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area prior to the completion of the work under this Agreement. 17. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said City of San Luis Obispo Professional Services Agreement Page 5 books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services under this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Consultant hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by Consultant in the course of providing the Services under this Agreement. 18.INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, claims, liabilities, obligations, judgments, or damages, including reasonable legal performance or Consult except for such loss or damage arising from the sole or active negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. 19.SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such City of San Luis Obispo Professional Services Agreement Page 6 suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 14. 20.TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the Consultant is not faithfully abiding by any term or condition contained herein or in incorporated into and made part of this agreement by Paragraph 2,the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency. a. If the Consultant has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to the Consultant to neither party shall have any further duties, obligations, responsibilities, or rights under the Agreement except to comply with the obligations upon termination. b. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work or services perform assessment of the value of the work-in-progress in completing the overall scope. c. The City reserves the right to delay such payment until completion or confirmed abandonment of the project so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the not to exceed amount shown in this Agreement. 21.INSURANCE. Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and made part of this Agreement. 22.BUSINESS LICENSE & TAX. The Consultant must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional City of San Luis Obispo Professional Services Agreement Page 7 (805) 781-7134. 23.SAFETY PROVISIONS. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 24.PUBLIC AND EMPLOYEE SAFETY. Whenever the Consultant operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 25.UNDUE INFLUENCE. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 26.ASSIGNMENT. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. a. Because of the personal nature of the services to be rendered pursuant to this Agreement, only Consultant and David Taussig & Associates (DTA), a subcontractor of Consultant, shall perform the services described in this Agreement. b. As required above, before retaining or contracting with any subconsultant for any services under this Agreement, City must consent to such assignment of performance in writing. For City to evaluate such proposed assignment, Consultant shall provide City with the identity of the proposed subconsultant, a copy of the proposed written contract between Consultant and such subconsultant, which shall include an indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from City for such insurance. 27.AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the appropriate review compensated for any services rendered in connection with its performance of this Agreement City of San Luis Obispo Professional Services Agreement Page 8 which are in addition to those set forth herein, unless such additional services are authorized by the City in advance and in writing. 28.COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete Agreement between the Parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral Agreement, understanding, or representation be binding upon the Parties hereto. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 29.NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) United States Mail, certified, postage prepaid, return receipt requested. All such notices shall be delivered to the addressee or addressed as set forth below: To City: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attention: Rebecca Bernstorff To Consultant: MGT of America Consulting, LLC 4320 West Kennedy Blvd. Tampa, FL 33609 Attention: Legal Notice/Contracts 30.GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior Court of San Luis Obispo County, California, regardless of where else venue may lie. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. 31.AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. -1- A. INTRODUCTION 1.Background Information City of San Luis Obispo. The City of San Luis Obispo is located Central Coast, approximately halfway between Los Angeles and San Francisco. The City encompasses an area of 3,616 square miles, and has a population of about 47,000, not including the neighboring student population at Cal Poly State University. -Mayor- of municipal government. The five-member City Council consists of the directly-elected Mayor and four City Council members. San Luis Obispo is a full-service city, with police, fire, streets, engineering, parks, recreation, water and sewer services. Additionally, residents in the neighboring cities of Pismo Beach, Grover Beach, Arroyo Grande, Morro Bay, Atascadero and Paso Robles (and other unincorporated areas) utilize San Luis Obispo Additional information about the City of San Luis Obispo can be found by visiting its website at http://www.slocity.org. 2.General Information Request for Proposal. The City of San Luis Obispo is seeking proposals from qualified firms with expertise performing comprehensive user fee studies, as well as development impact fee studies, for local municipalities. Should any firm submitting a proposal consider subcontracting portions of the engagement, that fact must be clearly identified in the proposal along with the name of the proposed subcontracting firms. Following the reward of the contract, no additional subcontracting will be allowed without the express prior written consent of the City of San Luis Obispo. 