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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, - 1 - 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. _ 2 . 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: - 3 - 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 -4 - 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. -5 - c �- 7 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 - 6 - 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. - i - C-B-g 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 - C -8-/c 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 . Page ]3 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' ! 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. 6dubit C WIPT1N AGENDA E REM# �� �►►IIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIII cityof sAn tuis oBispo IM 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 COPIESTO: RECEIVED ❑*Denotes Action ZZFn . January 29, 1992MDDIR. =O ❑ FIN.M JAN 2 91992 �} ACAO [3FIRE CHIEF 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 d/ose