Loading...
CONTRACT 3553 Professional Services Agreement35 5 3 • , 7 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND MUNIFINANCIAL This AGREEMENT is entered into this 15`" day of January 2006, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ( "CITY ") and MUNIFINANCIAL, a California Corporation ( "CONSULTANT "). 1. CONSIDERATION. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed Thirty -Eight Thousand Five Hundred Dollars ($38,500.00) for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit "A," which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit `B," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's reasonable satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. -1- 355 3 . , 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A ") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON - APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 6. ADDITIONAL WORK. A. CITY's city manager ( "Manager ") may determine, at the Manager's sole discretion, that CONSULTANT must perform additional work ( "Additional Work ") to complete the Scope of Work. If Additional Work is needed, the Manager will give written authorization to CONSULTANT to perform such Additional Work. B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work, CONSULTANT will provide the Manager with written notification that contains a specific description of the proposed Additional Work, reasons for such Additional Work, and a detailed proposal regarding cost. C. Payments over $10,000.00 for Additional Work must be approved by CITY's city council. All Additional Work will be subject to all other terms and provisions of this Agreement. 7. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: i. Carefully investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. -2- 35 5 3 Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 8. TERM. The term of this Agreement will be from January 15, 2006 to January 15, 2007. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A "; B. Termination as stated in Section 16. 9. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 23 of this Agreement; and ii. CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 10. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty -eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 11. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: A. Exhibit A: Scope of Work; B. Exhibit B: Budget; and C. Exhibit C: Proposal for Services. 12. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the -3- 3553. contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 13. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with Taxpayer Identification Number. 14. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 15. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 16. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT" own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. -4- 3553 - , , k 17. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 18. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 19. INDEMNIFICATION. A. CONSULTANT agrees to the following: i. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement. ii. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. -5- D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 23, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 20. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 21. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 22. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 23. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Tyne of Insurance Limits Commercial general liability: $1,000,000 Professional Liability $1,000,000 Business automobile liability $1,000,000 Workers compensation Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of 0 3553. 74 ISO -CGL Form No. CG 00 01 1185 or 88. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 1185 or 88, or equivalent. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY, ten (10) days notice if cancellation is due to nonpayment of premium. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any professional errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 0106 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 16. 24. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. -7- 3553.�w 26. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: MuniFinancial 1700 Broadway, Sixth Floor Oakland, CA 94612 Attention: Robert D. Spencer Principal Consultant If to CITY: City of El Segundo 350 Main Street El Segundo, CA 90245 Attention: Seimone Jurjis, PE Director of Planning and Building Safety Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 27. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There are three (3) Attachments to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. IN 3553.-7 33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 35. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's executive manager, or designee, may execute any such amendment on behalf of CITY. 36. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 38. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 40. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] W 3553 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL ATTEST: Cindy M cUiesen, ` City Clerk APPROVED AS MARK D. HEV m. .r1 H. Berger, AssXtAt City Attorney -10- MUNIFINANCIAL Frank G. Tripe President and CEO Paul Whitelaw Senior Vice President Taxpayer ID No. 33- 0302345 355 3 EXHIBIT A SCOPE OF WORK We want to ensure that our scope of work is responsive to the City of El Segundo's needs and specific local circumstances. We will work in concert with the City to adjust our scope of services as needed during the course of the study. Below is our proposed scope of work described in detail by task. We explain how we will accomplish each task and identify associated meetings and deliverables. This scope of services includes preparing the documentation necessary to update the following four impact fees: • Library • Police • Parks • Fire TASK 1 IDENTIFY AND RESOLVE POLICY ISSUES Objective: Identify and resolve policy issues raised by the study and determine appropriate facility and fee categories. Deso,iption: To initiate this task, we will review documentation related to adoption of development impact fees. We will deliver information requests as appropriate. We will explain policy issues to City staff and seek guidance prior to proceeding. Policy issues include: • Existence of ordinances, policies, and plans supporting the imposition of impact fees; • Land use categories for imposition of fees; • Allocation of cost burden to nonresidential land uses; • Types of facilities to be funded by each fee; • Method for determining facility standard; • Adequacy of existing studies and plans to identify needed facilities; • Potential alternative funding sources, if needed; • Funding existing deficiencies, if identified; and • Implementation concerns and strategies. Meetings• One (1) meeting to initiate the project, discuss data needs, and address policy issues. Deliverables. (1) Information requests, (2) revised project scope and schedule (if needed), (3) brief summary of policy decisions (if needed). 1of5 3553.' TASK 2: IDENTIFY EXISTING DEVELOPMENT AND FUTURE GROWTH Objective: (1) Identify estimates of existing levels of development, and (2) identify a projection of future growth consistent with current planning policy. Description: Existing levels of development provide a basis for calculating existing facility standards, the basis for most development impact fees. Future growth to a defined planning horizon, such as 2025, provides a basis for calculating the amount of new facilities needed. Existing estimates and projections should be expressed in terms of dwelling units, population, employment generators, and other criteria and measures of the service population for facility planning. We will work with the City Planning Department to obtain planning horizon development numbers over which the costs will be apportioned. We will evaluate projections from regional metropolitan planning agencies and other available sources. We will obtain approval of the future development quantities from the department. We will obtain approval of estimates of existing development and development projections from the City prior to proceeding. These estimates and projections are essential inputs to the funding plan and fee calculation model constructed in the tasks that follow. Consequently, changes to these estimates or projections by the City following approval could result in a change in this scope of services and increase in our professional fees. Meetings. None. Deliverables: Memorandum to City staff summarizing estimates of existing development and projections for new development. TASK 3: CALCULATE FACILITY STANDARDS Note: We will conduct Tasks 3, 4 and 5 separately for each facility and fee type. These tasks are conducted in an iterative approach because of the influence of facility standards, facility needs and alternative funding on each other, the funding plan, and the maximum justifiable impact fee. Objective: Determine standards to identify facilities required to accommodate growth. Description: Facility standards provide a critical link in documenting the nexus between growth, the facilities required to accommodate it, and a defensible impact fee. We will use one of three standard approaches to determining facility standards: (1) existing inventory, (2) system (existing plus planned facilities), or (3) planned facilities only. We will identify the appropriate demand factor for each facility types included in this study. Demand factors include, for example, service population, vehicle trip generation, or utility use. Depending on the approach being taken to calculate facility standards we may need lists of existing and /or planned facilities. Alternately we may need documents that indicate city policy and facility planning assumptions regarding standards (master plans, specific plans, general plans, etc.). 