12-1002_NBS GOVERNMENT FINANCE GROUP_Personal Services AgreementPERSONAL SERVICES AGREEMENT
THIS AGREEMENT is made, entered into, and shall become effective this 'aP�day
offY 2012, by and between the City of San Juan Capistrano (hereinafter referred to
as the "City") and NBS Government Finance Group, DBA NBS (hereinafter referred to as
the "Consultant").
RECITALS:
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. Tenn.
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.
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 "B"
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. Limitations Upon Subcontracting 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 Work.
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
Section 7. Familiarity with Work and/or Construction Site.
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.
Section 9. Compliance with Law.
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.
Section 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.
Section 12. Ownership of Documents.
All reports, information, data and exhibits prepared or assembled by Consultant in
connection with the performance of its services pursuant to this Agreement are confidential
to the extent permitted by law, and Consultant agrees that they shall not be made available
to any individual or organization without prior written consent of the City. All such reports,
information, data, and exhibits shall be the property of the City and shall be delivered to the
City upon demand without additional costs or expense to the City.
3
Section 13. Indemnity.
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 interference with use of property, arising out of, or in any way connected with 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 policies 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 ($1,000,000.00), combined single limit coverage for risks
associated with the work contemplated by this Agreement. If a Commercial General
Liability Insurance form or other form with a general aggregate limit is used, either the
general 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.
9
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 naming 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 Cancel lationlTermi nation 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
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 (10) 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: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Cindy Russell, Chief Financial Officer/City Treasurer
To Consultant: NBS Government Finance Group, DBA NBS
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Attn: Michael Rentner, President & CEO
Section 17. Attorneys' 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 Resolution.
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration under
the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), Orange County
Office.
R
Section 19. Entire Agreement.
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.
APPROVE S TO FORM:
Hans Van Ligten, City Attorney
CITY Oil8AN JUAN
M
Kram
CONSULTANT
NBS GOVERNMENT FINANCE GROUP,
DBA NBS
By: oo�
45
Michael Rentner. President & CEO
F7
Pmbosal to Prepare a-'
Cost Aflocition- Plaftand
Usir Fes and"Ralte Study
for the
City of San Juan
Capistrano
m
I ai
I ia G009(e Earth
NBS
32605 rameada Partway, Suite 100
Temecula, CA 9,'592
Tali free: 800.676.7916 iP, 951.296.1997
(F) 951.296.199&
nbsgovcom
Cindy Russell
Chief Financial Officer/City Treasurer
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Proposal to Conduct a Cost Allocation Plan and User Fee and Rate Study
Dear Ms. Russell and Members of the Selection Committee:
NBS is pleased to submit this proposal to conduct a Full Cost Allocation Plan and Citywide User Fee
Study for the City of San Juan Capistrano.
How would we proceed?
NBS' Financial Consulting practice area focuses on development of well managed and implementable
user and regulatory fee cost of services studies. If selected, we would collect relevant budget and staffing
data from the City. Then, we would discuss and explore with the City relevant cost recovery based fee
structure options created by our professional staff over the life of their careers. We can customize a fee
structure that will be easy to implement and understandable for San Juan Capistrano customers.
What is NBS' experience?
We at NBS have a wealth of experience with local government finance overall, and specifically with
similar efforts. Our proposed professional staff for this engagement have worked with many Californian
cities and counties over the past 20+ years. They are regularly invited to speak on cost recovery based
fee structures and budget management for prominent local government professional organizations.
The pricing noted in this document is valid for a period of 180 days. Our Corporate Headquarters is the
NBS office location closest to San Juan Capistrano, at: 32605 Temecula Parkway, Suite 100, Temecula,
CA 92592 and can be reached at 800.676.7516 and the project will be managed from this location.
Thank you for reading this proposal. We appreciate your consideration of NBS to perform this work for
you. We look forward to discussing with you our ideas and welcome your questions or feedback. I am
our proposed Project Manager for this effort and the author of this proposal, so please contact me at any
time you need: 800.676.7516 or nkissam@nbsgov.com. We are excited at the prospect of serving you
and contributing positively to your community.
Sincerely,
/J%W
Nicole Kissam
Director of Financial Consulting
Mike Rentner
Chief Executive Officer
helping communities fund tomorrow
TABLE OF CONTENTS
The following Proposal bas been prepared by NBS to provide comprehensive information in response to the City of San Juan Capistrano's
Request forProposalr:
Cover Letter and Exhibit A.................................................................................................. Previous Page
Chapter Page #
Chapter 1. Background and Project Summary ..............................................................................1-1
Chapter2. Methodology ................................................ .................................................... ............ ...2-1
ImplementationPlan ............ ............................................................................................ 2-3
ClientSatisfaction ... ............. .......................... .............. .................................................... 2-9
ProjectSchedule .................. .......................... .................................................................. 2-9
City Staff Responsibilities .... .................. .......................................................................... 2-9
Chapter 3.
Chapter 4.
Chapter 5.
1-2
Staffing............................................................................................................................ 3-1
Project Team Structure and Roles...................................................................................3-1
Professional Biographies................................................................................................. 3-2
Qualifications
......................................... 4-1
FeeProposal...................................................................................................................5-1
FeeProposal ..... --- ....... --- ........ ---- ........ ............. --- ..... ............. ........................ 5-1
Consultant Labor Effort and Cost Detail..........................................................................5-2
Proposal to Przpare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
CHAPTER 1. BACKGROUND AND PROJECT SUMMARY
BACKGROUND
The City of San Juan Capistrano is embarking upon development of a professionally City of Chula Vista
prepared Full Cost Allocation Plan and Comprehensive User Fee Study. The goal of JUSTIN GIPSON
these efforts, combined, is to define the full cost of service internally, in the form of City- DEPUTY FIRE CHIEF J
wide overhead/indirect costs, and externally, in the form of user/regulatory fees imposed FIRE Ma2SHAL
on individual/entities for discrete services and activities.
The outcome of this Study will:
✓ Reflect the high level of service that is provided in a community like San Juan
Capistrano.
✓ Assist city management in using acute fiscal foresight, as well as maximizing every
available opportunity for economic success.
✓ Provide information for establishment of cost -based interfund transfers for the water,
sewer enterprise funds, as well as for recovery of overhead costs from fees, special
revenue and other funding sources.
✓ Determine the upper limit for user/regulatory fees imposed on the public, and assist
in crafting of the City's policy position on appropriate levels of cost recovery at or
beneath that ceiling.
The following describes the goals, objectives, and deliverables of each project area
proposed for the City of San Juan Capistrano:
PROJECT SUMMARY
Cost Allocation Plan
The goals of the Cost Allocation Plan include acquisition of a documented and
defensible analysis that generates general/administrative allocation amounts that may
be used in the City's annual budget, indirect/overhead rates, and fully -burdened hourly
rates for City personnel. This version of the City's Cost Allocation Plan allocates all
reasonably identifiable administrative overhead costs to receivers of these services
within the organization, that have not already been captured by the City's internal
service funds (ISFs). All costs, whether acceptable for federal reimbursement purposes
or not, are considered in the results of this Plan.
In addition, the City of San Juan Capistrano has indicated the desire to provide an
additional cost allocation plan that is prepared in accordance with OMB A-87 in order to
recover overhead reimbursement from State or Federal grants or reimbursable
programs.
User Fee and Rate Study
The City's goals for the Comprehensive User Fee Study are to identify the full cost of
service in fee -related activities and to facilitate the development of strategies/policy for
recovery of those costs in user/regulatory fees. Departments and activities to be
included in this study's scope primarily include, but are not limited to:
Planning
Building
Engineering (Land Development)
• Water and Sewer
Police
Recreation and Animal Control
• Administrative Fees (City Clerk, Finance, etc.)
