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HomeMy WebLinkAbout03/02/2010, C5 - AMENDMENT NO.2 TO AB 1600 FEE UPDATE Exhibit A _- DAVID TAUSSIG. �J & ASSOCIATES ATTACHMENT 1 Public Financo and Ur*)Pn Economics 5000 Birch Street,Ste,6000,Newport Beach,CA 92660 • Update Equivalent Dwelling Unit(EDU) factors per the November 2009 Water Development Impact Fees, Water Supply Component study; • Update Wastewater Catchment Area demographics per revised data provided by City staff (Appendix B-3); • Update tables and calculations in Appendix B-4 to reflect all demographic and facilities' cost revisions; • Add"mobile home"as a demographic category to the AB 1600 Fee Study Update Model; • Revise Floor Area Ratio assumptions in the AB1600 Fee Study Update (to be based on City staff input after DTA runs stress tests on various FARs in current AB 1600 Fee Study Update Model); • Revise tables related to proposed wastewater facilities and their respective costs; • Amend methodology related to allocating citywide wastewater facilities' costs to existing and future development(to be based on MGD methodology); • All other necessary revisions to the AB 1600 Fee Study Update narrative/model/appendix; and • All future correspondence between City staff and DTA, including emails and conference calls. The consulting services described in Exhibit B below are related to tasks that are outside of the Original Scope of-Work and the Change Order No. 1 Revised Scope of Work, and DTA hereby requests a change order and increase in budget to cover these efforts related to what has now become the 2010 AB1600 Fee Study Update of the 2002 Study. CS City of San Luis Obispo-AB 1600 Fee Study(2010 Update) February 11, 2010 Change Order No. 2 Page A-2 CExhibit A ' ML DAVID TAUSSIG J K & ASSOCIATES ATTACHMENT 1 . Public Fin�zincc and Urban Ecoinomics 5000 Birth Street,Ste.6000,Newport Beach.CA 926M CHANGE ORDER NO. 2 EXHIBIT B—AUGMENTED FEE SCHEDULE CITY OF SAN LUIS OBISPO AB 1600 WATER AND WASTEWATER IMPACT FEE 2010 UPDATE A. Fee Schedule The total fee to complete the Revised Scope of Work shall be time and materials, not to exceed an additional$7,600 for services. Please see Section B below for details regarding the derivation of this fee. Invoices shall be billed monthly based on services performed in the previous month. In addition to fees for services, Client shall reimburse DTA for out-of-pocket and administrative expenses by paying a charge equal to 3% of DTA's monthly billings for labor, plus clerical time @ $75 per hour, travel and lodging costs, and any outside vendor payments, not to exceed a total of$1,000. Consultant shall stop all work on project if payment is not received within 45 days after submittal of invoice Consulting services shall be billed according to the following hourly rates: Table 1 DTA Hourly Rates David 'I'aussio & Associates, 111C. 2009-10 Fee Schedule President $275/Hour Managing Director $24511our Vice President $215/11our Manager $200/Hour Senior Associate $180/11our Associate $165/Hour r Senior Analyst $150/Hour Financial Analyst $130/11our Research Assistant $100/Hour B. Buffet Increase Calculation (alease see Table 2 for a summary of fees) Task 1 Consulting Services related to February 25, 2009 AB 1600 Fee Study Update Example of Specific Tasks • Review of City staff s.comments to February 25,2009 AB 1600 Fee Study Update. City of San Luis Obispo-AB 1600 Fee Study (2010 Update) February 11, 2010 Change Order No. 2 Page B-1 Exhibit A -- DAVID TAUSSIG J r% & ASSOCIATES ATTA;'HMENT I PUblic Finance and Uroan Economics 5000 Birch Street,Ste.6000,Newport Beach,CA 92660 • Memorandum from DTA to City staff regarding City staff s comments to February 25, 2009 AB 1600 Fee Study Update. • Conference call between DTA and City staff to review DTA's memorandum related to City staffs comments to February 25, 2009 AB 1600 Fee Study Update comments/suggested revisions. • Conference call between DTA and City staff to discuss wastewater facilities cost allocation to existing and future development; and • All other correspondence related to February 25,2009 AB 1600 Fee Study Update. Task 2 Revisions to AB1600 Fee Study Update Model Example of Specific Tasks • Update FAR and Water Demand Calculations; • Update wastewater catchment area demographics; • Update wastewater facilities cost data • Amend methodology (and related calculations) for allocating citywide wastewater facilities cost to existing and future development; and • All other necessary edits to the Appendices of the AB 1600 Fee Study Update. Task 3 Revisions to AB1600 Fee Study Update Narrative Example of Specific Tasks • As necessary, update all tables and text to complement all edits to the AB 1600 Fee Study Update Model; and • Update text to reflect amendment to methodology for allocating citywide wastewater facilities cost to existing and future development. Task 4 Additional Consulting Services Example of Specific Tasks • Phone calls and emails; and • Review of Final AB 1600 Fee Study Update prior to City Council Meeting(David Taussig) Task 5 In-House Meeting and Public Hearing DTA will attend an in-house meeting to discuss the AB1600 Fee Study Update upon its completion. There will be an additional fee - discounted by 50% - for this additional in-house meeting between Steve Runk and City staff. Furthermore, the public hearing before the City Council is considered to be included in the Original Scope as the third meeting listed under that Scope, and therefore no additional fee is required. However, there will be an additional fee - discounted by 50% - for the public hearing due to the City's request that David Taussig, rather than Steve Runk, attends the public hearing. cs=� City of San Luis Obispo-AB 1600 Fee Study(2010 Update) February 11, 2010 Change Order No. 2 Page B-2 Exhibit A DAVID TAUSSIG FS & ASSOCIATESATTA.�r HMENT I PUblic Finpince and Urban Economics 5000 Birch Street,Ste.6000,Newport Beach,CA 92660 Table 2 Augmented Fee Schedule WFA Staff Member (1-fours) Task 1 0.00 11 3.00 8.00 $1,965.00 Task 2 0.00 1 2.00 5.00 $1,255.00 . Task 3 1.00 2.00 6.00 $1,695.00 Task 4 2.00 2.00 2.00 $1,310.00 Task 5— In-House Meeting 0.00 10.00 0.00 $1,075.00* Task 5— Public Hearin2 10.00 0.00 0.00 $300.00** Totals 13.00 19.00 21.00 1 $7 600.00 Derivation of Fees *Additional In-House Meeting(Steve Runk in attendance): 10 Hours x$215/hr=$2,150 x 50%Discount=$1,075 *Public Hearing(David Taussig,rather than Steve Runk, in attendance): 10 Hours x ($275/hr- $215/hr)_$600 x 50% Discount=$300 0— City of San Luis Obispo -AB 1600 Fee Study ( 010Pdate� February 11, 2010 2 U Change Order No. 2 Page B-3 Exhibit A � -� DAVID TAUSSIG J �& ASSOCIATES AT TA NMEN T fi UrbanPublic Finance and 5000 Birch Street,Ste.6000,Newport Beach,CA 92660 Phone:949.955.1500/Fax:949.955.1590 CONSULTANT AGREEMENT- NOTICE OF AUTHORIZATION Date: February 11, 2010 Project: City of San Luis Obispo Utilities Department—AB 1600 Water and Wastewater Impact Fee Study Update Description of Work: 2010 Update to AB 1600 Fee Study Budget:Time and materials not to exceed $7,600 for the Services identified below, including expenses. Professional Services will be billed at the hourly rates listed below: President $275/Hour Managing Director $245/Hour Vice President $215/Hour Manager $200/1-lour Senior Associate $180/11our Associate $165/1-lour Senior Analyst $150/Hour Analyst $130/11our Research Assistant $100/Hour On or about the fust two weeks of each month during which AB 1600 Consulting Services are rendered hereunder, Consultant shall