HomeMy WebLinkAboutAgenda Report - January 6, 1988 (70)OCITY F
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PUBLIC WORKS DEPART91MViENT
Q
TO:
FROM :
MEETING PATE
City Council
C i t y Manager
January 6, 1988
COL' CIL C0MMUNICATI0N
AGENDA TITLE: Review Proposals for Developing a Public Facilities Financing
Plan and a General Plan Fiscal Impact Analysis and Recommended
Funding (Discussion and Appropriate Action)
RECOMMENDED ACTION: That the City Council retain Nolte and Associates to
prepare a pu is acilities financing plan and a fiscal impact analysis for
the General Plan revision and allocate $78,000 to cover related costs.
BACKGROUND INFORMATION: It was pointed out in the Century Meadows, Batch,
and Bridgetown Estates Final Environmental Impact Reports that the
accumiiiated impacts would require the City to make fflfJtrr experrdi tures in
the area of traffic mitigation, water system improvements, sewage treatment
plant expansion, police and fire protection, and park improvements. The
method in which the City obtained the required funds for these improvements
was not covered. It is recommended that a consulting firm be retained to
evaluate various types of fee structures that would allow new developments to
pay their own way. The cost of preparing the financing plan can be recovered
under the fee structure that is developed.
The C i tv Manager and I have interviewed the consulting firms of Nolte and
Associates and BSI Consultants Inc. and are recoimnendi ng that the Council
approve the hiring of Nolte and Associates to perform the public facilities
financing plan for the City of Lodi. Their scope of work is included in the
attached proposal. W were both impressed with their scope of services which
included providing different types of funding alternatives and having three
workshops and/or public hearings with the deveiopment community during the
process. Nolte and Associates will be using Angus McDonald and Associates as
financial consultants. Angus McDonald was one of the participants at the
League of California Cities Conference in San Francisco on a panel entitled,
"The Future of Infrastructure Financing". The City Manager's office has the
tape of this session and I would encourage the City Council to review it.
Nh: McDonald made it very clear in his presentation that a MV fee structure
could be implemented at any time, however, the best timing would be in
conjunction with the development or updating o t an agency's General Plan.
Since Lodi is updating its General Plan, the City Manager and I then met with
Mr. McDonald and representatives from Nolte and Associates and Jones and
Stokes. From this meeting, Ae received the attached propcsal for developing
a fiscal impact analysis for each General Plan alternative being developed by
CDEVFEE/TXTW.02M December 301, 1987.
City Council
Financing Plan
January 6, 1988
Page 2
Jones and Stokes, and for the actual General Plan finally adopted by the Cit,
Council. This fiscal analysis wit? ensure that as the General Plan area is
developed, the City will be able to provide the required services and remain
in fiscal balance. It is recommended that Nolte and Associates, using Angus
McDonald and Associates, be retained to provide this fiscal impact analysis.
The estimated cost and proposed funding for this work is shown below.
Cast Breakdown
Public Facilities�rinancing Plan
Consultant Fee 50,230 to 58,230 (max)
City Staff 4,770
TOTAL $63,G00 (max)
Fiscal Impact Analysis
of General Plan $15,000
Funding Breakdown
32 Fund - Gas Tax (40%) $2;.100
18.0 Water Utility (30%) 19,J00
121 COR Fund (30%) 19,000
TOTAL $63,030
General Fund (100%) $15,000
Att
cc:
achments
Finance Director
Nolte and Associates
Angus McDonald and Associates
Jones and Stokes Associates.
'9
fi
FISCAL IMPACT ANALYSIS
OF GENERAL PLAN ALTERNATIVES
A PROPOSAL
TO
CITY OF LODI
AS AN OPTIONAL ELEMENT
OF THE SUBMITTAL BY
NOLTE AND ASSOCIATES
FISCAL ANALYSIS
CITY OF Lo®x
I. TECHNICAL APPROACH
Task Purpose
Particularly since the passage of Proposition 13, cities in
California must pay careful attention to whether their tax base
will support the ongoing cast of public services. The ideal time
to consider such factors is when a city prepares or updates its
General Plan.
There are two primary reasons to include a careful and thorough
fiscal analysis in a General Plan program.
First, knowledge about fiscal balance can affect the -lk-;- a of a
General Plan. In the present fiscal environment, some General
Plan land use alternatives simply cannot be made to balance,
fiscally. If this situation is identified when alternatives are
being compared, then the alternative can be modified (or it can be
rejected in favor of another alternative that meets other city
objectives) while providing a fiscal balance.
Second, a fiscal analysis, done as part of a General Plan Program,
provides for efficiencies later in the development process. For
example, a fiscal analysis of an individual project - particularly
a residential project - can be extremely misleading. If a
residential development project is viewed in isolation, the cost
of providing services to residents will often appear to exceed the
revenueG produced by residents.
.-
This "isolated project" analysis fails to recognize that the
resident, as employee or as employer elsewhere i n the City of
Lodi, may be contributing to a positive fiscal balance.
�.. Similarly, the in -commuter employee may be producing a very
positive fiscal balance, at virtually no incremental cost for
- public services.
