HomeMy WebLinkAboutAgenda Report - June 2, 2010 D-09AGENDA ITEM D409
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Master Professional Services
Agreement with Nolte Associates, Inc., of Manteca; Approving Task Order No. 1 to
Provide Initial Engineering/Financial Services to Update Impact Mitigation Fee
Program ($46,500); and Appropriating Funds ($55,000)
MEETING DATE: June 2,2010
PREPARED B Y Public Works Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a master
professional services agreement with Nolte Associates, Inc., of
Manteca; approving Task Order No. 1 to provide initial engineering/
financial services to update the Impact Mitigation Fee Program in
the amount of $46,500; and appropriating funds in the amount of $55,000.
BACKGROUND INFORMATION: The City's Development Impact Mitigation Fee (IMF) program
consists of eight separate fee categories/funds, plus the public art
set-aside. They are Water, Wastewater, Streets, Storm, Police,
Fire, Parks and Recreation, and General City Facilities. The fees
were established in 1991 to fund construction of new facilities serving new development and were
updated last in 2006. An important implementation step of the new General Plan is an updateto the
impact mitigation fee program. A new fee is proposed to be added to the existing program to cover the
costs of expandingthe electric transmission/substation facilities.
The initial engineering/financial services will result in a concise Scope of Services for the update that will
be bid out to qualified consulting firms. The agreement and scope of services are attached. The services
include working with the Building Industry Association and the development community to define the
scope of improvementsto be covered by the fee program and to conceptually establish the fee program's
share of those improvements. An important deliverable will be an assessment of master planning work
required in each of the fee categories. Also, these initial services will define the operating assumptions
that are the foundation of the updated fee program. Example assumptions include single or multiple fee
zones by category, housing density, employee density, acre -based or unit-basedfees, and outside
funding sources. In this initial phase, the framework of an incentive program for development of the
mixed-use corridors and other infill developmentwill be created. Cost shares of majorfuture projects
(e.g. Water Treatment Plant, Harney Interchange, Harney Grade Separation, Century Boulevard Grade
Separation and Kettleman Lane Widening) need to be assigned to new development and direction from
the City Council will be requested based upon the alternatives to be provided.
Nolte Associates, Inc., will provide the initial eng ineering/financial services. Nolte, along with Public
Works Director Sandelin, developed the existing fee program.
FISCAL IMPACT: Establishing appropriate fees ensures funding will be available to construct
facilities required to serve new development.
1.
APPROVED:
KAW PIIM Fees\CAwardNofte.doc
Konradt Bartlam, Interim City Manager
5/25/2010
Adopt Resolution Authorizing City Manager to Execute Master Professional Services Agreement with Nolte
Associates, Inc., of Manteca; Approving Task Order No. 1 to Provide Initial Engineering/Financial Services
to Update impact Mitigation Fee Program ($46,500); and Appropriating Funds ($55,000)
June 2,2010
Page 2
FUNDING AVAILABLE: The funding for this activity would, under the existing program, be funded
by the General City Facilities sub -fund. But, there are insufficient funds in
that sub -fund and a loan of funds from the Storm Drainage Impact Fund
(326) is required.
a Ayers
Deputy City Manager/[nternal Services Director
F. Wally SaLfd&lin
PublicWorks Director
FWSlpmf
Attachment
KAWP11MFees\CAwardNo11e.doc 512512010
MASTER PROFESSIONAL SERVICES AGREEMENT
Engineering Support Services for the City of Lodi
This Master Professional Services Agreement (hereinafter "Agreement") is made and
entered into by and between the City of Lodi, a municipal corporation (hereinafter
"CITY") and NOLTE ASSOCIATES, INC., a California corporation/sole proprietor
firm/partnership (hereinafter 'CONS ULTANT').
RECITALS
A. CONSULTANT services are needed for initial engineering/financial services to
update the Impact Mitigation Fee Program.