3.General Information User Fees. The City has established user fees for a variety of services. reviewed on an ongoing basis to ensure that the fee price satisfies the recovery policy as set by the City Council. A comprehensive analysis is conducted every five years to determine if any fees need to be adjusted beyond the annual inflator. The City is impacted by cost increases and inflationary pressures on labor, materials and supplies, and needs to ensure that existing fees are aligned with the cost of service and provide an opportunity for the City Council to re-align fee amounts with the adopted cost recovery policies. The last fee study the City completed was more than five (5) years ago (2017). In the interim, fees were adjusted by annual changes in the Consumer Price Index and the California Construction Cost Index (CCCI) for impact fees. Fees may be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery. A copy of the most recently adopted Comprehensive Fee Schedule is available on the website here. 4.General Information Impact Fees. The last formal impact fee study was completed in 2018 The City currently has five (5) types of impact fees in place. Those impact fees are: -2- a)Transportation Impact Fees: Fund projects for multi-modal transportation such as interchanges, intersection improvements, street widening, pedestrian and bicycle improvements and transit improvements. b)Parkland and Park & Recreation Impact Fees: Help acquire new land for parks and recreational facilities, and improvements to existing parks and recreational facilities. c)Police Impact Fees: Will pay for construction of a new Police Department Headquarters and purchase new vehicles to maintain current patrol service level standards as the City grows. d)Fire Impact Fees: Will pay for the renovation of Fire Stations 1, 2, 3, and 4 and for the construction of the new Fire Station 5. They will also fund the replacement of fire vehicles and equipment needed to serve our City. e)Water & Wastewater Development Impact Fees: Fund construction projects and infrastructure to ensure the City has the necessary supply and capacity to serve residents. 5.Project Lead. All questions and correspondence should be directed to Rebecca Bernstorff, Business Services and Administrative Manager. The questions and the answers will then be forwarded to all firms that All questions must be submitted no later than March 9, 2023. Responses will be provided by March 16, 2023. Contact with personnel other than the name above regarding this RFP may be grounds for elimination from the selection process. The financial statements of the City are available on the B. SCOPE OF WORK The City is seeking a consultant to review and update existing user fees, as well as identify any new fees, as appropriate (noted as Scope A User Fees ). Water and Sewer (Wastewater) rates subject to California Proposition 218, and Parking and Transit rate-based fees are NOT included in the scope of work for this study. However, water and wastewater development impact fees and other user fees are included. In addition, the City wishes to engage a consultant to review and update adopted development impact fees (AB 1600) for transportation, parks and recreation, police, fire, water and wastewater (noted as Scope B Impact Fees ). Ideally, the City would like the same contractor to complete both Scope A and Scope B. However, it will also consider proposals for either Scope A or Scope B if a consultant has specific expertise in one and not the other. Please note that many of the tasks are overlapping in Scope A & Scope B, and can be addressed accordingly. 1. Scope A User Fees. -3- a.Establish a methodology for the evaluation of User Fees. Work and meet with City staff to refine the project scope, purpose,Fee Study to ensure that the study will be both accurate and appropriate to the needs. Review project schedule and answer any questions pertaining to the successful development of the Study. b. and current technology utilized (i.e. Energov). Meet with staff and conduct cesses and operations. c.Identify the total cost of providing each City service at the lowest reasonable activity level and in a manner that is consistent with all applicable laws, statutes, rules and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to Proposition 218 Costs should include appropriate and transparent General and Administrative overhead allocations to City activities and applicable overhead rates for use in d.Compare service costs with existing cost recovery levels. This should include service areas where the City is currently charging for services as well as areas practices of similar and/or neighboring cities. e.Prepare a report that identifies each facility or service, its full cost, current and recommended cost recovery levels. The report should identify the direct cost, the indirect cost, and the overhead cost for each service; and provide a model f.Recommend appropriate fees and charges. Recommended fees are based on the analysis, together with the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic. g.Prepare a report that identifies the current fees, and recommended fees . The report must also identify percentage change, cost recovery percentage, and fee comparison with other San Luis Obispo County cities or California cities that are comparable to San Luis Obispo. A survey comparison of rates and fees with similar cities will be used to help determine the appropriate