The alternative to "isolated project" analysis is to evaluate the
fiscal balance for the General Plan itself. If the General Plan
is in balance then every project that is consistent- with the
r General Plan, has perforce, been a part of the original General
► Plan fiscal analysis and needs not be analyzed again. If a
proposed project is not consistent with the General Plan, a
;1 General Plan amendment_ is required. The fiscal balance of the
amended General Plan would then be tested as part of the amendment
process. Once again, if the amended General Plan was in fiscal
balance (whether or not this balance was more or less positive,
compared to the General Plan before the amendment) then the
individual project itself would have been considered a part of the
amended General. Plan.
II. TASK DESCRIPTIONS
Task Products
The proposed fiscal analysis will produce:
o a fiscal analysis for each General Plan alternative;
o e. fiscal analysis for the recommended General Plan;
3 a fiscal analysis for the General Plan, as adopted by the
City Council
Task Execution
The fiscal analysis will be carried out in a total of four tasks.
Task 1 - Prepare Public services plans
McDonald & Associates asserts that, while computer models can be
used very practically to forecast municipal revenues, this is not
the case wl.th the cost of municipal services. The costs of
municipal services are the result of decisions that are originally
proposed by department heads, that are validated by the City
Manager and that ate ultimately adopted by the City Council. They
are not the result of some formula or "law of nature".
Accordingly, McDonald & Associates proposes to simulate this
decision process by conducting a workshop with affected department
heads. Vee process is very comparable t:o that of preparing the
annual budget, but the "city" for which services are being
V,=ad^,&' -A s t'�A ^; 4, of Lodi . that . would exist after General Plan
implementation.
There is no question that this process requires an effort on the
part of the City`s department heads. Pre -tested data gathering
forms and the use of computer models to litdit the clerical effort`
required (e.g.', by converting a department head's estimate oit _
ataf fi n g requirements into an estimate of total municipal cost)
makes the effort. manageable. Experience in other jurisdictions
has demonstrated that the process has the additionalbenefit. of
involving all departments in the General Plan progr.%m' :A,faasr -i nev -
that all requirements are considered, and, in general, developing
a team spirit about decisions that will affect the City for years
_o come. .:
Task 2 - Prepare forecast of revenues and fund balances
Estimating relationships will be prepared for each of the revenues
in Lodi ` s annual budget. The estimated relationship will depend
nn the nature of the revenue but will, in every case, be
responsive to the underlying land u5e assumptions.
The revenue estimates as part of the -present project will be used
X4
for the horizon year of the General Plan recommendation. -
estimating relationship itself will be useful for year -by -year
estimates that may be appropriate, in the future, when Specific
Plans or development agreements are being negotiated.
The expenditure estimates (from Task 1) and the revenue estimates
wi11 be compared, for Lodi*a General Fund and Road Fund to
determine whether the General Plan recommendation is in fiscal
balance. As appropriate, changes in land uses will be suggested
to mitigate a fiscal imbalance.
F
Task 3 - Integrate Conclusions into General Plan Documents
Task 3 provides for the effort necessary to ensure that a summary
of the fiscal analysis is presented in t -he Alternatives Report and
in the recommended and adopted General Plan documents.
311
Task 4 - public Hearings
The budget provides Cor participation by tho economic consultants
in one public hearing on the General Plan Alternatives and two
11. PROTECT BUDGET
The cost of the fiscal analysis would not exceed $15,000 as. shown
in Table 1 (attached).
6
.
h" d
TABLE 1
COST OF FISCAL ANALYSIS
Develop Basic Fiscal Fuialyaia Model For Lodi S 6,500
Additional Documentation and Staff Training (1) $ 1.000
Cost of Analysis For Each General Plan Alternative S 1,500
Multiplied by Eive alternatives
Sub -total: $ 7,500
Total: $15,000
Notes:
1) This additional documentation and training would produce a
model that could be used independently, by City of Lodi
staff, without further consultant involvement.
1
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Sacrrn entu
December 21, 1987
4020-87-90
Mr. Jack Ronsko
Pub?ic Works Director
City of Lodi
221 West Pine Street
Lodi, CA 95241
SUBJECT: PUBLIC FACILITIES AND FINANCING PLAN - CITY OF LODI
Dear Mr. Ronsko:
Nolte and Associates ispleased to submit this revision to our proposal to you
to prepare a Public Facilities and Financing Plan for the City of Lodi, We
appreciate being invited to submit to the City as part of a selectgs rou of
consultants who have experience in this particular type of study. Aw`
mentioned to you on the occaslon of our site visit, we have done and are doing
j a number of these studies. In each case, we perform the study in conjunction
with a finance/economic consultant.
In our most successful studies -- the Laguna Public Facilities Plan and the
f= Antelope/North Highlands Public Facilities Plan -- we have performed the work
with Angus McDonald and Associates and we propose to use Mr. McDonald's firm
P on this study as well. in the two instances in which we have worked with
;t Angus McDonald and Associates, the plans have resulted in full adoption by the
Soard of Supervisors and, with the concurrence of the affected developers, in
implementation of a financing mechanism appropriate to the circumstances. In
one case, the plan resulted in primarily Mello -Roos district financing in
combination with conventional development fees and, in the second case, in the
use of conventional fees exclusively.
In the attached proposal we have outlined the tasks which we believe to be
necessary to'""complete the study based upon our current understanding of the
needs of the City. The proposed scope of services will result in a financing
4 plan which reflects and is part of the current General Plan update.
