HomeMy WebLinkAbout02/04/1992, C-8 - OPEN SPACE FINANCIAL ANALYSIS CONSULTANT AND CONTRACT I����p���IyIIIII��IINUDI r MEETING DA L
cityo san ' 'Is oBIspo
REM NUMBER�_�
COUNCIL AGENDA REPOORT
FROM: Arnold B. Jonas Community Development Director
PREPARED BY: Jeanette Di Leo, Long Range Planner
SUBJECT: Open Space Financial Analysis Consultant and
Contract
CAO
RECOMMENDATIONS: (1) Authorize the selection of Economics
Research Associates as the consultant for the
Open Space Financial Analysis, and
(2) Authorize the Mayor to sign the consultant
services contract for an amount of compensation
not to exceed $25, 000 for the completion of the
analysis.
BACKGROUND:
On September 3, 1991, the City Council conceptually approved using
a consultant to complete an open space financial analysis. At this
meeting staff was directed to come back to the Council with a
Request for Proposal (RFP) for Council review and approval.
On November 19 , 1991, staff provided the Council with the Financial
Study RFP for their review and approval. on this date the City
Council approved the Financial Study RFP for distribution.
Providing the Council with the attached contract for consultant
services is consistent with the Council 's previous actions on
September 3 , and November 19, 1991.
DISCUSSION:
The 1991-93 Financial Plan includes $25, 000 for the hiring of a
consultant to complete a financing analysis for the Open Space
Element. The purpose of the study is to identify long and short-
term open space financing mechanisms, provide a ten year revenue
projection for these mechanisms, and to recommend the combination
of mechanisms that are most appropriate for the City of San Luis
Obispo.
On November 22, 1991, the Financial Analysis RFP was distributed
to over thirty consulting firms. By December 23 , 1991, 5: 00 pm
(the deadline for proposal submittal) , the City Clerk' s Office
received nine proposals. On January 7 , 1992 , a panel composed of
City staff (i.e. , Jan Di Leo from Community Development, Jim
Stockton from Recreation, Debbi Hossli from Administration, and
Bill Statler from Finance) and a Park and Recreation Commissioner
(Paul Orton) reviewed and evaluated the nine proposals based on the
criteria established within the RFP. On January 14 , 1992 , the
C .8-I
���n�i�►►►�uililllllll���°►91UIN city of San IS OBISpo
ISM,i COUNCIL AGENDA REPORT
Financial Study - Consultant & Contract
page 2
consultants with the two highest scores were interviewed by this
panel.
PROPOSED CONSULTANT RANKING
The three consultants that received the highest scores from the
panel are as follows:
1. Economic Research Associates
2 . Williams - Keubelbeck
3 . Stanley Hoffman & Associates
The panel recommended Economic Research Associates based on their
experience, the scope of work proposed, and their successful
implementation of other open space financing programs.
Proposals are available in the Council Office for City Council and
public review.
FISCAL IMPACTS
The budget for the Open Space Element includes $25, 000 for a
financial analysis, i.e. , to provide technical data regarding open
space financing mechanisms. The attached contract is consistent
with the assigned budget.
Other Alternatives:
1. Direct staff to revise Economics Research Associates '
(ERAs ' ) scope of work to include or delete tasks. [ERAS '
budget would likely be altered whether tasks are added
or deleted. ]
2 . Have the Finance Department complete the financial
analysis. [Due to Finance' s current workload the study' s
completion would be delayed if this option is chosen. ]
Attachment: Consultant Contract
cc.fin
C-8 �
CONSULTANT'S SERVICES AGREEMENT
This agreement, made this 4th day of February, 1992, by and between the CITY OF SAN LUIS
OBISPO, California (hereinafter referred to as 'City'), and Economics Research Associates, (hereinafter
referred to as *Consultant'.
WITNESSETH:
WHEREAS,City desires to retain certain services In conjunction with completion of the Open Space
Element The services being provided by this consultant under this contract include reviewing and
recommending open space financing options.
