17-1205_NBS GOVERNMENT FINANCE GROUP_F11_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: ~njamin Siegel, City Manager
SUBMITTED BY: Ken Al-lmam, Chief Financial Officer ttV
DATE: December 5, 2017
12/5/2017
F11
SUBJECT: Consideration of a Fourth Amendment to the Personal Services
Agreement with NBS Government Finance Group for the City's User Fee
Study
RECOMMENDATION:
Approve and authorize the City Manager to execute the Fourth Amendment (Attachment 1) to
the Personal Services Agreement with NBS Government Finance Group, extending the term
of the Agreement to update the City's comprehensive user fee study.
EXECUTIVE SUMMARY:
On November 15, 2016, the City Council approved an amendment to the City's Personal
Services Agreement with NBS Government Finance Group in order to update the City's
comprehensive user fee study. That amendment extended the term of the agreement to
December 31, 2017. NBS Government Finance Group has compiled the data necessary to
support the updated user fee study and has presented to staff the results of their work. After
staff has completed its review of this data, staff will bring the final version of the user fee
study to City Council. An extension to the agreement is requested to accommodate the time
needed to complete staff's review of the study.
DISCUSSION/ANALYSIS:
On October 2, 2012, the City Council approved an agreement with NBS Government Finance
Group to conduct a comprehensive user fee study. On August 8, 2014, the consultant
provided a draft report to staff. On November 15, 2016, the City Council appropriated
City Council Agenda Report
December 5, 2017
Page 2 of 2
$27,200 to update the initial study (which had been based upon operational data applicable
to Fiscal Year 2012-13) and to extend the consultant agreement to December 31 , 2017 .
NBS Government Finance Group has compiled the data necessary to support the updated
user fee study and has presented to staff the results of their work. Staff is in the process of
reviewing the results of the consultant's work. After staff has completed its review, the
consultant will provide the City with its report. Staff plans to bring this report to City Council
with a recommendation as to any changes in City fees as a part of staff's work plan in 2018.
FISCAL IMPACT:
The recommended action will extend the term of the agreement without adding to the cost of
contracted services.
ENVIRONMENTAL IMPACT:
Not applicable .
PRIOR CITY COUNCIL REVIEW :
• On October 2, 2012, the City Council approved a Personal Services Agreement with
NBS Government Finance Group.
• On December 17, 2013, the City Council approved the First Amendment to the
Personal Services Agreement with NBS Government Finance Group.
• On August 17, 2016, the City Manager executed the Second Amendment to the
Personal Services Agreement with NBS Government Finance Group .
• On November 15, 2016, the City Council approved the Third Amendment to the
Personal Services Agreement with NBS Government Finance Group .
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
Not applicable.
NOTIFICATION:
Greta Davis, NBS Government Finance Group
ATTACHMENTS:
Attachment 1 -Fourth Amendment to the Agreement
Attachment 2 -Third Amendment to the Agreement.
Attachment 3 -Second Amendment to the Agreement
Attachment 4 -First Amendment to the Agreement
Attachment 5 -Agreement with NBS Government Financial Group
FOURTH AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS AMENDMENT to the Personal Services Agreement between the City of
San Juan Capistrano ("City") and NBS Government Finance Group, dba NBS
("Consultant") is made and entered into, to be effective the 5th day of December, 2017,
as follows:
RECITALS
WHEREAS, the City has retained the services of Consultant to develop a Cost
Allocation Plan and conduct a City-wide User Fee and Rate Study pursuant to that
Agreement dated as of October 2, 2012; and,
WHEREAS, the City and Consultant desire to amend the terms of the Agreement
as provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants
contained therein, City and Consultant agree to amend the Agreement between City
and Consultant as follows:
Section 1-Term
This Agreement is extended and shall terminate no later than December 31 ,
2018 .
All other provisions of the Agreement not amended hereunder shall remain in full force
and effect.
(SIGNATURE PAGE FOLLOWS)
ATTACHMENT 1 Page 1 of 2
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
ATTEST:
By: ________________________ _
Maria Morris, City Clerk
APPROVED AS TO FORM :
BY: ------------------------Jeffrey Ballinger, City Attorney
CITY OF SAN JUAN CAPISTRANO
By: ______ ~----~---------
Benjamin Siegel, City Manager
CONSULTANT
By: ______________________ __
Michael Rentner, President & CEO
ATTACHMENT 1 Page 2 of 2
THIRD AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS AMENDMENT to the Personal Services Agreement between the City of
San Juan Cap istrano ("C ity") and NBS Government Finance Group, dba NBS
("Consultant") is made a nd entered in to, to be effective the 15th day of Nove mber, 2016,
as follows:
RECITALS
WHEREAS, the City has retained the services of Consultant to develop a Cost
Allocation Plan and conduct a City-wide User Fee and Rate Study pursuant to that
Agreement dated as of October 2, 2012; and
WHEREAS, the City and Consultant desire to amend the terms of the Agreement
as provided hereunder.
AMENDMENT
NOW, THEREFORE , in consideration of the promises and mutual covenants
contained therein, City and Consultant agree to amend the Agreement between City
and Consultant as follows:
Section 1 -Sco pe of Work
The scope of work to be performed by the Consultant shall be amended to
include an update of the Cost Allocation Plan and City-wide User Fee and Rate Study to
reflect budgeted data for the fiscal year ended June 30, 2017 with respect to the
number of full-time equivalents and increases in the cost of expenses. After receiving
feedback from departments as to fee adjustments and fees to be added to the study,
Consultant will provide one additional iterative review for each of the departments. If
needed, up to one department can make more substantive changes with respect to time
estimates and staffing allocations. An additional iterative review will be provided for the
final report with respect to changes in the narrative section of the report. Consultant will
provide two community stakeholder or public meetings. The Consultant will also provide
fee information for five other cities for comparison with the fees developed as a result of
this study.
Section 2 -Term
This Agreement is extended and shall terminate no later than December 31,
2017 .
ATTACHMENT 2 Page 1 of 3
Section 3 -Compensation
3.1 Amount.
Total compensation for the services for the Cost Allocation Plan and City-Wide
User Fee and Rate Study hereunder shall not exceed $63,840.
Section 14.5-Errors and Omissions Coverage
At all times during the performance of the work under this Agreement the
Consultant shall maintain professional liability or Errors and Omissions insurance
appropriate to its profession, in a form and with insurance companies acceptable to the
City in the amount of $2 million per occurrence and in the aggregate. This insurance
shall be endorsed to include contractual liability applicable to this Agreement and shall
be written on a policy form coverage specifically designed to protect against acts, errors
or omissions of the Consultant. "Covered Professional SeiVices" as designated in the
policy must specifically include work performed under this Agreement. The policy must
"pay on behalf of' the insured and must include a provision establishing the insurer's
duty to defend.
All other provisions of the Agreement not amended hereunder shall remain in full force
and effect.