1-.
�!F`S
NQLTE and ASSOCIATES
Engineers / Planners / Surveyors
t
Na
To: Nor Jack Ronsko Page 2
December 21, 1987
Before w.� begin work vie will want to review the proposal in some detail with
you and your staff to refine the scope of work to be more appropriate to the
task. W will want to work throw;:lout the project closely with you and your
staff to ensure that the product meets your needs as nearly as possible.
I have also enclosed a proposal for a fiscal impact analysis of the General
Plan and its alternatives. This analysis would assure that Lodi's tax base is
in balance, considering land uses, cost of public services and tax revenues.
Mr. McDonald feels strongly that this is an important analysis and that it
eliminates the need to consider fiscal impacts of individual projects, provided
that they are consistent with the (adopted) General Plan. However, since this
i s a servic!-, that was not included in our original proposal, I am offering it
for your consideration separately.
Very truly yours,
NOLTE AND ASSOCIATES
W i 11 i an Ishmael
i /mes (PR0025-K)
94
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TRANSMITTAL LETTER
I. BACKGROUND
II. SCDPE OF SERVICES
III. FEE SCHEDULE
IV. PROJECT EXPERIENCE
Nolte and Associates
Angus McDonald & Associates
V. RESUMES
Nolte and Associates
- William Ishmael, Project Manager
- Wally Sandelin, Project Engineer
Angus McDonald & Associates
- Angus McDonald
- Scott Mende
VI. REFERENCES
Angus McDonald & Associates
VI -I
VI -2
VII -1
tl
I. BACKGROUND
P�
The City desires to establish development fees. Historically the city has
been in good financial shape, but has recently adopted (or is in the final
#4 stages of adopting) a 5 year CIP which requires additional sources of revenue.
Arnag the improvements in the CIP is the expansion of the City administrative
offices from the now too -crowded City Hall. Also included are the major park
facilities which are included in the Master Plan.
The City needs to get the development fees in place soon because of the
growth/annexation situation, The City had a growth control measure passed in
1981 which requires any annexation to the City to be submitted to a vote.
Very, very few annexations have been approved. There were eight on the ballot
for last November. None passed. Vonetheless, the City's growth initiative
has been ruled invalid by the courts and although the City has undertaken an
appeal the initiative may be invalidated in a relatively short period of time.
If that does happen, then the amount of growth and demand for new city services
is expected to accelerate dramatically. NDN development fees need to be in
03 place before this happens. This needs to be done in spite of the fact that
the General Plan is in the process of being updated, and the updae will affect
the utility master plans.
Increasing the development fees may encounter some political problems. A
recently added bedroom tax was opposed by much of the development community.
s Increasing the water rates for residential customers is not as much a concern
as increasing rates for commercial/industrial customers. The three largest
customers in the City are a tomato cannery, General Hills, and the school
district. One of the reasons the cannery moved into the City was due to the
low water rates. There has not been a water rate increase in 12 ,years. There
is no capital buy -in fee.
A summary of the existing situation with each of the new facil i ties and with
fees currently being charged follows below:
CP' STORM DRANACE FEES
The City charges an acreage fee which pays for all major storm dra",110
facilities. The parks are used for storm water retention, but the fee does
not pay for park improvements. These fees are increased on an annual basis.
Although they have not been checked for about 6 years to see if the fee
actually covers expenses, the City staff believes that these fees cover the
costs.
t�
SEWER FEES
The City has a new plant in the predesign phase which will cost about $6M.
Sewer connection fees and monthly service fees have been/will be increased by
20%. There is an automatic 15%annual increase. There i s no oversizing
acreage fee, but developers get credit for an oversize line.
The sewer master plan is in the process of being upgraded; however, the update
has been put on hold until the General Plan is done.
9ATER FEES
Water fees Make money for the City.. The City does not have connection flees;
the City pays for new wells. Commercial and industrial uses are metered and
industries have located in the City dile to the low water rates. Residential
rates are currently $6.00 per month and will go to $7.00 per month. The water
marter plan is budgeted for this year.
TRAFFIC FEES
_Q
x None.
y
11. SCDPE OF SERVICES
The adoption of the General Plan i s expected to begin mid -1988. As part o f
that process, a permanent financing plan will be put into place. Our team
will at that point work closely with Jones & Stokes to provide cost estimates
for facilities needed to support the land uses in the General Plan alternatives
and to develop a financing plan which enables the General Plan to be built and
served. The following tasks outline the steps as w now see them in this
process.
TASK 1: IDENTIFY AND PREPARE COST ESTIMATE. FOR RFOUIRED EKTI ITIES
For each of 0e land use alternatives developed by the, General Plan, W will
prepare cost estimates for the major services -- water, sewer, drainage, and
transportation. W will work closely with Jones & Stokes in this process. W
are asstiming that three land use alternatives will be evaluated. In addition,
w will include costs for park facilities, buildings, and other items
identified in the Capital Improvements Program. Maintenance costs for each of
the services will be estimated.
TASK 2: EVALUATE EXISTING FN
ANUAL PLAN
s:
The financing mechanisms currently in place will be evaluated with regards to
the General Plan alternatives and the related infrastructure costs. The
appropriateness of the existing financing mechanism with regards to the Genera:
Plan alternatives will be discussed with City staff and a supplement financing
mechanism will be proposed.