WHEREAS,City desires to engage Consultant to provide services by reason of its qualifications and
experience for performing such services, and Consultant has offered to provide the required services on the
terms and in the manner set forth herein.
NOW,THEREFORE,in consideration of their mutual covenants, the parties hereto agree as follows:
1. PROJECT COORDINATION
a . The Community Development Director shall be the representative of the city for all purposes
under this agreement The director, or the director's designated representative, hereby is
designated as the Project Manager for the City. The director or the director's designated
representative shall supervise the progress and execution of this agreement.
b. Consultant Consultant shall assign a single Project Manager to have overall responsibility for
the progress and execution of this agreement for ConsultanL William Anderson is hereby
designated as the Project Manager for Consultant Should circumstances or conditions
subsequent to the execution of this agreement require a substitute Project Manager for any
reason, the Project Manager designee shall be subject to the prior written acceptance and
approval of the director. Consultant's Project Team is identified in Exhibit°A° (The Consulting
Team) attached hereto and incorporated herein by this reference. The individuals identified to
complete the work shall not be changed except by prior written approval of City.
2. DUTIES OF CONSULTANT
a. Services to be furnished. Consultant shall provide all specified services as set forth in Exhibit
'B'(Scope of Work)attached hereto and incorporated herein by this reference. Consultant may
not amend the Scope of Work,either to modify provisions or to add or delete provisions,without
prior written consent of the City's Project Manager.
b. Quality Control. All instruments of service shall reflect high standards of professional research,
analysis, and written and graphic communication. The Community Development Director shall
be responsible for evaluating the quality of Consultant's work and for the issuance of consultant
payments upon satisfactory completion, delivery, and city acceptance of work.
c. Laws to be observed. Consultant shall:
1. Procure all permits and licenses, pay all charges and fees, and give all notices which may
be necessary and incidental to the due and lawful prosecution of the services to be
performed by Consultant under this agreement
2. Keep itself fully informed of all existing and proposed federal, state and local laws,
ordinances, regulations, orders,and decrees which may affect those engaged or employed
under this agreement,any materials used in Consultant's performance underthis agreement,
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Contract ERA—Open Space Financial Study
or the conduct of the services under this agreement; and the services to be provided under
this agreement
3. At all times observe and comply with,and cause all of its employees to observe and comply
with all of said laws, ordinances, regulations, orders, and decrees mentioned above.
4. Immediately report to the City's Project Manager in writing any discrepancy or inconsistency
it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in
relation to any plans, drawings, specifications, or provisions of this agreement.
d. Release of reports and information. Any reports, Information, data, or other material given to,
or prepared or assembled by, Consultant under this agreement shall be the property of City and
shall not be made available to any individual or organization by Consultant without the prior
written approval of the City's Project Manager.
e. Conies of reports and information. If City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Consultant is required to fumish in
limited quantities as part of the services under this agreement, Consultant shall provide such
additional copies as are requested, and City shall compensate Consultant for the costs of
duplicating of such copies at Consultant's direct expense.
3. DUTIES OF CITY
City agrees to cooperate with consultant in the completion of the work described in Exhibit "B' attached
hereto and incorporated by this reference.
4. COMPENSATION
Compensation shall be provided consultant as shown on Exhibit TO (Compensation and Work Schedule).
Consultant will bill City upon successful completion of each phase of work as described in Exhibit"C.° City
will pay this invoice within 30 days of receipt provided there is no dispute regarding successful completion
of work
The Consultant may not charge more than the amount shown in Exhibit 'C'without prior written approval
of the Ckys Project Manager.
5. TIME OF COMPLETION OF THE WORK
Program scheduling shall follow that shown on Exhibit C unless revisions to the chart are approved by the
City's Project Manager and the consultant in writing.
Time extensions may be allowed for delays caused by City, other governmental agencies, or factors not
directly brought about by the negligence or lack of due care on the part of the Consultant
6. TEMPORARY SUSPENSION
The Community Development Director shall have the authority to suspend this agreement wholly or In part,
for such period as the director deems necessary due to unfavorable conditions or to the failure on the part
of the Consultant to perform any provision of this agreement Consultant will be paid the compensation due
and payable to the date of temporary suspension.