B. After negotiations between CITY and CONSULTANT, the parties have reached an
agreement for the performance of services in accordance with the terms set forth in
this Agreement. On June 2, 2010, the City Council, by Resolution, authorized the
City Manager to execute this Agreement with CONSULTANT.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1, SCOPE OF SERVICES. CONSULTANT shall perform the services as may be
described in subsequent Task Orders which the parties agree are to be made a part
hereof by this reference. The services shall be performed by, or under the direct
supervision of, CONSULTANT'S Authorized Representative: Dave Richard, P.E.
CONSULTANT shall not replace its Authorized Representative, nor shall
CONSULTANT replace any of the personnel listed in the specific Task Order(s), nor
shall CONSULTANT use any subcontractors or sub -consultants, without the prior
written consent of CITY.
2 TIME OF PERFORMANCE. Time is of the essence in the performance of services
under this Agreement and Task Orders and the timing requirements set forth therein
shall be strictly adhered to unless otherwise modified in writing in accordance with
this Agreement. The CONSULTANT is not responsible for delays caused by factors
beyond the CONSULTANT'S reasonable control, including but not limited to delays
because of strikes, lockouts, work slowdowns or stoppages, accidents, acts of God,
failure of any governmental or other regulatory authority to act in a timely manner,
failure of the Client to furnish timely information or approve or disapprove of the
CONSULTANT'S services or work product promptly, or delays caused by faulty
performance by the Client or by contractors of any level. When such delays beyond
the CONSULTANT'S reasonable control occur, the Client agrees the CONSULTANT
is not responsible for damages, nor shall the CONSULTANT be deemed to be in
default of this Agreement. CONSULTANT shall commence performance, and shall
complete all required services no later than the dates set forth in each Task Order.
CONSULTANT shall submit all requests for extensions of time to CITY in writing no
later than ten (10) days after the start of the condition which purportedly caused the
delay, and not later than the date on which performance is due.
KAWP\IMFees\MASTER PROFESSONALSERVICES AGREEMENT Nolte.doc
3. INDEPENDENT CONTRACTOR STATUS. CONSULTANT is an independent
contractor and is solely responsible for all acts of its employees, including any
negligent acts or omissions. CONSULTANT is not City's employee and
CONSULTANT shall have no authority, expressed or implied, to act on behalf of
CITY as an agent, or to bind CITY to any obligation whatsoever, unless CITY
provides prior written authorization to CONSULTANT.
4. CONFLICT OF INTEREST. CONSULTANT (including its employees) shall not
maintain or acquire any direct or indirect interest that conflicts with the performance
of this Agreement and any Task Orders. In the event that CONSULTANT maintains
or acquires such a conflicting interest; any contract (including this Agreement)
involving CONSULTANT'S conflicting interest may be terminated by CITY in its sole
and absolute discretion and without prior written notice as required by Paragraph 6
below.
5. COMPENSATION
5.1 For services performed by CONSULTANT in accordance with this Agreement,
CITY shall pay CONSULTANT on a time and expense basis, at the billing rate
set forth in the Task Orders. CONSULTANT'S billing rates shall cover all costs
and expenses of every kind and nature for CONSULTANT'S performance of
the specific Task Orders. No work shall be performed by CONSULTANT in
excess of the Not To Exceed amount as stated in the specific Task Orders
without the prior written approval of CITY.
5.2 CONSULTANT shall submit monthly invoices to CITY describing the services
performed, including times, dates, and names of persons performing the
service.
5.3 Within thirty (30) days after CITY'S receipt of invoice, CITY shall make
payment to the CONSULTANT based upon the services described on the
invoice and approved by CITY, which approval shall not be unreasonably
withheld.
5.4 In the event that CONSULTANT'S negligent acts, errors, or omissions, or
willful misconduct in fact result in damages to CITY, CONSULTANT shall
reimburse CITY (or in City's discretion CONSULTANT'S payment under
pending invoice(s) may be offset) to the extent of the damages incurred as the
result of CONSULTANT'S negligent acts, errors, or omissions, or willful
misconduct.
6. TERMINATION. CITY may terminate this Agreement or any Task Order hereunder
by giving ten (10) days written notice to CONSULTANT. Upon termination,
CONSULTANT shall give CITY all original documents, including preliminary drafts
and supporting documents prepared by CONSULTANT. CITY shall pay
CONSULTANT for all services satisfactorily performed in accordance with this
Agreement and any Task Orders, up to the date notice of termination is given.
