HomeMy WebLinkAbout07/20/2010, C 1 - THIRD PARTY REIMBURSEMENT AGREEMENT WITH CHEVRON council
j ACEn0A Report
CITY O F SAN LUIS OBISPO
FROM: John Mandeville, Community Development Direct
Prepared By. Kim Murry, Deputy Director, Long Range Planning
SUBJECT: THIRD PARTY REIMBURSEMENT AGREEMENT WITH CHEVRON
RECOMMENDATION
1. Approve a Third Party Reimbursement Agreement with Chevron to create financial
information associated with the development of property owned by Chevron in the
Airport Area.
2. Appropriate $31,500 from the Airport Area Impact Fee Fund to cover the cost of
consultant services to update the Airport Area Specific Plan financing plan.
DISCUSSION
Background
The City adopted the Airport Area Specific Plan (AASP) in August 2005. A large portion of that
plan addresses the remediation, conservation and reuse of the property currently owned by
Chevron. When the AASP was adopted, not all information was known regarding the extent of
the contamination or the extent of the sensitive areas including wetlands on the property. Land
uses and infrastructure to support the anticipated development were proposed based on the
information available at the time. Since that time, Chevron has proposed a Remedial Action Plan
(RAP) to describe the actions needed to remediate the property. The RAP was developed with
input from a variety of regulatory agencies called the Surface Evaluation, Remediation, and
Restoration Team (SERRT) through a collaborative process that took years. This team included
the City's Natural Resources Manager, Dr. Neil Havlik, who participated in this process.
Subsequent to that effort, Chevron filed an application to the City for an amendment to the
AASP, a Vesting Tentative Map, and annexation to allow development of the property. The
proposal includes 800,000 sq ft of business park and manufacturing uses, along with remediation
and conservation areas and requires amendments to the AASP due to the proposed changes to
land uses, locations of development, and infrastructure requirements. These changes trigger a
need to revise the Public Facilities Financing Plan (PFFP) contained in the AASP. The PFFP
provides a mechanism for financing infrastructure costs by assigning fees to all area development
based on the cost of facilities to serve the area.
On March 3, 2009, the City approved a Third Party Reimbursement Agreement with Chevron to
develop financial data to support both the amendment to the PFFP as well as to determine cost
information to inform Chevron's request for a development agreement for the project with the
City paying the cost to update the information for the PFFP and Chevron paying for the cost of
Chevron Third Party Reimbursement Agreement Page 2
the feasibility study. RRM Design Group submitted a proposal to estimate the infrastructure
costs to be considered as part of the financial evaluation and The Goodwin Group (Goodwin)
was hired to perform the PFFP update and feasibility evaluation for Chevron. A first draft was
produced in the fall of 2009.
After extensive review of the draft and discussions between the City and the applicant, the City
determined that some base assumptions built into the infrastructure costs were developed in
error. Public Works staff worked with RRM Design Group to refine the infrastructure
descriptions and associated costs in order to re-evaluate the financing plan and costs assigned to
the Chevron project. Public Works staff also refined the assumptions regarding cost-assignment
for infrastructure (such as Buckley Road) improvements that are not currently addressed in the
AASP.
Information Need
Chevron has identified the need to develop up-to-date and precise financial data concerning the
costs of developing in the Airport Area. Chevron has proposed entering into a development
agreement with the City and feels the Specific Plan financing program provides an essential piece
of the information required for that discussion. In addition, with the update to the AASP, an
updated fee structure to reflect current assumptions needs to be developed.
Third Party Reimbursement Agreement
The proposed Third Party Reimbursement Agreement will allow Goodwin to revise the PFFP
based on the most current and accurate information. With the addition of certain infrastructure
items and removal of others from the initial evaluation, the cost for service is similar to the first
run of the process.
Upon execution of the Third Party Reimbursement Agreement, Goodwin will be contracted with
by the City to conduct a series of fiscal analyses. These will include an update to the Airport
Area Specific plan PFFP and a gap analysis and feasibility test. The former is clearly required as
part of the Specific Plan update. The gap analysis and feasibility test has been requested by
Chevron.