TA% 3: PREPARE REVENUE 11� SIS
Growth rates and revenues expected from the existing financing mechanism and
proposed General Plan alternatives will be estimated. Short fal is and overages
will be estimated based on estimated timing of buildout of the General Plan.
TASK_ 4_. __ R(COWND A RNANCING PLAN
Angus McDonald & Associates will review the existing fee structure with the
City Manager, the Public Works Director, and other City officials as
appropriate to delineate the existing condition.
WpXkshrQ_p I- One of the key elements to a successful project in other
jurisdictions has been the active participation of the development community
throughout the process and not just at the public hearing stzgc. We are
proposing some workshops to do just that -- involve the developers that
are/have been/plan to be active in the City into the process. The purpose of
this workshop, if held, would be to discuss the progress of the project to
date, including the proposed financing schemes, to determine reactions frcm
the developers .
PR0025-K
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TASK 5: DRAFT REPORT
A draft report will be prepared and circulated for review
Workshop II: After publication of the draft report, a final workshop will be
held with developers to obtain comments prior to the public hearing.
TASK 6: ATTEND GENERAL PLAN HEARING ON PUBLIC FINANCE
TASK 7: PREPARE FINAL, REPORT
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III_ FEE SCHEDULE
The exact costs for some of these work items cannot be estimated until the
General Plan alternatives are available. For those items a range i s given
now. A final estimate can be given before work is begun.
Task
No. Task Title Nolte Angus McDonald
I Cost Estimates for facilities $15.000-23.000
1�4
1,200
3n
500
4.4
750
1,640
24,170-32,170
300
300
$2,770-32,710
2,200
6,000
8,000
4,000
2,500
1.500
24,700
380
380
25,460
PR0025-K
includin maijitenaUce)
Financia'i Plan
2
valuate xisting
3
Prepare Revenue Forecasts
- 4
5 -
Reco d a Financing Plan
Dra tf Report
6
Publ i c Hearing
7
Final Report
R BTOTAL
Workshop I
Workshop II
TOTAL
1�4
1,200
3n
500
4.4
750
1,640
24,170-32,170
300
300
$2,770-32,710
2,200
6,000
8,000
4,000
2,500
1.500
24,700
380
380
25,460
PR0025-K
IV. PROJECT EXPERIENCE
NOLTE AND ASSOCIATES
PPOitCT: LAGUNA PUBLIC FACILITIES FLAN
CLIENT: Sacramento County
_ LOCATION: Sacramento, California
Nolte was responsit1e for the ifdry designs and cost estimates for the
Laguna Public r=acil,ties Plan for the County of Sacramento. Facilities planned
and designed by Nolte included the water, wastewater and drainage systems for
the 7 sq mi. area. This study evaluated alternative means of providing service
with a consideration of costs and institutional arrangements -- cost analysis
F included both capital and operating costs.
Surface water supply alternatives were evaluated in terms of the internal
distribution system, transmission to the Laguna area and source and location
of treated surface water. Pipe sizes were selected and aligned based on the
projected development. A hydraulic model was used for evaluation of the pipe
network. Water treatment was assumed to be provided by the City of Sacramento
at the American River Water Treatment Plant, water treatment at the proposed
county facility, the Freeport Treatment Plant, was also considered during the
course of the study. Costs were estimated for the purchase of water treatment
capacity, transmission of treated water to Laguna and the major distribution
pipes serving the area.
PROJECT: ANTELOPE -NORTH HIGHLANDS PUBLIC FACILITIES PLAN
CLIENT: Sacramento'County
LOCATION:. Sacramento, California
EQ
PROJECT: PUBLIC FACILITIES HASTER PLAN
CLIENT: City of Lincoln
LOCATION: Lincoln, California
Nolte and Associates was retained to develop a public facilities plan for the
City of Lincoln. This project entailed the development of capital improvement
needs, associated costs, and a financial plan. Nolte's responsibility included
project management and determination of water and wastewater facilities needs.
Costs for the recommended capital improvements were phased over a 16 year period
based on projected residential and commercial/industrial growth patterns.
Subconsultants were retained to mine the needs for traffic and other public
facilities and to develop th, 'i pial plan.
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Laguna Public Facilities Financing Plan
McDonald & Associates and Nolte and Associates prepared a capital
improvements program and comprehensive financing pian for the
4,675 acre Laguna area in Southern Sacramento County. Laguna is
in multiple ownerships and has been the subject of development
applications prepared by major owners. The intent of the project
was to initiate a procedure for financing public facilities that
would be equitable to all concerned and consistent from
development to development, The professional specialties or. the
team included civil and sanitary engineering, economics and
public finance, school .finance and municipal debt. The
consulting team considered all :-easonable financing techniques,
both conventional and innovative. The adopted financing plan
included a range of conventional funding sources plus a
landowner -initiated Mello -Roos Community Facilities District. An
on-going imbalance between costs and revenues is being corrected
by special district reorganizatioa. The financing plan is being
used as a model for other undeveloped ;*; eas in the County.