7. OWNERSHIP OF WORK. All original documents prepared by CONSULTANT under
this Agreement and any Task Orders hereunder are the property of CITY, and shall
be given to CITY at the completion of CONSULTANT'S services, or upon demand
from CITY. CITY acknowledges that CONSULTANT documents are instruments of
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professional service; nevertheless, the documents prepared underthis Agreement
and the specific Task Orders shall become the property of the CITY upon completion
of the work and payment in full of all monies due to CONSULTANT by CITY. CITY
shall not reuse or make any modification to the documents without notification to the
CONSULTANT. CITY agrees, to the fullest extent permitted by law, to indemnify and
hold CONSULTANT harmless from any claim, liability or cost (including reasonable
attorney's fees and defense costs) arising or allegedly arising out of unauthorized
reuse or modification of the documents by CITY or any person or entity that acquires
or obtains the documents from or through City without the written authorization of
CONSULTANT. CONSTULTANT shall be allowed to retain copies of all documents
prepared under this Agreement and any Task Orders hereunder. In addition,
CONSULTANT shall be allowed to release information to its insurance carriers in the
event of a claim or when ordered by a subpoena.
8. ATTORNEY'S FEES. In the event any legal action is commenced to enforce this
Agreement, the prevailing party is entitled to reasonable attorney's fees, costs, and
expenses incurred as may be determined by a court of competent jurisdiction.
9. INDEMNIFICATION. CONSULTANT shall indemnify and hold harmless CITY
(including its elected officials, officers, and employees) from and against any and all
claims for damages, demands, liability, costs, and expenses including court costs
and attorney's fees) to the extent that they arise out of CONSTULTANT'S negligent
act, error or omission(s) in the performance of services under this Agreement and its
Task Orders.
10. BUSINESS LICENSE. Prior to the commencement of any work under this
Agreement, CONSULTANT shall obtain a City of Lodi Business License.
11. INSURANCE.
11.1 General. CONSULTANT shall, throughout the duration of this Agreement
and any Task Orders, maintain insurance to cover CONSULTANT, its agents,
representatives, and employees in connection with the performance of
services under this Agreement at the minimum levels set forth herein.
CONSULTANT shall be entitled to rely on all data, plans, surveys, maps, and
other information provided by or on behalf of CITY in performing its services
under this Agreement, and such reliance shall, in all events, be considered
reasonable.
11.2 Commercial General Liabilitv. (with coverage at least as broad as ISO
form CG 00 01 01 96) Coverage shall be maintained in an amount not less
than $2,000,000 general aggregate and $1,000,000 per occurrence for
general liability, bodily injury, personal injury, and property damage.
11.3 Automobile Liabilitv. (with coverage at least as broad as ISO form CA 00
01 07 97 for "any auto") Coverage shall be maintained in an amount not less
than $1,000,000 per accident for bodily injury and property damage.
11.4 Workers' Compensation. Coverage shall be maintained as required by the
State of California.
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11.5 Professional Liability. Coverage shall be maintained to cover damages that
may be the result of negligent acts, errors or omissions in the rendering of
professional services by the CONSULTANT in an amount not less than
$1,000,000 per claim made.
11.6 Endorsements. CONSULTANT shall obtain endorsements to the
automobile and commercial general liability with the following provisions:
11.6.1 CITY, its elected and appointed boards, commissions, officers,
agents and employees shall be named as additional insureds.
11.6.2 For any claims related to this Agreement, CONSULTANT'S
coverage shall be primary insurance with respect to CITY. Any
insurance maintained by CITY shall be excess of the
CONSULTANT'S insurance and shall not contribute with it.
11.7 Notice of Cancellation. CONSULTANT shall obtain endorsements to all
insurance policies by which each insurer is required to provide thirty (30)
days prior written notice to CITY should the policy be canceled before the
expiration date. For the purpose of this notice requirement, any material
change in the policy prior to the expiration shall be considered a cancellation.