present to Client an invoice covering the current services performed and the reimbursable expenses incurred pursuant to this Agreement and exhibits thereto. Invoices shall be paid by Client within thirty(30)days of the date of each invoice. A 1.2%charge may be imposed against accounts that are not paid within 30 days of the date of each invoice. The prevailing party in any arbitration or legal action brought by one party against the other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses,including court costs and reasonable attorneys'fees. The non-prevailing party shall be liable, to the extent allowable under law, for all fees and expenses of the arbitrator(s) and all costs of the ` arbitration. Consultant: Client: David Taussig&Associates, Inc. City of San Luis Obispo Utilities Department David Taussig, President (Authorized Signature) Brief Description of Please see Exhibit B of the attached Change Order No.2 for a description of Scope of Services: services related to the 2010 Update of the Water and Wastewater Impact Fee Study. J:\PROPOSAL\AB1600\SanLius0bispo�2010 Update\NOA(2010 Update).doc 9 Newport Beach • Riverside* San Francisco•Walnut Creek•Plano,TX Attachment 2 CITY MANAGER REPORT TRANSMITTAL PURPOSE Check One. See Reverse Side for Required Documentation Admin Use Only ❑ Authorize Invitation for Bids(IFB)or Request for Proposals(RFP) Recommended Vendor ❑ Award Contract Are there any special award circumstances? Yes ❑ No ❑ If yes,a City Manager Report describing them should be attached. ® Other Action Requiring City Manager Approval See Reverse Side for Description REQUEST SUMMARY Re ort"T-itle S ecification No'. rx�e O r No. to YeP to Lu i t U s i� d a a 2 CQ De artment. - D_"a me t to TransmittalD'ate Utilities FinancialiPlan Reference" Buil at Bid a Bid'Airiounf $ $ $ All formal Bid or RFP packages must be assigned a specification number by Finance before submitting ttiis APPROVALS Check appropriate box if review is required—see reverse side for guidance Department of Fina Technology Department of: I CI" orne City En ineer sis Ma " Human Resources Cit Date' ❑ Routing will occur in the order listed unless otherwise noted by the initiating department. REVIEWER COMMENTS DISTRIBUTION AFTER CITY MANAGER APPROVAL In the case of authorization to invite bids(request proposals)or to award a contract,Administration will return the original package to the initiating department with a copy to Finance(or to Public Works if it is a construction-related project)after City Manager approval. For all other City Manager Reports,the Initiating department should indicate below the appropriate distribution after City Manager approval: etufn �° herd 1 BV"K/4, ; k hes Attachment 2 city Of San lues OBISPO CITY s REPORT a • a January 28, 2009 TO: Ken Hampian, City Manager FROM: Carne Mattingly,Utilities Director Prepared By: Dan Gilmore, Utilities Engineer SUBJECT: CHANGE ORDER NO. 1 TO AGREEMENT WITH TAUSSIG AND ASSOCIATES FOR WATER AND WASTEWATER IMPACT FEE UPDATE RECOMMENDATION: Approve Change Order No. I to the agreement with David Taussig and Associates in the amount of$14,510 for additional work on the Water and Wastewater Impact Fee Update. DISCUSSION: On November 27, 2006, the CM approved the issuance of Purchase Order No. 30207 to David Taussig and Associates in the amount of$19,500 for consultant services relating to an update of the City's Water and Wastewater Impact Fee program. The CM Report, Purchase Order, and Consultant's Proposal are attached for reference. There have been several rounds of review and revision, which has resulted in some additional work by the consultant and changes in the scope of the project. The consultant has submitted Change Order No. 1, which is attached to this memo, in order to get authorization for this additional work. Staff has reviewed the proposed change order, and agrees with the scope changes and fee estimates. FISCAL IMPACT Approval of Change Order No. I will result in the need to increase Encumbrance #3027 by $14,510, which will be split 50150 between the.Water and Sewer Funds. Specifically, $7,255 in additional funding will be needed from both the Water Fund-Contract Services account (500- 55100-7227) and the Sewer Fund-Contract Services account (500-55300-7227). Sufficient funding is available in Contract Services for Water, while the attached Budget Amendment Request moves adequate funding into the Contract Services account for Sewer. ATTACHMENTS Budget Amendment Request Change Order No. 1 to agreement with David Taussig and Associates CM Report, Consultant's Proposal,'and Purchase Order No. 30207 cs=�i ' Attachment 2 IIIIIIIIIIIIIIII���������III �I ���I city of san LUIS os'spo BUDGET AMENDMENT REQUEST Requesting Department Fund Name Fund No. UtilitiesSewer - 520 REVENUES AND OTHER FINANCING SOURCES Amendment Account Description Revenue Account No. Amount TOTAL EXPENDITURES AND OTHER FINANCING USES General ledger No, Capital Project No. Amendment Account Descri tion Program Account Project Phase Amount Taxes & Licenses 55341 7301 10,000 Contract Services 55300 7227 10,000 TOTAL $ PURPOSE Transferring$10,000 available from Sewer Franchise Fees-Taxes &Licenses to Wastewater Admin/Engr Contract Services to fund contract amendment for Impact Fee Study Update and to balance 7227 for pending Joumal Entry on a separate transaction. Consultant: David Taussig&Associates (DTA) Depa nt ad Date Director of Finance Date 01/27/09 ,3 City ministrative Officer Date Entered By Da Page of Attachment 2 ___ADAVID TAUSSIG & ASSOCIATES 5000 Birch.Street,Ste.6000,Newport Beach,CA 92660 Phone:949.955.1500/Fax:949.955.1590 CONSULTANT AGREEMENT- NOTICE OF AUTHORIZATION Date: January 27,2009 Project: City of San Luis Obispo Utilities Department—AB 1600 Water and Wastewater Impact Fee Study Update Description of Work: 2008 Update to AB 1600 Fee Study Budget:Time and materials not to exceed$14,510 for the Services identified below, including expenses. Professional Services will be billed at the hourly rates listed belowc Presidents. $275/11our Managing Director $245/Hour Vice President $215/11our Manager $200/11our Senior Associate $180/Hour Associate $165/Hour SeniorAnalyst $150/Hour Analyst $130/Hour Research Assistant $100/11our On or about the fust two weeks of each month during which AB 1600 Consulting Services are rendered hereunder, Consultant shall present to Client an invoice covering the current services performed and the reimbursable expenses incurred pursuant to this Agreement and exhibits thereto. Invoices shall be paid by Client within thirty(30)days of the date of each invoice. A 1.2%charge may be imposed against accounts that are not paid within 30 days of the date of each invoice. The prevailing party in any arbitration or legal action brought by one party against the other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses,including court costs and reasonable attorneys'fees. The non-prevailing party shall be liable, to the extent allowable under law, for all fees and.expenses of the arbitrator(s) and all costs of the arbitration. Consultant: Client: DavSig & Associ e Inc. City of San Luis Obispq Utilities Department David Taussig, esi t I (Authorized Signa e) M111 Brief Description of a Please see Exhibit B of the attached Change rder No. 1 for a description of Scope of Services: services related to the 2008 Update of the Water and Wastewater Impact Fee Study. J:\PROPOSAL\AB1600\SanLuisObispo\2008 Upilatc\Oi_27-09INOA(2008 Update)v2.doc Newport Beach •Riverside*San Francisco Walnut Creek•Plano,TX • Attachment 2 DAVID TA03SIG & ASSOCIATES .,000 Birch Street,Ste.6000, Newport.Beach,CA 92660 CHANGE ORDER NO. 1 EXHIBIT A-REVISED SCOPE OF WORK City of San Luis Obispo AB 1600 Water and Wastewater Impact Fee Update 2008 Update The original scope of work (the "Original Scope") called for David Taussig and Associates, Inc. ("DTA") to update the previous City of San Luis Obispo (the "City" or the "Client") Water and Wastewater Impact Fee Study of 2002 (the "2002 Study") with updated demographics data and updated water and wastewater facility lists and costs. As noted in the Original Scope, this updated information was to be inserted into the original text of the 2002 Study, so that it would "follow the same format as the 2002 DTA Study` Work on this update was initiated in 2006, and any comments and/or revisions made prior to and including those provided by,the City on October 7, 2007 are considered to be included in the,. Original Scope. In.addition, attendance by DTA staff at up to two additional meetings in San Luis Obispo are included in the Original Scope, one of which was attended by DTA staff on September 8,2008. .However, subsequent to the comments provided to DTA by the City through October 7, 2007, there have been substantial additional changes in demographic data and facilities costs, as well as modifications to the methodology, format and presentation of the 2002 . Study, that have been requested by the City to clarify the Study's findings and make it better reflect current demographic trends. To date, DTA efforts made to clarify and simplify therep ort have been expended at no additional cost to the City. However, because the time frame of this update contract has extended beyond that contemplated by both the City and DTA, it was only prudent that the City provide updated and more relevant information to be used in the final report. Also, because the 2002 Study was based on earlier versions of the City's water and wastewater master plans, it became impractical to apply. revised demographic data to master plan formats that are long outdated. For these reasons, the services described in Exhibit B below are related to tasks that are outside of the Original Scope of Work, and DTA hereby requests a change order and increase in budget to cover these efforts related to what has now become the 2008 Update of the 2002 Study. Newport Beach•Riverside•San Francisco•Walnut Creek•Plano,.TX R f Attachment 2 DAVID TAV3SIG F% & ASSOCIATES 6000 Birch Street,Ste.6000, Newport Beach,CA 92660 CHANGE ORDER NO. 1 EXHIBIT B—AUGMENTED FEE SCHEDULE FOR REVISIONS TO ORIGINAL SCOPE CITY OF SAN LUIS OBISPO AB 1600 WATER AND WASTEWATER IMPACT FEE 2008 UPDATE A. Fee Schedule The total fee to complete the Revised Scope of Work shall be time and materials, not to exceed an additional $14,510 for. services. Please see Section B below for details regarding the derivation of this fee. Invoices shall be billed monthly based on services performed in the previous month. In addition to fees for services, Client shall reimburse DTA for out-of-pocket and administrative expenses by paying a charge equal to 3% of DTA's monthly billings for labor, plus clerical time @ $75. per hour, travel and lodging.costs, and any outside vendor payments, not to exceed a total of $1,000. Consultant shall stop all work on project if payment is not received within 45 days after submittal of invoice. Consulting services shall be billed according to the following hourly rates: II : 1 • � rManaging $275/Hour Director $245Hour ident $215/Hour Manager $200/Hour Senior Associate $180/Hour Associate $165/Hour Senior,Analyst $150/Hour Financial Analyst $130/Hour Research Assistant $100/Hour B. Budget Increase Calculation 1) Convert methodologyfrom a"Planning Area" area of benefit to a"Catchment Area"area of.benefit for Wastewater Impact Fee calculation. Using revised demographic data provided by the City, DTA shall revise the demographic data tables, re-run the model to calculate new fees and revise the text of the report for the demographic section. Newport Beach •Riverside*San Francisco•Walnut Creek•Plano,TX Attachment 2 j. DAVID TAU3SIG -- 1% & ASSOCIATES .: . :1000 Birch Street,Ste.6000,Newport Beach,CA 92660 Calculation of Fee: Steve Runk: 16 hours * $215/hr=$3,440 Matthew Costello: 0 Hours 2) Update Facility Lists and Costs with new data provided by the City. DTA shall revise Tables describing facilities and costs, re-run the model and revise the report accordingly. This fee also includes time related to meetings and phone calls. Calculation of Fee: Steve Runk: 4 hours * $215/hr= $860 Matthew Costello: 16 Hours * $165/hr=$2,640 (Includes anticipated fee for revising narrative relating to revised facilities and costs) 3) Revised demographics for water and wastewater using population based methodology similar to that which was used in the City's Water Supply Report. DTA revised demographic tables, substituted one "non-residential" category for the previous list of office, .commercial and industrial uses and revised all of the methodology tables accordingly. DTA re-ran the models and provided new. fee structures. The related text And tables in the report will be revised. Calculation of Fee: Steve Runk: 4.hours * $215/hr=$860 Matthew Costello: 24 Hours * $165/hr=$3,960 (Includes anticipated fee for revising entire 2008 Water and Wastewater Impact Fee 2008 Update narrative) C. Additional Meetings DTA understands that there will be two additional meetings that DTA will be required to attend. The public hearing before the City Council is considered to be included in the Original Scope as the third.meeting listed under that Scope, and therefore no additional fee is required. The second future meeting, which will be between DTA staff and City Staff to discuss the 2008 Update upon its completion, shall be considered additional consulting services beyond those included in the Original Scope,and shall require additional fees Calculation of Fee(Second Future Meeting): Steve Runk: 10 hours * $215/hr=$2,150 Calculation of Fee (Public Hearing)*: David Taussig: 10 hours *($275/hr less $215/hr)_$600 *$600 additional fee due to City request that David Taussig attend the Public Hearing rather than Steve Runk. Newport Beach• Riverside•San Francisco•Walnut Creels•Plano,TX e 6P�/ r Attachment 2 CAO REPORT TRANSMITTAL PURPOSE Check One. See Reverse Side for Required Documentation Admin Use Only ❑ Authorize Invitation for-Bids (IFS)or Request for Proposals(RFP) Recommended Vendor ❑ Award Contract Are there any special award circumstances? Yes ❑ No ❑ If yes,a CAO Report describing them should be attached. ❑ Other Action Requiring CAO Approval See Reverse Side for Description REQUEST SUMMARY &`..Y `4.-tP.#i.�.� w�'2 »`� �S�in..�w'- ' s'sKtiE?i`,vYx•ry q.,Y,. ..�i vivre 'a:�T ^�,S`—'•F� .i-. Update to Water and Wastewater Impact Fee Study Oe rtariiit � } Wim= t'Head "rovalcc' , �T[ansmittaNOate?" Utilities 11/16/06 F.inaricia"YPIan;Refe'ren"ce gr 7 ;; ;� B.ud`t.......iil'.EsUma#e ' YAmoif_nf $ $ All formal Bid or RFPpwkages must be assigned a specification number by Finance before submitting this form. APPROVALS Check appropriate box ifreviewis required—see reverse side for guidance x s �r s:. .F.ina Informauoon-1 echnb a� ❑ ❑ De�'tfneriE;of7 `','.