F+�
After the concept of a Mello -Roos District had been accepted b
_ g} p p Y
the County and the landowners, McDonald & Associate5 was retained
to prepare an implementation plan. An engineering team prepared
3 detailed construction estimates for phased development of
required facilities. These estimates were analyzed into year -by -
year financing requirements. McDonald & Ass,)ciates worked
closely with the County's bond advisor in deciding size and
ti: -ting of issues. A complete legal description for use in the
election and in bond issuance was prepared. Among the issues
which were resolved during negotiations with landowners and
County staff were:
- o procedures to allow changes from the original planned use or
density over the 20 -year buildout period,
o methods of deferring payments on land which was not
scheduled for early development,
s i r
o equitable ways to spread financing between the different
available sources, and
Consultatant on Development Pees For Building Industry
Association
The Central California Buildina Industry Association has retained
McDonald & Associates to advise the Association on issues when
ji.irisdictions in their area prcpose development fees. Issues on
which McDonald & Associates has provided consulting assistance to
date include:
Consideration of whether sufficient nexus exists between
development and demand for the Facility to justify a legally
valid fee
o Cons ideration,of whether proposed development fees are being
used to remedy city-wide deficiencies in facility standards
o Consideration of whether a new facility represents an
upgrade in service delivery standards beyond that being
offered jurisdiction -wide
o Consideration of whether the development fee is being used
to finance ongoing costs of operations
Tax Rates For Galt Union High School Hello -Roos Election
McDonald & Associates is currently responsible for recommending a
set of Mello -Roos tax rates that will be offered to the
District's voters as part of a campaign to build a new gymnasium.
These tax rates must balance the willingness of residents (and
voters) to pay with the total financing requirement. A key issue
..: will be the tax rate that would be applicable to commercial,
industrial and agricultural. properties. The technical analysis
of alternate tax rates is accompanied by a carefully considered
series of meetings, discussions and public hearings to assure
public support for the tax rates that are ultimately submitted to
the voters.
_ Roseville Public Facilities Financing Plan
The City of Roseville recognized that a capital improvements
r4 program and financing plan should be an integral part of its
planning process. McDonald & Associates was retained to review
and update the City's capital facilities financing plan. All
required public improvements -- including those that are the.
responsibliity of the school districts were considered. Areas
where schools and different City departments would compete for
development fees were identified. Market factors such as
l probable future land uses and rates of development were analyzed.
The ability of landowners to pay the total of applicable taxes or
charges under various growth scenarios was examined. All
' facilities requirements for the original planning options have
been identified and priced, and a composite multi-year financing
�.
plan -is currently being prepared. This plan will form the basis
r -
for discussions between affected landowners and the City. After
agreement is reached on land use policies, a final financing plan
will be prepared which will include recommendations for
implementation.
California Transportation Commission
Srinen the California Transportation Commission was created, it was
given the responsibility to produce a -State Transportation
Improvement Froyrz�ia (STIP) that reconciled the transpertation
improvement programs of California's regional transportation
planning agencies and the program recommended by the California
Departinent of Transportation. McDonald & Associates headed a
team which advised the Commission when it adopted its first STIP.
Consulting services included recommendations on project
evaluation procedures, recommendations on policies and criteria
to guide the evaluation and participation with Commission staff
in the evaluation process and the presentation of recommendations
to the Commission. The firm was retained again in the two
succeeding years to provide comparable services. The project
evaluation procedures that were originally developed have
q continued in use since that time.
In a related assignment, the consulting team advised the
Commission on changes in California's highway fund allocation
- procedure. The Commission's enabling legislation gave it the
authority to revise the manner in which the transportation funds
are allocated to the geographic regions of the State. The
consultants' recommendations, which were adopted by the
Commission and incorporated into its first California
Transportation Plan, were based on review of the literature,
extensive evaluation of the effects of the recommendations in
practic'e;'and assessment of the relationship between the
recommendations and the policy stance of the Commission. The
consulting team also recommended a framework for a longer term`
approach to developing a revised transportation fund allocation
formula for California.
Es Rancho Cucamonga Facilities Financing Plan
McDonald & Associates prepared a comprehensive financing plan for
infrastructure in the City of Rancho Cucamonga, San Bernardino
a County. The gioject involved a Citywide review of land use
alternatives and the consequent implications for facilities
requirements. An array of municipal debt financing mechanisms
k.s was evaluated against the specific requirements of each project.
Santa Rosa. City Hall Expansion
As part af''.an architectural team, McDonald & Associates prepared
a space requirements analysis for the proposed expansion of the
s Santa Rosa City Hall. Baseline population, housing anA
employment data, and projected growth were supplied. toeach
department. After a workshop, department heads used, standardized
:�. —
forms to estimate staffing Levels over the next twenty years.
McDonald & Associates reviewed these figures in terms of
tit anticipated changes in technology, experience in other California
Cities, and personnel costs. The final detailed staffing report
enabled the architects to design precise office plans for each
is municipal department.
Antelope/North Highlands Public Facilities Financing Plan
A capital improvements program for the Antelope/North Highlands
t area of Sacramento County had Seen prepared by Nolte & Associates
as part of a previous project. McDonald & Associates prepared a
public facilities financing plan for the Laguna area. During the
course of the initial assignment, it became apparent that it
might be possible to develop the overall capital facilities plan
for Antelope in stages so that responsibility to pay for
improvements would be tied more closely in time with
opportunities to develop the land. Sacramento County authorized
negotiations with affected landowners and their engineering
representatives. A financing plan was ultimately recommended
F that not only depended on staged financing but was able to make
use of development fees collected at the time of development
F, approval rather than bonded debt that would encumber both land
that was being prepared for developed and land that was not yet
ready for development.