• Community Services- Facility Rentals and Recreation
`TIBS is one of the best fee
consultants that I have worked
with thus far Tbey$e easy to
work with and things didn't
bare to fit into a template. Also,
NBS is great at listening and
finding ways to applyfees toyour
process."
Proposalto Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
In general, the scope of services for each department and activity noted above includes
all fees for service that can be analyzed on a time estimate per activity basis. Taxes,
penalties, fines, and fees regulated or set by the State, as well as development impact
fees and utility rates would be excluded from this analysis.
NBS takes the extra steps to understand what goals are important in the community for
the outcome of each project. While fiscal sustainability is one of the City's defined goals,
expanding technology to achieve efficiency is also an important goal that has been
established by the City Council through development of an Information Technology
Master Plan. As part of this cost analysis, NBS will ensure that the City's appropriate
technology costs are included.
1 -2 Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
CHAPTER 2. METHODOLOGY
METHODOLOGY
The following sub -sections describe the methodology employed by NBS in studying
overhead cost allocation and user/regulatory fees for California cities.
Overhead Cost Allocation Model
An Overhead Cost Allocation Plan is an analysis — accompanied by supporting
documentation — which distributes the general governmental and support services costs
of the City to the direct municipal services and activities provided to the public. Costs
allocated in a non -federally restricted plan include functions such as legislative, City
management, financial services, administrative services, human resources, legal
services, information technology support, facilities maintenance, facilities and equipment
use, and others as identified during the plan's development. These costs are typically
referred to as City-wide overhead.
Common uses for the results of a cost allocation plan are:
• Application in the cost basis for governmental fees and charges
• A component in the derivation of fully -burdened hourly rates for agency
personnel
• Interfund charges, for recovery to the General Fund of support provided to areas
outside it, such as the City's Special Revenue Funds, Internal Service Funds
and Enterprise Funds
• Rates applicable to cost accounting, such as charging labor time to capital
projects
• Mark-ups on costs directly passed -through to users
• Recovery of costs from external funds such as grants or agreements with other
agencies
NBS provides well documented indirect overhead support calculations for General Fund
reimbursement by Water and Sewer enterprise funds, which are under close scrutiny
are subject to Proposition 218.
In the NBS approach, the Overhead Cost Allocation Plan encompasses the following
analytical steps:
• Compiles actual City cost data
• Expresses costs according to the functions of service they provide
Makes any necessary adjustments to costs for compliance with OMB A-87 (if
City selects this option)
• Assigns a factor to use as a basis for allocation
Performs a minimum of two-step series of allocations
• Derives total assigned overhead amounts by public service/fund
Expresses rates that represent total indirect costs assigned
Aside from accurately reflecting City costs, the most important step in preparing a
reasonable cost allocation plan is the selection of allocation factors. These data sets
should represent either the actual or estimated workload of the function allocated or a
reasonable and generally accepted means of apportioning benefit for the function
allocated. In this way, resulting cost allocations represent a reasonable component to
the full cost of City services that may be recovered from individuals/entities through fees
and charges or other external sources of cost recovery.
PVoral to Prepare a 2-1
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
P.,, .,- -N .. ,O. .
Comprehensive User Fee Study
User/regulatory fees represent cost recovery opportunities entirely within the City's
control: revenues which the City Council may — at its sole discretion upon public hearing
— implement and/or modify without further public process or approval. The City does not
have to conduct a Proposition 218 process to impose these fees, nor are they covered by
the strict guidelines of the Mitigation Fee Act.
User fees are charges imposed by the City for a service provided or required due to the
request or action of an individual/entity, while regulatory fees are those imposed to
recover costs associated with the City's power to govern certain activities, such as
development or construction. Examples of the types of fees considered here include:
development review, inspection, and approval (planning, engineering, and building);
parks/facilities use and rental; recreational and community programs; public safety
services; public infrastructure operations/maintenance; and administration. In most
cases, the only legal limitation on the establishment of these fees is that they may not
exceed the estimated and reasonable costs incurred to provide the service or perform the
function.
NBS ensures a customized approach to inclusion of the necessary and reasonable costs
that are specific to San Juan Capistrano, including the appropriate level of technology
costs, as well as any changes regarding the streamlining of development
review/entitlement processes.
To determine the City's maximum in imposing these fees, NBS will conduct a cost of
service analysis and fee design exercise. These efforts identify the full cost of service
eligible for recovery from fees and translate those costs into a fee structure for various
programs and/or services. Determination of the full cost of service is an analytical
exercise combining City expenditure and organizational information with time -tracking
data, time estimates, and/or volumetric information. The full cost of service is derived for
each service or activity, which includes direct labor, direct services or supplies, indirect
labor, indirect non -labor expenses, programmatic overhead, and City-wide overhead. In
most cases, the full cost of service is first expressed as a fully -burdened hourly rate
applicable to the time necessary to perform the service or activity.
In executing this approach, NBS organizes efforts in the following key areas:
• Fee Structure Design — reviewing existing fees for service, setting the best
structure for cost recovery, adding new fee items where applicable.
• Organizational and service time analysis — identification of who performs work,
how it is performed, and how long it takes to provide aspects of service.
• Time valuation — placing a value on an increment of time within different
organizations providing service.
• Cost of service analysis — determining the cost incurred or associated with
individual fee -related services.
• Recommended Fee and Revenue Analysis — defining policies for best use of
available resources (i.e., fee revenues versus general subsidy), deriving a
proposed fee amount, analyzing potential annual revenue impacts of current and
proposed fee amounts.
• Master Fee Schedule Development — compiling all individual departmental fees
into a common document that will accompany the ordinance or resolution for
Council adoption.
2 _ 2 Proforal to Prepam a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS— March 9, 2012
Translating costs of service into a new or updated fee structure often generates a
significant policy discussion for a municipality, particularly with respect to optimal use of
revenues available for public services. In setting cost recovery goals through fees — a
major part of this type of study will involve the discussion andlor development of a Cost
Recovery Policy for the City. Important considerations will include:
• Matching available funding sources to the public and private benefits achieved
through an individual service, with public benefits often linked to use of General
Fund resources and private benefits funded by fees on the individual.
• Broad public health and safety goals enhanced or impacted by an increase or
decrease in fees for service.
• Cohesiveness or conflict with City goals or priorities, such as economic
development or community wellness.
• Compliance achievement with law, local regulations, and/or City policy.
• Level of service, service access and affordability to resident citizens, groups,
and businesses.
IMPLEMENTATION PLAN
The outline below describes the step-by-step Work Plan to be followed by NBS in the
completion of the scope of services.
NBS is sensitive to the City's current workload, especially in light of the staff
reorganization and streamlining workflow efforts. As a result, our project management
approach to minimize the project impact includes: strong project management skills,
including periodic progress reports, clear expectations of consultant verses staff roles
and a realistic schedule. We assist our clients with data collection and manipulation
wherever possible. In addition, as part of our control measures, our models, draft
reports and final reports are proofed and reviewed by a senior member of the project
team to ensure accurate and quality work product and results.
Deliverable #1: Overhead Cost Allocation Model
Commencement and Data Collection
The purpose of this task is to initiate the project on solid footing and establish common
understanding. Sub -tasks are as follows:
A. Gather and Analyze Initial Data
Gather and review published City information and readily -available data. Issue
a comprehensive data request to City staff, to include items such as detailed
revenue and expense budgets for the current and last completed fiscal year,
any timekeeping data currently recorded by City staff, and any relevant
volume/activity statistics currently tracked by the City. (The latter two items will
be requested in a more refined basis after project commencement.)