11.8 Authorized Insurers. All insurance companies providing coverage to
CONSULTANT shall be insurance organizations authorized by the Insurance
Commission of the State of California to transact the business of insurance in
the State of California.
11.9 Insurance Certificate. CONSULTANT shall provide evidence of compliance
with the insurance requirements listed above by providing a certificate of
insurance, in a form satisfactory to the City's Risk Manager no later than five
(5) days after the execution of this Agreement.
11.10 Substitute Certificates. No later than thirty (30) days prior to the policy
expiration date of any insurance policy required by this Agreement,
CONSULTANT shall provide a substitute certificate of insurance.
11.11 CONSULTANT'S Obligation. Maintenance of insurance by CONSULTANT
as specified in this Agreement shall in no way be interpreted as relieving
CONSULTANT of any responsibility whatsoever (including indemnity
obligations under this Agreement), and CONSULTANT may carry, at its own
expense, such additional insurance as it deems necessary.
12. ASSIGNMENT AND DELEGATION. This Agreement and any portion thereof shall
not be assigned or transferred, nor shall any of CONSULTANT'S duties be
delegated, without the written consent of CITY. Any attempt to assign or delegate
this Agreement without the written consent of CITY shall be void and of no force and
effect. Consent by CITY to one assignment shall not be deemed to be consent to
any subsequent assignment.
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13. NOTICES
13.1 All notices, demands, or other communications which this Agreement
contemplates or authorizes shall be in writing and shall be personally
delivered or mailed to the respective party as follows:
To CITY To CONSULTANT
Director of Public Works Dave Richard
City of Lodi Nolte Associates, Inc.
221 West Pine Street 1215 W. Center Street, Ste. 201
Lodi, CA 95240-1910 Manteca, CA 95337-4227
13.2 Communications shall be deemed to have been given and received on the
first to occur of: (1) actual receipt at the address designated above, or (2)
three working days following the deposit in the United States Mail of
registered or certified mail, sent to the address designated above.
14. MODIFICATIONS. This Agreement or any Task Orders hereunder may not be
modified orally or in any manner other than by an agreement in writing signed by
both parties.
15. WAIVERS. Waiver of a breach or default under this Agreement shall not constitute a
continuing waiver or a waiver of a subsequent breach of the same or any other
provision of this Agreement.
16. SEVERABILITY. In the event any term of this Agreement is held invalid by a court
of competent jurisdiction, the Agreement shall be construed as not containing that
term, and the remainder of this Agreement shall remain in full force and effect.
17. JURISDICTION AND VENUE. The interpretation, validity, and enforcement of the
Agreement shall be governed by and construed under the laws of the State of
California. Any suit, claim, or legal proceeding of any kind related to this Agreement
or any Task Orders shall be filed and heard in a court of competent jurisdiction
located in the County of San Joaquin.
18. ENTIRE AGREEMENT. This Agreement and subsequent Task Orders comprise the
entire integrated understanding between the parties concerning the services to be
performed for any project. This Agreement supersedes all prior negotiations,
representations, or agreements, whether oral or written.
19. COMPLIANCE WITH THE LAW. CONSULTANT shall comply with all local, state,
and federal laws, whether or not said laws are expressly stated in this Agreement or
any Task Orders hereunder.
20. SIGNATURES. The individuals executing this Agreement represent and warrant that
they have the right, power legal capacity, and authority to enter into and to execute
this Agreement on behalf of the respective legal entities of the CONSULTANT and
CITY. This agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.
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IN WITNESS WHEREOF the parties do hereby agree to the full performance of the
terms set forth herein.