2 of5 35 5 3 We will express facility standards as measures of demand by land use category. These measures, such as "equivalent dwelling units" or "population and employment densities ", apportion facility costs to development projects and generate the fee schedule. A range of reasonable and technically defensible approaches exists for this purpose. We will select the appropriate approach for each facility standard based on: • Available local data on facility demand by land use category; • Approaches used by other agencies; and • Support for other City policy objectives. Meetings: None. Deliverables: None. TASK 4: DETERMINE POTENTIAL FACILITY NEEDS AND COSTS Objective: Identify the type, amount and cost of facilities required to accommodate growth and correct deficiencies, if any. Description: The facility standards developed in Task 3 will also be integral to estimating facility needs. If the "system" or "planned facilities only" approach is used to develop facility standards (see Task 3) we will need a list of specific planned facilities from existing facility master plans or other City documents. If the "existing inventory" approach is used then we will only need an indication of the initial projects anticipated for the use of fee revenues. A critical component of this task that we will complete will be to distinguish between the following: (1) Facilities needed to serve growth (that can be funded by impact fees); and (2) Facilities needed to correct existing deficiencies for the existing service population (that cannot be funded by fees). To the extent possible we will use facility standards (Task 3) applied to planned projects to identify existing deficiencies. This scope of work does not include additional engineering analysis if needed to identify deficiencies. If not already accomplished this work typically includes, for example, modeling of vehicle trips or utility demand. We can amend our scope and budget to provide those services if needed. To estimate costs for new facilities, we will identify unit cost components such as design costs, land acquisition, and construction as appropriate. We will develop planning -level estimates for each unit cost based on actual City experience, other local cost data such as land values, consultant team experience from prior projects, and industry cost indices Meetings. None. Deliverables: None. 3 of-5 35 5 3 • �: '�' TASK 5: IDENTIFY FUNDING AND FINANCING ALTERNATIVES Objective: Determine the extent of alternative (non -fee) funding available for new facilities. Description: If impact fees are going to only partially fund a capital project, the Mitigation Fee Act requires that the agency report on the anticipated source and timing of the additional funding every five years. There are two types of alternative funding sources that we will identify: 1. Funding from non - impact fee sources to correct existing deficiencies; and 2. Funding from new development other than impact fees that must be credited against new development's impact fee contributions, possibly including taxes paid to finance facilities. We will identify anticipated alternative funding based on information from agency staff, or note that funds are still to be identified. In the case of the latter, we will note probable funding alternatives. We expect that facilities would be funded predominantly on a pay -as- you -go basis. If fees will contribute to funding debt service we will apportion financing costs to the fee program based on the appropriate share of total costs. However, we do not expect the timing of fee revenues to affect financing costs so a cash flow analysis is not included in this scope of work. Meetings. None. Deliverables: None. TASK 6: PREPARE REPORT Objective: Provide technically defensible fee report that comprehensively documents project assumptions, methodologies, and results. Description: Based on the results of prior tasks we will first prepare a package of draft report tables for City staff to review. The tables will document each step of the analysis. The tables will culminate in a schedule indicating the maximum justified fee amount by land use category. Following one round of comments from City staff on the quantitative analysis and fee schedule, we will prepare an administrative draft report. Following one round of comments on the administrative draft we will prepare a public draft for presentation to interested parties, the public, and the City Council. We will prepare a final report if necessary based on one round of comments received on the public draft report. We will submit up to 10 bound copies of each report as requested by the City. We can also post the report on our web site for access via the Internet. If requested, we will provide legal counsel with copies of fee resolutions and ordinances used by other jurisdictions. 4 of5 3 5 5 3 • 7,51 Meetings: Two (2) meetings: one (1) to review the initial project results and one (1) to present the report at a public hearing for adoption. Deliverables: Administrative draft report, public draft report, final report (if needed), and slide presentation (if needed). MEETINGS The Project Manager will attend meetings accompanied by the Principal -in- Charge, as needed. We will work with City staff to set up meetings to keep the project on schedule. Phone conferences are not considered meetings for the purposes of this scope. Additional meetings may be requested for an additional fee based on our hourly billing rates. REQUIRED AGENCY STAFF SUPPORT To complete our tasks on schedule, we will need the cooperation of agency staff. We suggest that the City assign a key individual as project manager for the City. We will expect the City's project manager to (1) help resolve policy issues, (2) coordinate responses to requests for information, and (3) coordinate review of work products. To meet the schedule outlined below we will expect responses to policy issues and information requests within five business days. If there are delays on the part of the City, we will need to adjust our project schedule accordingly. We will keep the City's project manager informed of data or feedback we need to keep the project on schedule. MuniFinancial will endeavor to minimize the impact on City staff in the completion of this project. 5 of 5 3553 � 70`4 EXHIBIT B BUDGET MuniFinancial will complete the scope of services described in this proposal for a fixed price fee of $38,500. This fee includes direct expenses incurred during the course of work, including travel expenses and materials. Additional assumptions are discussed below. The City can fund the cost of the study with revenue from development impact fees. Our proposed fee for services assumes the following: • This fee includes the following four facility categories: library, police, fire, and parks. Additional analysis beyond these facility fee program categories may require a cost adjustment. • We will not need to provide engineering expertise to update facility cost estimates. • This fee includes a total of three (3) meetings or presentations. Additional meetings may be requested for an additional fee. We will invoice the City of El Segundo no more than monthly based on percent completion by task. Invoices will include a description of services as well as a summary of costs to date by task. 1 of'1 Exhibit C MuniFinancial Proposal to the City of El Segundo- WIIII -I",@ ,� 4 MuniFinancial 35 5 3 ,z. 1700 Broadway, Sixth Floor, Oakland, California 94612 3553 . ZMuniFinancial November 30, 2005 Seimone Jurjis Director of Planning and Building Safety City of El Segundo 350 Main Street El Segundo, CA 90245 Re: Proposal to Update Impact Fee Program Dear Mr. Jurjis: MuniFinancial is pleased to submit this proposal to update the City of El Segundo's impact fee program in accordance with the requirements of the Mitigation Fee Act (California Government Code sections 66000 to 66025). MuniFinancial is one of the largest public- sector financial consulting firms in the United States, with headquarters in Temecula and regional offices in Oakland, Lancaster, and Sacramento. In our 17 -year history we have helped hundreds of public agencies and nonprofit organizations successfully address a broad range of financial challenges. We have extensive experience in a wide range of local agency financial services, including development impact fee studies. The project team we have assembled for the City of El Segundo includes myself as Principal - in- Charge, Mr. Joshua Polston as Project Manager, and Mr. Jeffrey Kay providing analytical support. This cadre of experts from MuniFinancial's Oakland office has been instrumental in providing impact fee analyses and creating initial fee programs, as well as updates to pre- existing fees, for public agencies throughout California. I am certain that that this team can successfully partner with City staff to prepare a fee analysis that equips the City to provide for the impact of new development. We are excited about this opportunity to provide the City of El Segundo with the excellent service for which MuniFinancial is known. Please do not hesitate to contact me at (510) 832- 0899 (email: bobsL &munixom) if you have any questions regarding this proposal. Sincerely, MuniFinancial /111`� Robert D. Spencer Principal Consultant Financial Consulting Services Group Enclosure 1700 Broadway, Sixth Floor Tel. (510) 832 -0899 Oakland, California 94612 www.muni.0m Fax (510) 832 -0898 3553 -�' TABLE OF CONTENTS PROJECT UNDERSTANDING ..................................... ............................... 