B. Identify Initial Plan Structure
Identify initial indirect cost centers and recipients for preliminary discussion with
City staff. Indirect cost centers generally include, but are not limited to:
Building and Equipment Use allowance
City Manager
City Clerk
• Legal
Human Resources
Management Services
• Facilities and Grounds Maintenance
Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano 2-3
Prepared by NBS — March 9, 2012
Additionally, NBS would like to discuss the City's current Internal Service Funds, .
including the Facilities Operations Fund and the Insurance Benefits Fund to
determine current levels of funding included.
NBS is aware that some cities may defer funding of equipment and vehicle
replacement, however, as part of the analysis, it is crucial to include the full and
complete cost of equipment and vehicle replacement. This will enable the
appropriate level of costs to be included in indirect overhead rates and fees for
service, so that the City can potentially fully fund these costs in future years.
C. Meet with City Staff
Meet with a gathering of participating City staff in one onsite event to kick-off the
project, discuss initial ideas regarding cost allocation, and prepare for
subsequent analytical review efforts.
Cost Allocation Model Development
The purpose of this task is to develop the customized technical model capable of
performing the necessary cost allocations and generating the outcomes desired by the
City from this effort. Sub -tasks are as follows:
A. Conduct Organizational Review
Upon initial discussion with City staff, conduct a more thorough examination of
the City's current organizational and financial structure and finalize the City-wide
indirect/support services that should be included in the overhead cost allocation
plan. Identify departments, divisions, and potential functional service levels in
which to summarize indirect costs. Compile associated costs and make any
necessary adjustments to costs to ensure capture only of support services costs.
Work with the City staff to discuss the identified structure and ensure that the
proposed direction will satisfy all City-wide requirements for overhead allocation.
B. Develop Cost Allocation Model
Develop an overhead cost allocation model in the Microsoft Excel spreadsheet
environment. Reflect the City's organizational and financial structure and target
a user-friendly, sustainable configuration for the City's future use. Include easily -
identifiable and annotated data entry areas, the necessary computations to
perform at least two levels and layers ("step-downs") of cost allocations City-
wide, and summary reports identifying total annual costs allocated and
corresponding indirect/overhead rates. Functionality includes an OMB Circular
A -87 -compliant outcome applicable to grants or other mechanisms requiring such
compliance.
C. Prepare Allocation Factors
Discuss with City staff the recommended cost allocation detail and corresponding
bases for apportioning costs City-wide. With City staff buy -in and cooperation,
embark on data collection to develop sets of information to be used as factors for
cost allocation. Incorporate data sets into the new allocation model, annotating
data sources for the City's ease of use in the future.
D. Input Data
Input cost and allocation factor data into the overhead cost allocation model, and
complete the functionality of the plan.
Derivation of Outcomes
The purpose of this task is to generate the specific outcomes necessary from this effort.
Using the model and core data/assumptions developed in the prior phase, generate
annual allocated costs by budget unit and fund. Review outcomes with City Staff during
this process. Collect one to two rounds of input and revisions to the draft plan results.
Provide final results in PDF and Excel formats.
2 _ q Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
Documentation and Presentation
The purpose of this task is to provide the substantive documentation necessary to
support implementation of cost allocation outcomes. This task also includes delivery of
the technical models to the City. Sub -tasks are as follows:
A. Prepare and Distribute Draft Report
Prepare a draft report documenting the Cost Allocation Plan. The draft will be
issued to City staff in a PDF format. Report includes: Executive summary; citation
of data sources and key analytical assumptions, illustration of analytical methods,
presentation of findings, narrative descriptions of allocations, delineation of a
proposed near- and long-term action plan related to implementation and
maintenance of the plan's results, and, technical appendix showing the analysis
and any relevant data sources.
B. Prepare and Present Outcomes
Prepare for and present outcomes to City staff and management in one
combined session. Prepare for and present outcomes to City Council.
C. Issue Final Report
Upon receipt of any further direction or modification of assumptions from City
staff, management, or Council, issue the report as final. Deliver an electronic
version of the reports in an Excel format as well as PDF format. Provide five (5)
bound copies and an electronic copy of the plans available for presentation
purposes, as requested in the City's RFP.
Deliverable #2: Comprehensive User Fee Study
Commencement and Data Collection
In combination with commencement of the Overhead Cost Allocation Model, Deliverable
#1, NBS will initiate the Comprehensive User Fee Study as follows:
A. Conduct Administrative Kick -Off Meeting
Conduct an onsite administrative project commencement meeting with City staff
members, such as those from Finance, who will manage the progress,
completion, and implementation of the study's findings. This meeting will
include a discussion of expectations and an overview of the process for
conducting the analysis, including: coordination for onsite and remote
interactions with City personnel in all divisions, timeline for project completion,
and other topics.
B. Gather and Analyze Accessible Data
Acquire published or accessible data from the City, centering on adopted
budgets, recent financial performance (revenues and expenditures), current
labor cost detail and classifications, organizational structures, existing relevant
policies, existing time -tracking and volumetric data, and other items of a more
global nature. NBS consultants will gather information independently as
accessible through online resources, and issue a consolidated data request to
City Finance staff for the balance.
Fee Structure Design and Organizational Analysis
The purpose of this task is to review existing documentation supporting the City's
current fee and rate structures, and to acquire and develop information describing the
core services required across departments and divisions City-wide to provide the
services under review in this study. Sub -tasks are as follows:
A. Design Fee Structure and Commence Divisional Meetings
Conduct onsite project commencement events with individual divisions initially
known to provide the fee -related services under review in this study. The chief
Proposal to Prepare a 2 5
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
purpose of these meetings is to acquire a broad understanding of each
division's organization, performance of core services, functions of service,
staffing structure/lines of command, current fee structures and systems, known
issues/deficiencies in current fees, known areas for new fees, and availability of
existing time -tracking and volumetric data. Applying industry expertise, NBS
consultants will recommend and develop fee structures (as opposed to
amounts) for each area under review. Fee structures include flat fees, variable
fees based on measurable service characteristics (e.g., project types, size, etc.),
and variable fees based on staff time (e.g., hourly rates with deposits), etc. Fee
structure can also mean rewriting fee categorical descriptions to retain flat fees
for administrative ease but introducing variation in the applicable fee for an
applicant or user.
B. Conduct Time Study
Determine and communicate the subsequent steps to acquire and/or develop
organizational, performance, and time information necessary for establishing
costs of service for justifying fees. Consultants will also preliminarily identify any
other divisions outside those immediately identified that are involved in the direct
provision of the services under review and will schedule comparable
commencement events with those areas. Develop an approach and tools for
acquiring and/or developing the organizational, performance, and time
information necessary for justifying fees. For areas where simple remote
questionnaires may suffice, develop and route the forms to key personnel within
each division. For areas where onsite interviews will be necessary, coordinate
scheduling and develop interview tools. Conduct onsite events with individual
divisions — and potentially small groups within each division — to generate
organizational, performance, and time information necessary for justifying fees.
C. Prepare Iterations and Time Study Module
After acquiring historically -tracked and/or currently -available time and volumetric
data, as well as information developed through questionnaires and/or interviews,
determine any necessary secondary course of action to continue and/or refine
organizational, performance, and time data. One to two iterations of the time and
service analysis are generally 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.
Time Valuation
The purpose of this task is to place a value on an increment of time within each division,
core function, or classification of employee performing any of the services under review in
this study. Sub -tasks are as follows:
A. Develop 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, prepare the module that will perform 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 on an hourly
basis for the entire division, for core functions within a division, and as warranted,
by classification of personnel. Integrate City financial/budget data, payroll/labor
data, and established overhead charges or cost allocations, as follows:
Define the direct costs of service for each division involved in each service
under review in this study. Direct costs reflect those specifically related to
2 - 6 Proposal ro Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS—March 9, 2012
the provision of service embodied by the activities reflected in the fee
schedule, as well as any potential additions to that list.