The pro osal calls out as three tasks:
Description Amount
Task 1 Update of the AASP PFFP (inclusive of$15,000 for $29,000
RRM work to define infrastructure improvements and
costs
Task 2 Gap Analysis and Feasibility Test $16,000
Task 3 Meetings $ 5,000
Total M9000
Cost Sharing
Staff has discussed the additional cost with Chevron to encourage a greater level of financial
participation by Chevron in this effort. Since development of the infrastructure costs also
informs the gap analysis and feasibility work, staff recommended that Chevron share an equal
part of the $15,000 cost associated with RRM's work to revise the infrastructure estimates.
Chevron Third Party Reimbursement Agreement Page 3
However, Chevron has indicated it should be responsible only for the tasks that are clearly
associated with its need to understand how the City's impact fees will affect its proposed project.
Accordingly, as identified in the attached amended proposal, the City's cost is $29,000 for Task I
plus % of Task 3 (Meetings with Goodwin) for a total of$31,500. The funds are available in the
Airport Area Impact Fee Fund to cover the estimated $31,500 for the contract.
The contract would be administered by the City and Chevron would need to deposit its portion of
the known costs - $18,500 — with the City prior to any work being initiated. If any initial
assumptions relating to infrastructure costs or phasing change, revisions to the Gap Analysis and
Feasibility Test may be required. The reimbursement agreement requires Chevron to approve any
additional costs that may be charged by Goodwin for work ordered by the City. In no case will
the City's costs for Goodwin's services be increased without prior authorization by the City
Council.
CONCURRENCES
The City Attorney has approved the form of attached third party reimbursement agreement.
FISCAL IMPACT
There are no General Fund fiscal impacts for the Third Party Reimbursement Agreement or the
AASP financing plan update. The Airport Area Impact Fee Fund has an unappropriated fund
balance of approximately $640,000 — enough to cover the estimated $31,500 for the contract.
The City's cost of developing the financing plan will be reimbursed through the impact fees
collected at the time of development in the AASP.
ALTERNATIVES
1. Do Not Enter into a Third Party Reimbursement Agreement. Council could decline
to enter into the proposed Third Party Reimbursement Agreement. This alternative is not
recommended as the Agreement presents no fiscal impact to the General fund and results
in the development of valuable economic information that can be used to better engage in
future discussions with Chevron..
2. Do Not Update the AASP Financing Plan. Given the.amount of time that has passed
since preparation of the current plan, and the efficiencies and economy of scale in
combining the financing plan update work with the specific work for Chevron, this option
is not recommended.
ATTACHMENTS
1. Third Party Reimbursement Agreement
2. Goodwin Group Amendment #1 to Scope of Work
T:\Council Agenda Reports\Community Development CAR\20I o\Chevron\Chevron-G.doc
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REIMBURSEMENT AGREEMENT
This Reimbursement Agreement("Agreement") is made this day of July 2010; by and
between the City of San Luis Obispo, a municipal corporation and Charter city(the"City") and
Chevron Inc. ("Chevron").
RECITALS
This Agreement is made with respect to the following facts:
A. Chevron is the intended developer of that certain real property located within the County
of San Luis Obispo, California, generally described as Assessor's Parcels # 076-383-001, 076-352-
061, 076-381-021, 076-382-005, 076-383-002, 076-352-062, (Tank Farm Road). This property
constitutes the project site and is hereinafter collectively referred to as the "Property" for the
purposes of this Agreement.
B. Chevron is contemplating the development of the Property as a service commercial and
business park development. Chevron has submitted applications for various discretionary land use
approvals for the development of the Property including, without limitation, Annexation, Airport
Area Specific Plan Amendment and Pre-zoning, Vesting Tentative Tract Map, Development
Agreement and Architectural Review of public facilities improvements to allow development of
approximately 66 acres of the 332 acre property, and environmental documents pursuant to the
California Environmental Quality Act ("CEQA"). All of the above applications shall be referred to
collectively as the"Project."
C. Chevron is interested in entering into a development agreement related to the Project that
will, among other issues, address options for financing infrastructure improvements needed to serve
the Project. To provide the City with the information needed to assess development agreement
terms that make sense for the City, it is necessary for the City to retain the services of a qualified
consultant.
D. As a condition to the City's consideration of a development agreement, Chevron has
agreed to reimburse the City for the required consultant costs.
E. This agreement amends the agreement signed on to reflect increased
costs associated with developing the appropriate financial information related to Airport Area
Specific Plan infrastructure costs and resulting impact fees.