(SIGNATURE PAGE FOLLOWS)
ATTACHMENT 2 Page 2 of 3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
CONSULTANT
By:/11/6
Michael Rentner, President & CEO
8 ~~3~ Jere B~nger litYAttorney
ATTACHMENT 2 Page 3 of 3
SECOND AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS AMENDMENT to the Personal Services Agreement between the City of
San Juan Capistrano ecity") and NBS Govemment Finance Group, dba NBS
("Consultanr) is made and entered Into, to be effective the 17th day of August, 2016, as
follows:
RECITALS
WHEREAS, the City has retained the services of Consultant to develop a Cost
Allocation Plan and conduct a City-wide User Fee and Rate Study pursuant to that
Agreement dated as of October 2, 2012; and
WHEREAS, the City and Consultant desire to amend the terms of the Agreement
as provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants
contained therein, City and Consultant agree to amend the Agreement between City
and Consultant as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall be amended to
Include an update of the Cost Allocation Plan and City-wide User Fee and Rate Study to
reflect budgeted data for the fiscal year ended June 30, 2017 with respect to the
number of full-time equivalents and increases In the cost of expenses . Assistance with
implementation and stakeholder meetings are not included in the amended scope of
work .
Section 2. !!m:!.
This Agreement is extended and shall terminate no later than June 30,2017.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services for the Cost Allocation Plan and City-Wide
User Fee and Rate Study hereunder shall not exceed $44,640.
All other provisions of the Agreement not amended hereunder shall remain in full
force and effect.
(SIGNATURE PAGE FOLLOWS)
ATTACHMENT 3 Page 1 of 3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
CONSUL ANT
By; /I~/;,(
Mi cha e 'Rent er, President & CEO
ATTEST;
APPROVED AS TO FORM:
ATTACHMENT 3 Page 2 of3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
AITEST:
By: ______________________ _
Maria Morris, City Clerk
APPROVED AS TO FORM:
BY:
~--~=---~=-=--------Jeffrey Ballinger, City Attorney
CITY OF SAN JUAN CAPISTRANO
By:=---------~----------Benjamin Siegel, City Manager
CONSULTANT
By:-/J(Y!fS,
Michael Rentner, President & CEO
ATTACHMENT 3 Page 3 of 3
FIRST AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS AMENDMENT to the Personal Services Agreement between the City of
San Juan Capistrano ("City") and NBS Government Finance Group, dba NBS
("Consultant") is made and entered into, to be effective the 171h day of December, 2013,
as follows:
RECITALS
WHEREAS, the City has retained the services of Consultant to develop a Cost
Allocation Plan and conduct a City-wide User Fee and Rate Study pursuant to that
Agreement dated as of October 2 , 2012; and
WHEREAS, the City and Consultant desire to amend the terms of the Agreement
as provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants
contained therein, City and Consultant agree to amend the Agreement between City
and Consultant as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall be amended to
include those tasks as set forth in Exhibit "A" attached and incorporated herein by
reference.
Section 2. Term.
This Agreement is extended and shall terminate no later than June 30, 2014.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services for the Cost Allocation Plan and City-Wide
User Fee and Rate Study hereunder shall not exceed $36,640 .
All other provisions of the Agreement not amended hereunder shall remain in full
force and effect.
(SIGNATURE PAGE FOLLOWS)
ATTACHMENT 4 Page 1 of 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
CONSULTANT
By fl/Lr~
Michael Rentner, President & CEO
APPROVED AS TO FORM :
ATTACHMENT 4 Page 2 of 4
2)NBS
32605 Ternecula Parkway, Surle iOO
Temecula. CA 92592
Toll free: 800 676 7516 (P\951 296 1Wl7
{F) 951.291).1998
nbsgov.com
Scope of Services for: San Juan Capistrano User Fee-Rate Study-Update Hourly Rates:
The City has requested to update the hourly rates from the composite rates for each division or
department to one of two options: A) composite rates for core functions of service within divisions (ie ,
plan check or inspection) or B) composite rates for different classifications of employee within each
division.
As a result of the hourly rate revision, the fee structure design and time study will require updating as
well, therefore these tasks have been included as follows :
Fee Model Revision
A. Revise Fee Model and Time Study Data
Conduct onsite interview events with individual divisions -and potentially small groups within
each division -to revise the time information based on the updated methodology for either
composite rates by function or classification of employee necessary for justifying fees .
B. Prepare Iterations and Time Study Module
After acquiring revised time data , determine any necessary secondary course of action to
continue and/or refine time data. One to two iterations of the time and service analysis may be
required to ensure that the cost of service analysis is defensible and reasonable . It is important
that the sum product of volumetric and service level estimates do not exceed available staffing
and expenditure resources. Iterative efforts will be manageable through the use of highly-
concentrated/targeted remote questionnaires , which will be routed to the appropriate divisional
personnel. The product of this sub-task will be a model of the complete organizational,
performance , and time requirements for the services under review in this study .
Revise Time Valuation
The purpose of this task is to revise the value on an increment of time from the division/department level
to A .) core function, or B) classification of employee performing any of the services under review in this
study . Sub-tasks are as follows:
A. Revise Time/Cost Module
As part of the Microsoft Excel -based fee/cost of service model to be delivered to the City at the
conclusion of the project , the module requires revisions for the time valuation analysis. This
module will determine the full cost of service on an annual basis for each division, for various
functions of service, and A) for core functions within a division, or B) by classification of
personnel.
B. Revise the Previously Developed Fully-burdened Hourly Rates
Re-Calculate fully-burdened hourly rates for all divisions directly involved in the provision of the
services under review in this study . Hourly rates will be computed: A) composite rates for core
functions of service within divisions , or B) composite rates for different classifications of
employee with in each division .
helping communities fund tomorrow
EXHIBIT A-Page 1 of 2
ATTACHMENT 4 Pa ge 3 of 4
1 - 2
Revise the Cost of SeiVice Analysis
Revise the full cost of service necessary based on the revisions to the hourly rates for each individual
activity under review in this study. The full cost of service defined by NBS serves as the analytically-
justified maximum amount that may be recovered through a user/regulatory fee adopted solely by the
City Council.