level of subsidy, if any. h.Report on other matters that come to your attention in the course of your evaluation that in your professional opinion the City should consider. -4- i.Prepare and deliver presentations to the City Council to facilitate understanding of theplan and its implications for the City and support communications and outreach; collect and document comments and concerns, and provide necessary adjustments as requested. j.Develop or modify the existing model for adjusting fees/rates; include the addition of potential service areas, future service enhancements, and the ability to calculate the estimated costs of providing the service under consideration. k.Prepare a final comprehensive fee study report and provide five bound copies, one unbound copy and an electronic copy (text searchable) of the plan that can be made available to City staff. This would include related schedules and cost documentation in a format that can be edited and updated by City staff to accommodate changes in the organization or changes in costs. Any Comprehensive fee schedule revisions developed shall also be made available to the City electronically, providing the ability to add or delete and/or update information as needed. l.Develop a Project Budget for the Fee Study a description of the project budget itemized according to individual tasks. Project budget should include: i. A project schedule with activities, milestones, and deliverables. ii. Project budget defined, at minimum, as follows: 1. By task with a collective total by milestone and deliverable; 2. Labor rates for all project team members; 3. General overhead rates; 4. Costs for expenses such as printing, travel and attendance at meetings iii. Proposed services to be referred to a subcontractor, anticipate subcontractors and anticipated costs for these services. m. as a result of any legal or other challenge. If the consultant/firm believes that additional tasks are warranted, they must be clearly identified in the proposal. As noted above, Water and Sewer rates subject to California Proposition 218, and Parking and Transit rate-based fees are NOT included in the scope of work for this study. However, water and wastewater development impact fees and other user fees are included. 2. Scope B Impact Fees a.Establish a methodology for the evaluation of Impact Fees. Work and meet with needs. Review project schedule and answer any questions pertaining to the successful development of the Study. -5- b. and current technology utilized (i.e. Energov). Meet with staff and conduct processes and operations. c.Analyze the impacts of development on specific types of facilities and calculate recommended impact fees for each type of facility in accordance with the Government Code. d.Identify the total cost of providing each City service at the lowest reasonable activity level and in a manner that is consistent with all applicable laws, statutes, rules and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to Proposition 218 and Proposition 26. Costs should include appropriate and transparent General and Administrative overhead allocations to City activities and applicable overhead rates for use in calculating the billable hourly rates. e.Prepare a report that identifies each service, its full cost, current and recommended cost recovery levels. The report should identify the direct cost, the indirect cost, and the overhead cost for each service; and provide a model for adjusting these fees and rates f.Recommend appropriate fees and charges. Recommended fees are based on the analysis, together with the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic. g.Prepare a clear and concise explanation and report that identifies the current fees, and recommended fees. The report must also identify percentage change, cost recovery percentage, and fee comparison with other San Luis Obispo County cities or California cities that are comparable to San Luis Obispo. A survey comparison of rates and fees with similar cities will be used to help determine the appropriate level of subsidy, if any. h.Report on other matters that come to your attention in the course of your evaluation that in your professional opinion the City should consider. i. adjustments as requested. j.Prepare and deliver presentations to the City Council to facilitate understanding of the plan and its implications for the City and support communications and outreach; provide necessary adjustments as requested. -6- k.Develop or modify the existing model for adjusting fees/rates; include the addition of potential service areas, future service enhancements, and the ability to calculate the estimated costs of providing the service under consideration. l.Prepare a final fee study report and provide five bound copies, one unbound copy and a single PDF file of the plan that can be made available to City staff. This includes related schedule and cost documentation in a format that can be edited and updated by City staff to accommodate changes in the organization or changes in costs. Any Comprehensive fee schedule revisions developed shall also be made available to the City electronically, providing the ability to add or delete and/or update information as needed. m.Develop a Project Budget for the Fee Study a description of the project budget itemized according to individual tasks. Project budget should include: i. A project schedule with activities, milestones, and deliverables. ii. Project budget defined, at minimum, as follows: 1. By task with a collective total by milestone and deliverable; 2. Labor rates for all project team members; 3. General overhead rates; 4. Costs for expenses such as printing, travel and attendance at meetings iii. Proposed services to be referred to a subcontractor, anticipate