1 Public Facilities Financing In California Local Situation PROJECT OBJECTIVES AND APPROACH .................... ............................... 2 Project Objectives 2 Summary of Approach 2 Facility Standards 3 Other Elements of Approach 4 SCOPEOF SERVICES .............................................. ............................... 6 QUALIFICATIONS AND EXPERIENCE ........................ ............................... 11 Introduction to MuniFinancial 11 Financial Consulting Services Group 12 Development Impact Fee Experience 13 PROJECTSCHEDULE ............................................ ............................... 17 FEEFOR SERVICES .............................................. ............................... 18 PROJECTTEAM .................................................... ............................... 19 The City of El Segundo's Team 19 Project Management 19 Robert D.Spencer 21 Joshua Polston, A.I.C.P. 23 Jeffrey Kay 25 CLIENTREFERENCES ........................................... ............................... 26 EMuniFinancial Page i 3553 PROJECT UNDERSTANDING This section provides background in public facilities financing in California. We also discuss our understanding of the situation surrounding the City of El Segundo's need for a development impact fee study. PUBLIC FACILITIES FINANCING IN CALIFORNIA The changing fiscal landscape in California during the past 30 years has steadily undercut the financial capacity of local governments to fund infrastructure. Four dominant trends stand out: • The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; • Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses; • Steep reductions in federal and state assistance; and • Permanent shifting by the State of local tax resources to the State General Fund to offset deficit spending brought on by recessions. Faced with these trends, many cities and counties have had to adopt a policy of "growth pays its own way." This policy shifts the burden of funding infrastructure expansion from existing rate and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees. Assessments and special taxes require approval of property owners and are appropriate when the funded facilities are directly related to the developing property. Development fees, on the other hand, are an appropriate funding source for facilities that benefit development jurisdiction -wide. Development fees need only a majority vote of the legislative body for adoption. LOCAL SITUATION The City of El Segundo is located along the active Interstate 405 corridor. The City is divided between land uses with petrochemical facilities in the southwest, residential in the northwest and a combined commercial and industrial core in the eastern half of the City. The residential land is nearly built -out with infill projects generating any new housing stock. In the eastern half of the city there is significant development planned as former brownfield industrial sites are converted to commercial and office uses. Some industrial parcels may experience intensification of uses and additional new development as well. Within this context, the City intends to update and revisit its existing impact fee program. This proposal addresses the inputs, methodology, and costs in preparing such an update. MMuniFinancial Page 1 3553 ,� 7 7. PROJECT OBJECTIVES AND APPROACH This section explains the project objectives, our approach to development impact fee programs, and how that approach would be applied to the City of El Segundo. PROJECT OBJECTIVES The objectives of this project are to: • Develop fee justification based on the "reasonable relationship" and "deferential review" standards established by the courts; • Provide a schedule of maximum - justified fees by land use category; • Present the results of the study in a clearly written report in compliance with the Mitigation Fee Act (California Government Code 66000 to 66025); and • Provide comprehensive backup documentation for assumptions, including copies of spreadsheet files, to enable City staff to update fees in the future. SUMMARY OF APPROACH MuniFinancial's methodology for calculating public facilities fees is simple and flexible. We calculate the maximum justifiable impact fee and provide the flexibility for the City to impose fees up to that amount. The program incorporates local policy priorities and is simple to explain to elected officials, interest groups and the public. Our overall methodology is straightforward: we efficiently apply our financial and engineering expertise to develop technically defensible fee documentation that is easily understood by the development community and the public. We take advantage of the flexibility that statutes and case law provides in establishing the nexus between new development and area -wide fee programs to avoid excessive engineering costs on our part. Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The four steps followed in an impact fee study include: 1. Prepare growth projections; 2. Identify facility standards; 3. Determine the amount and cost of facilities required to accommodate new development based on facility standards and growth projections; 4. Calculate the public facilities fee by allocating the total cost of facilities per unit of development. The identification of facility standards in step #2 often involves preparing an inventory of existing facilities and identifying specific planned facilities. This data is needed to provide a basis for the calculation of facility standards. Step #3 may include identification of and cost estimates for existing facility deficiencies. Depending on the facilities standards chosen, existing development may have a responsibility to provide additional facilities to meet the same standards being applied to new EM= Financial Page 2 3553 • ::` development. The cost of these deficiencies cannot be funded by impact fee revenues and requires identification of alternative funding sources. FACILITY STANDARDS The key public policy issue in development impact fee studies is the identification of facility standards. Facility standards document a reasonable relationship (1) between new development and the total need for new facilities, and (2) between each development project and the impact fee for that project. Standards also ensure that new development does not fund deficiencies associated with existing development. TYPES OF FAC ILITY STANDARDS The types of standards that may be used in a development impact fee study include: • Demand standards determine the amount of facilities required to accommodate growth, for example park acres per thousand residents, traffic level of service, or gallons of water per day per dwelling unit. These standards are the most common method for discussing policy options with regards to public facility fees. • Design standards determine how a facility should be designed to meet expected demand, for example park improvement requirements, street intersection design, and water storage needs. These standards are typically not evaluated as part of an impact fee analysis, but they can have a significant impact on the cost of facilities. • Cost standards determine the cost per unit of demand based on the estimated cost of facilities, for example cost per capita, cost per vehicle trip, or cost per gallon of water per day. Impact fee studies often convert the other two standards discussed above to a cost standard to generate an impact fee schedule. METHODS FOR OETERmiN/NG FAC /L /TY STANDARDS The most commonly accepted approaches to determining a facility standard are described below. • The existing inventory method uses a facility standard based on the ratio of existing facilities to the existing service population. Under this approach new development funds the expansion of facilities at the same standard currently serving existing development. By definition the existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long -range plan for new facilities is not available. Only the initial facilities to be funded with fees are identified in the fee study. Future facilities to serve growth are identified through an annual capital improvement plan and budget process. • The planned facilities method calculates the standard solely based on the ratio of planned facilities to the increase in demand associated with new development. This method is appropriate when planned facilities only benefit new development, such as a sewer trunk line extension to a previously undeveloped area. This method also may be used when there is excess capacity in existing facilities that can accommodate new development. In that case new EMuniFinancial Page 3 3553 development can fund facilities at a standard lower than the existing inventory standard and still provide an acceptable level of facilities. • The system method calculates the standard based on the ratio of existing plus planned facilities to total future demand (existing and new development). This method is used when (1) the local agency