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Contract ERA — Open Space Financial Study
7. SUSPENSION: TERMINATION
a. Right to suspend or terminate. The city retains the right to terminate this agreement for any
reason by notifying Consultant in writing seven days prior to termination and by paying the
compensation due and payable to the date of termination; provided, however, If this agreement
is terminated for fault of Consultant, City shall be obligated to compensate Consultant only for
that portion of Consultant services which are of benefit to City. Said compensation is to be
arrived at by mutual agreement of the City and Consultant and should they fail to agree,then an
independent arbitrator is to be appointed and the arbitrators decision shall be binding upon the
parties.
b. Return of materials. Upon such termination, Consultant shall tum over to the City immediately
any and all copies of studies, sketches, drawings, computations, and other data,whether or not
completed, prepared by Consultant, and for which Consultant has received reasonable
compensation, or given to Consultant in connection with this agreement. Such materials shall
become the permanent property of City. Consultant, however, shall not be liable for Citys use
of incomplete materials or for City's use of complete documents If used for other than the project
contemplated by this agreement
8. INSPECTION
Consultant shall furnish city with every reasonable opportunity for City to ascertain that the services of
Consultant are being performed in accordance with the requirements and intentions of this agreement All
work done and all materials furnished, if any, shall be subject to the City's Project Managers inspection and
approval. The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its
agreement as prescribed.
9. OWNERSHIP OF MATERIALS
All original drawings, plan documents and other materials prepared by or in possession of Consultant
pursuant to this agreement shall become the permanent property of the City, and shall be delivered to the
City upon demand.
10. INDEPENDENT JUDGMENT
Failure of City to agree with Consultants independent findings, conclusions, or recommendations, if the
same are called for under this agreement, on the basis of differences.in matters of judgment shall not be
construed as a failure on the part of Consultant to meet the requirements of this agreement
11. ASSIGNMENT: SUBCONTRACTORS: EMPLOYEES
This agreement is for the performance of professional consulting services to review and assess open space
financing options for the City of San Luis Obispo and Is not assignable by the Consultant without prior
consent of the City in writing. The Consultant may employ other specialists to perform special services as
required with prior written approval by the City.
12 NOTICES
All notices hereinunder shall be given in writing and mailed, postage prepaid, by Certified Mail, addresses
as follows:
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Contract ERA— Open Space Financial Study
TO City. City Clerk
City of.San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403.8100
To Consultant: William Anderson
Economics Research Associates
964 Fifth Avenue, Suite 214
San Diego, CA 92101
13. INTEREST OF CONSULTANT
Consultant covenants that it presently has no Interest, and shall not acquire any interest, direct or indirect,
financial or otherwise, which would conflict in any manner or degree with the performance of the services
hereunder. Consultant further covenants that, in the performance of this agreement, no subcontractor or
person having such an interest shall be employed. Consultant certifies that no one who has or will have any
financial interest under this agreement is an officer or employee of City.
14. CONSULTANT AS INDEPENDENT CONTRACTOR
Consultant and City agree that Consultant is an independent contractor with respect to the services provided
pursuant to this agreement Nothing in this agreement shall be considered to create the relationship of
employer and employee between parties.