Incorporation Feasibility Study of West Sacramento
McDonald & Associates analyzed current levels of service
ar
delivery, current revenues, development potential and impact on
F.: Yolo County of a proposed new City of West Sacramento. A service
and staffing plan analysis of five comparable cities was
l prepared, both as a guide in formulating an assumed public
t ; service plan for the new City and to provide a way of validating
t-� the consultant's conclusions against the real experience of other
newly incorporated cities. An analysis was made of the current
County facilities in the area and their suitability for continued
r- use for city and joint city/county offices and other functions.
The consultants report was the basis for the Local Agency
s Formation Commission staff report. Activists in the successful
corporation collection campaign described the report as
"authoritative" and that the issue of feasibility of this new
FA city was not raised at any time in the campaign.
��6* North Natomas Community Plan EIR
development, market research to determine sources of investment
and ability to capture market share from potential locations was
an important part of the study. Critiques were solicited from
City and County staff and other interested parties. A detailed
analysis of refined formal EIR alternatives was prepared. The
analysis concentrated on the implications of phased public
improvement financing for each alternative. The EIR presented a
mitigated financing plan that dealt directly with potential
financial impacts associated with proposed development.
Description of the Angus McDonald & Associates Firm
Financing Public Facilities/Services
Assessment of requirements for public facilities and services and
the assessment of techniques for financing infrastructure for
development projects have increasingly become a necessity, both
because of state and federal environmental assessment
requirements and because of concerns about local fiscal impacts.
McDonald & Associates has played a leading role in California in
developing procedures for economic assessment and public
facilities financing plans and in putting these procedures into
practice. Experience in economic and fiscal impact assessment
} has included evaluation of general plans, specific plans, and
major capital projects. Feasibility studies of new cities and
impact studies of proposed annexations are a significant portion
of the practice.
A cost/revenue evaluation can solve problems rather than merely
create of report. The firm has emphasized the use of economic
;::.. sssessment as a positive contributor to project evaluation,
selection, and modification rather than as an ancillary
requirement unrelated to the needs of the proponent or the local
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agency.
pa h major point of a fiscal analysis is to detect instances where
there will be variations -- whether favorable or unfavorable—
from from the "average" conditions. McDonald & Associates will
utilize the average cost or revenue approach only if it is clear
that no significant incremental effects are likely. The analysis
t.. compares the costs and revenues by fund. Further, the analysis
compares the net surplus (deficit) to each alternative. Thus,
:tee policy makers can use fiscal criteria in evaluating alternative
°s-.. development proposals.
As a general statement, local governmental revenues respond to
external factors such as taxable value of property, location of
retail sales, and the workings of statutory formulae such as
those that control the allocation of the motor fuel tax or the
cigarette tax. Thus, revenue forecasts can often be the subject
t of formal forecasting models that respond to these external
factors. McDonald & Associates has developed a set of such
:lr models for the revenue sources typically available to local
governments. These models are continually updated to reflect the
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most recent changes in state and federal laws that affect the
ON various revenue sources.
The results of interviews play a key role in the development of
cost estimates in a public facilities financing plan. McDonald &
Associates has concluded that historical cost studies or cost
forecasting models should, in almost every instance, be
supplemented by detailed discussions with the agency that will
provide services. Public costs are not the result of unit costs
or past trends. They reflect decisions about levels of staffing
and service. Actual incremental costs, in any individual
circumstance, are also highly sensitive to details such as
remaining capacity or cumulative impacts of other proposed
developments.
The firm is regularly involved in negotiations regarding
development charges for both public and private sector clients.
McDonald & Associates placed considerable emphasis on techniques
and procedures to identify, at a significant and illustrative
level of detail, those who will enjoy the benefits and those who
will bear the burdens of a given project. In addition to
evaluating net benefits and burdens, it is essential to identify
the specific instances and the specific population subgroups on
whom benefits and burdens will fall. Similarly, emphasis is
placed on identifying all institutions (e.g. each city, county,
school district, or special district) that might be affected by a
particular. project. This benefit and burden analysis is
essential in establishing an equitable financing plan.
Regional Economic Analysis
McDonald & Associates has prepared economic base studies and mid-
range and long-range economic forecasts for substate regions,
counties and cities as part of land use and general plan revision
programs, or as an element of transportation, water quality, or
other functional plans. Typical activities include:
o Evaluation of economic trends and local competitive
advantage.
_ o Preparation of forecasts for key export base industries.
o Evaluation of the relationship of agriculture to the
economy, specifically the impact of urban land use pressure
r7 upon agriculture.
o Assessment of sources of regional income and growth not
�. related to new export base industries, such as increased
retirement populations or other sources of transfer
payments.
�. o Estimation of total direct plus indirect economic activity.
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o Estimation of changes in employment opportunity and
occupation or skill requirements.
o Estimation of future demand for land and allocation of
demwnd to the effectively available supply.
o Estimation of population shifts and changes in demand for
services.
o Recomslendations on economic development strategy.