Scope of Services to be billed on an hourly basis for actual work performed , not to exceed $5,850 as
illustrated on below:
Exhibit C: Project Budget Estimate for Fee Study-Hourly Rate & lime Estimate Update
PROJECT COST DETAIL Consultant Labor (Hours) Grand Totals
Project Senior Consultant Consultant
Task Plan Manager Consu l tant Labor (Hours) Costs($)
Hourly Rate $205 $160
Fee Model Revision
A. Revi se Fee Model and Condu ct time study -12 .0 12 .0 1,920
B. Prepare iterations a n d t ime study modu l e -4 .0 4 .0 640 ---
Subtotal 16.0 16.0 2,560
Milestone/Deliverable: Fee structure, time estimate revision, review and
confirmation
Revise lime Valuation
A. Revi se time/co st mo dul e -2 .0 2.0 320
B. Revise f ully-burdened hourly rates 1 .0 4.0 5.0 845
Subtotal 1.0 6 .0 7 .0 1,165
Milestone/Deliverable: Cost and Fully Burdened Hourly Rate review and confirmation
Cost of Service Analysis
A. Conduct divi sion a l meetings I r evi sion s -8.0 8 .0 1,28 0
B. Revis e ti me/co st/activity modules 1.0 4.0 5 .0 845
Subtotal 1.0 12.0 13.0 2,125
Milestone/Deliverable: On-site review meetings to refine cost; preliminary
draft review and revisions; review draft comparative study; develop
recommended fees
GRAND TOTAL NOT TO EX CEE D 2.0 34.0 36.0 5,850
Scope of Se tvitu
User Fee and Rate Study Update for the City of San Juan Capistrano
Prepared by NBS-November 27, 2013
EXHIBIT A-Page 2 of 2
ATTACHMENT 4 Page 4 of 4
PERSONAl SERVICES AGREEMENT
THIS AG R E EM -N is rna e , e r tered into, and shall become effective this ~:\. ay
of l _, 2 0 12, by a nd between the C ity of San Juan Capistrano (hereinafter referred to
as t he "C ity") and N BS Governme nt Finance Group, DBA NBS (hereinafter referred to as
the "Consultant").
RECITAL~:
WHEREAS, City desires to retain the services of the Consultant regarding the City's
proposal to develop a Cost Allocation Plan and conduct a City-wide User Fee and Rate
Study; and,
WHEREAS, the City also desires to retain the services of Consultant to review and
recommend updates to the City's Park & Recreation and Capistrano Circulation Fee
Program Fees; and,
WHEREAS, Consultant is qualified by virtue of experience, training, education and
expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall consist of those tasks as
set forth in Exhibits "A" and "B" attached and incorporated herein by reference. To the
extent that there are any conflicts between the provisions described in Exhibits "A" and "B"
and those provisions contained within this Agreement, the provisions in this Agreement
shall control. The scope of work to be performed will not include the optional services, to
perform an "Art in Public Places In-Lieu Fee Analysis" as set forth in Exhibit "B ."
Section 2. Term .
This Agreement shall commence on the effective date and shall terminate, and all
services required hereunder shall be completed, no later than June 30, 2013.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services for the Cost Allocation Plan and City-
Wide User Fee and Rate Study hereunder shall not exceed $30,790, including expenses
as set forth in Exhibit "A". Total compensation for the review and update of the City's Park
and Recreation and Capistrano Circulation Fee Program Fees hereunder shall not exceed
$18,280, including expenses, as set forth in Exhibit "B", by reference.
1
ATTACHMENT 5 Page 1 of 23
3.2 Method of Payment.
Subject to Section 3.1, Consultant shall submit invoices based on the total
services which have been satisfactorily completed and as outlined in Exhibits "A" and "8"
The City will pay approved invoices in accordance with this Section .
3.3 Records of Expenses.
Consultant shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be made
available at reasonable times to the City. Invoices shall be addressed as provided for in
Section 16 below.
Section 4. Independent Contractor.
It is agreed that Consultant shall act and be an independent contractor and not an
agent or employee of the City, and shall obtain no rights to any benefits which accrue to
City's employees.
Section 5. Lim itations U pon S u bcont1·a cting and Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals
and employees were a substantial inducement for the City to enter into this Agreement.
Consultant shall not contract with any other entity to perform the services required without
prior written approval of the City. This Agreement may not be assigned , voluntarily or by
operation of law, without the prior written approval of the City. If Consultant is permitted to
subcontract any part of this Agreement by City, Consultant shall be responsible to the City
for the acts and omissions of its subcontractor as it is for persons directly employed.
Nothing contained in this Agreement shall create any contractual relationships between
any subcontractor and City. All persons engaged in the work will be considered employees
of Consultant. City will deal directly with and will make all payments to Consultant.
Section 6. Changes to Scope of W ork.
For extra work not part of this Agreement, a written authorization from City is
required prior to Consultant undertaking any extra work. In the event of a change in the
Scope of Work provided for in the contract documents as requested by the City, the Parties
hereto shall execute an addendum to this Agreement setting forth with particularity all
terms of the new agreement, including but not limited to any additional Consultant's fees .
2
ATTACHMENT 5 Page 2 of 23
Section 7 . Fa milia ri ty with W o r k and/or Con str uctio n S i te .
By executing this Agreement, Consultant warrants that: (1) it has investigated the
work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of
all conditions there; and (3) it understands the facilities, difficulties and restrictions of the
work to be performed under this Agreement. Should Consultant discover any latent or
unknown conditions materially differing from those inherent in the work or as represented
by City, it shall immediately inform the City of this and shall not proceed with further work
under this Agreement until written instructions are received from the City.
Section 8. Time of Essence.
Time is of the essence in the performance of this Agreement.
Se cti o n 9. Com p li a n ce w i th L aw.
Consultant shall comply with all applicable laws, ordinances, codes and regulations
of federal, state and local government.
Section 10. Conflicts of Interest.
Consultant covenants that it presently has no interest and shall not acquire any
interest, direct or indirect, Which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such
interest shall be employed by or associated with Consultant.
Sec tion 11 . Copies of Work Product.
At the completion of the work, Consultant shall have delivered to City at least one
(1) printed copy of any final reports and/or notes or drawings containing Consultant's
findings, conclusions, and recommendations with any supporting documentation and an
electronic copy. All reports submitted to the City shall be in reproducible format, or in the
format otherwise approved by the City in writing.
Secti on 12. Owne r s hip of Docume nts.
A l l reports , information, dat a and exhibits prepared or assembled by Consultant in
connect ion with the performance of Its ser~ices pursuant to this Agreement are confidential
to the extent perm itted by law, and Consultant agrees that they shall not be made ava ilable
to any individual or organization without prior written consent of the City. All such reports,
information, data, and exhibits shall be the property ofthe City and shall be delivered to the
City upon demand without additional costs or expense to the City.
3
ATTACHMENT 5 Page 3 of 23
Section 13 . Indemn ity .
To the fullest extent permitted by law, Consultant agrees to protect, defend, and
hold harmless the City and its elective and appointive boards, officers, agents, and
employees from any and all claims, liabilities, expenses, or damages of any nature,
including attorneys' fees, for injury or death of any person, or damages of any nature,
including interferen ce with use of property, arising out of, or in any way connected wit h the
negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's
agents, officers, employees, subcontractors, or independent contractors hired by
Consultant in the performance of the Agreement. The only exception to Consultant's
responsibility to protect, defend, and hold harmless the City, is due to the active
negligence, recklessness and/or wrongful conduct of the City, or any of its elective or
appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any
insurance polici es are applicable. Any policy limits shall not act as a limitation upon the
amount of indemnification to be provided by Consultant.
Section 14. Insurance.
Before beginning any of the services or work called for by any term of this
Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration
of the agreement, and provide proof thereof that is acceptable to the City, the insurance
specified below with insurers and under forms of insurance satisfactory in all respects to
the City. Consultant shall not allow any subcontractor to commence work on any
subcontract until all insurance required of the Consultant has also been obtained for the
subcontractor. Insurance required herein shall be provided by Insurers in good standing
with the State of California and having a minimum Best's Guide Rating of A-Class VII or
better.