• Define the indirect costs of service for each division involved in each service
under review in this study. Indirect costs are those incurred to support the
provision of direct service, and may be reflected in many functional forms,
depending on the division and/or direct services in questions. Examples of
indirect functions include administrative support, customer service/public
information, code/policy/standards maintenance, training, and management.
Outside of discrete functions, indirect costs may also include tangible items,
such as materials and supplies.
• Determine applicable City-wide indirect costs, such as those defined by the
overhead cost allocation plan or other analysis maintained by the City to
determine appropriate shares of administrative, support services, and/or
governance costs. (If Deliverable 1 for a Full Cost Allocation Plan is
initiated before or concurrent with this Comprehensive User Fee and Rate
Study project, City-wide indirect costs will be acquired from the Cost
Allocation Plan's work product.)
B. Develop Fully -burdened Hourly Rates
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 at various levels: composite rates for each division, composite rates
for core functions of service within divisions, and where warranted, composite
rates for different classifications of employee within each division. Consider the
applicability of productive hours or direct -billed hours as the basis for the rate
calculation, depending on the division or function in question.
Cost of Service Analysis
The purpose of this task is to establish the full cost of service 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. Sub -tasks are as follows:
A. Determine Full Cost of Services
As part of the Microsoft Excel -based fee/cost of service model to be delivered to
the City at the conclusion of the project, prepare the module that will perform the
cost of service analysis. This module will determine the full cost of service at an
activity level for each individual service currently associated with a fee or
selected as a candidate for a new fee. Integrate applicable information
developed in the Organizational Analysis and the Time Valuation to develop
activity costs of service. Apply performance/time estimates at identified activity
levels to the fully -burdened hourly rates developed in the Time Valuation tasks
to determine the full cost of service for each fee -related service. Add any
discrete materials/services costs not reflected in the time valuation for specific
activities, such as substantial equipment and incremental contract services.
B. Conduct Divisional Meetings / Revisions
Conduct review events with each individual division to review the results of the
Time Valuation and the Full Cost of Services analysis. Determine any
necessary refinements to core assumptions. Discuss applicability in current
and/or alternative fee structures. Discuss pricing objectives from the divisional
perspective, i.e., the division's comfort with full cost recovery or some alternative
level of cost recovery. Consultants will facilitate this conversation by discussing
public/private benefits or causation of each activity, potential market sensitivity,
interaction with established City goals or policies, behavior modification
influence, and other considerations.
Proposal to Prepare a 2
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
C. Revise Time/Cost/Activity Modules
Based on review with City staff, revise core analytical modules and finalize the
activity costs of service. (This represents a planned iteration of the analytical
work products.) Calculate the final unit costs of service that will serve as the
foundation for any revised fee amounts and/or fee structure.
D. Conduct Comparative Fee Survey
Conduct a comparative fee survey of up to 5 jurisdictions of the City's choice.
Survey will be structured to include up to 10 of the most comparable items !
project types for each department studied.
E. Develop Recommended Fees and Cost Recovery Policy
The results of this analysis have thus far determined the estimated, reasonable,
and total cost of providing services from both the per activity (fee item), and
annual perspectives. As discussed in the Methods sub -section of this Chapter,
there are many considerations specific to each community when setting a "price'
for services. The purpose of this task is to define recommended cost recovery
levels which the community can bear. Apply existing cost recovery policies
and/or pricing objectives to the activity costs of service determined with staff in
the previous task. Based on their professional experience, NBS Consultants will
discuss typical pricing and cost recovery objectives seen in other jurisdictions.
From adjusted fee levels, estimate total annual revenue impacts from current fee
performance.
Documentation
The purpose of this task is to provide the substantive documentation necessary to
support any change to fee levels. Sub -tasks are as follows:
A. Prepare and Distribute Draft Report
Prepare a written report describing the complete work and findings of the project.
Include an executive summary, narrative sections detailing the Fee Structure
Design, Organizational Analysis, Time Valuation, and Cost of Service Analysis.
Include discussion of cost recovery policies advocated in the final, recommended
schedule of fees and revenue impacts. Include technical appendices detailing
the entire body of analysis supporting outcomes. Issue the draft report in
electronic form (portable document format) to City staff and management for
review.
B. Present Draft to City Staff and Council
In anticipation of City Council review, prepare foundational presentation materials
for use in public meetings. Conduct one onsite meeting presentation to selected
City Staff and City Council to review the findings issued in the draft report.
Assume minor revisions to the fees presented therein. Revise fee schedules and
documentation upon review and comment.
C. Issue Final Report
Issue the final report to City staff and management in the following formats: five
bound paper copies, one unbound paper copy, and one electronic copy in Word
and portable document format (PDF). Issue the final technical models and
supporting information to the City in Microsoft Excel (XLS) format for future in-
house use and modification.
Legislative Process
The purpose of this task is to support actively the City's process to legislatively review,
approve, and implement any changes to fees stemming from this study. NBS will
prepare for and attend two meetings of the City Council at which a public hearing is
expected in advance of a City Council action to approve modified and/or new fees. We
will present, and respond to questions on behalf of or in support of City staff.
r . 2 - g Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
CLIENT SATISFACTION
The implementation Plan outlined in Chapter 2 provides a chance for City Management
and City Council to review, ask questions, provide comments and feedback at the draft
results phase as well as the final report phase. This provides an opportunity for
adjustment to the final results to ensure satisfaction with the project results. We feel that
this high level of project management offered by our team of experts, including detailed
work plans, quality control measures, efforts to minimize project impacts on City staff
combined with the draft and final review process, provides effective measures for our
proven track record of client satisfaction. We believe the above points are critical
success factors for any consulting engagement.
PROJECT SCHEDULE
NBS suggests a 90 day timeline from project commencement to issuance pf the final
report for the Cost Allocation Plan and Comprehensive Fee Study. The project
components will be worked on simultaneously, however, the Cost Allocation Plan will be
completed first for use in the fee study. At project commencement, NBS will prepare a
detailed timeline with specific calendar dates of key events for the City's review,
comment, and mutual acceptance. The timeline for implementation of the final report is at
the discretion of City. NBS will provide periodic progress reports to assure progress is
maintained according to timeline objectives.
Task
Week Week Week3 Wee" Week Week Week] Week Week Week 10 Week 11 Week 12
OVERHEAD COST ALLOCATION MODEL
Commencement Data Collection
Cost N l ocati on Model Development
Derivation of Outcomes
-
COYW IDE USER FEES STUDY
Fee Structure Design / Organizational Analysis
Ti me Val uation
Cost of Service Analysis
Documentation
le isl alive Proce,ss
TEDeYOTY
CITY STAFF RESPONSIBILITIES
NBS plans to work closely with City staff in conducting this study. To that end, we assume
that City staff will provide the following:
• Data as Requested — This includes financial data such as current and projected .
budgets, detailed operating costs, capital improvements plans (types of projects, costs
and timing), updated water safes, and related data.
• Summary of City Policies — Particularly policies, whether written or assumed. (Much
of this has already been included in the City's RFP.)
• Coordination and Attendance of Meetings — While NBS will work with City staff to
schedule meetings and presentations, we would expect City staff to coordinate internal
schedules to ensure that appropriate staff members will attend meetings as needed.
• Provide Study Direction and Guidance — As we develop and propose alternative
financial and rate design scenarios, we will expect City staff to provide direction and
decisions on how they would like to study to proceed. We will expect staff to coordinate
with City management to ensure alternatives pursued are in line with the City's overall
objectives.