CITY OF LODI
a municipal corporation
By: Konradt Bartlam
Title: Interim City Manager
Date:
Attest:
By: Randi Johl
Title: City Clerk
Date:
Approved as to Form
D. Stephen Schwabauer
City Attorney
By: Janice D. Magdich
Title: Deputy City Attorney
Date:
0
CONSULTANT
By: Dave Richard
Title: Principal
Date:
Fed. Employer ID No.:
KAWP\IMFees\MASTER PROFESSONAL SERVICES AGREEMENT Nolte.doc
MAY 032010
April 30, 2010 CITE OF LORI
BDNCWAT-WP PUBLIC WORKS DEPARTMENT
Wally Sandelin, PE
Director of Public Works
City of Lodi
221 West Pine Street/PO Box 3006
Lodi, CA 95241
BEY ON D E N G IN E E R ING
SUBJECT: Proposal for Initial Engineering Services to Update the
City of Lodi Impact Mitigation Fee Program
Dear Wally:
The City of Lodi (City) is undertaking an update to the Impact Mitigation Fee (IMF) program. The
Update will provide the City staff and the development community with: 1) revised fees for the
existing facility categories in the RVIF consistent with the recently adopted General Plan Update and
current master plans and 2) an understanding of the methodology, policies, and assumptions that
shape the IMF. The Update will focus on extending the time frame of the program, the scope of
new development and the public improvements funded, as well as addressing changes in the cost
and timing of public improvements currently in the IMF. A scope of services for the initial tasks
associated with the update is summarized as follows.
SCOPE OF SERVICES
Nolte Associates, Inc. (Nolte) with Geoff Richman (GR) will assist the City in the preliminary
phase of the IMF Update. The scope of services includes: 1) attend meetings with the City and BIA;
2) assess existing master plans; 3) research and compile other agency fees; 4) evaluate a single -fee
zone within the City; 5) prepare framework Assumptions Report; and 6) develop a plan for the IMF
Update. Each of these tasks is discussed in more detail below.
Task 1— Initial Meetings with City and BIA
Nolte and GR will attend three meetings with the City and BIA of the Delta to review the current IMF
program and to discuss the framework for the IMF update. Comments and concerns will be solicited
and the results summarized in a brief technical memorandum for submission to the City.
Task 2 — Assess Master Planning Needs
The existing master plans will be reviewed to determine if any additional information needs to be
provided by the master plan consultants for the IMF Update. A brief technical memorandum will be
prepared summarizing the results ofthe review and any additional information the City may need from
the master plan consultants.
NOLTE ASSOCIATES, INC.
1215 WEST CENTER STREET, SUITE 201
MANTECA. CA 95 33 7-4 22 7
209.239.9080 TEL 209.239.4 166 FAX
WWW.NOLTE.COM
1Nts21General�Adminlbdnccv\Lodi120100430Impact Fee Update.doc
Wally Sandelin, PE
April 30,2010
Page 2
Task 3 — Review Other Agency Impact Fee Levels
In the competitive real estate market, the cost of infrastructure is a significant cost in the land
developmentprocess. To understand the competitiveness of Lodi in terms of its impact fees, a
comparison will be completed of the impact fees of other agencies in the region.
The impact fees from three similar municipalities as identified by the City will be researched to
understand the relative infrastructure burden the Lodi HvM places on the development community.
This effort will examine the impact fee burden placed on residential, commercial, and industrial
development from each infrastructure category as well as the total burden from all fees in the Lodi
IMF.
The total infkastructure cost from the three municipalities (i.e., CFDs, assessment districts, and
infrastructure built directly by builders) will be not be part of the analysis as these other costs vary
significantly among sub -areas of each municipality and are most frequently passed on to the final
owners or are not known in the case of infrastructure built by developers.
A brief technical memorandum will be prepared and submitted to the City with the results of the
review.
Task 4 — Evaluate Single Fee Zone
The City currently imposes the IMF on a citywide basis. Each infrastructure category will be
reviewed to understand and evaluate any issues related to this approach given the anticipated
developmentpatterns and infrastructure requirements of the upcoming IMF update. A brief
technical memorandum will be prepared with the results of the evaluation.