The firm places considerable emphasis on selecting both a
technique of analysis and a level of detail that 1s appropriate
to the need of the project and its budget. Techniques have
ranged from development of complex econometric models to
application of simple trend line analysis. A technique that has
proved to be economical and highly effective has been the use of
substate or regional input/output models. Such output models are
used to estimate direct plus multiplier effects of changes in a
region's economy. Input/output models are highly suited to
assessment of the impact of capital investments.
Finalcial Feasibility Analysis
The financial feasibility studies which McDonald & Associates
prepare for development projects typically involve:
o An analysis of population and demographic trends and
underlying market support for alternative land uses.
o An assessment of the strengths and weaknesses of existing
and potential competitive projects and land uses.
o An evaluation of a project's financial feasibility based on '.
estimates of revenue and expense over time, combined with a
discounted cash flow analysis or an analysis of return on
investment.
o A review of public agency concerns or regulatory issues that
may be encountered.
Our principles govern the conduct of the firm's market and
financial feasibility studies.
First, market research quite properly considers the develcpment
history and current building trends in an area. Nonetheless,
trend analysis alone is an invitation to excessive supply, unless
the underlying economic and demographic generators o demand are
also considered. Changes in the employment base, changes in
rates of household formation, and changes in public pol"icy are
all factors that must be considered.
Second, McDonald & Associates uses computerized cash flow models
:< extensively but always within the perspective of the client's
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needs. The firm's computer models are flexible enough to analyze
the financial structure of highly complex projects n terms that
N are relevant to that project. Format and content are readily
adapted to the requirements of the project rather than offering
only a single format resulting from an inflexible computer model.
The models have been used for complex analyses that consider long
7imme periods and the effects of inflation.
Third, alternative organizational and financial arrangements are
`- normally considered as part of the feasibility study.
Examination of alternative forms of financial participr.tion may
bring to light opportunities for meeting simultaneously the
objectives of different classes of investors. Similarly,
� ,:. attention is given -to the after -tax -consequences of development
strategies as they affect various classes of investors.
Finally, McDonald & Associates considers a complete understanding
of the economic and financial aspects of a development project to
be essential but, by itself, insufficient. A realistic
t feasibility study must also be based on a thorough understanding
Of the specific business or businesses that will develop as part
of the project. The firm regularly makes use of specialized
PI consultants who review the feasibility study from the perspective
of an experienced practitioner familiar with the day-to-day
requirements of a particular business or land use being
considered.
E. Transportation .Finance and Manage -meat
The issues involved in financing major transportation facilities
r_w cover a quite broad range of subjects. A decision about a
financing plan may depend on:
;+ o Establishment of policy guidelines about relationships
between direct user fees, dedicated rzvenues• charges
associated with development in a transportation corridor,
and general fund revenues.
o A realistic estimate of the revenues that will actually be
available, given a set of policy guidelines.
o A realistic evaluation of the availability of federal or
state grant funds together with a current and detailed
familiarity with agency policies that may affect the
distribution of these funds.
F --s o An accurate assessment of any relationships between revenue
._, policies and the responses of riders or other system users.
o An ongoing assessment of relationships between revenue
policies and operating costs '- particularly the costs that
are dependent on labor/management agreements.
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McDonald & Associates is experienced in each of the above areas.
They have also advised general purpose governments in short-term
and long-term financial issues, including issues relating
transportation decisions to land use impacts that may result from
one or another transportation solution. The firm has recommended
both conventional and novel revenue sources and other appropriate
t responses to transportation system finance following the passage
of -Proposition 13 and the general constant dollar decline in
funds traditionally dedicated to transportation system finance
including highway users taxes and federal grants.
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V. RESUMES
NOLTE AND ASSOCIATES
WILLIAM ISHMAEL - PROJECT MANAGER
WALLY SANDELIN - PROJECT ENGINEER
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TROOM-K:
NOLTE OUALIFiCATiONS
RESUME
WILLIAM ISHMAEL
Associate
ESUCAT'rON:
RS.C.E - Duke University, Durham, North Carolina
M.S. (Urban Planning', - University of Michigan
PROffSSIONAL
QUAL 19CATIONS:
Registered Civil Engineer - California 31056 Kentucky 8583
Certified Planner - A.I.C.P. Member
EXPERIENCE_
Mr. khmae! has had professional experience in both the planning and engineering of
major investments. As deputy director of the Richmond (Virginia) Regional Pta 9
Commission, he vias responsible for the performance of land use and facilities planning
projects for local governments. These projects included comprehensive planning on a
county -wide and area basis, as well as sewage collection and treatment plant design.
As a commissioned officer in the United States Navy, Mr. Ishmael managed construction
projects up to five million dollars as the assistant resident officer in charge of
construction in Pearl Harbor, Hawaii. He also served as public works officer for several
of the Navy shore commanos. In that capacity, he was responsible for capital
progrmming, design and accomplishment of projects. Typical projects consisted of
maintenance, repair, ,rehabilitation, or consWidion of Naval shore facilities.
With the Sacramento office of Nolte and Associates, Mr. Ishmael is responsible fog the
coordination of planning activities in addition to his ir+volvement in civil engineering
projects.