• Coordination of Workshops and Presentations — Staff will need to coordinate and
schedule any meetings and/or presentations with the City Council and/or Financial and
Administration Committee as needed.
• Presentation Materials — We will assume that any handouts or copies of
presentations to the public and/or Board or Committee members for public meetings,
workshops, and presentations will be provided by City staff.
Propora! to Prepare a 2 9
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
CHAPTER 3. STAFFING
PROJECT TEAM STRUCTURE AND ROLES
NBS is staffed with seasoned experts who are dedicated to providing our clients with the City of Vacaville
best possible results. The NBS staff of over 35 consultants and engineers has extensive GEOFF BUN"I'ON
experience in the fields of finance, management, engineering, and local governance and INVESTMENT
combine their knowledge to produce a synergy that results in maximum success and OFFICER
minimum risk.
'Tit my opinion wbat
The NBS staff is fully conversant with all changes to laws, codes, and regulations disivgpashes JN'BS is the
affecting local governments. Recognized as leaders in their field, they are often asked to guatity of the stafthatyou
teach university courses, serve as expert witnesses, and participate in workouts for bare been able to remit and
troubled agencies. In addition, NBS staff works with our clients as partners by Plaindunngthepast15
developing an intimate knowledge of their needs and responding with strategic and timely years. The work product
solutions. has always been pmfessfonal
and staff has always been a
NBS is pleased to make the following individuals available to San Juan Capistrano for pleasure to work with
this important project: sine tbefirm began."
Nicole Kissam — Project Manager: Ms. Kissam will manage the ongoing
administration of the project, serving as the primary point of contact for San
Juan Capistrano staff and directing the work efforts of our project team. Ms.
Kissam will work closely with San Juan Capistrano' designated project manager
to monitor schedule and delivery of work products to satisfaction. While
designing and directing analytical efforts, she will also provide senior -level
technical analysis as warranted throughout the project.
Greta Davis — Senior Consultant: Ms. Davis will lead data acquisition and
validation efforts with Lynwood staff, direct specific areas of model design, and
prepare technical analysis supporting the determination and justification of cost
allocations, at the direction of our Project Manager. Ms. Davis will work actively
with departmental staff members who oversee and perform services under
review in this effort. Ms. Davis will be fully conversant in all findings and will be
onsite for progress, findings, and public events. She will present . .
recommendations and findings to staff, and any other public bodies or public
hearings, as specified in the Work Plan for this project.
Kim Boehler — Analyst: Ms. Boehler will perform large-scale data analysis and
validation, design and implement allocation and rate models, and prepare
technical outcomes at the direction of our Project Manager and Senior
Consultant.
In addition to our direct project team members, NBS assigns another director to this
engagement in a Client Services role: ensuring the fundamental objectives are met at all
times. This is an additional control measure that NBS has built into our project
implementation plan which adds to our high level of client satisfaction. Danielle Wood will
perform this role. Furthermore, Ms. Kissam and Ms. Davis will tap, as necessary, the
NBS staff of financial analysts to parse large data sets and perform supporting tasks to
the primary modeling in this project.
The organization chart shown as Exhibit A illustrates the reporting relationships within our
proposed project team.
Proposal to Prepare a 3 1
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — February 24, 2012
Exhibit A.
NBS Project Team for
the City of San Juan
Capistrano
PROFESSIONAL BIOGRAPHIES
The following sections provide a narrative description of the experience and background
of our proposed project team members.
Nicole Kissam, Project Manager
Nicole Kissam is Director of Financial Consulting for NBS. She has over 10 years total
work experience in public sector consulting, city government, marketing, and public
relations. Nicole has been a financial and management consultant to local government
for the majority of her career, specializing in cost allocation plan, and user fee and rate
studies for California agencies.
Ms. Kissam joined NBS in 2010 after four years with the Matrix Consulting Group as the
Vice President and Secretary of the firm, where she was primarily responsible for
origination and development of their Financial Services Practice in the Western United
States. She also performed management audits to improve the operational efficiency of
various municipal services, with a special focus in the area of community development
departments. Nicole was also previously a Senior Consultant for a large national
consulting firm, providing identical professional services in the areas of cost allocation
studies offered in this document by NBS.
Ms. Kissam's cost allocation plan development experience includes both "full" or "total"
cost allocation plans as well as OMB A-87 compliant plans. Additionally, her user fee
analysis project experience covers most public sector programs, including
administration/general government, development review (building inspection, plan review,
engineering, and planning), fire, police, parks and recreation, emergency services, code
enforcement, probation, and libraries. She has participated in, managed, and completed
more than 100 separate consulting engagements throughout her career, from small
jurisdictions with less than 10,000 population, to large jurisdictions such as the
City/County of San Francisco's Building Inspection Department, and City of Los Angeles'
Planning and Fire Departments. In addition to her California experience, she has also
consulted with public agencies cities in the states of Virginia, Hawaii, Nevada, Arizona,
and Washington.
Ms. Kissam holds a Bachelor of Sciences degree in Business Administration from the
California Polytechnic State University in San Luis Obispo, California, with a
concentration in International Business. Throughout her career, she has performed
pioneering work in the area of cost -based building fee analysis, helping municipalities
move away from charging fees based on valuation. Ms. Kissam has been invited
3 _ 2 Pmpota! to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
regularly by various professional organizations to speak at local meetings and annual .
business meetings, including recently for the California Association of Building Officials,
and the County Building Officials Association of California, where she presented on the
subject of Changing the Business Model of Building and Safety Departments.
Greta Davis, Senior Consultant
Greta Davis is a Senior Consultant with the Financial Consulting practice of NBS. She
has over 24 years total work experience as a government employee and public sector
consultant. Over the life of her career, she has performed full time management analyst
roles in three different California cities, has lead the Financial Services practice for two
prominent national consulting firms and performed extensive cost allocation and cost of
service studies for various cities, counties, and special districts across the United States.
She manages studies, provides consulting services, and serves as a subject -matter
expertise in the following areas:
Cost of service analysis
Indirect Cost Rate Studies/Federal OMB A-87 Indirect Cost Allocation Plan
development
User fees and regulatory fees
Training and Quality Assurance
Federal/State Jail Rates
• Federal IV -D Indirect Cost Reimbursement Agreements
• Revenue Maximization
• Process Re-engineering and Process Improvement
• Program Management and Budget Analysis
Ms. Davis' financial consulting services cover most public sector programs, including
development review (planning, building inspection, plan review, engineering, and fire),
fire prevention, transportation, parks and recreation, police/emergency services, ,
community services, library, and public administration. Ms. Davis holds a Bachelor of
Arts degree in Social Science with an emphasis in Finance from the University of ;
California, Irvine.
Kim Boehler, Analyst
Kim Boehler is a Financial Analyst at NBS. She has supported financial consulting
projects and provided special financing district administration services to over 34 cities, .
counties and special districts in California, during the four years she has spent with NBS.
In the Financial Consulting practice of NBS, Ms. Boehler supports project teams
completing cost allocation, user fee and rate, and water and wastewater utility rate
studies for cities and special districts in California. Her engagements with NBS in cost
allocation and fee study subject matter recently included the Cities of Fresno, Dixon, San
Juan Capistrano, and Napa, the County of Santa Clara, and the Sacramento Public
Library Authority.
Prior to joining NBS, Ms. Boehler earned her Bachelor of Science Degree from California
State University, San Bernardino, where she graduated with honors in 2004. She studied
Business Administration with a specialization in Finance. Throughout the course of her
studies, Ms. Boehler held positions in the retail and hospitality industries, while also
gaining hands-on work experience in both private and public sector organizations. With .
over ten years total work experience, in a variety of fields, Kim has a diverse skill set that
allows her to effectively tackle the many challenges that arise in public sector consulting.
Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano 3-3
Prepared by NBS— February 24, 2012
CHAPTER 4. QUALIFICATIONS
COMPARABLE PROJECTS AND REFERENCES
NBS submits the following five descriptions and references for projects we have
performed comparable to the needs of the City of San Juan Capistrano.
(1) CITY OF RANCHO SANTA MARGARITA
Cost Allocation Plan and User Fee Study
Greta Davis, the project manager for this engagement, and newest member of the
NBS Project Team, prepared a Full Cost Allocation Plan and OMB A-87 version for
the City of Rancho Santa Margarita. Additionally, she performed a user fee study for
the planning, building and Public Work/Engineering departments. This work was
performed within the last two years of her employment as Senior Manager at
Maximus.
Project Start & End Dates: March 2008 — August 2008
Key Staff & Roles: Greta Davis — Project Manager and Lead Consultant
Client Project Manager:
Paul Boyer, Administrative Services Director, 949.635.1815, pboyer@cityofrsm.org
(2) CITY OF FRESNO
User Fee Study
NBS recently completed a user and regulatory fee analysis for the City of Fresno's
Fire Department. Work completed n this project included calculation of the total
estimated reasonable cost of providing annual inspection services, as well as
creation of a simplified cost recovery based fee structure for review and inspection of
building permit projects.
Project Start & End Dates: April 2011 — September 2011
Key Staff & Roles: Nicole Kissam — Project Manager and Lead Consultant
Client Project Manager:
Michael Despain, Deputy Chief, 559.621.4155 mdespain@fresno.gov
(3) CITY OF LOS ANGELES, DEPARTMENT OF CITY PLANNING
Review of Expedited Services Fully Burdened Hourly Rates and Fee Structure
NBS was selected by the City of Los Angeles' Planning Department to study fully
burdened hourly rates and fee structure policies related to provision of expedited
project review services. Key consulting tasks include development of a deliverable
fully burdened hourly rate model, and recommendation regarding a fair and equitable
fee structure for specialized services.
Project Start & End Dates: January 2010 — September 2010
Key Staff & Rotes: Nicole Kissam — Project Manager and Lead Consultant
Client Project Manager:
Eva Yuan -McDaniel, Deputy Director, 213-978-1273, eva.yuan-mcdaniel@lacity.org
Pmporal to Prepan a 4-1
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano -
Prepared by NBS — February 24, 2012 -
(4) CITY OF RICHMOND
Cost Allocation Plan and User Fee Studies for Planning, Building, Engineering,
City of Richmond Code Enforcement, and Medical Marijuana Dispensaries
CHAD DAVISSON Nicole Kissam, the project manager for this engagement, prepared a Full Cost
WASI'EW..VFER Allocation Plan and OMB A-87 version for the City of Richmond. Additionally, she
DL\NAGE& performed a user fee study for the planning and building departments. This work was
performed within the last two years of her employment as Vice President and
`7 nalPr appreciate all of the Secretary of the Matrix Consulting Group. The NBS project team has also recently
extra I meyon spent eduratinq completed several successful user and regulatory fee analyses for the City of
me (and my slahg on the baric Richmond, including a third party review of fully loaded hourly rate calculations for the
for the rases. It was extremely Engineering, Wastewater, and Stormwater departments, as well as review of the
valuable andgiaes me the detail City's existing approach to establishing Wastewater and Stormwater utility rates
I need to explain andjai f, subject to Proposition 218 procedures. NBS also performed complete user and
any increases." regulatory fee analyses pertaining to the Code Enforcement division and the
_ .. permitting process for the recently adopted Medical Marijuana Collectives Dispensary
Ordinance.
Project Start & End Dates: December 2010 —April 2011
Key Staff & Roles: Nicole Kissam — Project Manager and Lead Consultant
Client Project Manager:
Antonio Banuelos, Revenue Manager: 510-620-6741,
Antonio—banuelos@ci.richmond.ca.us
(5) SACRAMENTO PUBLIC LIBRARY AUTHORITY
Cost Allocation Plan
NBS conducted a recent OMB a-87 compliant cost allocation plan analysis for the
Sacramento Public Library Authority. NBS is also currently under contract to update
this Plan for the next two fiscal years.
Project Start & End Dates: November 2010 — February 2011 and January 2012 to
Present
Key Staff & Roles: Nicole Kissam/Greta Davis — Project Mgr and Lead Consultant
Client Project Manager:
Roxana Puerner, Admin. Services, 916.264.2790, rpuerner@saclibrary.org
4-2 Proposal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NBS — March 9, 2012
CHAPTER 5. FEE PROPOSAL
FEE PROPOSAL
NBS will complete the Scope of Services outlined in Chapter 2 of this proposal for a total
cost not to exceed $30,790. A breakdown across all included project scopes is shown
below:
These fees are based on our understanding of the City's needs and the effort we believe
is necessary to complete the scope of services/task plan described.
Upon the City's review of our articulation of the scope of services and our suggested
work plan, NBS is willing to commit to the fee as a not -to -exceed amount for the
services described. This means that NBS will complete the project(s) following Chapter
2 of this document and at no time will we invoice for charges in excess of the fee to
which the City of San Juan Capistrano and NBS mutually agree. Should the City
specifically request additional services beyond those described in this document, we will
discuss those requests and associated costs at that later time and only invoice for
additional fees upon separate written authorization from the City.
NBS has used the following hourly rates to derive the overall not -to -exceed pricing for
the requested scope of services. These hourly rates will apply for the duration of our
contract:
Project Manager, $190 per hour
Senior Consultant, $150 per hour
Analyst, $100 per hour
NBS proposes to invoice the City on a monthly basis, following recorded consultant time
on the project, paralleling our completion of the work. With a total project timeline
proposed to cover approximately three months, we will likely issue a total of three to four
invoices, with one issued at the close of each calendar month. Total invoices submitted
will not exceed the project cost proposed in this document.
CONSULTANT LABOR EFFORT AND COST DETAIL
The fee proposed by NBS has been derived based on our estimate of the labor effort
required to complete each task identified in the work plan shown in our technical
proposal. The tables at the end of this document illustrate the detailed computation of
our total consulting fee, including labor distribution across phases and tasks of work for
our project team, hourly rates for each individual, and a small provision for direct
expenses we incur, primarily associated with document production.
We illustrate the detail of our fee estimate to express it honestly and transparently for
your consideration. It is based on our best understanding of the City's needs and our
experience in other studies. However, should this fee estimate fall outside the City's
expectations, we would be glad for the opportunity to discuss the City's concerns, so we
might possibly generate a scope of work and consulting fee that is mutually agreeable.
Pmporal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano 5-1
Prepared by NBS— February 24, 2012
Thank you for your time in considering our ideas. We hope to be your trusted guide
through this important work.
Exhibit A: Project Budget Detail for Overhead Cast Allocation Model
PROJECT COST DETAIL
Consultant Labor (Hours)
Grand Totals
Consultant
labor (Hours)
Consultant
Costs ($)
Project Senior
Task Plan Analyst
Manager Consultant
Hourly Rafe
$190
$150
$100
Commencement Data Collection
A. Gather/analyze data
0.5
1.0
-
1.5
$ 245
B. Identify initial structure
0.5
1.5
-
2.0
320
C. Meetwith City staff
1.0
2.0
3.0
490
Subtotal
2.0
4.5
-
65
1,055
Miestone/DeKverable: Klckollmeeting
'
Cost Allocation Model Development
A. Conduct organizational 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
0.5
2.0
8.0
10.5
1,195
Subtotal
4.5
14.0
24.0
42.5
5,355
Milestone/Deliverable:City KevhW& Conl7rmatkin ofPMn$tructure,r, .