14.1 Comprehensive General Liability.
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive General Liability coverage in an amount not less than one
million dollars per occurrence ($1 ,00 0,000.00), combined single limit coverage for risks
assoc iated with the work contemplated by this Agreement. If a Commercial General
Li abili ty Ins urance form or other form with a general aggregate limit is used, either the
gene ral aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required occurrence
limit.
4
ATTACHMENT 5 Page 4 of 23
14.2 Comprehensive Automobile Liability.
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive Automobile Liability coverage, including owned, hired and non-
owned vehicles in an amount not less than one million dollars per occurrence
($1,000,000.00).
14.3 Workers' Compensation.
If Consultant intends to employ employees to perform services under this
Agreement, Consultant shall obtain and maintain, during the term of this Agreement,
Workers' Compensation Employer's Liability Insurance in the statutory amount as required
by state law. '
14.4 Proof of Insurance Requirements!Endorsement.
Prior to beginning any work under this Agreement, Consultant shall submit
the insurance certificates, including the deductible or self-retention amount, and an
additional insured endorsement nam ing City, its officers, employees, agents, and
volunteers as additional insured as respects each of the following: Liability arising out of
activities performed by or on behalf of Consultant, including the insured's general
supervision of Consultant; products and completed operations of Consultant; premises
owned, occupied or used by Consultant; or automobiles owned, leased, hired, or borrowed
by Consultant. The coverage shall contain no special limitations on the scope of protection
afforded City, its officers, employees, agents, or volunteers.
14.5 Errors and Omissions Coverage
Throughout the term of this Agreement, Consultant shall maintain Errors and
Omissions Coverage (professional liability coverage) in an amount of not less than One
Million Dollars ($1 ,000,000). Prior to beginning any work under this Agreement, Consultant
shall submit an insurance certificate to the City's General Counsel for certification that the
insurance requirements of this Agreement have been satisfied.
14.6 Notice of Cancellation/Termination of Insurance.
The above policy/policies shall not terminate, nor shall they be cancelled, nor
the coverages reduced, until after thirty (30) ·days' written notice is given to City, except that
ten (10) days' notice shall be given if there is a cancellation due to failure to pay a
premium.
14.7 Terms of Compensation.
Consultant shall not receive any compensation until all insurance provisions
have been satisfied.
5
ATTACHMENT 5 Page 5 of23
14.8 Notice to Proceed.
Consultant shall not proceed with any work under this Agreement until the
City has issued a written "Notice to Proceed" verifying that Consultant has complied with all
insurance requirements of this Agreement.
Section 15. Termination.
City shall have the right to terminate this Agreement without cause by giving thirty
(30) days' advance written notice of termination to Consultant.
In addition , this Agreement may be terminated by any party for cause by providing
ten (1 0) days' written notice to the other party of a material breach of contract. If the other
party does not cure the breach of contract, then the agreement may be terminated
subsequent to the ten (10) day cure period .
Section 16. Notice.
All notices shall be personally delivered or mailed to the below listed addresses, or
to such other addresses as may be designated by written notice. These addresses shall
be used for delivery of service of process:
To City:
To Consultant:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Cindy Russell, Chief Financial Officer/City Treasurer
NBS Government Finance Group, DBA NBS
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Attn: Michael Rentner, President & CEO
Section 17. Atto n e ys ' Fees .
If any action at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, expert
witness fees, costs and necessary disbursements in addition to any other relief to which he
may be entitled.
Section 18. Dispute Reso l ution.
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by bind i ng arbitration under
the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), Orange County
Office.
6
ATTACHMENT 5 Page 6 of 23
Sectio n 19. Entire A reement.
This Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
--
CIT~AN JUAN 1PIST RANO
By: ! ( 'J/VV~
Larry Kram e • Vl ayo r
CONSULTANT
NBS GOVERNMENT FINANCE GROUP
DBA NBS I
By: V/LYL
Michael Rentner, President & C EO
7
ATTACHMENT 5 Page 7 of 23
CHAPTER 5. FEE PROPOSAL
FEE PROPOSAL ------------------------------
NBS will co m plete the Scope of Service s outlined in Chapter 2 of this pro posal for a total
cost not to exc eed $30,790. A breakdown across all included proje ct scop es is sh own
below:
~re ~..-~~'"ii .... -':'ff.~:-.1 .-. ·-··-·· -~·· .•. "''·:fr!\,·•·~·1!'"'('··"· 1 -:'"':'...: ... ,.;; ,,~r~·,.::va co P • ·~-... ·.~. ·~-:·. -~ : .... :-~l'~ .... .. '\..-~v: · · .. ; ··.' · .. ·Amoll ~ -·~-\ •.. ..,\{·· .. ,.~.~ .. ~·-l".. .. ... \;., ':··-•to I! ..... ~.. 1".t:~!t' ·' •.. t-!' .• ":{ ... .:~ .. -.. ..... • 4 ~ .....
Deliverable #1, Cost Allocation Plan $8,790 ----
D elive rable #2, User Fe e and Rate Study $22,000
Total $30,790 -
These fees are base d on our understanding of the Cit y's needs and the effort we believe
is necess aty to complete the sc ope of services/task pl a n described.
Upon the City's review of our articulation of th e sr.ope of servrces and ou r suggested
work plan, N BS is w i ll ing to commit to tho fee as a nof -lo-exceed ~mount for he
ser vrc es described. ·r his means that N BS wi ll complete the project{s) following Chapter
2 of this documen! and at no l ime will w e invo1ce for charges in excess of th e fee to
which the C1ty of Sa n Jua n Capistrano and NBS mutua lly ag ree . Shou ld !he C1ty
specfflcally req uest additional se1vices b yo1 d those described in this documenl. we will
disct1ss those requests and ass ocia ted cost s at th t later time and on ly lnvor ce fo(
add1tiona l fees upon separate wri tten authorization from II e C ity .
NBS ha s used the following hourly rate s to derive the overa ll not-lo-e:xce · d pricing for
the requested scope of services . These hourly rates wilt app ly for the duration of our
contract:
Project Manager, $190 per hour
Senior Consultant, $150 per hour
Analyst; $100 per hour
N BS proposes to Invoice lhe City on a month ly basis , foll owing recorded consultant tune
on the project. para ll eling our completion of the w o rk . W ith a to ta l project timel ine
proposed lo over ap p rox nnately three m onths , we wll l li~e l y issue a total of th ree to four
invoices , w ith one Issued at !he cl se of e ar:h ca iMdar month. Total In voices submitted
will not ~xcee d the proj ect c os t p roposed in th is docum ent.
CONSULTANT LABOR EFFORT AND COST DETAIL
The fee proposed by N BS has been derived based on our estimate of the labor effort
req JJired to complete each task identified 1n the work p lan show n In our technic I
proposal. The tables a t the end of this doc umenl illustrate the d ta il d computation or
ow total consu lting fee , including labor distribution across phases and tasks of work for
our proj ect l e arn, hourly ra tes fo r each individ ual. a nd a small provision for direct
e~<penses we incur, pnmarily associal d wrth doc ument production .