anticipates increasing its facility standard above the existing inventory standard discussed above, and (2) planned facilities are part of a system that benefit both existing and new development. Using a facility standard that is higher than the existing inventory standard creates a deficiency for existing development. The jurisdiction must secure non - fee funding for that portion of planned facilities required to correct the deficiency. Some impact fee programs require specialized engineering studies to identify facility needs, particularly in the areas of traffic, water, sewer, and storm drain. If adequate engineering analysis is not available, we will work with the City to develop purposefully conservative preliminary fee calculations. The City can then adopt a fee program pending completion of the necessary engineering studies. OTHER ELEMENTS OF APPROACH INTEGRAT /ON W/TH LONG-RANGE CAPITAL IMPROVEMENT PLANS An effective impact fee program must be integrated into the City's specific plans, master plans, and other long -range capital improvement plans (CIPs). We will review existing CIPs and see that the fee program addresses specific funding needs. We will work with staff to determine the need for impact of debt financing on the fee program. We can program fees to specific capital projects if necessary. However, we recommend that the fee program not be definitive in this regard and that the City program fees through its annual CIP process to provide as much flexibility as possible to meet changing circumstances. Overall, our goal is to develop an impact fee program that effectively supports a financially feasible plan for facilities to accommodate growth. CITY, DEVELOPER AND PUBLIC PARTICIPATION Gaining consensus among various groups requires a balanced discussion of both economic development and community service objectives. If the City deems necessary, we will facilitate meetings with representatives of the development industry to explain the program and gain input. Our goal is to create consensus first around the need for facilities and second around a feasible revenue strategy including the role of impact fees. ECONOMIC DEVELOPMENT CONCERNS The development community often is concerned that fees and other exactions will become too high for development to be financially feasible under current market conditions. We have developed a number of strategies to address this concern, including: • Conducting an analysis of the total burden placed on development by exactions to see if development feasibility may be compromised by the proposed fees; EMuniFinancial Page 4 3553 • . 011 • Gathering data on total fees imposed by neighboring or competing jurisdictions; • Developing a plan for phasing in the fees over several years to enable the real estate market to adjust; • Providing options for developers to finance impact fees through assessment and other types of financing districts; and • Imposing less than the maximum justified fee. If less than the maximum justified fee is imposed we will work with staff to see that that the Capital Improvement Plan (CIP) is adjusted to compensate for the reduced fee revenue. The CIP should remain financially feasible to maintain realistic expectations among developers, policy- makers and the public. CONEOL /OAT /NG FEE PROGRAMS Recently we have been working with several clients to consolidate separate fee programs into a combined development impact fee. For example, this approach may combine police, fire, general government, and parks and recreation into a single "public facilities" fee. We also specialize in justifying single citywide fees rather than fees for separate zones. Advantages of these approaches include a stronger revenue stream that can be fund individual projects sooner, less administrative and accounting complexity, and more flexibility in applying fee revenues to facility needs. PROGRAM IMPLEMENTATION Fee programs require a certain level of administrative support for successful implementation. We will recommend appropriate procedures such as: • Regularly updating development forecasts; • Regularly updating fees for capital project cost inflation; • Regularly updating capital facility needs based on changing demands; • Developing procedures for developer credits and reimbursements; and • Including an administrative charge in the fee program. MMuniFinancial Page 5 3553•..& SCOPE OF SERVICES We want to ensure that our scope of work is responsive to the City of El Segundo's needs and specific local circumstances. We will work in concert with the City to adjust our scope of services as needed during the course of the study. Below is our proposed scope of work described in detail by task. We explain how we will accomplish each task and identify associated meetings and deliverables. This scope of services includes preparing the documentation necessary to update the following four impact fees: • Library • Police • Parks • Fire TASK 1: IDENTIFY AND RESOLVE POLICY ISSUES Objective: Identify and resolve policy issues raised by the study and determine appropriate facility and fee categories. Description: To initiate this task, we will review documentation related to adoption of development impact fees. We will deliver information requests as appropriate. We will explain policy issues to City staff and seek guidance prior to proceeding. Policy issues include: • Existence of ordinances, policies, and plans supporting the imposition of impact fees; • Land use categories for imposition of fees; • Allocation of cost burden to nonresidential land uses; • Types of facilities to be funded by each fee; • Method for determining facility standard; • Adequacy of existing studies and plans to identify needed facilities; • Potential alternative funding sources, if needed; • Funding existing deficiencies, if identified; and • Implementation concerns and strategies. Meetings: One (1) meeting to initiate the project, discuss data needs, and address policy issues. Deliverables: (1) Information requests, (2) revised project scope and schedule (if needed), (3) brief summary of policy decisions (if needed). MMuniFinancial Page 6 3553 TASK 2: IDENTIFY EXISTINC3 DEVELOPMENT AND FUTURE GROWTH Objective: (1) Identify estimates of existing levels of development, and (2) identify a projection of future growth consistent with current planning policy. Description: Existing levels of development provide a basis for calculating existing facility standards, the basis for most development impact fees. Future growth to a defined planning horizon, such as 2025, provides a basis for calculating the amount of new facilities needed. Existing estimates and projections should be expressed in terms of dwelling units, population, employment generators, and other criteria and measures of the service population for facility planning. We will work with the City Planning Department to obtain planning horizon development numbers over which the costs will be apportioned. We will evaluate projections from regional metropolitan planning agencies and other available sources. We will obtain approval of the future development quantities from the department. We will obtain approval of estimates of existing development and development projections from the City prior to proceeding. These estimates and projections are essential inputs to the funding plan and fee calculation model constructed in the tasks that follow. Consequently, changes to these estimates or projections by the City following approval could result in a change in this scope of services and increase in our professional fees. Meetings: None. Deliverables: Memorandum to City staff summarizing estimates of existing development and projections for new development. TASK 3: CALCULATE FACILITY STANDARDS Note: We will conduct Tasks 3, 4 and 5 separately for each facility and fee type. These tasks are conducted in an iterative approach because of the influence of facility standards, facility needs and alternative funding on each other, the funding plan, and the maximum justifiable impact fee. Objective: Determine standards to identify facilities required to accommodate growth. Description: Facility standards provide a critical link in documenting the nexus between growth, the facilities required to accommodate it, and a defensible impact fee. We will use one of three standard approaches to determining facility standards: (1) existing inventory, (2) system (existing plus planned facilities), or (3) planned facilities only. We will identify the appropriate demand factor for each facility types included in this study. Demand factors include, for example, service population, vehicle trip generation, or utility use. Depending on the approach being taken to calculate facility standards we may need lists of existing and /or planned facilities. Alternately we may need documents that indicate city policy and facility planning assumptions regarding standards (master plans, specific plans, general plans, etc.). Page 7 E, MuniFinancial . ♦ L 3 5 5 3• 0 .t, We will express facility standards as measures of demand by land use category. These measures, such as "equivalent dwelling units" or "population and employment densities ", apportion facility costs to development projects and generate the fee schedule. A range of reasonable and technically defensible approaches exists for this purpose. We will select the appropriate approach for each facility standard based on: • Available local data on facility demand by land use category; • Approaches used by other agencies; and • Support for other City policy objectives. Meetings: None. Deliverables: None. TASK 4: DETERMINE POTENTIAL FACILITY NEEDS AND COSTS Objective: Identify the type, amount and cost of facilities required to accommodate growth and correct deficiencies, if any. Description: The facility standards developed in Task 3 will also be integral to estimating facility needs. If the "system" or "planned facilities only" approach is used to develop facility standards (see Task 3) we will need a list of specific planned facilities from existing facility master plans or other City documents. If the "existing inventory" approach is used then we will only need an indication of the initial projects anticipated for the use of fee revenues. A critical component of this task that we will complete will be to distinguish between the following: (1) Facilities needed to serve growth (that can be funded by impact fees); and (2) Facilities needed to correct existing deficiencies for the existing service population (that cannot be funded by fees). To the extent possible we will use facility standards (Task 3) applied to planned projects to identify existing deficiencies. This scope of work does not include additional engineering analysis if needed to identify deficiencies. If not already accomplished this work typically includes, for example, modeling of vehicle trips or utility demand. We can amend our scope and budget to provide those services if needed. To estimate costs for new facilities, we will identify unit cost components such as design costs, land acquisition, and construction as appropriate. We will develop planning -level estimates for each unit cost based on actual City experience, other local cost data such as land values, consultant team experience from prior projects, and industry cost indices Meetings: None. Deliverables: None. Page 8 EMuniFinancial 355 3 • : . TASK 5: IDENTIFY FUNDING AND FINANCING ALTERNATIVES Objective: Determine the extent of alternative (non -fee) funding available for new facilities. Description: If impact fees are going to only partially fund a capital project, the Mitigation Fee Act requires that the agency report on the anticipated source and timing of the additional funding every five years. There are two types of alternative funding sources that we will identify: 1. Funding from non - impact fee sources to correct existing deficiencies; and 2. Funding from new development other than impact fees that must be credited against new development's impact fee contributions, possibly including taxes paid to finance facilities. We will identify anticipated alternative funding based on information from agency staff, or note that funds are still to be identified. In the case of the latter, we will note probable funding alternatives. We expect that facilities would be funded predominantly on a pay -as- you -go basis. If fees will contribute to funding debt service we will apportion financing costs to the fee program based on the appropriate share of total costs. However, we do not expect the timing of fee revenues to affect financing costs so a cash flow analysis is not included in this scope of work. Meetings: None. Deliverables: None. TASK 6: PREPARE REPORT Objective: Provide technically defensible fee report that comprehensively documents project assumptions, methodologies, and results. Description: Based on the results of prior tasks we will first prepare a package of draft report tables for City staff to review. The tables will document each step of the analysis. The tables will culminate in a schedule indicating the maximum justified fee amount by land use category. Following one round of comments from City staff on the quantitative analysis and fee schedule, we will prepare an administrative draft report. Following one round of comments on the administrative draft we will prepare a public draft for presentation to interested parties, the public, and the City Council. We will prepare a final report if necessary based on one round of comments received on the public draft report. We will submit up to 10 bound copies of each report as requested by the City. We can also post the report on our web site for access via the Internet. If requested, we will provide legal counsel with copies of fee resolutions and ordinances used by other jurisdictions. Page 9 M MuniFinancial 3553•::'1 Meetings: Two (2) meetings: one (1) to review the initial project results and one (1) to present the report at a public hearing for adoption. Deliverables: Administrative draft report, public draft report, final report (if needed), and slide presentation (if needed). MEETINGS The Project Manager will attend meetings accompanied by the Principal -in- Charge, as needed. We will work with City staff to set up meetings to keep the project on schedule. Phone conferences are not considered meetings for the purposes of this scope. Additional meetings may be requested for an additional fee based on our hourly billing rates. REQUIRED AGENCY STAFF SUPPORT To complete our tasks on schedule, we will need the cooperation of agency staff. We suggest that the City assign a key individual as project manager for the City. We will expect the City's project manager to (1) help resolve policy issues, (2) coordinate responses to requests for information, and (3) coordinate review of work products. To meet the schedule outlined below we will expect responses to policy issues and information requests within five business days. If there are delays on the part of the City, we will need to adjust our project schedule accordingly. We will keep the City's project manager informed of data or feedback we need to keep the project on schedule. MuniFinancial will endeavor to minimize the impact on City staff in the completion of this project. ,MuniFinancial Page 10 3553 QUALIFICATIONS AND EXPERIENCE INTRODUCTION TO MUNIFINANCIAL MuniFinancial is a customer - oriented firm that delivers quality financial and economic services to public agencies and, ultimately, to the public. MuniFinancial is one of the largest public sector financial consulting firms in the United States, with corporate headquarters in Temecula and regional offices in Oakland, Lancaster, and Sacramento. Since 1988 we have helped over 600 public agencies successfully address a broad range of financial challenges, such as financing the costs of growth and generating revenues to fund desired services. MuniFinancial assists local public agencies with long -term financial plans and cash flow modeling, cost allocations, development impact fees, rate studies, and property tax audits. In addition, we assist local public agencies with arbitrage rebate, investment consulting, municipal disclosure, and special district administration. MuniFinancial has the largest special district formation and administration practice in the nation. We are known as the preeminent municipal disclosure firm as well as a major provider of arbitrage rebate services. The firm currently has a staff of over 80 dedicated professionals with the range of expertise necessary to provide high -quality service to our clients. Given the breadth and depth of expertise among our staff, MuniFinancial is able to offer clients a full range of financial services: • Financial planning and revenue enhancement, including financial projections and policy analysis, plus rate, user fee, and cost allocation studies; • Capital improvement planning and financing, including infrastructure financing plans and impact or connection fee studies; • Economic and fiscal policy analysis of proposed projects and plans, including government reorganizations studies; • Special district implementation and administration, including district formation and voter campaigns, plus administrative services such as levies and delinquency management and • Federal compliance services for bond issues such as continuing disclosure and arbitrage rebate analysis. Many of our projects have an engineering component as well, highlighting the benefits of MuniFinancial as one of The Willdan Group of Companies. Our affiliate firm, Willdan, is a leading engineering consulting firm consisting of over 440 personnel in the Western United States. Willdan provides contract staff for building, planning and engineering departments plus a range of civil engineering services. With the combined expertise of our firms we can provide a comprehensive approach to our clients' financial, economic and public facility engineering challenges. EMuniFinancial Page 11 35 5 3 . 