`C.,�`tt''x ❑ 11 - 2c � Human Resources -Jx z �r m •:. w m ms ra VeOfficer. :` ;rt ❑ Routing will occur in the order listed unless otherwise noted by the initiating department. REVIEWER COMMENTS DISTRIBUTION AFTER CAO APPROVAL In the case of authorization to invite bids(request proposals)or to award a contract Administration will return the original package to the initiating department with a copy to Finance(or to Public Works if it is a construction-related project)after CAO approval. For all other CAO Reports,the initiating department should indicate below the appropriate distribution after CAO approval: Forward budget amendment requests and purchase order to Finance for processing. Forward a copy of signed CAO transmittal form to Kathe in Utilities. C5�� 7 City Of i san lues OBISp0 AO REPORT November 16, 2006 TO: Ken Hampian, City Administrative Officer FROM: John Moss, Utilities Director Kathe Bishop, Senior Admin Analyst)o SUBJECT: Update to Water and Wastewater Impact Fee Study RECOMMENDATION 1. Approve the use of David Taussig and Associates, for consultant services to.update the Citywide AB 1600 Fee Study, not to exceed$19,500, 2. Approve use of available General Carryover, in the amount of$9,750 from the Water Fund . and$9,750 from the Sewer Fund, to fund.the purchase order for consultant services. 3. Authorize the Finance Manager to execute the purchase order. DISCUSSION The City Water and Wastewater Impact Fees were first implemented in 1991. In 2002, the fees . Were updated with a study performed by David Taussig. and Associates including the . establishment of fees specific add-on areas. Later in 2004, Finance staff updated the Water Impact Fees to include the Nacimiento Pipeline and Water Reuse supply projects and Utilities staff updated the Wastewater Impact Fees to include the Tank Farm Gravity Sewer and Lift Station project. Although the Water System MasterPlan and the Wastewater Master Plan Update are both dated October 2000, project construction and material costs have increased significantly since the 2004 fee study update. For example, on the Water Treatment Plant.upgrade project the Engineer's estimate for construction was $9.6 million, with the actual construction award at $12.1 million. Another example is the Nacimiento Pipeline water supply project with the September 2006 revised construction estimate at $17 million greater than previous projections. For wastewater, a regulatory upgrade is projected in 2007-08 at $5'.5 million and a capacity upgrade at the Water Reclamation.Facility is planned in 2010-11 estimated at $15 million. This fee study update will include revising construction cost estimates for Master Plan projects based on current and projected construction market trends. Attachment 2 Update to Water and Wastewater Impact Fee Study page 2 Utilities staff recommends moving forward with. a Citywide AB 1600 Fee Study Update performed by David Taussig and Associates (DTA) based on DTA's performance with the fee study update in the past. With the model DTA developed for the City in 2000 which includes master plan projects, land use demographics and fee specific add-on areas, the consultants will be able to update the Fee Study within approximately eight weeks, excluding Holidays. The process will begin with a kick-off meeting to include. Consultants and City staff from Finance, Community Development and Utilities. Utilities staff plan to bring the updated Water and Wastewater Impact Fee recommendations to Council for adoption in March 2007, to allow adequate time for fee changes to be incorporated into the water and sewer fund projections for the 2007-09 Financial Plan. FISCAL IIVIPACT Funding for this study ($19,500) is currently available as General Carryover in Utilities operating budget. The costs will be distributed evenly between the two funds. The Water Fund currently has $93,000 in carryover and the Sewer Fund has $82,700 in carryover to support this request. ATTACHMENTS 1. Purchase Order - Exhibit A-Proposal Exhibit B -Conditions to Purchase Order 2. Budget Amendments i47 roc H"6 r city Of San Luis OBISPO PURCHASE ORDER ATTAC14MW2 OURCHASE ORDER NO. 3 02,D7 EfSend copy to vendor with any attachments �Do not send to vendor VENDOR DAVID TAUSSIG AND ASSOC, INC SHIP TO CITY OF SAN LUIS OBISPO ADDRESS 1301 DOVE STREET, SUITE 600 ADDRESS UTILITIES DEPARTMENT NEWPORT BEACH, CA 92660 879 MORRO STREET ATTN: DAVID TAUSSIG SAN LUIS OBISPO CA 93401 (949) 955-1500 ATTN: KATHE BISHOP (805).781-7206 Quote General Ledger Account Capital Project Number Date Fund Program Acct Project Phase Description See Attached500 55100 7227 Consultant services to perform Proposal 10/25/06 r 520 55300 7227 A61600 Fee Study Update TOTAL Requesting Department Prepared By Dep Approval Finance/Administratior Utilities Kathe Bisho instructions: CCOUNTING USE Department:Complete form and obtain departmental approval.Attach quotes, d mmaries,or CAO report (as required by purchasing guidelines). Route to Finance or Admin for appr v Verified By Finance:After final approval,assian PO number and reh vn rnm Attachment 2 z�'xHI,6 r A � r ASsocinTEs IN DAVID TAUSSIG AND ASSOCIATES, INC. PROPOSAL FOR AB 1600 CITYWIDE WATER AND WASTEWATER IMPACT FEE UPDATE L INTRODUCTION UNDERSTANDING OF THE.PROJECT It is the understanding of David Taussig &Associates, Inc. ("DTA")that the City of San Luis Obispo ("the City') wishes to update its existing Citywide Water and Wastewater. Impact Fee Program to ensure that future residential, commercial, and industrial development pays its proportionate share of the water and wastewater facilities needed to accommodate that development without adversely impacting the cost or level of service for existing residents or businesses. The need for the update is driven by changes in demographics, facility requirements, time inflated facility costs and changes in the geographical areas of benefit. _The City adopted its initial impact fee study in 1991, updated the fee program in 2002 with a study performed by DTA, and updated the fee program again in 2004 through a report provided by the City of San Luis Obispo, Utilities Department. The extent of the. changes mentioned above has caused the City to consider this current update effort. DESCRIPTION OF DAVID TAUSSIGAND ASSOCIATES,ING DAVID TAUSSIG AND ASSOCIATES, INc. is a public finance and urban economics consulting firm specializing in infrastructure and public services finance. Based in Newport.Beach, Riverside, and San Ramon, California, DTA acts as consultant to both public and private sector clients involved in land development. DTA's consulting services include: • Public Financing Plans and Strategies • Speciaf Tax and Assessment Engineering • Development Impact Fee.Justification Studies • Fiscal and Economic Impact Analyses • Redevelopment Finance Economic Development and Revitalization Studies r • Real Estate Economics 'DTA specializes in the preparation of plans and the implementation of public finance. mechanisms used to fund the construction of public capital facilities and the provision of public services. Since its incorporation in 105, DTA has been involved in the implementation of over 2,200 public financing programs, using mechanisms such as fee City of San Luis Obispo Page I AB 1600 Water and Wastewater Impact Fee Update Study October 25;2006 tQ L= a ATTACHMENT Z MEMN&ASSOCIATES,IN programs, Mello-Roos community facilities districts,assessment districts, revenue bonds, certificates of participation, Marks-Roos bond pools, tax increment revenues, and other local public financing options. Total authorized bonded indebtedness for these programs currently exceeds $50 billion. As the vast majority of DTA's work has involved the actual implementation of financing programs, as opposed to only the planning process, we bring a very different