AGREEMENT
NOW, THEREFORE, in consideration of the following mutual promises and agreements,
City and Chevron agree as follows:
1. Incorporation of Recitals.
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The parties agree that the Recitals constitute the factual basis upon which the City and
Chevron have entered into this Agreement. The City and Chevron each acknowledge the accuracy
of the Recitals and agree that the Recitals are incorporated into this Agreement as though fully set
forth at length.
2. City to Retain Consultant.
As a necessary and indispensable part of its fact-finding process relating to the review of
Chevron's proposed uses of the Property, the City may retain, by means of a contract ("Consultant
Contract") in its reasonable and sole discretion, the services of the consultant identified in Section 4
of this Agreement (hereinafter "Consultant'). The presently contemplated scope of work of the
respective Consultant is attached hereto as Exhibit A. The City reserves the right, in its reasonable
and sole discretion, to amend the scope of work as it deems necessary and appropriate where such
amendments are reasonably necessary and related to the City's proper review and consideration of
Chevron's Project.
Chevron agrees that, notwithstanding Chevron's reimbursement obligations under this
Agreement, the Consultant selected by the City shall be the contractor exclusively of the City and
not of Chevron. Except for those disclosures required by law including, without limitations, the
Public Records Act, all conversations, notes, memoranda, correspondence, and other forms of
communication by and between the City and the Consultant shall be, to the extent permissible by
law, privileged and confidential and not subject to disclosure to Chevron. Chevron agrees that it
shall have no claim to, nor shall it assert any right in any reports, correspondence, plans, maps,
drawings, news releases or any and all other documents or work product produced by the
Consultant pursuant to the Consultant Contract. City shall include in the Consultant Contract a
termination provision authorizing the City to, upon short notice, terminate the contract without
cause by sending written notice of termination to the Consultant. Chevron understands that it will
not be a third party beneficiary to City's contract with Consultant.
3. Chevron to Cooperate with Consultant.
Chevron agrees to cooperate in good faith with the Consultant. Chevron agrees that it will
instruct its agents, employees, consultants, contractors and attorneys to reasonably cooperate with
the Consultant and to provide all necessary documents or information reasonably requested of them
by the Consultant; provided, however, that the foregoing shall not require the disclosure of any
documents or information of Chevron which by law is privileged, proprietary, confidential, or
exempt from disclosure under the Public Records Act.
4. City's Preliminary Selection of Consultant.
The City has selected Goodwin Consulting Group, Inc. (Consultant) as the Consultant.
Chevron agrees that the City may select another consultant to replace the Consultant preliminarily
identified above and may do so without consulting with Chevron or obtaining Chevron's approval.
Chevron further agrees that the City may need to retain additional consultants that are not known at
this time in order to process Chevron's project. The City shall notify Chevron of the need for any
additional consultants and shall amend this Agreement to include the additional consultants. If
Chevron disagrees with the City's need to retain additional consultants, then Chevron's sole and
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exclusive remedy will be to terminate this Agreement pursuant to Section 9, subject to Chevron's
obligation to reimburse the City for all consultant costs incurred by the City prior to the date of
termination, whether or not yet paid by the City to the applicable consultant. Chevron understands
that such termination will relieve the City of further obligation to process its application.
5. Chevron's Reimbursement of Consultant Costs, Expenditures and Administrative
Fees.
Chevron shall reimburse the City for one hundred percent (100%) of the actual costs,
expenditures and administrative fees incurred by the City relative to the Consultant Contract
("Consultant Costs"), as specified in Exhibit A. The City has preliminarily reviewed the scope of
work required of the Consultant and has estimated the aggregate Consultant Costs and fees to be
approximately $18,500.00 (estimated consultant costs of$16,000 for Task 2 and half of the $5,000
cost of Task 3)("estimated Consultant Costs"), not including Task 1, as set forth in Exhibit A, which
will be the City's financial responsibility.
The City may incur aggregate Consultant Costs up to the Estimated Consultant Costs
without specifically notifying Chevron. The City shall use reasonable good faith efforts to inform
Chevron prior to amending the scope of services to be provided by the Contractor and incurring
Consultant Costs that exceed the Estimated Consultant Costs ("Excess Costs"). Chevron's
obligation to reimburse the City for Excess Costs shall be contingent upon the City, before
completion of the work, providing Chevron with written notice of the amendment to the scope of
work. The decision to incur Excess Costs and the amount of Excess Costs to incur shall lie with the
reasonable and sole discretion of the City.