15. INDEMNITY
Consultant hereby agrees to indemnify and hold harmless City, its officers, agents and employees of and
from:
a. Any and all claims and demands which may be made against City, its officers, agents, or
employees by reason of any injury to or death of any person or corporation caused by any
negligent act or omission of Consultant under this agreement or of Consultant's employees or
agents;
b. Any and all damage to or destruction of the property of City, its officers, agents, or employees
occupied or used by or in the care, custody, or control of Consultant, or in proximity to the site
of Consultant's work, caused by any negligent act or omission of Consultant under this
agreement or of Consultant's employees or agents;
c. Any and all claims and demands which may. be made against City, its officers, agents, or
employees by reason of any injury to or death of or damage suffered or sustained by any
employee or agent of Consultant under this agreement, however caused, excepting, however,
any such claims and demands which are the result of the negligence or willful misconduct of
City, Its officers, agents, or employees;
d. Any and all claims and demands which may be made against City, Its officers, agents, or
employees by reason of any Infringement or alleged Infringement of any patent rights or claims
caused by the use of any apparatus, appliance, or materials furnished by Consultant under this
agreement; and
e. Any and all penalties Imposed or damages sought on account of the violation of any law or
regulation or of any term or condition of any permit,when said violation of any law or regulation
or of any term or condition of any permit is due to negligence on the part of the Consultant
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Contract ERA — Open Space Financial Study
Consultant, at its own costs, expense, and risks, shall defend any and all suits, actions, or other legal
proceedings that may be brought against or for employees on any such claim or demand of such third
persons, or to enforce any such penalty, and pay and satisfy any judgment or decree that may be rendered
against City, Its officers,agents,or employees in any such suit,action or other legal proceeding,when same
were due to negligence of the Consultant.
16. WORKERS COMPENSATION
Consultant certifies that it Is aware of the provisions of the labor Code of the State of California, which
require every employer to be insured against liability for workers compensation or to undertake self-
insurance in accordance with the provisions of that code, and it certifies that it will comply with such
provisions before commencing the performance of the work of this agreement
17. INSURANCE
The Consultant shall provide proof of insurance and maintain Insurance consistent with Exhibit 1.
18. AGREEMENT BINDING
The terms,covenants,and conditions of this agreement shall apply to, and shall bind,the heirs, successors,
executors, administrators, assigns, and subcontractors of both parties.
19. WAIVER
The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement
or of any provision, ordinance, or law shall not be deemed to be a waiver of any subsequent breach of
violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent
acceptance by either party of any fee or other money which may become due hereunder shall not be
deemed to be a waiver of any preceding breach or violation by the other parry of any term, covenant, or
condition of this agreement or of any applicable law or ordinance.
20. COSTS AND ATTORNEY'S FEES
The prevailing party in any action between the parties to this agreement brought to enforce the terms of this
agreement or arising out of this agreement may recover its reasonable costs and attorney's fees expended
In connection with such an action from the other parry.
21. DISCRIMINATION
No discrimination shall be made in the employment of persons under this agreement because of the race,
color, national origin, ancestry, religion or sex of such person. If Consultant is found in violation of the
nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions
of federal law or executive order In the performance of this agreement, it shall thereby be found in material
breach of this agreement Thereupon, City shall have the power to cancel or suspend this agreement, in
whole or in part, or to deduct from the amount payable to Consultant the sum of Twenty-five Dollars ($25)
for each person for each calendar day during which such person was discriminated against, as damages
for said breach of contract, or both. Only a finding of the State of Califomia Fair Employment Practices
Commission or the equivalent federal agency or officer shall constitute evidence of a violation of contract
under this paragraph.
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Contract ERA — Open Space Financial Study
If Consultant Is found in violation of the nondiscrimination provisions of this agreement or the applicable
affirmative action guidelines pertaining to this agreement,Consultant shag be found in material breach of the
agreement Thereupon, City shall have the power to cancel or suspend this agreement, In whole or in part,
or to deduct from the amount payable to Consultant the sum of Two Hundred Fifty Dollars ($250) for each
calendar day during which Consultant is found to have been in such noncompliance as damages for said
breach of contract, or both.
22. AGREEMENT CONTAINS ALL UNDERSTANDINGS
This document represents the entire and integrated agreement between City and Consultant and supersedes
all prior negotiations, representations, or agreements, either written or oral. This document may be
amended only by written Instrument, signed by both City and Consultant. All provisions of this agreement
are expressly made conditions. This agreement shall be governed by the laws of the State of Caldomia.
IN WITNESS WHEREOF, City and Consultant have executed this agreement the day and year first above
written.