We illustrate the detail of our fee estimate to express it honestly and transparently for
your consideration . It is based on our best understanding of the City's needs and our
exp eri e nce in o ther studies . However, should this fee estimate fall out s ide the C ity's
expectations, we would be glad for the opportunity to discuss the City's concerns, so we
might possibly gene rat e a scope of w ork and co nsulting fee that is mutually agreeable. . --Propo ra { /o Pr.pare tJ
Cos t Allocati on Pl an and Us e r Fee and Rate Study for th e City of Sa n Juan Capistrano
Prepared by NBS-February 24 , 2012
5,-1
ATTACHMENT 5 Page 8 of 23
5-2
Thank you for your time in considering our ideas. We hope to be your trusted guide
through this important work.
Exhibit A: Project Bl!dget Detail for Overhead cost Allocation Model
PROJECT COST DETAIL Consultant Labor (llours ) Grand Totals
Task Plan Project Senior Analyst Consul tlnt Consultant
f\1llniiCN Con sultant la bor lHO UI ~) Costs($) --lldU/Iy Rate $HO $I SO f-1011 --· ---------
Commencement Data Collection
A. Ga the r /analyze data o.s 1 .0 l.S $ 245
B. Identify Initial structure 0.5 1;5 2.0 320
C. Meet with City staff 1.0 ___ 2_.0 -3 .0 __ 4~ ------
Subtotal 2.0 ~s . 6.5 1,055
Ml~fto_n r:/l.h'liwll>ble: K/ck·o!f meeting
Con Allocation Model Development
A. Condud oreanlzatlonal review 1 .0 4.0 -5.0 790
B. Develop model 2.0 4.0 8.0 14.0 1,780
C. Prepare allocation factors 1.0 4 .0 8 .0 13.0 1,590
D. Input data o.s __2,Q _!Q 10.5 _..,.l,!~
Subtotal 4.5 14.0 24.0 42.5 s.~ss
MJiesron ojll;;:llvurab/e; CJry Review & Conjltmotfan ofP/an Struetwe
Derivation of Outcomes
A. Genera l annual allocations 1 .0 4 .0 4.0 9.0 1,190
B. Finalize Deliverable ---~,Q, ____i,Q ~ 9.0 ~
. Subtotal 2.0 8 .0 8 .0 18.0 2,380
M_lllli tl)/I~OeJI•ctall,/e:·Dri1ft •CI1St AI/Dcur/Oil ,Jan
GRII NO T01'AL NOrTO f XCEEO 9 27 31. 67 8,'/90
l'rvposnl fo P"fUm 11
Cost Allocation Plan and User Fee and Rate Study for th e City of San Juan Capistrano
Prepared by NBS-March 9, 2012
ATTACHMENT 5 Page 9 of 23
Exhibit B: Project Budget Detail for User Fees Study
PROJECT COST DETAIL Consultant labor (Hours) Grand Totals
Task Plan Project S~nior
Analyst
Con s ultant
Mn n>tr-l ConsultJnt L•uor II!<IU•S I
l/outly flo !~ __ ------s~ .)HO $J()(J ----
Commencoment Oat~ Collection
A. Conduct adrni nlstrative kick-off meeting 1.0 1.0 2 .0
8. GathN/analyze accessible data 0.5 ___ 1_.0 15 --
Subtotal 1.5 2.0 -3.5
Mile;tone/Dellverable: Kick-off meeting
Fee Structure Design and OtgoniLatlonal Analysis
A. Desien fee structure i divisional meetings 1.0 8 .0 4 .0 13.0
8 • Conduct time study 10 12.0 6,0 19.0
C. Prepare Iterations and time study modulo 1.0 6.0 _.!!:Q 15 .0
Subtotal 3.0 26.0 18,0 47.0
Mllestonl!jfJellv~roble: Fee structure, tim~ ~!/mate and volume dato review and
confirmation
Time Valuation
A Develop time/cost mooule l.O 8.0 B.O 17.0
B. Develop fully-burdened hourly rates 1.0 2.0 2.0 so
Subtotal z.o 10.0 10.0 22.0
Milestone/Deliveroble: Cost and FullyBurdenl!d Hourly Rate rt!lliew and conflrmotltm
Cost of Service Analysis
II Deter mine full cost of services 1 .5 8.0 4.0 13,5
B. Conduc1 divis i on a I meetings I revisions 1.0 8.0 4.0 14.0
C. Revlsetime/cost(activlty modules 1.0 4.0 4.0 9.0
D. Conduct comparotive tee survey 0.5 2.0 16.0 18.5
E. Develop recommended fees I policy 2.,0 ___ 6_.0 ~ --12.0
Subtotal 7.0 28.0 32.0 67.0
Milestone/Dellveroble: On-site rf!'ollew meetings to reflue cost; preliminary draft
roview ond f<:JJ!slons; review drpft comparative study; develop recommended fees
Documentation
A. Prepare/dis tribute dt<lft report 2.0 8.0 10£1
Ba Conduct omiite rneetlng, all parties 20 2.0 '),0
C.lss uefinai repo1t 0.5 ___ 2_.~ ~ ____ 4,~
Subtotal 45 12.0 2.0 18.5
M/le.stone/Oeliverable: Draft Urer Fee Report
legislative Process
Subtotal 1 .0 3 .0 4.0
Mlleston~/Del/11erable: City Council meeting and lcglslotive process support
Direct Expenses
Milestone/Deliverob/c: Final Report printing and shipping
GRA ND TO'fA L NOT TO EXCEE D 19.0 Bl.O 62.0 162.0
Projmw/ to P1~are <1
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS-February 24, 2012
--~·
Consultant
Casts .($.)
--
s 340
~
585
1,790
2,590
-~
6,270
2.190
-----~~2
2,880
1,885
1,980
1,190
1,995
~
8,730
1,580
680
-~
Z,855
640
40
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ATTACHMENT 5 Page 10 of23
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Derivation of Outcomes
Mils.slone/Deli verobte: Draft Cost Allocation Plan
CITYWIDE USER FEE;S STUDY
Fee Structure Design J Organizational Analysis
Milesrone/Deliveroble: Fee structure, time estimate and 11olume data re11iew and confirmation
Time Valuation
Milestone/Deliverable: Cost and Fully Burdened Hourly Rate review and conflrmatlon
Cost of Service Analysis
M/le$tonej0e/iveroble: ·on-site review meetings to refine cast; preliminary draft review and revisions; review draft comparative study; develop recommended fees
Documentation
'1/estone/Oeliverab/e: Draft User Fee Report
Legislative Process !January-February ZU13
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Co~tAilocation Model Development
Derivation of Outtomes
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Time Valuation
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nbsgov.com
'August 13,2012
Cindy Russell
Chief Financial Officer/City Treasurer
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Subject: Proposal to Conduct a Development Impact and Housing In-Lieu Fee Analysis
Dear Ms. Russell :
On behalf of NBS, Greta Davis and I thank you for last week's opportunity to discuss cost recovery
objectives re lated to impact fees for the Ciiy of San Juan Capistrano. Per your request, the following
proposal prese nts a work plan and cost estimate for these services.