PARTIAL PROJECTACCOMPUSHMINT
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RESUME Page
Wtl-L M ISHMAEL
Industrial Land Use Needs, Sacramento City Growth Policy Study (1982 Growth Policy)
Land Use Alternatives
"Planning for Development in South Placer County" (The Highway 65 Bypass Study), County
of Placer
Growth Management Alternatives Study, County d Alpine
Area General Plan, Benton, Hammil and Chalfant Valleys, County of Mono
Area General Plan, Potton Creek - Long Valley, County of Mono
Draft Area General Plan, Eagle Lake, County of Lassen
Land Use Planning - Private Clients
Southport Industria( Park, Southpark Investors, City cf West Sacramento (640 acre water
r related industrial site on the deep water ship channel)
%unesietlnnilresnaaest Development Company, County of Sacramento (1,000 acre
Calvin Industrial Park, Cornish and Carey. County of Sacramento (500 acres of high tech
- - industrial land)
t ' Dena Shores Village, Moss Land Co., City of Sacramento (700 acre development with
350 acres of high tech industrial land)
Riverpointe Business Park, Kaiser Development Company, County of Yolo (300 acre light
industry)
Cordova Business Center, Kaiser Development. Company, Rancho Cordova (50 acre business
Pam
e eas; t tt to S cra ntS. Area Cotdwetl Banker .
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Pius n Site Feast iityy Stu , a iqui�airproducts firm
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Environmental Analysis
Technical Reports for the EA - Del Norte Prison. Department of Corrections
t EIR - Lincoln Airpark, City of Lincoln (360 acre mixed use development)
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�U RESUMES
AN AB MCDONALD & ASSOCIATES
ANGUS McDONALD
SCOTT ,MENDE
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ANGUS N. McDONALD
Principal
McDonald & Associates
FIELDS OF EXPERIENCE
Public Facilities Fiamic q
Analysis Uf capital improvement and service requiraments for
cities, counties, school districts and other special
districts. Preparation of facilities and services plans,
with emphasis on public/private cooperation in financing.
Examination of alternative financing plans and construction
phasing. Recommendation of strategies for implementation of
an adopted facilities financing plan.
investment'Economics
Market analysis and financial feasibility studies of
comercial, recreation, and res'.dential developments.
Analysis of after-tax investment consequences for tax -
motivated individuals, Development of computer models fork
investment analysis.
Economic base studies and forecasts of regional economic
activity, Analysis of direct and induced economic impacts,
,., using techniques of input/output analysis. Evaluation of
demographic/economic relationships and trends in labor force
participation and household formation.
ANGUS N. MCDONALD
a
Principal
McDonald & Associates
PROFESSIONAL HISTORY
Private
consulting Practice
1964
- Present
McDonald
& Associates and predecessor
firms:
Associate, then Principal
�. Private
Industry
1954
Systems
Engineer, International
Business
Machines, Inc.
1953 -
1963
Engineer,
Shell Development Company
SCOT H. MENDE
Vice President
McDonald & Associates
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FIELDS OF EXPERIENCE
Fiscal Impact Analysis
Preparation of numerous public service plans and fiscal impact
reports for cities, counties and special districts. Author of
integrated computer fiscal impact models to estimate revenues
generated by projects. Extensive experience with interview
techniques designed to standardize agency staff inputs regard-
ing public service cost requirements associated with projects.
Economic Analysts
Work on various components of General and Specific Plans. EIRs
and independent studies, including ongoing route planning and
operations consulting :o a private transit group and vehicle
selection for a University intra -campus shuttle. Projections
of employment trends by industrial and occupational sectors and
comparison with state and national trends. Sub -regional allo-
cations of population and employment based on land use designa-
tions and capabilities. project economic impact analysis and
market feasibility analysis.
t.: Cayital Improvement. Financing
?� Preparation of capital improvement financing plans for cities,
counties, special districts, assessment districts, redevelop-
'' nment areas, public and private ports, and the State Transporta-
tion' I improvement
ransporta-
tion'Iimprovement Prc gram. Development of integrated computer
t models to test the feasibility of alternative assessment spread
formulae for project related infrastructure, and agency -wide
improvements.
Combater Operations
Documentation ana sukcsv.isian of oomputer operations for a land
useinventory system. Design and programming of comprehensive
fiscal and financing modelling systems, accounting models,
input/output models. Participation in an archaeological
t resource predictive model.
PROFESSIONAL HISTORY
1983 - Present
1982 - 1983
1981 - 1982
1979 - 1380
1979
1978 - 1579
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EDUCATION
SCOT H. MENDE
Vice
McDonald & Associates
Associate, McDonald & Associates
Analyst, McDonald & Associates
Research Assistant, McDonald & Associates
Archaeological Technician
Basin Research Associates
Transportation Consultant, University
of California, Berkeley, Parking Div.
Economic Consultant, Committee
for the Preservation of the Jitneys
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VI. REFERENCES
�. ANGUS NCDONALD & AS=ATES
REFERENCE LIST
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ANGUS HcDONALD & ASSOCIATES
Roger Storey
City Manager
City of Davis
(916) 756-3740
Keith Schneider
Central California Building Industry Association
(209) 529-4531.
Barry Steiner, Esq.
Supervising Deputy County Counsel
Sacramento County
(916) 440-5564
Frederick Barnett
Public Works Director
.y
City of Roseville
•
(916) 781-0330