0 FINANCIAL CONSULTING SERVICES GROUP MuniFinancial has been built on deep, continuing relationships with local government department staff. With hundreds of ongoing client relationships in finance, engineering and other services, we have been consistently called upon to assist staff with a range of special projects. In response to this need, the Financial Consulting Services Group was created with experienced staff in offices in both northern and southern California. Our work incorporates excellent public communication strategies and skills. As voter approval becomes the norm for revenue measures, we offer expertise in communicating persuasive information to the targeted group, whether developers, land owners or the general electorate. We provide clearly written report summaries, on -point public presentations and strong meeting facilitation skills. The table below provides an overview of Financial Consulting Services Group services. MMuniFinancial Page 12 3 5 5 3 - -7 7,01 DEVELOPMENT IMPACT FEE EXPERIENCE MuniFinancial is one of California's leading firms for development impact fee programs. The firm has broad experience reviewing and structuring impact fee programs for cities, counties, special districts, and school districts. For these clients, our firm has provided nexus documentation to support fees funding a full range of public facilities, including utilities (water, wastewater and storm drainage), roadways and transit, parks, fire, police, health clinics, and other government facilities such as civic center and corporation yards. Our depth of experience in this arena has led us to develop a range of creative, defensible programs for our clients. To increase the flexibility of impact fee programs we have justified a single fee that funds a wide range of facilities, from parks to fire stations (City of Gilroy, City of Roseville). We also specialize in development of fee programs that span multiple jurisdictions to fund regional facilities (counties of El Dorado, Fresno, San Luis Obispo, and Solano). Our staff have served as expert witnesses for local agencies defending their fee programs, while no fee program developed by MuniFinancial has been challenged in court. Finally, clients have engaged our firm to examine critical policy issues often raised by impact fee programs, and to communicate these issues to elected officials, the development community, and the public. To address the effect of fees on economic growth we have performed development feasibility and real estate market studies, conducted fee comparison surveys, and compared public facility funding methods among local agencies. A partial listing of the jurisdictions for which MuniFinancial has conducted development impact fee studies includes: City and County of San Francisco City of Bellflower City of Carpinteria City of Chula Vista City of Dublin City of El Monte City of Fresno City of Gilroy City of Goodyear, AZ City of Hercules City of Hollister City of Huntington Beach City of Indian Wells City of Kingsburg City of La Mesa City of Livermore City of Novato City of Oakley City of Palmdale City of Phoenix, AZ EMuniFinancial City of Shasta Lake City of Soledad City of South San Francisco City of Stockton City of Tracy City of Yucca Valley Coachella Valley Association of Governments Contra Costa Fire Protection District County of El Dorado County of Fresno County of Kings County of Placer County of Solano County of Stanislaus Dixon Library District East Contra Costa Fire Protection District Mt. Diablo Fire Protection District Novato Fire Protection District Rincon Valley Fire Protection District Sacramento Area Flood Control Agency Page 13 3553 City of Pittsburg Salida Fire Protection District City of Redding San Joaquin Area Flood Control Agency City of Reedley San Ramon Fire Protection District City of Rialto Stanislaus Consolidated Fire District City of Rocklin Tehachapi Valley Rec. & Park District City of Roseville Town of Eagar, AZ City of San Jose Town of Windsor City of San Leandro Windsor Fire Protection District Citv of San Luis Obispo Woodland Fire Protection District MuniFinancial has specific expertise preparing development impact fee documentation as part of a comprehensive public facility financing plan. Our approach includes: • Close coordination with public agencies, developers and public interest groups to devise a consensus approach. • Sensitivity to equity concerns between new and existing development, as well as between different land uses and phases of development. • Developing strategies to maintain project financial feasibility. • Providing the technical analysis necessary for project participants to resolve policy issues. Public facility financing continues to change dramatically due to state constitutional amendments and the public's reluctance to pay for growth. In response, we have been at the forefront in developing new approaches, such as smart growth strategies, area -wide fee programs and special use fees for affordable housing. Our staff remains up -to -date on the latest legislative actions and court decisions affecting this rapidly changing field, and is sought out by attorneys for expert witness services. PROWL-CT SUMMARIES MuniFinancial staff have been key participants in providing impact fee analyses for over SO public agencies across California. Summaries of selected project experience are presented below. City of Covina, Comprehensive Development Impact Fee Study: In 2005 MuniFinancial prepared an impact fee study to assist the City with updating its development fee program. The study addressed: police facilities; parks; library; storm drain; streets; and general public facilities. City of Hawthorne, Development Impact Fee Program Update: We are engaged by the City to update its development fee program for facilities categories including: police; fire; parks; general government; and traffic. The City of Hawthorne had not revised its impact fee program since 1991. Certain components of the program were no longer applicable while facility needs in other program areas had changed and required updating. Page 14 MMuniFinancial 3553 . The study will update the City's fee program so that it can address current estimates of the City's facility needs required to accommodate growth. City of Sierra Madre, Development Impact Fee Program Update: We are in the beginning stages of this engagement to update the City's fee program. In 1988 the City of Sierra Madre adopted a single impact fee for public facilities. The fee has not been revised since that time. The City is a full- service city and therefore is pursuing a fee program to fund the impacts of growth across a broad range of facility types, including: fire, police, streets, parks, sewer, water, storm drain, and general public facilities. County of Fresno, Public Facilities Fee and Fiscal Impact Analysis: MuniFinancial provided the County of Fresno's first public facilities fee program, and prepared a fiscal impact analysis of growth. The fee program is projected to provide $321 million in revenue for public facilities over the next 15 years. The fiscal impact analysis indicated that each single family home generates a negative fiscal impact of $400 to $700 per home. The County is considering implementation of a special tax to fund public services to new development. County of Yolo, Impact Fee Program Update: MuniFinancial is currently engaged by Yolo County to prepare a 5 -year update of the County's impact fee program. Our study will examine currently authorized elements (Probation; Social Services; Health Services; Libraries (including the City of Davis); Sheriff; District Attorney and Public Defender; General Administration; and Planning). We will also address facility needs for elements not currently authorized including Roads; Rural Parks; Open Space; Information Technology; City of Davis Branch Library. County of Solano Public Facilities Fee: MuniFinancial prepared a 2004 Public Facilities Fee Update for Solano County in April 2004. The study was an inflation update of the previous complete update to public facilities fee program. It documented the cost in 2004 dollars of expanding public facilities to serve new development while maintaining the existing standard per capita. New development's fair share contribution of these costs was calculated in the form of a public facilities fee. We also prepared a 2005 inflation update for all fee categories, including: Countywide Public Protection; Health and Social Services; Library; General Government; Sheriffs Patrol and Investigation; and Courts County of Kings, Public Facilities Impact Fee Study: As part of a public facilities impact fee study in 2004, MuniFinancial assisted the County of Kings by preparing documentation to enable the County impose a public facilities fee to fund library facilities to accommodate new development. The Kings County provides countywide library services. The report presented an analysis of the need for facilities to accommodate development throughout the unincorporated areas of the County of Kings. It also supported the County's request that incorporated cities within the County implement County impact fees on the County's behalf. City of Stockton, Public Facilities Fee Update: The City of Stockton adopted its original fee program in 1988. The fees were not increased until 2003 when MuniFinancial assisted the City with an inflation increase of the fee program. In 2004 we completed a full update of the fee program identifying facilities and improvements needed to serve future development and the relevant unit cost estimates. Fee areas included: Transportation Facilities; Park Facilities, Fire Facilities; Police Facilities; City Hall Facilities; Community Center Facilities; and Library Facilities. Page 15 E MuniFinancial .. City of Gilroy, Public Facilities and Infrastructure Financing Program: The City of Gilroy was faced with the challenge of funding facilities to accommodate growth through nine different impact fee revenue streams. The restrictions on each fee limited the City's flexibility to meet the needs of a community estimated to double in size over the next 40 years. MuniFinancial developed a creative approach to the fee program that combined five of the nine fees into a single public facilities fee to fund and fire, general government, libraries, parks, and police, facilities. The statutory findings required for the fee were based on an extensive and detailed analysis of the City's land, building, and equipment inventory and projects included in its