If, after receiving notice of amendments to the scope of work, Chevron disagrees with the
City's incurring of Excess Costs, then Chevron's sole and exclusive remedy will be to terminate this
Agreement pursuant to Section 9, subject to Chevron's obligation to reimburse the City for all
Consultant Costs incurred by the City prior to the date of termination, whether or not yet paid by the
City to the Consultant. Chevron understands that such termination will relieve the City of further
obligation to process its application.
6. Payment of Consultant Costs and Fees.
City shall not be required to advance its own funds to pay Consultant. Chevron shall deposit
one hundred percent (100%) of the estimated Consultant Costs. Upon receipt of these sums, City
shall be authorized to employ the Consultant. City may invoice Chevron for any excess costs
approved by Chevron and charged by the Consultant pursuant to Exhibit A, and Chevron shall
thereafter promptly deposit within fifteen (15) days sufficient funds with City to enable City to
make timely payment to the Consultant.
Within fifteen (15) days following receipt of written demand therefore by Chevron, the City
shall provide Chevron with such reasonable documentation as Chevron may request to substantiate
any demands for payment.
Chevron understands that, despite the City's efforts to hire a qualified Consultant, it is
possible that the work of the Consultant may, in the City's opinion, prove to be defective, which
may in turn lead to the City refusing to pay some portion of Consultant's bills and/or the City
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terminating the services of the Consultant. In such situations, the City may assign, and Chevron
shall accept, the obligation of resolving and/or paying any outstanding bills of such Consultant. If
litigation ensues concerning Consultant's bills, Chevron must indemnify and defend the City in that
regard. In any situation in which the Consultant is discharged, the City will, pursuant to
Paragraphs 2 through 5, retain other consultants at Chevron's expense. Notwithstanding the
foregoing, Chevron shall not be responsible for City's breach of any of the Consultant agreements.
7. City to Retain Absolute Discretion.
Chevron acknowledges and agrees that notwithstanding Chevron's reimbursement
obligations under this Agreement, the City is not obligated to approve any or all of the proposed
uses or permits for the Property, to approve any environmental documents or general plan or
municipal code amendments which may be required for any of the uses contemplated for the
Property, nor is the City obligated to enter into any form of development agreement. Chevron
warrants and represents that no City official, officer, employee, agent or attorney has represented,
expressly or impliedly, that the City will approve any proposed use of the Property or enter into any
type of development agreement. Chevron understands that there may be numerous legislative and
quasi-judicial decisions to be made by the City with regard to the development of the Property; that
all such decisions of the City with regard to the Property and the contemplated uses of the Property
will be made only after compliance with all the City's statutory and other legal obligations and after
considering all appropriate information and evidence; and that such evidence may cause the City to
disapprove any or all of the contemplated uses of the Property. Notwithstanding anything in this
Agreement to the contrary, the City retains all authority and discretion granted to it by law to
approve, disapprove or modify any of the proposed uses of the Property, and to enter or not enter
into any type of development agreement with Chevron.
Chevron further understands that the City shall not be bound by any recommendations or
conclusions reached by the Consultant and that the City may accept or reject, in whole or in part,
any such recommendations or conclusions that the City, in its reasonable and sole discretion, deems
to be unreasonable or contrary to the City's land use ordinances and regulations; State statutes or
regulations; or its best interests as determined solely by the City.
8. Term.
The term of this Agreement shall commence on 2010, and shall terminate when all
work required by the Consultant Contract has been completed to the City's reasonable satisfaction
and Chevron has satisfied all of its obligations under this Agreement including, without limitation,
the obligation to pay the City for Consultant Costs and Excess Costs, whether or not paid by the
City to the Consultant prior to the date of termination. Chevron's obligation to reimburse the City
as provided in this Agreement shall survive the termination of this Agreement pursuant to this
Section 8.
9. Early Termination.
For good cause, the City may terminate this Agreement prior to the term set forth in Section
8 above, without cost or liability to the City, upon thirty (30) days prior written notice to Chevron.
Chevron, upon thirty (30) days' prior written notice, may, in its reasonable and sole discretion,
terminate this Agreement prior to the end of the term set forth in Section 8 above, provided,
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however, that Chevron has satisfied all of its obligations under this Agreement to date of
termination regarding reimbursement to the City of both Estimated Consultant Costs and Excess
Costs and, furthermore, that Chevron has given City written notice withdrawing its application(s)
for the Project.