orientation than most firms to the preparation of financing studies. Financing plans prepared by most other funis are generally limited in scope and largely descriptive in nature. In contrast, DTA's financing strategies are guantitative, specific, and prepared for imulementation. DTA provides detailed revenue projections from all available sources and matches feasible revenue streams with costs for all public improvements and services projected to be required in future years. The plans prepared by DTA range from the quantitative analysis of a single financing mechanism for an individual facility, to preparation of a comprehensive public financing plan, covering multiple facilities and public services through a series of financing mechanisms. We at DTA feel strongly that our financial analyses provide public officials, as well as landowners and other interested parties, with the level of information necessary to make 'fully informed decisions regarding land use, infrastructure, and public services financing issues. Typically DTA's publicfinancing studies include a .benefit cost analysis and determination of nexus between the facilities financed and the financing mechanism. As further explained below, DTA.has extensive experience in performing impact fee studies that meet the requirements of.California Government Code 66000 (also known as AB 1600). DTA has prepared AB 1600 Fee Justification studies and analyses involving fees for a variety of public improvements, including water and wastewater, water, sewer, flood control,police, fire,parks and government services facilities. DTA has an enviable reputation for producing high quality work in a quick and efficient manner to correspond.with even the most aggressive financing schedule. DTA's clients also receive high levels of personal attention from senior staff, with.the President or a Vice President always available to meet with public agency staff and other groups. DTA has grown to a current staff of over eighty professional employees. Staff members come from backgrounds in a number of fields, including land development, public administration, civil engineering, investment banking, economic consulting, redevelopment, construction lending and land-use planning. All of DTA's personnel have considerable experience in computer-based financial analysis.and modeling, which is a key component of the firm's consulting services. 2.EXPERIENCE This section of our proposal presents a general discussion of DTA's public finance consulting experience and a specific discussion of development impact fee studies recently completed by the firm. City of San Luis Obispo Page 2 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 Attachment 2 ASSOCIA ES IN 2.1 DTA's FINANCIAL CONSULTING EXPERIENCE DTA is currently providing public finance consulting services to virtually everymajor. County in Southern California, including the Counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino and Santa Barbara. In the Central Coast area, we are currently engaged by the City of Paso Robles and the County of San Luis Obispo on public finance projects, and recently completed several projects for the City of Atascadero. Southern Califomia cities to whom we have successfully:provided financial consulting services include the Cities of Adelanto, Anaheim, Beaumont, Beverly Hills, Cathedral City;Chula Vista, Encinitas, Fontana, Fullerton, Glendale, Hawthorne, Hesperia, Irvine, Irwindale, . Lake Forest, .Lancaster, La Quinta, Lawndale, Long Beach, Los Angeles, Oceanside, Ontario, Oxnard, Palmdale, Pasadena, Placentia, Rancho Cucamonga, Rialto; Riverside, San Bernardino, San Diego, San Jacinto, San Marcos, Santa Clarita, Thousand Oaks, Torrance, Tustin. and Vista, among others. . DTA has also provided similar consulting services to.numerous school districts and water districts in Southem California, as well as dozens of public agencies throughout Central and Northern Califomia, including the Cities of Fresno, Sacramento,San Francisco and San Jose. DTA's objective in working with these agencies has been to enable both property owners an&• public agencies. to benefit from the use of public financing within existing development, or within a newly developing area. When developing a new program, the firm recognizes thateach client and project is unique, with specific needs and philosophies. DTA's goal is to listen carefully to its client's concerns, to identify and -understand the variables associated with each project,_and to use these concerns and variables in arriving at the ideal financing solution. 2.2 DTA's DEVELOPMENT IMPACT FEE STUDY QUALIFICATIONS AND EXPERIENCE . DTA understands that the City will need a legally supportable analysis of the levels of water and wastewater impact fees required for new development within the City, culminating in a written report recommending appropriate fee justification methodologies and fee levels. DTA would provide professional and technical assistance to the City in preparing a comprehensive review of required impact fee levels which would be documented in a written report prepared pursuant to Califomia Government Code 66000 (AB 1600). At the request of the City, DTA could propose a schedule which would- enable our firm to complete the required services in a timely manner. DTA's final report would present a fee methodology which satisfies the."rational nexus" tests.used by the courts to determine the legality of development.exactions. DTA's AB 1600 fee studies typically include.the following components: r • Background Review • Determination of Areas of Benefit • Population, Dwelling Unit and Commercial/Industrial Development Projections • Facility/Capital Needs Identification • Calculation of Supportable_Fee Levels City of San Luis Obispo Page 3 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 i j ATTACHMENT 2 � � ASSOCIATES IN • Development of New Ordinances im Preparation of Final Report DTA personnel have extensive experience in the fields of public finance planning and civil engineering, and have prepared numerous studies to determine the type, number, and level of fees. Our firm's experience ranges from city and county AB 1600 fee studies to school fee justification analyses. Having been subjected to legal as well as developer scrutiny, DTA has developed a streamlined approach and methodology which establishes a rational and substantial nexus between new development and the need for public facilities. DTA has just completed an.AB1600 fee study update for all public facilities on behalf of the City of Paso Robles, a countywide transportation and transit study for the County of Sacramento, and a fee study for roadways, public safety and government services facilities for the County of Colusa. DTA has completed numerous AB 1600 studies over the past two years for numerous public agencies, including the cities of Blythe, Brawley, Calexico, Cathedral City, Mammoth, Perris, Red Blu$ San Francisco, San Jacinto, and Torrance. .Furthermore, DTA is uniquely qualified for this task because our firm prepared the Countywide Water and Wastewater Impact Fee Update Study for the City of San Luis Obispo, Utilities Department, in 2002,as mentioned above. The 2002 study is essentially the basis of this update effort, hence most of the demographic, facility list and analysis work will not need to be repeated by DTA staff. References: Mr. John Moss Utilities Director Utilities Department City of San Luis Obispo 879 Morro Street San Luis Obispo,CA 93401 Phone: (805)781-7218 Email: imoss(@slocity.org