CONSULTANT
Byy �IZ .
William Anderson
CITY OF SAN LUIS OBISPO
By
Mayor Ron Dunin
Attest
By.
Pam Voges, City Clerk
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C-0-8
EXHIBIT 1
INSURANCE REQUIREMENTS FOR CONSULTANTS
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or
mages to property which may arise from or in connection with the performance of the work hereunder by the Consultant,
.,s agents, representatives, employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employers,Liability Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance
Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial
General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply
separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employers Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either:
the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees, and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
'cher Insurance Provisions
,e general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents, and volunteers are to be covered as insured as respects: liability
arising out of activities performed by or on behalf of the Consultant; products and completed operations of the
Consultant; premises owned, occupied, or used by the Consultant; or automobiles owned, leased , hired, or borrowed
by the Consultant The coverage shall contain no special limitations on the scope of protection afforded to the City,
its officers, official, employees, agents or volunteers.
2. For any claims related to this project,the Consultant's insurance coverage shall be primary insurance as respects the
City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City,
its officers, officials, employees, agents, or volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect
coverage provided to the City, its officers, officials, employees, agents, or volunteers.
4. The Consultants insurance shall apply separately to each insured against whom claim is made or suit is brought, except
with respect to the limits of the insurers liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided,
cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City.
Acceptability of Insurers
Insurance is to be place with insurers with a current A.M. Best's rating of no less than A:VII.
Verification of Coverage
Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements
are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received
and approved by the City before work commences.
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11ty
Exhibit A
The Consulting Team
Economics Research Associates
William Anderson (Project Manager)
Chris Cheleden (Land Value Research)
Fieldman RolaRD & Associates
Thomas Johnsen (Financial Advisor)
Exhibit A - i -
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r
Page 11 Exhibit B
Scope of Work and Cosl Eslintalcs
In response to the Ciry's RFP, the consultant team has prepared the following scope
of work which describes necessary tasks and estimates the number of hours and costs needed
to complete each task.
® Task 1: Orienlalion
The study team will met with City staff and review City ordinances regarding open
space and park land dedication, impact fees, the subdivision approval process, open space
dedication or set-aside policies, the General Plan, the City facilities financing plan, ownership
parcel maps, major specific plans, and the City Budget and C1P.
Firm: Hours: . Budget:
ERA 8 S 832
FRA 8 S 880
Task 2: Demosraahic Data
ERA will collect and review selected demographic information, including::
o Homeowner/renter distribution
o Household income levels
o Population - existing and projected
o Household - existing and projected
Finn: Hours: Budget:
ERA 5 S 275
FRA 0 $ 0
Page 12
Task 3: Land Valuation Data
ERA will collect and review selected per unh land valuation data for concentric
areas from the central city, including:
o Recent land sales transactions for various zoning and land
use categories
o Asking price for selected large landholdings on the market
o Recent assessments for selected landholdings
Finn: Hours: Budget:
ERA 54 S 2,970
FRA 0 S 0
Task 4: Bund Reluted Dula
Fieldman-Rolapp wW collect and review selected data pertinent to potential bond
financing, and will estimate potential revenue from these fiscal revenue sources for a ten year
period, including:
o Total and projected assessed valuation in the City
o Transient-occupancy tax
o Building impact fees
o Property transfer tax
o Taxable sales
Finn: Hours: Budget:
ERA 0 S 0
FRA 24 S 1.680
Task 5: Oppurtunities for Dedication and Rempulatury Prolcctiun
ERA will discuss with City staff regulatory opportunities for protection and
dedication of open space through the subdivision approval process, zoning, development
agreements, and other regulations in San Luis Obispo. ERA will discuss the applicability of
these methods so that-the gralitative degree to which the City has to acquire land in fee can
be determined.
s
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Firm: Hours: Budget:
ERA 8 $ 832
FRA 0 $ 0
l ask 6: Uuuurtunhics for Alairtlenance Financintr
ERA will review the potential for financing open space maintenance by private
s lbdivisions, through the assessment district and corrununity facilities district enabling
1, gislation, and homeowners association fees. Mello-Roos may not be used to maintain open
pace.