I SCOPE OF SERVICES_]_ ________ ---_____ _
PMC, as a sub-consultant to NBS, will prepare a re port updating development impact fees to fund
de ve lo pment miligalions in accordance wilh lhe Mitigation Fee Act as contained in Government Code
(GC) Section 66000 et seq. Ba sed on our discussion with the City Finance Director, newer traffic impact
fees such as for auto dealerships have been perceived as being very h igh and are of concern to the
development community and stakeholdors.
Our scop e of services includes a review of the City's existing impact fees to determine whether the fees
are fai r and reasonable. This will include a review of the nexus findings previously made to justify the
existing fee rates. In addition, w e will coordinate our work with that of the NBS team to help clarify with
public stakeholders the technical and regulatory differences among the fees, rates and charges imposed
by the City.
We h vo separaled th e City's hous ing in-lieu developm ent fe e from the other exi sllng Impact fP.e due to
the differing natu re of how til es fees are to be updated . The following task plan provide PMC"s
approach and process toward the City's affordable hou si ng In -lieu fee program . We are aware that the
City's Hou sing Advisory Committee is developing alternative solulions !h al will help the city meet its
affordable ho using requirements while still encouraging developers to build. As part of our work effort, we
will review and eva luate these alternative solutions and make findings and sugges te d recomm endations.
helping communities fund tornorrow
EXHIBIT 8 • Page 1
ATTACHMENT 5 Page 13 of 23
I. TRAFF IC DEVEL OP MENT IM PACT FEE STUDY AND N EXU S REP OR T
PMC, as a subconsultant to NBS, will conduct a nexus study and prepare a report
updating the Capistrano Circulation Fee Program to fund traffic mitigations in
accordance with the Mitigation Fee Act as contained in Government Code (GC) Section
66000 et seq. PMC has also been asked to include in the nexus study the circulation
improvements identified in the Historic Town Center Master Plan.
Our scope of services includes a review of the City's existing circulation impact fees to
determine whether the fees are fair and reasonable. This will include a review of the
nexus findings previously made to justify the existing fee rates. In addition, we will
coordinate our work with that of the NBS team to help clarify with public stakeholders
the technical and regulatory differences among the fees, rates and charges imposed by
the City
T ask 1: Kick Off Mee tin g/Data Coll ec tion/ lakeholders
PMC will conduct a kick-off mee ting with City staff to make any refi ne ments to the
scope of work, schedule, and assignments. We will provi de an ov rvi ew of the study
schedule, facilities , methodology, and process for providing input. PMC will begin the
data gathering process by providing the City with an advance list of documents and
data that will be required by the consulting team. Data w ill be collected on the traffic
mitigation improvements identified in the following current traffic impact fee program
and master plan documents:
• Capistrano Circulation Fee Program
• Historic Town Center Master Plan
PMC's Project Manager will confirm communication protocols with the City and confirm
expectations and schedules for product deliverables.
T a sk 2: Id entify an d Add res s Po li cy Issues
In reviewing the justification for the current impact fees, PMC will identify and address
policy issues involved in formulating a development impact fee program. These issues
may involve, but not be limited to, the following:
• When the Impact fee applies;
• Level of Service standards;
• Cost and fee burdens shared between residential and non-residential land uses;
• Funding sources for existing deficiencies;
• Development time-horizon: either build-out or specific year;
• Prioritization of improvement projects to be funded by the impact fee;
EXHIBIT 8-Page 2
ATTACHMENT 5 Page 14 of 23
• Phasing of fee amounts and discounting for "pipeline" projects;
• Recoupment, waivers , and credits.
PMC will identify and report on other matters as appropriate that may arise during the
course of the project that PMC determines should be considered by the City.
Task 3: Id entify uture Develop ment by Land Us e Category
PMC wilr identify assumptions to be used in the calculation of future land uses in terms
of Equivalent Dwelling Units (EDU) that creates the demand for future traffic facilities
and improvements. PMC will refer to the land uses categories and land use capacity
and/or projections, at build-out or an agreed-upon horizon year, contained in the
General Plan and the Historic Town Center Master Plan, and related documents. PMC
will identify specific land use types and allocate costs in a rough proportionality to the
impacts arising from each land use type.
PMC will identify and describe the basis for assumptions regarding the existing level of
service in· the City for the identified facilities, including a general description of existing
facilities. PMC will also address the impact that new development will have upon the
level of service for exis tin g fac ili t ies including a description and analysis of any va ryin g
impacts cause d by re siden tia l development versus commercial and indu stria l
development.
The discussion will also address the impacts upon levels of service for new
development after the additional facilities are constructed.
Task 5: Deve lop Cost Estim a tes for Eligib le Improvements
Where available PMC will review the cost estimates and list of projects included in the
existing Capistrano Circulation Fee Program, and evaluate their relation to new
development. For the Historic Town Center Master Plan, PMC will prepare conceptual-
level cost estimates of all eligible improvements, or portions of improvements that are
to be included in the fee program. The estimates will include right-of-way acquisition (if
applicable), design, and construction. For some projects, credits arising from
developer construction may need to be capitalized into the improvement costs.
Tas k 6: Conduct a n Impact ee Co mpariso n
PMC will prepare a matrix of similar impact fees in adjacent and similar communities or
other jurisdictions to be suggested by City staff. We will conduct the comparison for up
to five (5) similar communities. The comparison is for information purposes, but will
also serve as a benchmark for further recommendations.
EXHIBIT B -Page 3
ATTACHMENT 5 Page 15 of23
I~_s k 7 : Conduct N exu s An.illY:§l.§
Should existing fees be updated, PMC will prepare the fee methodology for each facility
category in conform ance wlth GC 66000 et seq. that re quires local governments to
document findings in the following manner when adopting an impact fee:
1) Identify the purpose of the fee;
2) Identify the use of fee revenues;
3) Determine a reasonable relationship between the fee's use and the type of
development paying the fee;
4) Determine a reasonable relationship between the need for the fee and the type
of development paying the fee; and
5) Determine a reasonable relationship between the amount of the fee and the cost
of the facility attributable to development paying the fee.
Task 8: Prepare .and Submj!_ Draft Nexus Report
PMC will prepare a draft nexus report and submit an electronic copy in PDF format to
City staff for review. PMC will present and discuss the report's findings with City staff.
Task 9 : Prepare Fin a l Nexus ReportJAUend Publ!c Hea ring
Following staff's review and comment, we will prepare the final report. The Fina l Report
will summarize key results and findings, fee methodology, existing deficiencies, and fee
amounts. We will attend one {1) public hearing with the City Council to be coordinated
with the operational fee update (completed by NBS). Additiona l meetings may be
requested by City at which PMC will attend on a time and materials basis.