Derivation of Outcomes
A. General annual allocations
1.0
4.0
4.0
9.0
1,190
B. Finalize Deliverable
1.0
4.0
4.0
9.0
1,190
Subtotal
2.0
8.0
8.0
18.0
2,380
Milestone/Deliverable: Draft Cosllllocatjon,Plan
... .....
i�k.
GRAND TOTAL NOT TO EXCEED
9
27
32
67
8,790
5 - 2 Pw posal to Prepare a
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano
Prepared by NEIS- March 9, 2012
Exhibit B: Project Budget Detail for User Fees Study
PROJECT COST DETAIL
Consultant Labor (Hours)
Grand Totals
Consultant
Consultant
Project Senior
Task Plan
Manager
Analyst
Consultant
La bor(Hours)
Costs($)
Hourly Rote
$190
$150 $100
Commencement Data Collection
A, Conduct admi nistratwe kick-off meeting
1.0
1.0 -
2.0
$ 340
S. Gather/analyzeaccessible data
05
1.0 -
1.5
245
Subtotal
1.5
2.0 -
3.5
585
`MdastonefOeAveenble: Kldr-off meeting
Fee Structure Design and Organizational Analysis
A, Des igo fee structure/ di vi s i onaI meeti ngs
1.0
8.0 4.0
13.0
1,790
B. Conduct ti me study
1.0
12.0 6.0
19.0
2,590
C. Prepa re iterations a n ti me study module
1.0
6.0 8.0
15.0
1,890
Subtotal
3.0
26.0 18.0
47.0
6,270
AMlestonelbelNerapla fee, structure. thnewtimateandvolumedota review andaa
b
confirmation
_
Time Valuation
A. Develop ti me/cost module
1.0
8.0 8.0
17.0
2,190
B. Develop ful ly-burdened hourly rates
1.0
2.0 2.0
5.0
690
Subtotal
2.0
10.0 10.0
22.0
2,880
MllestonelDdiverable:-Costand Fully Burdened Hourly Rote review andconjlrmrtion
Cost of Service Analyst;
A. Determi ne fu l cost of servi ces
1.5
8.0 4.0
13.5
1,885
B. Conduct divis i on al meeti ngs/revisions
2.0
8.0 4.0
14.0
1,980
C. Revise ti me/c ost/activity modules
1.0
4.0 4.0
9.0
1,190
D. Conduct cc mpa rative fee survey
0.5
2.0 16.0
18.5
1,995
E. Devel op recommended fees/policy
2.0
6.0 4.0
12.0
1,680
Subtotal
7.0
28.0 32.0
67.0
8,730
MilestoneirOalherable: On-site review meet olisto
refinecost; Preliminary,dra/t
ievlewand revishms; revieWedrajt comparatNestudy,• de"p remrdMerided,/ees .
Documentation
A. Prepa re/distri bute draft repo rt
2.0
8.0 -
10.0
1,580
B. Conduct onsite meeting, all parties
2.0
2.0 -
4.0
680
C.Issuefnal report
0.5
2.0 2.0
4.5
595
Subtotal
4.5
12.0 2.0
18.5
2,855
Milastone/PayAwoble: Draft LiserFee Report
Legislative Process
Subtotal
1.0
3.0 -
4.0
640
Mllestane/Deliverablei CkyCapnrllmeeJln9andlepklaHvepraresswpport +.
...
.
Direct Expenses
40
Westone/Oeliverable: Final Report printmp-oadshippinp :
GRANDTOTAL NOTTO EXCEED
19.0
81.0 62.0
162.0
22,000
Proposal to Prepare u
Cost Allocation Plan and User Fee and Rate Study for the City of San Juan Capistrano 5-3
Prepared by NBS - February 24, 2012
< r1"
N
N
�1
4
c`�
it e; is
s' p
G
a
a
4
i
G
E
°E
a
0
.'
v
4 0.
C
C
O
0
V
�
�
d.
r�=
t4
u
y
8
ti
Q
E -
`o
s_ 3
nary .
C
a
a
a. v
a. c
� -Pas ti
u C « a
le
ya a
} 2! M
°
N 4 G N
O
i z j"
Yn o w Et4E"
LL y E
EXHIBIT C to NBS Proposal
EXHIBIT C to NBS Proposal
A
a
m
r
a
0
r
d
0
0
v
0
ri
0
z
N
O
z
o�
O
2
N
O
2
u
m
N
y
O
O
N
�
a
W
O
c
0
c
Q
N
W
C
O
N
C
O
0
C
N
0
QQ
O
UV
O
N
w
-
C
CO
0
N
O
C
LL
O
C
O
C
d
O
O
OO
W
y
O
u
_
V
N
m
O
N
p
ry
m
6
c
D
O
E
'�
c
E
G
m
E
V
V
0
LL
H
V
O
J
.>
EXHIBIT C to NBS Proposal
N BS
helping communities
fund tomorrow
::rtit�i 57a-,. . t:ih:� Itz3
i, L it 7
San Francisco C,,9dw?
Toll f,,e. 800 434_:3<9
ntisgov.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 related to impact fees for the City of San Juan Capistrano. Per your request, the following
proposal presents a work plan and cost estimate for these services.
SCOPE OF SERVICES j
PMC, as a sub -consultant to NBS, will prepare a report updating development impact fees to fund
development mitigations in accordance with the Mitigation Fee Act as contained in Government Code
(GC) Section 66000 at seq. Based on our discussion with the City Finance Director, newer traffic impact
fees such as for auto dealerships have been perceived as being very high and are of concern to the
development community and stakeholders.
Our scope of services includes a review of the City's existing 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.
We have separated the City's housing in -lieu development fee from the other existing impact fees due to
the differing nature of how these fees are to be updated. The following task plan provides PMC's
approach and process toward the City's affordable housing in -lieu fee program. We are aware that the
City's Housing Advisory Committee is developing alternative solutions that will help the city meet its
affordable housing requirements while still encouraging developers to build. As part of our work effort, we
will review and evaluate these alternative solutions and make findings and suggested recommendations.
helping communities fund tomorrow
EXHIBIT B - Page 1
TRAFFIC DEVELOPMENT IMPACT FEE STUDY AND NEXUS REPORT
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
Task 1: Kick Off Meeting/Data Collection/Stakeholders
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
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 will 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.
Task 2: Identify and Address Policy 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 B - Page 2
• 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 Development by Land 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 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.
Task 4: Identify and Analyze Levels of Service
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 existing facilities including a description and analysis of any varying
impacts caused by residential development versus commercial and industrial
development.
The discussion will also, address the impacts upon levels of service for new
development after the additional facilities are constructed.
Task 5: Develop Cost Estimates for Eligible 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.
Task 6: Conduct an Impact Fee Comparison
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
Task 7: Conduct Nexus Analysis
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 and Submit 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 Final 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 operational fee update (completed by NBS). Additional meetings may be
requested by City at which PMC will attend on a time and materials basis.
11. PARIS & RECREATION DEVELOPMENT IMPACT FEE STUDY AND NEXUS
PMC, as a subconsultant to NBS, will conduct a nexus study and prepare a report
updating development 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 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
Task 1: Kick Off Meeting/Data Collection/Stakeholders
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 B - Page 4
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 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.
Task 2: Identify and Address Policy 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;
• 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 Development by Land 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
land 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: Identify and Analyze Levels of Service
PMC will identify and describe the basis for assumptions regarding the existing level of
service in the City for the existing park facilities, including a general description of
existing facilities. PMC will also address the impact that new development will have
upon the level of service of existing facilities.