subcontractors and anticipated costs for these services. n. as a result of any legal or other challenge. If the consultant/firm believes that additional tasks are warranted, they must be clearly identified in the proposal. As noted above, Water and Sewer user fees are NOT included in the scope of work for this study. C. PROPOSAL REQUIREMENTS Proposal Length: Proposal length should only be as long as required to be responsive to the RFP, including attachments and supplemental materials, and no longer than 25 pages. Submittal Requirements: Proposal must contain the following, and in the following order: 1.Cover Letter (one page maximum): -7- a. The letter should provide a brief summary of the proposal, concisely describing the project, its goals, and the proposed plan of implementation. b. The letter should be addressed to Rebecca Bernstorff and signed by an official authorized to bind the firm, and shall contain a statement that the proposal is valid for 90 days. c. The letter should provide the name, address, phone number and email 2.Technical Proposal: a.Firm Overview: Provide a description of your firm, including the size (number of employees), number of years in business and areas of specialization. b.Description of Project Team Experience & Qualifications: Provide a general overview of the firm/consultant(s), and/or subcontractor(s) that will be assigned to the project. Describe their experience in conducting similar fee studies to the scope outlined in Section B, including recent projects of a similar nature. Include information regarding the resumes of consultant(s) that will be assigned and any other relevant information to demonstrate the Specify who the Project Manager (lead person) will be for the project, and describe projects qualifications of each of the principal and senior consultants should be spelled out in this section (resumes for those individuals may be included in the Appendix).Those who are named must have a direct, hands-on role in the project. The City may insist on principal-level participation at every stage of the project, and any substitutions will require prior City approval. c.Scope of Services, Work Plan and Schedule: Provide a description of the work program, including a description of deliverables and activities that will be undertaken. Consultants should describe their approach, for managing the project, schedule, and communicating with the City. Provide a schedule that includes resource (both City employees and vendor employees, if applicable) requirements, a step-by-step work plan of all activities involved in the conduct of the work, and timelines for those steps, identifying major steps and milestones. d.Approach: technical approach used to gather and analyze data, expected interaction with City staff and estimated timeline for completing the scope of work. It should also list specific tasks necessary to fulfill the project requirements. Proposers are encouraged to amplify the scope of services and to identify any supplemental tasks necessary or recommend any alternatives that may enhance the project or reduce its costs. -8- e.Additional Information: Describe any other information not previously mentioned that the consultant believes should be given consideration. This could include any additional tasks not included in the Required Services section above. Identify subcontractors, if any. f.Client References: Please provide references from at least three (3) firms for whom you have provided similar services. References must be local/municipal/county/state agencies only. Please include: 1. Agency Name 2. Contact Name & Title 3. Telephone & Email 4. Street Address 5. City, State, Zip Code 6. Description of services provided including contract amount, when provided and project outcome 3. Fee Proposal: Separate sealed envelope. The proposer shall submit 5 copies and 1 electronic version of a dollar cost bid in a separate sealed envelope marked as follows: SEALED DOLLAR COST BID FOR USER FEE STUDY RFP Proposers should send the completed proposal (technical plus the sealed fee proposal) consisting of the two separate sealed envelopes to the following address: USER & IMPACT FEE STUDY RFP ATTN: Rebecca Bernstorff 919 Palm Street San Luis Obispo, CA 93401 Each section of your response should be clearly defined and separated from the others. Requested Changes to Terms and Conditions The City desires to begin work soon after selecting the preferred Consultant Team and expects A.To expedite the contracting process, each submittal shall include requested redlined changes competency and responsibility of the bidder. Proposal Evaluation and Selection Proposals will be evaluated by a review committee and evaluated on the following criteria: 1. Understanding of the work required by the City. -9- 2. Quality, clarity and responsiveness of the proposal. 3. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. 4. Recent team experience in successfully performing similar services. 5. Creativity of the proposed approach in completing the work. 6. Value 7. Writing skills. 8. References. 9. Background and experience of the specific individuals managing and assigned to this project. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. D. PROPOSAL REVIEW AND AWARD SCHEDULE The following is an outline of the anticipated schedule for proposal review and contract award: Issue RFP [2/24/23] Questions on RFP Submittal Deadline [3/9/23] RFP Q&A Responses [3/16/23] Receive proposals [3/23/23] Complete proposal evaluations [4/6/23] Conduct finalist interviews and finalize recommendation [4/20/23] Execute contract [5/4/23] Start work [5/18/23] 10.Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 11.Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City. 12.Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and -10- City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 13.Required Deliverable Products. The Contractor will be required to provide: a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager: Word Processing: MS Word Spreadsheets: MS Excel Desktop Publishing: InDesign Virtual Models: Sketch Up Digital Maps: Geodatabase shape files in State Plan Coordinate System as specified by City GIS staff c. City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate. ALTERNATIVE PROPOSALS 14.Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s). 15.Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a -11- nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. E. PROJECT SCHEDULE The City has made every effort to include sufficient information within this Request for Proposal for a consultant to prepare a responsive, comprehensive proposal. In order to achieve an equitable dissemination of information, a pre-proposal teleconference will be held to allow all interested firms/consultants to ask questions for the mutual benefit of all involved. The timing of the proposal process is subject to change, depending on the needs of the City, but is anticipated as follows: 1.Distribution of Request for Proposals: February 23, 2023 2.Proposal Submission: Proposals must be clearly marked and delivered directly to the Community Services Group no later than 5:00 pm, March 23, 2023. Late submissions after the deadline or proposals delivered via fax will not be accepted. A total of five (5) identical proposals must be submitted and labeled as follows: City of San Luis Obispo, 919 Palm Street, San Luis Obispo, CA 93401. Attention: Rebecca Bernstorff, Business Services & Administrative Manager 3.Proposal Review: Our review committee will evaluate each proposal submitted. It is anticipated that the review process will be completed by April 6, 2023. 4.Notification to all proposers: We anticipate sending written notification to all firms -12- regarding the outcome of the review and contract award process by May 4, 2023. 5.Oral Presentations, as needed: During the notification to all proposers, finalists will be notified to schedule an oral interview during the week of May 4, 2023. Oral Interviews will take place at: 919 Palm Street. 6.Notification to finalists: All finalists will be notified of final decision by May 4, 2023. Upon written request, we will provide a copy of the successful proposal once the contract is executed. F. PROJECT BUDGET The City is currently budgeting $50,000-$75,000 for the completion of both Scope A & Scope B. G. GENERAL TERMS AND CONDITIONS 1.Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2.Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be submitted electronically via BidSync. However, if you in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted. 3.Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. are detailed in Section E. 4.Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the -13- spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened. No proposal received after the time specified or at any considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals. 7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged but will be permitted. However, any such oral communication shall not be binding on the City. 8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. these specifications for proposal evaluation and contract award criteria. 9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision. 10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award. The contract shall be made in the form adopted by the City and incorporated in these specifications. -14- 11. Contract Performance. [Contractor/Consultant] will be expected to execute and be bound by are attached hereto as Exhibit A H. SPECIAL TERMS AND CONDITIONS 1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive proposer. 2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer. 3. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive proposer. 4. Failure to Accept Contract. The following will occur if the proposer to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made. 5. Contract Term. The services identified in this specification will be used by the City until completion of the services. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. 6. Contract Extension. The term of the contract may be extended by mutual consent for an additional one-year, and annually thereafter, for a total of four years. 7. Supplemental Purchases Supplemental Purchases. Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to -15- the City in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal. 8. Contractor Invoices. The Contractor may deliver either a monthly invoice to the City with attached copies of detail invoices as supporting detail, or in one lump- sum upon completion. 9. Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term. 10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination. 11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City. 12. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement. 13. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Contractor. 14. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. -16- -20- STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. Do you have any disqualification as described in the above paragraph to declare? Yes No If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________ Signature of Authorized Proposer Representative Addendum to Notice Requesting Proposals for Consulting Services to Conduct a Citywide User and Impact Fee Study Based on the questions received during the Request for Proposal (RFP) process, we have provided responses below, clarifying project scope, budget and delivery. 