Mr. John Falkenstein . City Engineer City of El Paso de Robles 1000 Spring Street Paso-Robles, CA=93446. . Phone: (805) 237-3860 Email: iialkenstein(abrcity.com 1 City of San Luis Obispo Page¢ AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 Attachment 2 AssociATEs IN 3. PROJECT TEAM DTA has assembled a project team with the breadth of experience needed to assist the City in the update of their development impact fee study. Our team members are: • David Taussig,AICP, President • Steven Runk, P.E., Senior Manager of Engineering Services • Ferdinando Guerra, Senior Analyst Mr. David Taussig will act as Principal-in-Charge and will oversee any projects and supervise DTA personnel. Steve Runk, P.E., will act as Project Engineer and Project Manager and will handle the day-to-day assignments related to this project. He will be assisted by Mr. Ferdinando Guerra and other DTA support personnel. The following section provides brief resumes of the senior members of our project team for this engagement: DAVID TAUSSIG,AICP,President of DTA,has thirty years of experience in the fields of real estate finance and urban economics. His areas of expertise include municipal finance programs for infrastructure and public facilities development, fiscal and redevelopment impact analysis, and land development project feasibility studies. Mr. Taussig has an extensive background in computerized financial analysis. He is also experienced in forward planning and familiar with a variety of project processing issues, based on years of working as a land planner and development manager. Since founding DTA in 1985, Mr. Taussig has developed a number of state-of-the-art analytical methods and modeling approaches, as well as personally directing the formation of more than 750 public financing districts, and the subsequent sale of tax-exempt municipal bonds. In addition, he has overseen the preparation of numerous feasibility and impact studies involving computerized analysis of project cash flows and/or impacts on public agencies and landowners. This has included many .fiscal impact analyses, as well as fee justification and redevelopment impact studies. Prior to establishing his own firm, Mr. Taussig was Director of Finance for Gfeller Development Company, where he was responsible for.all take-out and construction financing for the Company's residential projects and infrastructure. He also prepared development project proformas which were used by prospective lenders and joint venture partners to evaluate the Company's proposed projects. Mr. Taussig_was previously employed for six years by Mission Viejo Company (MVC) Where, as Manager of Housing and Community Development, he was involved in the planning and financing of two planned communities containing over 50,000 Domes, Mr. Taussig was responsible for a substantial portion of MVC's mortgage financing and infrastructure financing during that period. Before joining MVC, Mr. Taussig was employed as Manager of Housing Programs for the Jack G. Raub Company, where he was responsible for mortgage revenue bond financing and affordable housing projects. City of San Luis Obispo page 5 y October 25,2006 AB 1600 Water and Wastewater Impact Fee Update StudW I I ATTACHMENT 2 ASSOCIATES IN Mr. Taussig also worked for five years in the public sector as the administrator of a federal housing and community development program, and as a land-use planner. His educational background includes a Masters in City Planning from the University of California at Berkeley and a B.S. in Economics from Comell University. He is a full member of the American Institute of Certified Planners. STEPHEN RUNK, P.E., Senior Manager of Engineering Services, has more than 30 years of experience in the design and construction management of major civil engineering projects, including roadways, bridges, sewer and water improvements, and flood control facilities, as well as grading for public works projects and the construction of commercial and industrial buildings. Mr. Runk's specific responsibilities have included design, quality control; specifications, estimates, construction bid packages, construction coordination and construction management, cost analysis and control, scheduling, manpower forecasting, staffing and.marketing. He has also assisted public agencies and developers in the procurement of funding from Caltrans and other federal and state agencies. Mr. Runk has a proven track record.of meeting schedules and.adhering to budgets. As a construction manager, .he has worked with Caltrans. and local agencies to resolve community issues and to negotiate scope changes with contractors to ensure the timely and satisfactory completion of construction projects. He has also worked with DTA staff on the establishment of Assessment Districts and the preparation of AB 1600 Development Fee Justification Studies. Mr. Runk is currently completing AB 1600 Impact . Fee Studies for the City of Paso Robles and the County of Sacramento Prior to joining David Taussig & Associates, Mr. Runk,.as Senior Construction Manager for Hohnes &Narver, Inc., successfully completed the construction of SR-41 Freeway in Fresno County, which was the County's first Measure "Cl sales tax funded freeway. Prior to this project, Mr. Runk successfully completed SR-71 Freeway in Chino/Chino Hills, Calif. This $98 million project was the first Measure "M" sales tax funded project for the San Bernardino Association of Govemments. Mr. Runk's responsibilities on both of these projects included contract management, quality control, public relations, cash flow analysis, project closeout and compliance with Federal and State. funding. requirements. Previously, Mr. Runk held positions of responsible charge with various public and private engineering entities in which he delivered projects requiring a wide variety of engineering expertise.. He holds a.B.S. in Engineering from the University of California at Los Angeles and'a M.S..in Civil) ngmeenng from.UTj of—',$ ate Ifn>yer iT}�at hong Beach. Mr. Runk is a registered Civil Engineer in. the states of.California and Washington.. r City of San Luis Obispo Page 6 AB 1600 Water and Wastewater Impact Fee Update.Study October 25,2006 Attachment 2 r � AssociATFs IN 3.1 WORK ALLOCATION AMONG PROJECT TEAM Team Member Role Share of Project Estimated Hours David Taussig Principal-in-Charge 10% 7 - — Steve Runk,P.E. Project Engineer 50% 35 Analysts/Support Personnel 40% 28 Totals 100% 70 4.DTA'S WORKSCOPE This section of our proposal presents DTA's project methodology, performance and cost schedule,hourly fee schedule and terms. 4.1 DTA's PROJECT METHODOLOGY DTA's project methodology encompasses all of the services necessary for the preparation of an AB 1600 Water and Wastewater Impact Fee Study. 