Task 5: Develop Cost Estimates for Eligible Improvements
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 B - Page 5
Task 6: Conduct an Impact Fee Comparison
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.
Task 7: Conduct Nexus Analysis
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 and Submit 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 Final 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.
III. OPTIONAL SERVICE
Art in Public 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
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.
Task 1: Kick Off Meeting/Information Gathering
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: Identify and Address Policy Issues
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.
Task 3: Prepare and Submit Draft Fee Report
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.
Task 4: Draft In -lieu Fee Ordinance or 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 Final Fee Report/Attend Public 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
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 turnkey finance services, 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, including 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 B - Page 8
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 B - Page 9
coursework including revenue strategies and financial planning techniques. He works in
the area of project management, infrastructure financing, fiscal and economic 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
N
a
w
a
F-
0
0
LU
LL
F—
U
a
U
LL
LL
0.'
F -
w
0
LL
N
J
Q
z
a
LU
LU
LL
F—
Q
a
CLU
G
a
O
LLI
LU
0
4)
Y
O
O
O
to
O
L"
M
O
O
O
a)
to
00
V
I-
00
co
uli
M
v
Q)
tp
LL.
m
V
m
O
N
O
O
LO
t�
M
M
0
F-
Y
R
7
O
`DD
cam-
N
00
V
N
O
=
a
U .S
o
0
E.
N
N
r
Q
a Q
r-
v►
>O
N V V m
C.
p
O
O
3
CO
N
N
Nu)
r
MM
N
O
�aS
04
m
LL
'A
0
H
ca
i L
O
o
O
O
N
U)•O
N�
m —
L6
M
O
r
O
O
N
O
N
M
M
O
1
CO
1
M
a0
e
=a�W
w
O
o
E
m
O
U
2
=
WQ.
n
a
o
r
m
c
-
o
x
0
U)
ur
o
W
L
N
C
N
Z
O
U
O
E
a)=
>
E
a)
m
O
Y
U
o
CL
4)
N
Uco
y
2'
Q
Q
N>
p
-1w
N
E
a)
a)
o
m
(n
LL
C
Q
X
a)
M
a)
Q
W
i)
=
y
Z
c
c
n
0
m
E
x
Z
-o
m
m
c
m
LL
m
k
O
CL
O
7 U
U
7
m
�
U
w
a)
' —
()
—
a)
m
s
a
-o
2
a)
O
U
O
U
a
a
N
CO
V
M
0
fl-
W
m
Y
Y
Y
-he
Y
Y
Y
Y
Y
m
m
m
m
m
m
m
m
m
F-
r
r
r
r
r
r
r
r
J
Q
O
CL
w
a
O
U
0
L
w
N
Q
R
U
=U
cc
:3a
R
N
0
2:
Ail
N
N
(6
a
m
H
m
x
w
w
0
O
O
O
O
O
LO
O
(O
O
O
Cl)
O
O
M
M
LL
M
N
N
00
00
LO
V
d'
M
M
F
69
fR
6-3
69
Q)
69
69
69
69
M
a)
69
O
F
a
Y
`
M
1y0
O
1
N
NCO
(O
V
Cl)
M
M
O
2
a
E
E
o
w
Q
a Q
61
O
N
O
V O R
O
M
m U
M
O
O
N
N
N
N
r
r
?
C N
a)
d
LL
I
(D
(O
u-
0
N
N
f/)
MLO
O '
N0
R
'It
N
N
N
co
O
c
M
r
w
6
.�
0
N
cr'
C
y
0
0
o
U
=
x
_
O
O.09
CL
£
O
~
U
d
H
N
o
0
(q
x
to
wo
_
w
o
0
y
Z
�i
0
o
(D
o
o
E
o
CL
Cl
W
N
d
O
�
U
y
0
>
m
E
c
ON
>
a)
LL
E
7
cm
a
0
a3
Q
.�
C
N
W
y
N
Z
Q
QO
N
a5
X
a
a3
aw
a
o
E
a)
c
c
c
c
(�
_
Z
a1
jL
u
LL
mQ
U
U
aI
O
Y
C
G
G
aI
>
a
c
a
C
cl
a)
n
O
a)
a)
a)
y
O
O
N
Y
a
a
a
p
U
U
n-
a
r
N
Cl)
IT
LO
O
r
00
m
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
y
N
N
(n
N
N
N
N
N
N
(6
a
m
H
m
x
w
w
T
CO)
J
Z
Q
W
W
r LJL
J N �
a W
d
V J
U Z
a-3aw
� c U
O Cl) J
v c a
V m
a
�A
:M:
d
m
tU
a
m
F-
m
x
w
w
0
0
0
o
0
0
WM�N
N
O
�-
N
-:
69
n
EA
6e
fR
to
fH
LL
(yp
o
as
a
W
� Y
n
N
=ar
(3)
m
w
c
c
v
O
0
O
E
E
N
N
a
Q
a Q
r-
V►
Y
U O N
_ U
O
O
O
W
N O
fp U
O
V
M
NN
N
M
O
❑�
O c O
aU-
M
m
6,
,n
E
U N
O
O C
0 O
y w
0
(O
M
O�
co
(0
V
N
w
m
m
Qat
I
L6
�
o
U
U—
2
O
o
LL
m
a'
F°-
n.
E
N
l9
�
LL
N
"
Q
U
U
N
a
a
f6
m
CL
Y
m e
�,
o
0
m
Q
a`c
w
O�
~
W
-0
M
a)
w
` Q
a
U)LL
LL
N N
r-
C7
q)
c
m
cc
a
E14
Y
N
M
n
N
YNaCL0CL
E
r f0
N
M
SCJ c
W 0
m
m
m
m
F CL
F --
:M:
d
m
tU
a
m
F-
m
x
w
w
Full Cost Allocation Plan and Citywide User Fee and Rate Study
REQUEST FOR PROPOSAL ("RFP")
1. BACKGROUND
The City of San Juan Capistrano (the City) requests proposals from qualified bidders for
professional services to perform studies relating to: 1) overhead cost allocation to include full
cost for internal use; and, 2) user fees and charges for cost of services.
San Juan Capistrano is a general law city with a population of approximately 35,000. The City
provides a range of municipal services including operating its own water and sewer
enterprise utility. The City employs approximately 100 full-time equivalents and has a
Council -Manager form of government with six departments. The total Adopted Budget for
FY 2011/12 is $72,067,671 with a General Fund budget of $20,995,772. The City anticipates
$21,058,879 in General Fund revenue for FY 2011/12.
The City has a water and sewer enterprise fund, special revenue funds, and its own
Redevelopment Agency. Fees are levied for development related activities as well as
recreational services, rental of facilities, and other charges for services activities. Water and
sewer rates are not part of this Request for Proposal.
While certain user fees and charges have been adjusted on annual basis, the City has not
previously conducted a cost allocation plan and comprehensive user fee and rate study.
Therefore, the purpose of the requested studies is to ensure the City of San Juan Capistrano
utilizes overhead rates that accurately account for the true cost of providing various services
within City operations, and to assess appropriate fees and rates allowing the City to recover
the actual costs incurred for fee related services.
2. SCHEDULE OF EVENTS
This request for proposal will be governed by the following schedule:
Release of RFP January 23, 2012
Deadline for Written Questions February 10, 2012
Responses to Questions February 14, 2012
Bidders Meeting (City Hall, 2:00 p.m.) February 15, 2012
Proposals are Due February 24, 2012
Proposal Evaluation Completed March 9, 2012
Approval of Contract (tentative date) April 3, 2012
2