Within two (2) City working days following either the City's decision to terminate this
Agreement or the City's receipt of written notice indicating Chevron's decision to terminate this
Agreement, the City shall notify the Consultant and instruct them to cease work under the
Consultant Contract. The Consultant shall be instructed to bill the City for any work completed
prior to the date of termination of the Consultant Contract.
10. Remedies Upon Default.
An event of default shall be deemed to exist upon the occurrence of all of the following:
(a) Either the City or Chevron has, without legal justification or excuse,
breached any one or more of its obligations under this Agreement; and
(b) The nondefaulting party has sent written notice to the party claimed to be
in default, specifying the default and what actions the nondefaulting party
asserts should be taken to remedy the default; and
(c) The party claimed to be in default has not, within ten (10) days following
receipt of the written notice described above, either corrected the default or
taken actions, reasonably satisfactory to the nondefaulting party, to remedy the
default within a reasonable period of time, but in no event longer than thirty(30)
days after receipt of the written notice described in (b) above.
Following an event of default, the nondefaulting party may exercise any and all remedies available
to it pursuant to this Agreement, or at law or in equity, including, without limitation, instituting an
action for damages, injunctive relief, or specific performance.
11. Nonwaiver of Rights or Remedies.
The failure of a party to exercise any one or more of its rights or remedies under this
Agreement shall not constitute a waiver of that party's right to enforce that right or seek that remedy
in the future. No course of conduct or act of forbearance on any one or more occasions by any party
to this Agreement shall preclude that party from asserting any right to remedy available to it in the
future. No course of conduct or act of forbearance on any one or more occasions shall be deemed to
be an implied modification of the terms of this Agreement.
12. Assignability.
This Agreement may not be assigned by either party without the prior and express written
consent of the other party, which consent shall not be unreasonably withheld. .In determining
whether to approve a request by Chevron to assign this Agreement, the City may consider, among
other things, the proposed assignee's financial status and commitment to the Project. Any
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attempted assignment of this Agreement not in compliance with the terms of this Agreement shall
be null and void and shall confer no rights or benefits upon the assignee.
13. No Oral Modifications.
This Agreement represents the entire understanding of the City and Chevron and supersedes
all other prior or contemporaneous written or oral agreements pertaining to the subject matter of this
Agreement. This Agreement may be modified only by a writing signed by the authorized
representatives of both the City and Chevron.
14. Binding Upon Successors.
This Agreement and each of its terms shall be binding upon the City, Chevron and their
respective officers, elected officials, employees, agents, contractors, and permitted successors and
assigns.
15. Legal Challenges.
Nothing herein shall be construed to require City to defend any third party claims and suits
challenging any action taken by the City with regard to any procedure or substantive aspect of the
City's approval of development of the Property, the environmental process, the proposed uses of the
Property, or development agreement, if any. Chevron may, however, in its sole and absolute
discretion appear as real party in interest in any such third party action or proceeding. If the City
defends such action or proceeding, Chevron shall be responsible to reimburse the City for whatever
legal fees and costs, in their entirety that may be incurred by the City in defense of such action or
proceeding. The City and Chevron shall seek to jointly approve legal counsel, but the City shall
have the absolute right to retain such counsel as the City deems necessary and appropriate if such
joint agreement cannot be reached. Chevron shall reimburse City in the event of an award of court
costs or attorney fees is made against City in favor of any third party challenging either the
sufficiency of an environmental impact report or the validity of the City's approval of the
Application, if any.
16. Attorneys' Fees.
In the event that any action or proceeding, including arbitration, is commenced by either the
City or Chevron against the other to establish the validity of this Agreement or to enforce any one
or more of its terms, the prevailing party in any such action or proceeding shall be entitled to
recover from the other, in addition to all other legal and equitable remedies available to it, its actual
attorneys' fees and costs of litigation, including, without limitation, filing fees, service fees,
deposition costs, arbitration of costs and expert witness fees, including actual costs and attorneys'
fees on appeal.
17. Jurisdiction and Venue.
This Agreement is executed and is to be performed in the City of San Luis Obispo, and any
action or proceeding brought relative to this Agreement shall be heard in the appropriate court in the
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County of San Luis Obispo, California. The City and Chevron each consent to the personal
jurisdiction of the court in any such action or proceeding.