long -range capital improvement budget. The fee totaled $16,200 per dwelling unit and will provide $305 million in funding. City of Fresno, Urban Growth Management (UGM) Program Re- Engineering: Fresno's UGM program was a state -of -the -art funding program for public facilities at the time of its adoption in 1975. When the City engaged MuniFinancial the program was in jeopardy, suffering under the weight of its own complex facility funding system that included 120 active fee accounts. The program was not adequately funding developer credits, excluded large areas of the City, and lacked statutory findings. MuniFinancial conducted a policy analysis and provided technical expertise to enable the City to re- engineer its program, integrating the best aspects of "next generation" development impact fee programs. City of Kingsburg, Development Impact Fee Update: Working through City staff, MuniFinancial prepared a study identifying facilities and improvements needed to serve future development. Fee areas included: Transportation Facilities; Fire Facilities; Police Facilities; City Hall Facilities; and Specialized Recreation Facilities; Corporation Yard Facilities; Library Facilities; and Water Facilities. Countywide Traffic Mitigation Fee, Los Angeles County: MuniFinancial is participating in an ambitious project to develop a countywide transportation mitigation fee for Los Angeles County and all 88 cities in the County. The fee is being developed to fund critical funding gaps in the County's transportation program. The project included an extensive outreach effort through multiple channels (COGS, City Councils, individual meetings with key officials). City and County of San Francisco, Transit Development Impact Fee: The City and County of San Francisco pioneered the use of impact fees to fund transit facilities and services in the 1980s. The City contracted with MuniFinancial as part of a team led by Nelson \Nygaard to update and expand the fee that had been limited to office development in the downtown only. We developed the nexus analysis to expand the fee citywide and impose it on all nonresidential land uses. MuniFinancial developed a simple but defensible approach to the statutory reasonable relationship requirements for impact fees that resulted in a tripling of revenue to the City. Page 16 EMuniFinancial 3553. PROJECT SCHEDULE We will deliver the draft report tables described at the beginning of Task 6 within four months after receiving authorization to proceed. We will deliver the administrative draft report within one month following review and approval by City staff of the report tables. We will develop specific project timelines following consultation with and in concert with City staff. We can work with the City to shorten this schedule if necessary. M MuniFinancial Page 17 3553. FEE FOR SERVICES MuniFinancial will complete the scope of services described in this proposal for a fixed price fee of $38,500. This fee includes direct expenses incurred during the course of work, including travel expenses and materials. Additional assumptions are discussed below. The City can fund the cost of the study with revenue from development impact fees. Our proposed fee for services assumes the following: • This fee includes the following four facility categories: library, police, fire, and parks. Additional analysis beyond these facility fee program categories may require a cost adjustment. • We will not need to provide engineering expertise to update facility cost estimates. • This fee includes a total of three (3) meetings or presentations. Additional meetings may be requested for an additional fee. We will invoice the City of El Segundo no more than monthly based on percent completion by task. Invoices will include a description of services as well as a summary of costs to date by task. MMun!Financial Page 18 3 5 5 3 - K` Al PROJECT TEAM THE CITY OF EL SEGUNDO'S TEAM Mr. Robert Spencer, a Principal Consultant in the Oakland Office of MuniFinancial's Financial Consulting Services Group, will be the Principal -in- Charge of the study. He will oversee the quality of work products and assure timely completion of the project. He will also provide technical oversight to the project. Mr. Spencer has more than 19 years of infrastructure financing and impact fee experience consulting to local agencies throughout California. We propose Mr. Joshua Polston, AICP, as Project Manager. Mr. Polston is a Senior Project Manager in Financial Consulting Services at MuniFinancial. He will organize and direct consultant tasks, provide quality control for work products and ensure that the deliverables are completed on time and within budget. He will be the City's day -to -day contact and will be present at key meetings. Additional analytical support will be provided by Mr. Jeffrey Kay, assisted by staff analysts in our Oakland office, as needed. PROJECT MANAGEMENT As a successful consulting firm, we understand the importance of project management and team support. MuniFinancial has successfully guided diverse consultant teams through many projects for the benefit of our clients. The goal of project management is to achieve the client's objectives on schedule and within budget. To accomplish this, we employ a variety of tools to monitor project status and to establish effective communication with the client and between project team members. Project Monitoring. The project manager monitors budget status through our online accounting system. The system captures project labor costs, overhead and direct expenses on a weekly basis. Project managers continually monitor the budget and compare costs to work performed to date. In our experience, the system is an invaluable tool for reducing cost overruns and budget amendments, a tool often not found in other consulting firms. Financial Consulting Services principals and project managers meet weekly to assess the status of each project and to direct staff. These weekly meetings allow staffing constraints to be identified early and resources reallocated to keep projects on budget and on schedule. These meetings also provide a forum for applying the group's collective expertise to solving difficult analytical issues that arise in complex projects. Client Communication. To remain informed about project status, clients can choose among several communication options based on their preferences. We can provide regular updates by e -mail, phone call, meetings, or project status memos. The status memo is particularly effective because it documents work completed to date, status of remaining tasks, and identification of outstanding issues that require input from the client. EMuniFinancial Page 19 0 z�53• 0. Quality Control. The principal in charge and project manager assigned to the project provide quality control and quality assurance. The project manager reviews interim and final work products before transmittal to the client to ensure that they meet MuniFinancial's quality standards. The principal in charge reviews the final work product, including reports and quantitative models, to provide a second level of quality control and assurance. We are confident that our experienced team will provide the levels of attention and work performance that the City of El Segundo desires. We encourage you to contact our client references regarding our commitment to personal service and performance. Team member resumes follow for your review. Page 20 EMuniFinancial 3553 • . :. 19 Years Experience ROBERT D.SPENCER Areas of Expertise CONSULTANT Robert Spencer is a Principal Consultant in the Financial Consulting Services Group at MuniFinancial. He is an economist with extensive experience assisting public agencies with the development of sound financial and economic policies. Much of his work is related to infrastructure financing and public services funding to serve a community's growth or revitalization. Based on this expertise, Mr. Spencer has assisted agencies with land use policy, growth Project Highlights management, economic development, and business regulation. Related Experience �. Development Impact Fees . Mr. Spencer is one of California's leading experts on development impact fee programs. He has broad experience reviewing and structuring impact fee programs for cities, counties, special districts, Education and school districts. For these clients he has provided nexus documentation to support fees funding a full range of public facilities, including utilities (water, wastewater and storm drainage), roadways and transit, parks, fire, police, and administrative offices. He has also developed innovative analyses for fees that fund habitat conservation and affordable housing. His expertise has led clients to engage him as an expert witness in defending their fee programs. Most of the impact fee studies that Mr. Spencer has managed have included participation by developers and presentations to elected officials. Mr. Spencer has also assisted clients with some of the most challenging impact fee programs — implementation of a single fee across multiple jurisdictions to fund regional facilities. Mr. Spencer has managed multi- jurisdictional fee studies for the Counties of El Dorado, Fresno, Los Angeles, San Luis Obispo, Solano, and for the Alameda and Santa Clara County Congestion Management Agencies. The largest of these studies (Los Angeles) required Mr. Spencer to Professional develop a strategy for and manage the participation of all 88 cities and Affiliations the County of Los Angeles