Finn: Hours: Budget:
ERA 16 $ 1.664
FRA 0 $ 0
I ask 7: Per Unit Acquisition Gust Estintales
For those open space elements Which may require public land or easement
a:yuisition. ERA will review the current assessed value, the existing and proposed
e ititlements, and comparable sales transactions collected in Task 3. Based on this research.
I RA Will estimate per acre acquisition costs for various types of land. These estimates are
f•-r planning purposes only and are not appraisals of specific parcels.
Firm: Hours: Budget:
ERA 8 $ 832
FRA 0 $ 0
1 ask 8: Per Unit Alaimlenance Cost EslinralcS
ERA will estimate maintenance costs for the total open space and park *-stern
b rse on per acre costs from open space budgets of other cities and special jurisdictions. This
v ill generate a general order-of-magnitude estimate for planning purposes.
Pace 14
Firm: Hours: Budget:
ERA 4 $ 416
FRA 0 S 0
I ask 9: Re%iris' Financing Methods
Fieldman-Rolapp and ERA will meet with City staff to evaJuate the'opportunizies
a id constraints for specific alternative funding methods for acquisition, improvements, and
111aintenance and questions related to each method. Methods to be considered include, but
a e not limited to, the following:
o User fees
o Homeowner association fees
o Concession revenues
o Benefit assessment financing
o Community facility district financing
o State and local grants
o Conservancies and land trusts
o Development impact fees
o Dedication or in-lieu fees
o Sales tart increase
o Property transfer tax
o Transfer of development rights
o Ciry annexation fees
o Revenue bonds
o General obligation bonds
o. _ General funds
o Negotiated development agreement
o Mitigation Credits
' o Other -
The appropriate leve) of financing responsibility --neighborhood, community, and
citywide -- will be addressed and evaluated.
IFirm: Hours: Budget:
ERA. _ 16 S 1,664
FRA 16 S 1,760
C_Qom'
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1 Page 1.5
Task 10: C:IP Demands
The current C1P and its.demand on the financing sources under consideration NN-01
be reviewed so that open space financing is coordinated with other public facility financing
plans.
Finn: Hours: Budget:
I ERA 4 $ 416
1 FR` 8 $ 880
t
E Task 1l: Bond Finuncing
Given anticipated magnitude of public acquisition, improvement, and maintenance
costs for the open space system, Fieldman-Rolapp will review the potential fdr using General
Obligation Bonds, Mello-Roos bonds, Assessment bonds, or other publicbonds for financing
a portion of public open space costs. The approximate size of the bond issue, financing costs,
and the approximate tax or assessment burden on taxpayers will be evaluated. This analysis
is for planning purposes only, and would not be of sufficient detail to structure a bond issue
or include in an offering document.
Firm: Hours: Budget:
ERA 0 $ 0
FRA 16 $ 1,760
Task 12: Financing, and Implementation Recommendations
Based on the above research, survey, cost analysis, and City staff consultations,
the study team will prepare specific financing and implementation recommendations. This
plan will specify what proportion of each open space element might be funded by private and
public sources. The strategy will be prepared for acquisition, improvements, and mainte-
nance. The plan will specify what sources will be pursued to meet the public funding
commitment for each element, potential revenue generated over ten years, and required
implementation measures. Based on the estimated per unit land values, the studyTeam will
estimate the approximate amount of land that can be acquired. This plan will present a
description of the funding strategy for each element.
Page 16
Firm: Hours: Budget:
ERA 28 $ 1,952
FRA 16 $ 1,760
Task 13: Staff Presentation
The study team will present the draft report to city staff to discuss recommendations and
answer questions.
Firm: Hours: Budget:
ERA 8 $ 832
FRA 8 $ 880
Task 14: Revisions
The study team will make revisions to its draft after receiving input from the city staff, and will
submit a final report.