18. Time is of the Essence.
Except as otherwise expressly stated, time is of the essence in the performance of each and
every action required pursuant to this Agreement.
19. Covenant of Further Assurances.
The City and Chevron shall take all other actions and execute all other documents, which are
reasonably necessary to effectuate this Agreement.
20. Interpretation.
The City and Chevron agree that this Agreement is the product of mutual negotiations and is
an arms-length transaction. Each party has negotiated this Agreement with the advice and
assistance of legal counsel of its own choosing.
It is further agreed that the terms of this Agreement shall be construed in accordance with
the meaning of the language and shall not be construed for or against either party by reason of
authorship and the rule that ambiguities in a document shall be construed against the drafter of the
document shall have no application to this Agreement. In construing and interpreting this
Agreement, the finder of fact shall give effect to the mutual intention of the City and Chevron,
notwithstanding such ambiguity, and may refer to the facts and circumstances under which this
Agreement is made and such other extraneous evidence as may assist the finder of fact in
ascertaining the intent of the City and Chevron.
21. Severability.
If any term or provision of this Agreement is found to be invalid or unenforceable, the City
and Chevron both agree that they would have executed this Agreement notwithstanding the
invalidity of such term or provision. The invalid term or provision may be severed from the
Agreement and the remainder of the Agreement may be enforced in its entirety.
22. Headings.
The headings of each section of this Agreement are for the purposes of convenience only
and shall not be construed to either expand or limit the express terns and language of each section.
23. Representations of Authority.
Each party signing this Agreement on behalf of a party which is not a natural person hereby
represents and warrants to the other party that all necessary legal prerequisites to that party's
execution of this Agreement have been satisfied and that he or she has been authorized to sign this
Agreement and bind the party on whose behalf he or she signs.
24. Notices.
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Notices required under this Agreement shall be sent to the following:
If to the City: City of San Luis Obispo
Attn: City Manager
990 Palm Street
San Luis Obispo, CA 93401-3249
Facsimile No. (805) 781-7109
If to Chevron: Chevron Inc.
Attn: William Almas
4051 Broad Street, Suite 230
San Luis Obispo, CA 93401
Notices given pursuant to this Agreement shall be deemed received as follows:
(a) If sent by United States Mail — five (5) calendar days after deposit
into the United States Mail, first class postage prepaid.
(b) If by facsimile—upon transmission and actual receipt by the
receiving party.
(c) If by express courier service or hand deliver—on the date of receipt by the
receiving party.
The addresses to notices set forth in this Section 24 may be changed upon written notice of such
change to either the City or Chevron, as appropriate.
25. Days.
Unless otherwise specified to the contrary, "days" in this Agreement shall mean calendar,
not business days.
Attachment 1
Dated: CITY OF SAN LUIS OBISPO
A Municipal Corporation (the`-`City")
By:
Katie Lichtig, City Manager
ATTEST:
City Clerk
5APPRO D AS TO O
0 Attorney
Dated: Chevron, Inc.
By:
APPROVED AS TO FORM:
Legal Counsel for Chevron
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Attachment 2
AMENDMENT #1
EXHIBIT A
CITY OF SAN Luis OBISPO
AIRPORT AREA SPECIFIC PLAN
CHEVRON RESTORATION AND REDEVELOPMENT PROJECT
SCOPE OF WORK
Goodwin Consulting Group, Inc. (GCG) entered into a contract with the City of San Luis Obispo
(City) to conduct a comprehensive update of the Airport Area Specific Plan (AASP) public
facilities financing plan (PFFP) and to perform a gap analysis, feasibility test, and fiscal impact
study related to the Chevron Restoration and Redevelopment Project (Project). All of this work,
except for the fiscal impact analysis, was completed based in large part on an initial set of
infrastructure requirements and costs. However, the infrastructure requirements and costs have
changed considerably, and a new set of assumptions has been developed. The City has requested
that GCG rerun its analyses, revise the PFFP, and issue a new memo documenting the revised
gap analysis and feasibility test for the Project.