4.1.1 Review of Existing Fee Structures and Ordinances. DTA will review the 2004 Update Study and recent information provided by the Utilities Department to become familiar with changes to demographics, facilities and costs subsequent the preparation of the 2002 DTA study 4.1.2 Meet with City Staff DTA will review changes in demographics, facility requirements, costs, changes in areas of benefit (such as changes related to the outcome of the Dalidio area annexation, or non-annexation process) and the inclusion of financing (bond interest) costs needed to insure the timely implementation of facilities. With assistance from the development community, a reasonable timeline of development absorption and implementation of projects will be identified and agreed to by City, developers and DTA. Also, the status of existing fee accounts and the identification of any outside revenue sources will be determined for inclusion in the revised needs list. 4.1.3 Revise Demographics, Needs List, and Area of Benefit descriptions. DTA, using the same format as presented in the 2002 Study, will revise the demographic-data and the needs list to reflect the changes identified in the previous tasks. Areas of benefit will be adjusted as-'app ropriate: Iii`anticipation-of an unsuccessful annexation of the Dalidio- Ranch, alidio-Ranch, and if instructed by the City, DTA will modify the Dalidio Ranch, Madonna,.and McBride benefit area to not include the Dalidio Ranch annexation. This work item is optional for the City, and DTA Would proceed only upon authorization from City Staff. 4.1.4 Provide a time line analysis of revenues and costs, and the resulting level of bond interest required to make the improvement timeline work. Using information obtained above, DTA will use an appropriate time line model, such as net present value City of San Luis Obispo page 7 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 ATTi1CHMFNr a 167MI MW ASSOCIATES IN analysis, to identify the expected annual revenues and expected capital expenditures, and to determine the cash shortfalls over the study period. This shortfall will be financed by bonded indebtedness, or any other such financing vehicle that the City chooses, and the amount of interest cost so determined will be included in the fee calculation. This work item is also optional, and DTA would proceed only upon authorization from City Staff. 4.1.5 Calculation of updated fee amounts for single family residential, multi-family residential, commercial and industrial land uses. The fee study methodology must meet the nexus or benefit requirements of AB 1600, which requires that there be a nexus between the fees imposed, the use of the fees, and the specific development projects that will be paying these fees. Furthermore, there must be a relationship between the amount of the fee and the cost of the water and wastewater improvements. In order to impose a fee as a condition for a development project, the methodology must include the following: • Identify the purpose of the fee. • Identify the use to which the fee is to be.put. If the use is to finance the acquisition and/or the construction of public facilities,the specific facilities must be identified. • Determine that there is a reasonable relationship.between the fee's use and the type of development project on which the fee is imposed. • Determine that there is a reasonable relationship between the need for the public facility and the type of.development project on which the fee is being imposed. Implicit in these requirements is the stipulation that a public agency cannot impose a fee to cure existing deficiencies in public facilities or improve public facilities beyond what is required based on the specific impacts of new development. - This task includes calculating the appropriate fee amounts based upon projected water and wastewater facilities. costs, existing and future development projections, and recommended apportionment methodologies, as used in the 2002 DTA Study. 4.1.6 Draft and Final.Report and Presentations. This task entails preparation of a draft report, final report and presentations to the City Council, as well as representation of the fee program at the public hearing, and includes the following subtasks. (a) Prepare and Present Draft Report. Based on the work completed in Tasks 4.1..1 through 4.1.5, DTA will prepare a draft report for consideration.by the City. The report will be prepared pursuant to the standards of AB 1600 and will follow the same format.as the 2002 DTA Study: • Executive Summary, r • Population Projections, • Needs List, and • Fee.Calculations and Recommended Fee Amounts. DTA will then meet with City staff to present the draft report. City of San Luis Obispo Page 8 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 Attachment 2 • � � ASSOCIATES IN (b) Prepare and Present Final Report to City Council and.Represent Fee Program at Public Hearing. DTA will make revisions as requested by City staff and prepare a final report to be presented to City staff and the stakeholders at a public bearing. DTA will respond to questions at the public hearing on the report and/or the new/amended ordinances. 4.1.7 MEETINGS. This task includes three meetings at the City; (1) a meeting with City staff to review changes in demographics, facilities, areas of benefit and bond financing needs, (2) a second meeting with City staff to review the draft report, and (3) the public hearing before the City Council 4.2 NOT TO EXCEED COSTS AND SCHEDULE OF HOURLY FEES DTA's proposed compensation for the completion of the work identified in Section 4.1.1 through 4.1.6 (but, not including optional items 4.1.3 and 4.1.4) is a time and materials fee, in accordance with the fee schedule attached, not to exceed $10,000 plus expenses, without prior authorization from the City. Expenses include travel, photocopying, data, maps, facsimile and telephone calls, and clerical services. The expense budget for these services shall be an amount not to exceed $2;000. Work completed on optional items 4.1.4 and 4.1.5 shall be billed on a time and material basis, not to exceed an additional $2,500. Meetings identified in Section 4.1.7 will also be billed on a time and material basis billed at the hourly rates shown on the attached fee schedule, applied to the DTA staff attending the meetings at the request of the City. For budget purposes an additional $5,000 is proposed to cover the three meetings suggested. Summary of Maximum fees.for Budget Purposes Update Citywide AB 1600 Study....................:....................$.10;000 Dalidio Ranch changes and interest carry analysis (Optional).........$2,500 Meetings at-the City, 3aotal(Optional)...................................$5,000 Reimburseable expenses;....................................................$2,000 Maximum Budget......................................::...................$19,500 r City of San Luis Obispo Page 9 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 C �a9 A rACHMENTz • AssocIATEs,IN TABLE 1 DAVID TAUSSIO AND ASSOCIATES,INC. HOURLY FEE SCHEDULE FOR CITY OF SAN LUIS OBISPO WATER AND WASTEWATER IMPACT FEE UPDATE STUDY Classification Hourly Rate President $240 Senior Vice-President $225 Vice President $215 Senior Manager(AVP) $200 Manager $190 Senior Associate $170 Associate $150 Senior Analyst $135 Analyst $125 Research Assistant $105 4.3 PROPOSED TERMS Consultant shall charge only for time and materials up to the proposed budget maximum, subject to the limitations below, unless otherwise agreed upon by Client. Consultant shall charge the hourly rates for services presented in Table 1 above. Client will make monthly progress payments upon presentation of invoice by Consultant providing details, of services rendered and expenses incurred unless Client desires to make.other arrangements. At Client's request, services in addition to those identified in the Scope of Work may be provided if the total fee to complete the tasks selected is less than the maximum fee. Alternatively, if the selected tasks can be completed for less than the maximum, only the hours actually expended will be billed. In addition to fees for services, Client will reimburse Consultant for travel, photocopying, data, facsimile and telephone calls, clerical services, and other out-of-pocket expenses up to the amounts specified hereinabove. The costs in Section 4.2 include attendance at a total of three meetings with City staff, stakeholders. and the City Council. Attendance at more. than three meetings or preparation of more than one.set of major.revisions to the draft report shall be considered Additional Work and may require additional billings at the hourly,rates identified in Table 1 if they cause the maximum fee to be exceeded. Detailed written responses or meetings with stakeholders to resolve disputes will be classified as Additional Work and billed at hourly rates listed in Table1 above. City of San Luis Obispo page 10 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 Attachment 2 � � ASSOCIATES IN 5. CONFLICT.OF INTEREST DISCLOSURE STATEMENT DTA does not have any past, ongoing, or potential conflicts of interest that would impact our ability to complete the project. 