HomeMy WebLinkAbout01/18/2011, C6 - ADDITIONAL WORK ON THE AIRPORT AREA SPECIFIC PLAN PUBLIC FACILITIES FINANCING PLAN C o U n C l l Meati"DNe
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CITYOF SAN LUIS O B I S P O
FROM: John Mandeville, Community Development Director
Prepared by: Kim Murry, Deputy Director, Long Range Planning
SUBJECT: ADDITIONAL WORK ON THE AIRPORT AREA SPECIFIC PLAN PUBLIC
FACILITIES FINANCING PLAN
RECOMMENDATION
1. Appropriate an additional $18,000 from the Airport Area Impact Fee Fund to cover the
cost of consultant services to update the Airport Area Specific Plan financing plan; and
2. Authorize the City Manager to amend the existing agreement with Goodwin and
Associates to perform additional work.
DISCUSSION
Background
On July 20, 2010, the Council authorized the use of$31,500 in Airport Area Impact Fee Funds to
develop up-to-date financial data in order to update the Airport Area Specific Plan (AASP)
public facilities financing program. The update to these fees is necessary to ensure that the
changes to the specific plan being proposed to reflect the Chevron remediation and development
proposal accurately capture the costs of the infrastructure associated with the plan. Goodwin and
Associates (Goodwin) was hired to provide the financial evaluation and development of a
facilities financing plan at the same time they are developing a feasibility assessment for
Chevron. Chevron is paying for a feasibility assessment in order to provide information related
to its request for a development agreement with the City.
Information Needed
After review of the draft fee information, staff is interested in continuing to work with Goodwin
to provide additional analysis through the development agreement discussion process with
Chevron to understand where phasing of infrastructure installation and fee collection might be
better aligned. This "alignment" will help reduce gaps between infrastructure costs and the fees
needed to support those costs. When gaps exist, it becomes a significant burden on development
to pay for infrastructure costs that are beyond the fair share of the individual project. The
proposed analysis will identify ways to reduce the burden and,facilitate build-out of the land uses
in the Airport Area.
This evaluation comprises additional work by Goodwin that was not covered in the original
agreement. Staff is requesting an additional $18,000 to cover the cost of the evaluation so that
the financing plan proposed for inclusion in the updated AASP reflects the most appropriate
approach to infrastructure phasing and financing.
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Goodwin Additional Work Page 2
Agreement Modification
The proposed work amendment reflects the changed scope of services provided to the City by
Goodwin as described in Exhibit A (Attachment 1). A modification to the existing agreement
will allow Goodwin to complete the fiscal analysis.
AASP Financing Plan Update
The added cost to complete the financing plan for the AASP is within the City Manager's
purchasing authority; and funds are available in the Airport Area Impact Fee Fund to cover the
estimated $18,000 for this work.
FISCAL IMPACT
There are no General Fund fiscal impacts for the AASP financing plan update. The Airport Area
Impact Fee Fund contains over $600,000 in unencumbered funds to cover this expense and the
Fund will be reimbursed through area fees collected as properties in the AASP develop. The
work associated with the Goodwin contract will result in fees associated with the public facilities
financing plan for the updated Specific Plan that reflect updated cost estimates for the
improvements associated with the plan. Once the updated fees are developed, property owner
notification will occur. It is estimated that the Goodwin contract work to be reimbursed through
area fees will result in an additional $.01 of fees per sq. ft. of business park/service
commercial/manufacturing development.
ALTERNATIVES
1. Do not conduct further work on the AASP Financing Plan. This option is not
recommended as the information to be developed will inform the discussion related to the
proposed development agreement. The evaluation and subsequent phasing of
infrastructure development and fee collection will benefit all future development in the
AASP, not just the Chevron development project.
2. Require Chevron to pay for this additional work. This is not appropriate as the
additional work will be evaluating infrastructure and fees in the entire AASP and not just
those associated with the Chevron project. Future development in the AASP will be
repaying the Airport Area Impact Fee Fund through development impact fees that will be
assigned to the AASP area.
ATTACHMENT
Amendment#2, Exhibit A-work-scope change
nChevron\CARS\GoodwinAgreementMod.doc
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Attachment
AMENDMENT #2
EXHIBIT A
CITYOFSANLUIS OBISPO
AIRPORTAREA SPECIFIC PLAN
CHEVRONRESTORATIONAND REDEVELOPMENT PROJECT
SCOPE OF WORK
Goodwin Consulting Group, Inc. (GCG) entered into the first contract amendment with the City
of San Luis Obispo (City) to update of the Airport Area Specific Plan (AASP) public facilities
financing plan (PFFP) as well as the gap analysis and feasibility test related to the Chevron
Restoration and Redevelopment Project (Project). The City has requested that GCG incorporate
timing and phasing assumptions into the PFFP analysis and include that work as part of the PFFP
revisions.
The specific tasks to be performed under this amendment include the following:
Task 1. Data Collection
GCG will gather the information needed to add timing and phasing aspects to the PFFP. GCG
will work with the City to develop an annual, or phase-by-phase, land use absorption schedule
and infrastructure cost phasing summary.
A total of 10 person hours is estimated to complete this task.
Task 2. Timing/Phasing Analysis
GCG will prepare tables that summarize the absorption and phasing assumptions, and run the
analysis that illustrates the anticipated development impact fee revenues and,infrastructure costs
on an annual or phase-by-phase basis. Fee revenues will be compared to facility costs over time
to identify any potential funding gaps. GCG will work with the City through one iteration to
reprioritize and re-phase certain infrastructure components to minimize or eliminate the funding
gaps.
A total of 70 person hours is estimated to complete this task.
Task 3. Report Preparation
GCG will prepare a report, as described in Amendment #1, but will also include a section that
addresses the land use timing and facilities phasing issues. GCG will also incorporate the
pertinent tables from its timing/phasing analysis into the report.
A total of 10 hours is estimated to complete this task.
SLO RASP Chevron Project Amendment#2 A-1 December 17,2010
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Attachment
AMENDMENT #2
ExHiBIT B
CITY OF SANL UIS OBISPO
AIRPORT AREA SPECIFIC PLAN
CHEVRON RESTORATION AND REDEVELOPMENT PROJECT
BUDCETAND SCHEDULE
Services
Goodwin Consulting Group, Inc. (GCG) proposes a maximum budget (including expenses, as
described below) to complete the Scope of Work of$18,000. This budget represents a maximum
amount 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 two or more 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
Vice President $200/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.
Schedule
GCG will complete the Scope of Work within 60 days after receiving an executed contract,
notice of authorization to proceed, and data required to complete the analysis.
SLO AASP Chevron Project Amendment#1 B-1 December 17,2010
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