The specific tasks to be performed under this amendment include the following:
Task 1. Revise the AASP Financing Plan
GCG will conduct a thorough review of the updated infrastructure requirements and cost
estimates. These materials have been prepared in a different configuration relative to the
materials received for the first update, which will make the process of incorporating them into
the analysis somewhat more time-consuming than it otherwise might be. The new costs will
ripple through the entire analysis and create changes throughout the bulk of the report, but much
of the analysis was modeled dynamically and will update quickly. GCG will produce a revised
PFFP"based on the work already done to prepare the Administrative Draft of the PFFP dated
September 9, 2009. The updated PFFP will be used to determine the Project's fair share
obligation for AASP-wide infrastructure. One draft PFFP update will be provided for review by
the City and Chevron, and one final PFFP update will be prepared.
A total of 70 person hours is estimated to complete this task.
Task 2. Revise the Gap Analysis and Feasibility Test
GCG will also conduct a thorough review of the updated infrastructure requirements and cost
estimates related solely to the Project, which have also been prepared in a different configuration
relative to the materials received for the initial analysis. As with the PFFP, the new costs will
ripple through the entire analysis and create changes throughout the memo, but there are many
other factors that play into the overall analysis that have not changed. Moreover, substantial
work went into the development and structure of the first analysis, and most of it will be
applicable to this update. GCG will prepare a revised memo and supporting tables to document
SLO AASP Chevron Project Amendment#1 A-1 May 21,2010
Attachment 2
the results of the gap analysis, feasibility tests, and financing methods to achieve Project
feasibility based on the work already done to prepare the September 9, 2009, memo to the
Chevron Project Team. One draft of the updated memo will be provided for review by the City
and Chevron, and one final memo will be prepared.
A total of 80 person hours is estimated to complete this task.
Task 3. Meetings
It is assumed that most of the necessary correspondence and team interaction to complete Tasks
1 and 2 can be conducted via e-mail and conference calls. However, it is likely that some face-
to-face meetings may be required, including an initial meeting to recommence this process, a
meeting at the conclusion of the study to present findings, or other meetings as requested by the
group. For purposes of estimating a budget, it is assumed that one meeting will be required.
A total of 25 hours is estimated to complete this task, which involves two people attending one
meeting.
SLO RASP Chevron Project Amendment#1 A-1 May 11,2010
Attachment 2
AMENDMENT #1
EXHIBIT B
CITY OF SAN Luis OBISPO
AIRPORT AREA SPECIFIC PLAN
CHEVRON RESTORATION AND REDEVELOPMENT PROJECT
BUDGET AND SCHEDULE
Services
Goodwin Consulting Group, Inc. (GCG) proposes a maximum budget (including expenses, as
described below) to complete Task I and Task 2 in the Scope of Work of$29,000 and $16,000,
respectively, for a total of$45,000. The budget for Task 3 is $5,000, bringing the total budget
for Tasks 1 through 3 to $50,000. The budget for Task 1 includes a $15,000 cost for an
engineering subconsultant. These budgets represent maximum amounts not to be exceeded.
Additional consulting services beyond those included in the scope of work may be provided if
total hourly billings are less than the maximum budget. Alternatively, if the scope of services
can be completed for less than the maximum budget, only the hours actually expended will be
billed. Additional meetings beyond those incorporated into the scope of work will be billed on a
time-and-materials basis. Also, the budget assumes one infrastructure cost and phasing scenario;
if multiple iterations are required to attempt to prevent potential funding gaps, each additional
scenario will add $10,000 to the budget.
Following is the schedule of GCG's hourly service rates:
Hourly Service Rates
Managing Principal $250/Hour
Principal $240/Hour
Senior Associate $185/Hour
Associate $160/Hour
Analyst $145/Hour
Research Assistant $80/Hour
*The rates reflected above are valid through December 31,2010,and may be adjusted thereafter.
Expenses
GCG shall be reimbursed for direct expenses, including travel-related expenses, photocopying,
data sources, courier, overnight delivery, and long-distance telephone and fax expenses.
Billing Structure
GCG will submit monthly invoices providing details of services rendered and expenses incurred.
Invoices are due and payable within 30 days.
SLO RASP Chevron Project Amendment#1 B-1 May 21,2010
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Attachment 2
Schedule
GCG will complete Tasks 1 and 2, up to providing a draft memo as described in Task 2, within
60 days after receiving an executed contract and a notice of authorization to proceed.
SLO RASP Chevron Project Amendment#1 B-2 May 21,2010
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