Firm: Hours: Budget:
ERA 10 5 550
FRA 0 $ 0
• e e * * e • e � e � r s e • r � � t � e • • e e e e e •
ADDENDUM TO SCOPE OF WORK
Economics Research Associates and Fieldman-Rolapp Associates agree to attend two
workshops, as follows:
Workshop 1
This workshop will be scheduled during-the-same visit identified in Task 12 of the Scope of Work.
It is anticipated that this workshop will be with the citizens advisory committee.
Workshop 2
This workshop will be scheduled during the same visit identified in Task 13 of the Scope of Work.
It is anticipated that this workshop will be with the City Council.
Budget Amendment
The project budget will be increased by $220 to allow for these additional meetings. The total
contract budget, therefore. is S25,000.
Task 15: Presentations
The study team can attend additional meetings on a time and material basis as directed by the
City of San Luis Obispo in writing.
Exhibit C
COMPENSATION AND WORK SCHEDULE
Work Phase Maximum Comveasation Completion
Per Work Phaser . Schedule'
Contract Start Date $ 0 day 0 (2/6)'
Task 1 & 2
Orientation & Demographic Data $1,987 3 days (2/11)
Task 3
Land valuation Data $2,970 10 days (2/20)
Task 4
Bond Related Data $1,680 13 days (2/25)
Task 5 &. 6
Opportunities for Dedication &
Regulatory Process & Maintenance
Financing $2,496 16 days (2/28)
Task 7 & 8
Per Unit Acquisition and
Maintenance Cost Estimates $1,248 1S days (3/3)
Task 9
Review Financing Methods $3,424 21 days (3/6)
Task 10
CIP Demand $1,296 23 days (3/10)
Task 1
Bond Financing $1,760 25 days (3/12)
ask 12. 13. & 14
Financing & Implementation
Recommendations, Staff
Presentations, & Revisions $5,974 63 days (5/5)
Miscellaneous
Travel, Clerical, Materials, etc. $2,165
Total $ 25,000
Consultant billing may only occur at the end of that work phase indicated (i.e. , after the
task or tasks indicated have been completed) , except that the consultant may bill the City
for miscellaneous items as they accrue.
' Measured in weekdays (not including weekends) from the date of contract initiation.
Parenthesis indicate the approximate date in 1992 that the listed task or tasks will be
completed by the consultant.
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COPIESTO:
RECEIVED ❑*Denotes Action ZZFn
. January 29, 1992MDDIR.
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JAN 2 91992
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MEMORANDUM C2"_ATrO%NS1' ❑ FW Dm.
LERK aCLERK/ORIG. ❑ POLICFC-L
• City Council SAN LUIS OBISPO,CA ❑ MGN1T.7FAx•1 [] REC DIR
To
• �C RFAD FILE ❑ LTCI�
From: John D
Subject: Ret consultant to develop financial plan for
implementation of Open Space Element
Since there has been considerable discussion of late concerning the
City's use of consultants, I thought it would 'be appropriate for
me to provide some overview comments for your consideration.
First of all, whether or not we hire this particular consultant is
not a life or death concern. Either way, the City will continue
to go forward, and the $25, 000 consultant contract fee, if not used
for this purpose, would then be available for other legitimate
General Fund purposes. However, although not the most critical
concern facing the City, it is an important issue, for the reasons
I will set forth.
Tho three primary issues are: (1) is open space preservation of
great importance to the City?, (2) can a consultant do things that
staff analysis probably wouldn't do? (3) what would be the most
likely outcome if we hire the recommended consultant, or
conversely, what would most likely happen if we do not hire a
consultant?
It was approximately four years ago that the City Council, based
on a recommendation of myself and the then-Director of Community
Development, decided to add the creation of the Open Space Element
to the General Plan revision process. The primary justification
for that action was that any meaningful Open Space Program would
have a considerable interaction with the City's Land Use Element,
and it would be far better to engage in both activities at the same
time, rather than to come back in future years and modify the Land
Use Element based upon the later recommendations of the open space
analysis.