II. PARKS & R ECR ATION DEVE OPM ENT IMPACT FEE STUDY AND N EXUS
REPORT
PMC, as a subconsultant to NBS, will conduct a nexus study and prepare a report
updating developm ent impact fees to fund future park development as impact
mitigation in accordance with the Mitigation Fee Act as contained in Government Code
(GC) Section 66000 et seq ..
Our scope of services includes a review of the City's existing Park and Recreation
Facilities Development fees to determine whether the fees are fair and reasonable . This
will include a review of the nexus findings previously made to justify the existing fee
rates. In addition, we will coordinat e our work with that of the NBS team to help cl arify
with public stakeholders the technical and regulatory differences among the fees, rates
and charges imposed by the City
Task 1: Kick Off Meeting/Data Collection/Sta keholders
PMC will conduct a kick-off meeting with City staff to make any refinements to the
scope of work, schedule, and assignments. We will provide an overview of the study
EXHIBIT 8 -Page 4
ATTACHMENT 5 Page 16 of 23
schedule, facilities, methodology, and process for providing input. PMC will begin the
data gath ering process by provid ing the City with an advance list of documents and
data that will be re qu ired by th e consulting team. Data will be collected on existing
eligible park and recreation facilities.
PMC's Project Manager will confirm communication protocols with the City and confirm
expectations and schedules for product deliverables.
Tas k 2: Id enti"ry a nd Address Policy Issues
In reviewing the ju stification for the current imp act fee s , PMC will id e ntify and ad dress
policy issues involved in formul ati ng a developm en t impact f ee progra m. These issues
may involve, but not be limited to, the following:
• When the impact fee applies;
• Park acreage standard and facilities to include in the standard;
• Funding sources for existing deficiencies;
• Phasing of fee amounts and discounting for "pipeline" projects;
• Recoupment, waivers, and credits.
PMC will identify and report on other matters as appropriate that may arise during the
course of the project that PMC determines should be considered by the City.
Task 3: Identify Future Deve lopment by L nd Use Category
PMC will identify assumptions to be used in the calculation of future land uses in terms
of Equivalent Dwelling Units (EDU) that creates the demand for future park and
recreation facilities and improvements. PMC will refer to the land uses categories and
!and use capacity and/or projections, at build-out or an agreed-upon horizon year,
contained in the General Plan and related documents. PMC will identify specific
residential land use types and allocate costs in a rough proportionality to the impacts
arising from each land use type.
Task 4 : Id en tify and Analyz Le vels of Service
PMC will identify and describe the basis for a ssumptions r ega rding the exi sti hg level of
servi c e in the City for the existing p ar k f a cilities, includi ng a general descri ption of
existing facilities. PMC will also address the impact that new development will have
upon the level of service of existing facilities .
Task 5: Deve lop Cosl Estim ates for Eli gib le Im p rovements
We will review the cost estimates and list of projects included in the existing impact fee
programs, and evaluate their relation to new development. PMC will prepare proto-type
cost estimates for future parks needed to serve new development.
EXHIBIT 8 • Page 5
ATTACHMENT 5 Page 17 of23
Ta sk 6 : Conduct an Im pact Fee Com pariSOfl
PMC will prepare a matrix of impact fees in adjacent and similar communities or other
jurisdictions to be suggested by City staff. We will conduct the comparison for up to
five (5) similar communities. The comparison is for information purposes, but will also
serve as a benchmark for further recommendations.
ask 7 : Co nduct Nexus An alysis
Should existing fees be updated, PMC will prepare the fee methodology for each facility
category in conformance with GC 66000 et seq. that requires local governments to
document findings in the following manner when adopting an impact fee:
1) Identify the purpose of the fee;
2) Identify the use of fee revenues;
3) Determine a reasonable relationship between the fee's use and the type of
development paying the fee;
4) Determine a reasonable relationship between the need for the fee and the
type of development paying the fee; and
5) Determine a reasonable relationship between the amount of the fee and the
cost of the facility attributable to development paying the fee.
Task 8 : Prepare a nd Subrnil Draft Nexu s Report
PMC will prepare a draft nexus report and submit an electronic copy in PDF format to
City staff for review. PMC will present and discuss the report's findings with City staff.
Ta<>k 9 : Prepare Fina l Nexus Report/Attend Public Hearing
Following staff's review and comment, we will prepare the final report . The Final Report
will summarize key results and findings, fee methodology, existing deficiencies, and fee
amounts. We will attend one (1) public hearing with the City Council to be coordinated
with the Traffic Impact Fee Update, and/or operational fee update (completed by NBS).
Additional meetings may be requested by City at which PMC will attend on a time and
materials basis.
Ill. OPTIONAL SERVICE
Art i n Pub l ic Places In -Lieu Fee Analysis
While not classified as an impact fee, an in-lieu fee charged to new development to pay
for public art programs can enhance economic development and be funded by both the
public and private sectors. The majority of public art programs at the county and city
level are funded through a law or ordinance that sets aside a percentage of funds from
the construction budget of an eligible capital improvement project or private
development project. These "percent-for-art" mandates generally provide a percentage
of total eligible CIP costs or the value of private construction for the acquisition and
EXHIBIT B-Page 6
ATTACHMENT 5 Page 18 of23
commissioning of artworks. The in-lieu fee would be paid by the project developer in-
lieu of actual installation of an artwork of the specified valuation.
I ask ·1: Ki .k Off Meeti ng/Informatio n Gat hering
PMC will conduct a kick-off meeting with City staff to make any refinements to the scope
of work, schedule, and assignments for the Art in Public Places Program. We will
provide an overview of the study schedule , facilities, methodology, and process for
providing input. PMC will begin by researching program descriptions, reports,
resolutions, ordinances and other relevant information from a number of California cities
and counties that have implemented public art funding programs .
Task 2: Identi fy an d Add ress Policy Is sues
PMC will summarize its findings and discuss the potential policy issues with City staff.
Issues may include, but not limited to:
• Applicable projects: public (capital improvements projects), private development
or both;
• Use of funds: defining criteria for the program;
• Selection/design review process for public artwork (what should qualify as art);
• Methods for determining minimum expenditure on art (minimum project cost
threshold, percentage of final construction cost, estimated cost or negotiated
amount);
• Waiver and/or exemption of the art installation requirement and/or in-lieu fee.
Ta sl< 3: Prepare a nd Subm it Draft Fe , Repo rt
PMC will prepare a fee report that describes the program, presents findings, explains
the methodology and rationale for the recommended approach, and review the draft
with City staff.
T ask 4: Draft In-l ieu Fe e Ord inan ce o r Resolution
PMC will draft a fee ordinance or resolution for review and approval by the City
Attorney, prior to a City Council hearing.
Task 5: Prepare a Fina l ee Report/Aitend Pub lic Hearing
The final report will address any changes proposed by City staff. PMC will attend one {1) public
hearing . Additional meetings may be requested by City at which PMC will attend on a
time and materials basis.