through the client, the Los Angeles Metropolitan Transportation Authority. Clients have also engaged Mr. Spencer to examine critical policy issues often raised by impact fee programs. A common concern is the effect of fees on economic development objectives. In this regard, Mr. „ Spencer has performed market studies that evaluated the effect of impact fees on specific development projects, and on the overall ability of a city to attract new development. He has conducted detailed fee surveys to provide clients with a comparison of impact fee programs and public facility funding methods used by their competitors for economic development. Clients have included the cities of Fremont and Roseville, and the County of Placer. Page 21 E W WFinancial Teaching and Speaking Experience i; E MuniFinancial 3553•..1 Capital Facility and Infrastructure Financing Mr. Spencer is an expert in capital facility and infrastructure financing, fiscal impact analysis, special district formation, and economic development programs. He speaks regularly on topics such as defensible impact fee programs and successful strategies for Proposition 218 mail ballot elections. A sample of Mr. Spencer's recent experience includes: • Specific Plan Financing Review, County of Tehama: Developer of a 3,700 -unit project provided the County with a public facilities financing plan and fiscal impact study. Conducted a peer review of these documents, provided direction to the developer's consultant to revise assumptions and approach, and assisted with negotiations related to service delivery, tax sharing, and governance structures. Developed an approach for public service funding accepted by the developer that should result in significant positive fiscal impacts to the General Fund. • Wastewater Financing Plans, City of Stockton: Principal in charge and project manager on several financing plans for wastewater infrastructure to serve developing areas. The plans included long -range developed projections, cash flow modeling, and justification of a connection fee to fund debt service on wastewater revenue bonds. • South Sutter County Financing Plan, Sutter County: Managed project to develop a $300 million financing plan for 3,500 acres planned for commercial and industrial development. Included absorption and financial feasibility analyses. • Development Impact Fee Program, City of Redding: Managed project to develop comprehensive impact fee program for the City of Redding that includes storm drain, water, sewer, parks, fire, and transportation facilities. Special attention was paid to the development of a financing plan for the storm drain and other utilities because of the lack of updated plans and the need for immediate funding. Fiscal Impact Analysis Mr. Spencer has managed over 40 fiscal impact studies for a broad range of public agency clients. He focuses on helping clients understand the economic implications of land use policy decisions. Mr. Spencer has also managed the development of proprietary fiscal impact analysis software to provide clients with a user - friendly program designed to help them conduct their own fiscal impact studies. Much of Mr. Spencer's fiscal impact analysis work has been as an "honest broker," providing objective analysis to both sides (city and county) in property tax sharing negotiations for annexations and incorporations. Page 22 10 Years Experience Areas of expertise Project Highlights Education Professional Affiliations /Licenses �cjnu)If�l?�riir�u. r _ u��l E WWFinancial 3553. � JOSHUA POLSTON, A.I.C.P. SENIOR PROJECT MANAGER Joshua Polston is a Senior Project Manager in the Financial Consulting Services Group at MuniFinancial. His background is in urban planning, public finance and consulting for local government and special districts. He specializes in fiscal analysis and financial services to local agencies. Based on this expertise, Mr. Polston has assisted agencies with land use policy, strategic planning, and financial consulting services. Prior to joining MuniFinancial, Mr. Polston gained over nine years of experience working for federal and local government and private industry, including staff positions within the County of San Mateo, U.S. EPA Region 9, San Francisco Airport Commission, and Booz Allen Hamilton. He consulted on aviation finance issues for clients in Michigan, Texas, and California, focused on strategic planning issues for the EPA and served as a land use planner with San Mateo County. Related Experience Impact Fee and Fiscal Analysis Studies A sample of Mr. Polston's recent fiscal studies include • City of South San Francisco: Project manager on a traffic impact fee to accommodate new development in the East of 101 Area in the City of South San Francisco. • City of Stockton: Project manager on a traffic impact fee update to accommodate new development in the Eight Mile Road Area in the City of Stockton. • County of El Dorado: Served as project manager for a complex program update to the countywide traffic impact fee program. Tasks included resolution of policy decisions on allocation of share and burden, population and land use forecasts under two different growth scenarios, and programming of available funds to meet countywide needs. • City of Hercules: Mr. Polston was project manager for a growth limit initiative fiscal analysis study for the City of Hercules. The study examined the fiscal, capital and job /housing impacts under a variety of development scenarios. • Contra Costa Fire District: Project manager for the study to establish development impact fees for a large and diverse fire district in Contra Costa County. • City of Manteca: Project manager on a study of the net fiscal impacts of new development on City government services. Page 23 Teaching and Speaking Experience WMuniFinancial 3 5 5 3 . "_'7 • City of Hawthorne: Project manager for the study to update development impact fees for a large and built -out city in Los Angeles County. Financial and Policy Analysis /Modeling Mr. Polston has a range of experience assisting clients with financial analysis and modeling. • City of Monterey, Mr. Polston served as project manager on a comprehensive assessment of the City's affordable housing ordinance looking at various scenarios for the production of affordable housing units. • Airport Financial Model, Detroit Metro Airport (DTW): Mr. Polston was consultant in charge of a project to build a financial model to compare various development scenarios at DTW. The model was an integral tool in ongoing complex negotiations between the Airport and signatory airlines. • Federal Aviation Administration: Mr. Polston led an award process for the annual selection of $300M in discretionary funds under the Airport Improvement Program (AIP). • Detroit Metro Airport (DTW): Mr. Polston created a cash position model for the DTW airport. This model was integral in keeping the Airport current in evaluating its fiscal position after the 9/11 terrorist attacks, which placed significant financial burdens on the organization. Special District Services • County Service Area Formation; County of Sacramento, CA: Developed and implemented the strategy for forming a County Service Area to fund the ongoing operating costs of police services for a Specific Plan Area in Sacramento County. Public Involvement Member, Berkeley Citizen's Budget Review Commission, Appointed by Councilwoman Mim Hawley 2002 Member, Peninsula Joint Powers Board (Caltrain) Citizen's Advisory Committee, Appointed by the Mayor of San Francisco, 1992 Page 24 Areas of expertise Project Highlights Education r Professional Affiliations i rr 3553•,:x' JEFFREY KAY ANALYST II Jeffrey Kay is an Analyst II in Financial Consulting Services at MuniFinancial, and works from the firm's Oakland office. His responsibilities include supporting Project Managers on development impact fee studies and preparing fiscal impact analyses. Prior to joining MuniFinancial, Mr. Kay worked as a research analyst for the Urban Strategies Council in Oakland, CA, where he specialized in issues related to capacity building in low- income neighborhoods. His responsibilities included collecting and analyzing statistical data from a variety of sources pertaining to economic opportunity, housing, crime, and real estate development in the Bay Area. Mr. Kay also worked with the Orange County (North Carolina) Economic Development Commission and conducted extensive GIS analysis of developable land and use buffers in three economic development districts in the county. Mr. Kay has considerable information technology experience and is skilled in GIS analysis and presentation using the ArcGIS software suite as well as economic modeling using IMPLAN. His experience with web site design includes large -scale web site development projects encompassing product development, interface design, and template development, along with project management and execution tasks. Related Experience Development Impact Fees • City of Hawthorne: Supporting analyst for a study updating five development impact fees for a large and built -out city in Los Angeles County. • City of Oxnard: Supporting analyst for a study of a development impact fee for traffic facilities. EMuniFinancial Page 25 3553. CLIENT REFERENCES Client relationships are extremely important to us. We encourage you to contact any or all of the clients listed below regarding our commitment to personalized service and performance. MMuniFinancial Page 26 3553 MuniFinancial 1700 Broadway, Sixth Floor, Oakland, California 94612