While the Open Space Element has had some setbacks, it is now on
track, and on a time frame approximately the same as that for the
Land Use Element itself.
The City of San Luis Obispo prides itself on being a City that is
very sensitive to proper land use planning and park and open space
concerns. However, as a practical matter, during the past several
years there has been very little City money available for the
acquisition of open space. As a matter of fact, to the best of my
knowledge, no significant open space has been added to the City's
inventory as a result of City purchase since the late 1970s.
While we speak of being environmentally sensitive and meeting
appropriate preservation goals, our ability to engage in meaningful
preservation programs has been limited by our lack of planning,
lack of commitment to a prescribed path, and lack of committed
resources.
All of our long-term projections regarding City finances clearly
indicate that the City will be living in a more constrained fiscal
environment in the years ahead than has been the case for most of
the past decade. If we are to make significant improvements in
obtaining parks and open space areas, then it will be necessary to
have a steady and significant flow of income into a dedicated
account for this purpose. Without this available money, what we
desire to accomplish will simply not happen: we will simply
continue to talk about what we want rather than to get what we
want.
Will the right kind of financial consultant do things for us that
cannot be done, or not done as well, by the staff? The short
answer is, yes. First, the right kind of consultant will have done
this same kind of work for other public agencies, and will have
accumulated a knowledge base about what is being done in this arena
throughout the state and nation. Secondly, we are currently
struggling with how to maintain a General Fund that is sufficient
to continue our present programs and our planned capital outlay
projects. The present outlook for the future is that there will
be insufficient money accumulated for an ambitious program of open
space land acquisition.
The City Council has long discussed some appropriate means to cause
an urban greenbelt to be created surrounding our City, which would
• separate us from other urban areas within the County. While it is
very attractive to talk about this concept, to my knowledge the
only western U.S. city that has actually accomplished it is
Boulder, Colorado, which has designated significant resources
through a dedicated portion of its sales tax revenues for this
purpose. This indicates that it is a very difficult program to
accomplish and, based on Boulder's experience, demands that there
be a real commitment, a defined means of accomplishment, and
. significant financial resources behind this type of program.
Yes, the staff could do such analysis for the City. In my opinion,
there are several problems with that approach. One problem is that
the staff simply does not have the specialized experience and
expertise that experienced firms in this arena have picked up in
the course of similar assignments. Another problem is that
staffing levels are basically determined by what is necessary for
sustained day-to-day operations, and do not take into account this
kind of special effort. Thirdly, if the staff were to do it, and
were to keep up the normal workload, then the task would take much
longer. Fourthly and most importantly, if our commitment is to a
real and significant open space program, it is going to call for
both a strong commitment by the City and the marshaling of our
resources devoted exclusively to this purpose. The City's
financial staff have equal concerns about providing future monies
for law enforcement, recreation, fire/emergency medical response,
ad infinitum.
Given that: (1) virtually everyone is in favor of the City
engaging in a more aggressive open space preservation program,
(2) our present resources are not sufficient to do this even if
that were determined to be our goal through the open space planning
process, (3) under normal projected circumstances, we will not have
the money in the years ahead to achieve this goal unless we are
able to come up with special, devoted funds for this purpose, and
(4) these funds cannot come at the expense of the resources
necessary to carry on the normal and necessary programs of the
City, it is my belief that the Council will place us in the best
position to actually accomplish this goal if we proceed with the
staff recommendation to hire an experienced and specialized firm
that has done this kind of analysis for other public agencies who
have similar goals. As always, it gets down to two basic questions
- where do we really want to go and what's the best way to get
there? getting there?
Finally, the City Council has approved the use of the open space
financial consultant on two previous occasions: once conceptually
and a second time through the approval of the Request for
Proposals. Although the use of consultants has become a "public
issue" since that time, I strongly recommend that we stay on
course. If we don't, we will undermine our ability to achieve an
important community goal which we all share.
Thank you.
JD:mc
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