EXHIBIT B -Page 7
ATTACHMENT 5 Page 19 of 23
PMC Overview, Qualifications and Personnel
PMC has grown to become a recognized leader in providing a full range of
environmental, planning, and municipal services. We attribute our success to our focus
on understanding and meeting our clients' needs in the most efficient and creative
manner possible. No matter what the assignment, PMC operates as an extension of
staff to ensure a team approach in identifying effective strategies for resolving project
challenges. With over 100 professionals and six primary offices in California, we offer a
local perspective enhanced by our broad experience to help clients achieve a
successful outcome. Our clients include over 650 cities, counties, special districts, and
public agencies throughout California and the West.
Our staff includes municipal finance specialists, urban designers, current, advance, and
environmental planners, and technical specialists to assist with projects. We have
professionals with the experience to ensure a quality and timely response to any issue
that might arise during a project.
PMC staff has broad experience creating, structuring, and updating impact fee
programs for cities and counties. For these clients, our staff has provided nexus
documentation to support impact fees funding a wide 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. Most of the impact fee studies that we have prepared have included
participation by developers and presentations to elected officials.
PMC provides turnk ey finance seJVices, enabling our clients to maintain, enhance, and
assure long-term viability in their growing communities. Our finance services include,
but are not limited to, the following:
• Financial planning and revenue enhancement, including financial projections and
policy analysis, plus rate and user fee studies. ·
• Capital improvement planning and financing, includ!ng infrastructure financing
plans and development impact fee and connection fee studies.
• Economic and fiscal policy analysis of proposed projects and plans, including
government reorganization studies.
• Special district creation and implementation, including district formation and
Prop. 218 voter campaigns.
With a municipal orientation, PMC personnel often operate as an extension of agency
staff with the goal of providing legally defensible fee programs and other financial/fiscal
documents in the most efficient manner possible. Project managers are given the
freedom and flexibility needed to respond directly to the requirements of the
municipalities we serve. Given the breadth and depth of expertise among our staff,
PMC is able to offer clients a broad range of financial services.
EXHIBIT 8 -Page 8
ATTACHMENT 5 Page 20 of 23
Staff
DINO SERAFINI P.E.-PROJECT MANAGER/PROJECT ENGINEER
Mr. Serafini has over 30 years of public infrastructure planning, financing, design, and
construction management experience in the State of California working with city,
county, school district, military and private clients . He has facilitated the formation of
Mello-Roos Community Facilities Districts that were specifically created to finance
facilities and the maintenance of such facilities serving new development. Mr. Serafini
has extensive experience in the development of cost estimates, phasing plans,
threshold criteria, and policy determinations that go into public facilities financing plans
and reimbursement agreements between agencies and private developers.
Mr. Serafini holds a Bachelor of Sciences degree in Economics from University of
California, Riverside, and a Master of Environmental Administration from University of
California at Riverside. He has completed the curriculum for a Master's Degree in Civil
Engineering from San Diego State University. He also completed the Urban Planning
and Development Certificate Program at the University of California, San Diego
Extension . Mr: Serafini holds professional registration as a California Registered Civil
Engineer, 51164. ·
TOM BANDY-ASSISTANT PROJECT MANAGER/PUBLIC FINANCE SPECIALIST
With over 30 years of experience in city government and consulting, Mr. Bandy provides
consulting services that include the preparation of public facility financing plans
identifying the cost, phasing, and financing of public improvements including the use of
development impact fees, in accordance with the nexus requirements of Government
Code Section 66000. Mr. Bandy also conducted a fee-for-art study for the City of
Lynwood resulting in adoption of Art In Public Places ordinance that provides for a
contribution to public artwork in the amount of 1.5% of the value of private development.
Mr. Bandy received his Bachelor of Science degree from the University of Redlands, a
Master of Public Administration from the University of Southern California, and a Master
of Business Administration from Pepperdine University.
DEREK WONG, AICP-PUBLIC FINANCE SPECIALIST
Derek has 17 years of consulting experience specializing in financing of public facilities.
He has managed complex engagements that require the identification and analysis of
revenues and costs for local and regional projects and programs, including for the
transportation and development communities. He has developed various revenue
strategies and funding mechanisms that involve consensus building with local
community stakeholders and governing boards to bridge funding shortfalls in
operations and with capital facilities. Derek also conducts organizational performance
audits of regional planning agencies and provides recommendations for process
improvement and compliance with state law. He has taught seminars on public financial
management to planning and finance professionals throughout California, with
EXHIBIT 8 -Page 9
ATTACHMENT 5 Page 21 of 23
coursework including revenue strategies and financial planning techniques. He works in
the area of project management, infrastructure financing, fiscal and e·conomic analysis,
and user and impact fees.
Mr. Wong received a Bachelor of Sciences degree in Environmental Policy Analysis
and Planning from University of California, Davis, with an emphasis in Transportation
Planning, and a Master of Business Administration from California Polytechnic State
University, San Luis Obispo. He is a member of the American Institute of Certified
Planners (AICP) of the American Planning Association.
SCHEDULE
Upon receiving a Notice to Proceed, we will submit the draft impact fee report to the City
for review by December, 2012. This assumes no significant delays in gathering the data
required to conduct the analysis. Upon receiving any comments : we will prepare the
final report. If the optional service is included, an additional 2 weeks would be needed to
complete and submit a draft report.
COST PROPOSAL
PMC's cost for the Traffic Impact Fee Update alone is $14,350. If a Parks and
Recreation Fee Nexus Study is done in conjunction with the Traffic Impact Fee Study
the incremental cost for the Park Nexus Study is $3,930, for a total cost of $18,280 (the
incremental cost of the Park Nexus Study applies only if conducted together with the
Traffic Impact Fee study). The cost of the optional Art in Public Places In-Lieu Fee
Study is $7,500.
EXHIBIT B -Page 10
ATTACHMENT 5 Page 22 of 23
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COST PROPOSAL
City of San Juan Capistrano
PMC
DEVELOPMENT IMPACT FEE ANALYSIS FOR TRAFFIC IMPACT FEE
Dino Serafini , Derek Wong Admin l
Project Public
Manager/ Finance PMC
Total Fee I TASKS Engineer Specialist Admin Hours
$135.00 I $130.00 I $7o.oo Per Task Per Task
Task 1 -Kick-off Meeting/Data Collection 10 I 1 11 i $1.480
Task 2 -Identify and Address Policy Issues I I I I
6 1 7 $940
Task 3 -Identify Future Development 6 2 8 $1 ,070
Task 4 -ld~ntify and Analyze Levels of Service 12 2 I I 14 $2.285
Task 5 -Develop Cost Estimates for Eligible Improvements I 20 2 I 22 $2.960
I Task 6-Conduct Impact Fee Comparison I 3 5 l 8 I $1,055
I Task 7-Conduct Nexus Analysis I I I I I
3 1 4 ! $535
[ Task 8-Prepare and submit Draft Nexus Report I I I 10 3 I 13 I $1.740
1 Task 9 -Prepare Final Nexus Repo rt/Attend Public Hearing I 1
16 3 2 21 I $2 ,690
Total {Hours) 89 20 2 I 108 i I
I l ' I I Total (Cost) $11,610 $2,600 l $140 $14,350
EXHIBIT B -Page 11