1) What if my firm only prepares impact fee studies and not user fee studies? Response:We understand that there are significant differences between a user fee do not provide both services. The RFP is structured to accept proposals for either or both studies, and proposal submissions will be judged not on their ability to do both, but on the quality and competitiveness of their proposal, utilizing the criteria outlined in the Proposals will be evaluated by a review committee and evaluated on the following criteria: 1. Understanding of the work required by the City. 2. Quality, clarity and responsiveness of the proposal. 3. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. 4. Recent team experience in successfully performing similar services. 5. Creativity of the proposed approach in completing the work. 6. Value 7. Writing skills. 8. References. 9. Background and experience of the specific individuals managing and assigned to this project. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. We encourage proposal submissions of either user fee or impact fee (nexus) studies or both. 2)Can you clarify the distinctly different tasks fees (e.g., a Nexus Study). Response: Based on professional feedback, we would like to update the Scope of Work for the Impact Fee Study (Nexus Study). Please refer to the updated Scope of Work below for Impact Fee Study proposal submissions. 1. Establish a methodology for the evaluation of Impact Fees: Review the project requirements and meet with City staff to refine the project scope, purpose, uses and goals of the Study, finalize the project approach, and confirm the project schedule. Work closely with the City Team and stakeholders and demonstrate expertise in preparing development impact fees, financial analysis, and project management, along with the following: Legal basis, legal compliance and limitations on impact fees (including recently passed legislation, such as AB602) Knowledge of tax structure in California, San Luis Obispo County, and the City Capital improvement costs Development economics Report and ordinance writing Public presentations on complex issues 2. Data Collection and Analysis: Acquire existing and projected future demographic and development data for the next five years. Consultant shall review existing AB 1600 Report, staff-updated capital project lists and cost estimates in order to complete the Impact Fee Nexus Study. Specific impact fee programs that need to be addressed in the Study include: Parkland, Water, Wastewater, Emergency Services (Police and Fire), and Transportation (Citywide TIF, LOVR Subarea TIF, Orcutt Specific Plan Area Subarea TIF). 3. Conduct Nexus Analysis and Develop Fee Schedule: Establish the relationship between infrastructure needs and new development, develop fee structures, project revenues from fees, and validate proportionality between facility costs and revenue forecasts. This task shall also include a cost component for fee program administration. The consultant shall make recommendations as to the new Nexus Impact Fee Schedule. Consultant shall perform a nexus study to update anticipated development and to identify opportunities for additional revenue to accommodate City-wide growth. 4. Conduct a Comparative Fee Study: Prepare and provide a report that documents fee study results, including but not limited to, a description of the overall methodology, findings, supporting justification, recommended impact fees and the calculations that provide the legal nexus between impact fee recommendations and new development. The proposed new impact fee analysis shall take into account existing fees and compare to surrounding and comparable cities to ensure reasonableness, consistency, and feasibility. 5. Final Report and Presentation: Document studies for the Nexus Impact Fee calculations. Review findings and fee outcomes with City staff, incorporate changes and finalize report. The final report shall be submitted and shall include the following: o An Executive Summary o Analysis of any existing Impact Fees with recommendations for updating fees. o relationship type of project on which the fee would be imposed. o Recommended updates to impact fee schedule, including calculations that provide the legal nexus between the fee recommendations and new development as required by law. o Proposed method of adjusting fees overtime. After the report has been accepted by the City, the consultant shall make a presentation to the City Council, select City staff and stakeholders, summarizing the findings. 3) The budget noted on the RFP is not enough for both the user fee and impact fee study. Response: Based on professional feedback, the total available funding for this project has increased from the original amount budgeted. Due to the unique request for proposals for 1) user fee study and impact fee study, 2) user fee study only or 3) impact fee study only, it is requested that the proposer include the outlined scope and associated cost for their services. 