6.AUTHORIZED REPRESENTATIVE David Taussig is the authorized representative to negotiate and execute contracts for David Taussig and Associates, Inc. Questions regarding the proposal and our scope of services may be directed to either Mr. Taussig or Mr. Steve Runk. They may be reached at: David Taussig Steve Runk 1301 Dove Street, Suite,600 1301.Dove Street, Suite 600 Newport Beach, CA 92660 - Newport Beach, CA 92660 Tel: 1-800-969-4382, ext. 219 . TeL 1-800-969-4382. ext: 212 Fax: 1-949-955-1590 Fax: 1-949-955-1596* e-mail: david@taussig.com e-mail: srunk@taussig.com J:\PROPOSAL\AB1600\SanLuisObispo\2006 Update\San Luis Obispo Update proposal rl.doc City of San Luis Obispo page 11 AB 1600 Water and Wastewater Impact Fee Update Study October 25,2006 .2 . Attachment 2 Exhibit B Conditions on Purchase Order to David Taussi & Associates 1. Compensation for Authorized Additional Expenses. To receive compensation for additional expenses outside the scope of the project work, David Taussig &Associates ("the Contractor") shall obtain prior written authorization from the City to incur those expenses. Compensation for these additional expenses shall include time and materials only without markup. 2. Ability to Perform. The Contractor warrants that it possesses all capital, equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state;county,city,and special district laws,ordinances, and regulations. 3. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances,regulations and adopted codes during its performance of the work. 4. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by Contractor(Net 30). 5. Payment of Taxes. The contract prices shall. include full compensation for all taxes that Contractor is required to pay. 6. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 7. I?ermits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees,and give all notices necessary. 8. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors engaged for the performance of this work 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 work hereunder. 9. Contractor Non-Discrimination. In the performance of this work,Contractor agrees that it will not engage in; nor permit such sub-contractors 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. 10. Interests of Contractor. Contractor covenants that it presently has no interest, and shall not acquire any.interest director indirect or otherwise, which w6W&comet in any`manner or degree with the performance of the work. hereunder.. Contractor further covenants that, in the performance of this work, no sub-contractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest°in performing this work is an officer or employee of the City. Itis hereby expressly agreed that, in the performance of the:work hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 11. Hold Harmless and Indemnification. Contractor. agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or properly, e =3� J ATTACHMENT 2 Exhibit B:Conditions on Purchase Order to David Taussig&Associates Page B-2 including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and aff expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 12. Contract Assignment. Contractor 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. 13. Termination. If, during the term of the contract, the City determines that Contractor is not faithfully abiding by any term or condition contained herein,.the City may notify Contractor in writing of such defect or failure to perform; which notice must give Contractor a 10 (ten). calendar day notice of time thereafter in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency-within the ten days specified in the notice, such shall constitute a breach.of the contract and the City may terminate the contract immediately by written notice to Contractor to said effect. Thereafter, neither party shall have any further duties,obligations, responsibilities or rights under the contract. In said event, Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or.charges for goods or services as of the last milestoneor task satisfactorily delivered or.completed by Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City's assessment of the value of the work-in- progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a, full and complete accounting of costs. In no event, however, shall Contractor be entitled to receive in excess of the compensation quoted in its proposal. 14. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of 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. 15. Release of ReportsandInformation. Any reports, information, data, or other.material given to, prepared by or assembled by Contractor as part,of the work or services under these specifications shall be the property of City, and shall not be made available bo any individual or organization by Contractor without the prior written approval of the City. . 16: Copies of Reports and Information. If the.City requests additional copies of reports;drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. � ¢177WCHA';6A177 Attachment 2 � I�����IIIIIIIIIIIIIIIII�� city of san tU1S OBISPO i BUDGET AMENDMENT REQUEST lRequesting De artment Fund Name Fund No. Utilities lWater 500 REVENUES AND OTHER FINANCING SOURCES Amendment Account Description Revenue Account No. Anount TOTAL EXPENDITURES AND OTHER FINANCING USES. General Ledger No, Capital Project No. Amendment Account Descri tion Program Account Project Phase Amount General Carryover 55100 799/ (9,750 Contract Services 55100 7227 9,750 TOTAL $ PURPOSE Per CAO Report dated 11/16/06 transferring$9,750 from General Carryoverto fund Contract Services for consultant services to perform A61600 Fee Study Update. Consultant: David Taussig and Associates, Inc. e a e ead Date Directorof Finance Date 11/16/06 I! t Ci inistrative Officer Date EntehdBy ate Page of CSS ��� _ , f TTftc{{m�iV� chment 2 I►IIIIIIIIIIIIIII�������� �I����Ity f sane Luis OBISp0 EMU Illi c� o BUDGET AMENDMENT REQUEST R uesting Department. Fund Name. Utilities Fwd No. Sewer 520 REVENUES AND OTHER FINANCING SOURCES Account Descri tion Amendment Revenue Account No. Amount TOTAL EXPENDITURES AND OTHER FINANCING USES General Ledger No, Capital Project No. Amendment Account Description Program Account Project Phase Amount General Carryover 55300 709 9;750 Contract Services 55300 7227 9,750 i TOTAL $ PURPOSE Per CAO Report dated 11/16/06 transferring$9,750 from General Carryover to fund Contract Services for consultant services to perform AB1600 Fee Study Update. Consultant: David Taussiq and Associates, Inc. artm Date Director f Finance Date 11/16/06 C1 Ad inistra ive Officer Date d By Date Pageof `