Task 5 — Preliminary Assumptions Report
A preliminary Assumptions Report will be prepared and submitted to the City. The intent of this
document is to identify the numerical, methodological, and policy assumptions that will be used in the
preparation of the IMF Update. Elements to be addressed in the preliminary Assumptions Report
include:
1. Time frame for the IMF update
2. Specific infrastructure projects funded by the IMF versus other outside funding sources
3. Definition of land use categories
4. Generation or demand rates by specific land uses for facilities
5. Inflation and interest rates
6. Inter-fee-fundborrowing policy
7. Project costing parameters
8. Development densities and intensities and fee calculation methodology
The preliminary Assumptions Report is critical to lay the foundation for a consistent set of assumptions
to be used by all parties working on the IMF update. It is anticipated that the Assumptions Report will
\\Mts2\Genera]\Admin\bdnccv\Lodi\20100430 Impact Fee Update.doc
NGLTE ASSOCIATES, 114C.
Wally Sandelin, PE
April 30,2010
Page 3
be updated and revised during the preparation of the IMF Update and will be completed in tandem
with the IMF Update.
An electronic copy of the preliminary Assumptions Report will also be provided to the City that can be
updated in the final phase of the IMF Update.
Task 6 -Plan for IMT Update
It is our understanding the City will be issuing a Request for Proposal (RFP) to consultants for the
preparation of the IMF Update. Nolte will prepare and submit to the City a preliminary schedule for
the IMF Update process, an estimated budget, and a RFP scope document for the City to use in the
selection process. One draft set of documents and one final package are anticipated under this task.
ESTIMATED FEE
The following is the estimated fee to complete the tasks identified above:
Task 1— Initial Meetings with City and BIA $5,000
Task 2 — Assess Master Planning Needs $7,500
Task 3 — Review Other Agency Impact Fee Levels $5,000
Task 4 — Evaluate Single Fee Zone $10,000
Task 5 — Preliminary Assumptions Report $15,000
Task 6 - Plan for IMF Update $4,000
TOTAL $46,500
We look forward to working with you and your staff on this critical project. If you have any questions
or would like to discuss our scope further, please give us a call.
Sincerely,
Nolte Associates, Inc.
Dave Richard, PE
Principal
\\Mts2\Genera]\Admin\bdnccv\Lodi\20100430 Impact Fee Update.doc
14OLTE ASSOCIATES, INC.
RESOLUTION NO. 2010-74
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
CITY MANAGER TO EXECUTE MASTER PROFESSIONAL
SERVICES AGREEMENT AND APPROVING TASK ORDER
NO. 1 TO PROVIDE INITIAL ENGINEERING/FINANCIAL
SERVICES TO UPDATE IMPACT MITIGATION FEE
PROGRAM AND FURTHER APPROPRIATING. FUNDS
WHEREAS, the City's Development Impact Mitigation Fee (IMF) program consists of
eight separate fee categories/funds (Water, Wastewater, Streets, Storm, Police, Fire, Parks and
Recreation, and General City Facilities), plus the public art set-aside. The fees were
established in 1991 and updated last in 2006. A new fee is proposed to be added to cover the
costs of expanding the electric transmission/substation facilities; and
WHEREAS, the initial engineering/financial services will result in a concise Scope of
Services for the update that will be bid out to qualified consulting firms. The services include
working with the Building Industry Association and the development community to define the
scope of improvements to be covered by the fee program and to establish the fee program's
conceptual share of those improvements, assessing master planning work required in each of
the fee categories, and defining the operating assumptions that are the foundation of the
updated fee program; and
WHEREAS, the firm of Nolte Associates, Inc., will provide the initial engineering/financial
services. Nolte, along with Public Works Director Sandelin, developed the existing fee program.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a master professional services agreement with Nolte
Associates, Inc., of Manteca, California, and approve Task Order No. 1 in the amount of
$46,500 to provide initial engineering/financial services to update the Impact Mitigation Fee
Program; and
BE IT FURTHER RESOLVED that funds in the amount of $55,000 be appropriated from
the Storm Drainage Impact Fund.
Dated: June 2, 2010
I hereby certify that Resolution No. 2010-74 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 2, 2010, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and
Mayor Katzakian
NOES: COUNCIL MEMBERS —None
ABSENT: COUNCIL MEMBERS —None
ABSTAIN: COUNCIL MEMBERS — None
(&IL
City Clerk
2010-74