4) Please provide clarity with respect to whether water and wastewater fees are included. Response: We understand that the wording on p.2 may have been misinterpreted by some. Just to be clear: Water and wastewater development impact fees ARE included Water and Wastewater (as well as Parking and Transit) rate-based fees are NOT included (as noted on p.2) 5) Would the City consider extending the 90-day delivery timeline? Response: Based on professional feedback, we have decided to extend the delivery timeline to 6 months from the execution of a contract. , adopt, and implement the updated fee schedule as a part of the Financial Plan Budget Supplement FY 24-25, effective July 1, 2024. This update replaces the 90-day timeline 15) and in #12. Start and Completion of Work. (p. 15) 6) Please provide clarity with respect to how proposals are to be submitted. Response: We apologize for the inconsistencies in the RFP. In line with past RFPs at the City of San Luis Obispo: Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal electronically please send your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted. 7) The first page of the RFP says to contact Dan Clancy with any questions but then page 4 says to contact Rebecca Bernstorff. No email addresses were provided. Should all questions instead be posted via BidSync? Response: Yes. Questions should be posted to BidSync, the City will answer them publicly via BidSync. If you must submit on paper, please submit to 990 Palm Street, San Luis Obispo, CA, 93401 8) Should the Proposal Submittal Form (RFP page 17) be included in the Additional Information section? Or, since it includes a pricing total, should it instead be included in the separate Fee Proposal? Response: The Fee Proposal can be separate. 3600 American River Dr, Suite 150 | Sacramento, CA 95864 |916.443.3411 | mgtconsulting.com 1. Cover Letter March 30, 2023 Rebecca Bernstorff, Business Services and Administrative Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA, 93401 SUBJECT: BID #2302-001 - CITYWIDE USER AND IMPACT FEE STUDY Dear Ms. Bernstorff: We have combined the top two firms in the nation to provide the City of San Luis Obispo (City) with their own specialized services. MGT of America Consulting, LLC (MGT) and David Taussig & Associates, Inc. dba DTA are pleased to present this proposal in response to the City’s RFP for a Citywide User and Impact Fee Study. By bringing together our two firms, San Luis Obispo will receive the best of the best in each of our respective fields for both the user fee study and the impact fee study, all under one project director, making communication smooth for the City. We understand the City is looking to consultants to prepare a comprehensive user fee study as well as development impact fee study and to determine if the fees are legally defensible and adhere to state and federal law, if the fees are appropriate for the services provided, if the fees are reasonable related to the cost to provide the services, and if the fees are consistent with similarly situated cities located in California. MGT, in association with DTA, has assembled a project team for the City with the breadth of experience required to provide services for this engagement in a professional and timely manner. This project would be primarily handled out of MGT’s Sacramentooffice. Our team has a refined user and impact fee approach, customization options and clear, concise deliverables. Given our extensive experience calculating fees for other complex municipalities, we are committed to prepare a user and impact fee study as described in the RFP. Additionally, MGT has recent experience with the County of San Luis Obispo. In 2021, our project team was able to simplify the County’s fee schedule from 800 fees down to 200 fees. The community and the County benefited by making it a lot easier for the consumer to read and understand these fees. We’ll bring this same perspective and regional understanding to benefit the City, as well. Thank you for the opportunity to submit this proposal. We look forward to providing the City with services that exceed your expectations. MGT and DTA are committed to performing the work within the time period presented in this proposal and agrees to successfully complete all sections of the scope of services/work tasks outlined in this document. This proposal is firm and irrevocable for a period of no less than 90 calendar days from the date of submittal. If you have questions on any aspect of our proposal, please contact Patrick Dyer at 916.502.5243 or pdyer@mgtconsulting.com | 3600 American River Drive, Suite 150 | Sacramento, California 95864.I am authorized by our firm to commit MGT to the terms and conditions included in the attached proposal. Sincerely, Patrick J. Dyer, Vice President, Performance Solutions Authorized to Bind the Firm EXHIBIT B INSURANCE REQUIREMENTS CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below, and in a form satisfactory to CITY. General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been accepted. Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this AGREEMENT. CON $1,000,000). CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers. Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; Pay on behalf of wording as opposed to reimbursement; Concurrency of effective dates with primary policies; Insureds under primary policies shall also be insureds under the umbrella or excess policies. Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants. Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- -insurance shall be called upon to protect it as a named insured. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, CITY may cancel this AGREEMENT. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY and shall require similar written express waivers and insurance clauses from each of its subconsultants. Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non- compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing. Separation of insureds. A severability of interests provision must apply for all additional policy(ies) shall not contain any cross-liability exclusions. Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and CONSULTANT may renegotiate Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY. Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made AGREEMENT, and that involve or may involve coverage under any of the required liability policies. Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.