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HomeMy WebLinkAboutAgenda Report - May 17, 2017 C-08TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM e -g AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Harris and Associates, Inc., of Tracy, for 2017 Impact Mitigation Fee Program Update ($40,000), and Appropriating Funds ($40,000) MEETING DATE: May 17, 2017 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Professional Services Agreement with Harris and Associates, Inc., of Tracy, for 2017 Impact Mitigation Fee Program update, in the amount of $40,000, and appropriating funds in the amount of $40,000. BACKGROUND INFORMATION: On August 15, 2012, City Council approved an updated Impact Mitigation Fee Program (IMFP). The IMFP establishes a schedule of fees for water, wastewater, storm drainage, transportation, police, fire, parks, electric, general city facilities, and art in public places. These fees are to pay for public improvements needed to accommodate impacts resulting from new development. On October 16, 2013, City Council approved an amendment to the storm and parks fees. The City commissioned Harris and Associates, Inc. to prepare the new IMFP in 2012 and the amendment in 2013. To conform with State law, the City must perform an update to the program every five years demonstrating a reasonable relationship between the current impact fees and the purpose for which they are charged. To comply with these requirements, staff recommends authorizing City Manager to execute Professional Services Agreement with Harris and Associates, Inc., for 2017 IMFP update, in an amount not to exceed $40,000. Staff also recommends Council appropriate funds in the amount of $40,000. FISCAL IMPACT: IMFP revenues support the implementation of public infrastructure to serve new development. Without impact revenues, other City funding sources would be utilized. APPROVED: n Sch ' : • a - r, City Manager K:\WP\COUNCIL\2017\CCHarris IMF Update.doc 5/4/17 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Harris and Associates, Inc., of Tracy, for 2017 Impact Mitigation Fee Program Update ($40,000), and Appropriating Funds ($40,000) May 17, 2017 Page 2 FUNDING AVAILABLE: Funding will be appropriated amongst the following impact fee capital accounts: Electric (50599000.77020) $ 1,787 Wastewater (53399000.77020) $ 9,145 Water (56299000.77020) $ 6,715 Storm (53599000.77020) $ 3,015 Streets (30899000.77020) $ 1,537 Police (43599000.77020) $ 1,632 Fire (43699000.77020) $ 835 Parks & Rec (43799000.77020) $ 8,422 Facilities (43899000.77020) $ 1,335 Neighborhood Parks (43999000.77020) $ 5,402 Art in Public Places (43499000.77020) $ 175 Total: $40,000 No General Fund dollars are being utilized for the IMFP update. Andrew Keys Deputy City Manager/Internal Services Director Charles E. Swimley, Jr. Public Works Director CES/RAY/tdb Attachments K:\WP\COUNCIL\2017\CCHarris IMF Update.doc 5/4/17 AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on 2017, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and HARRIS & ASSOCIATES, INC., a California Corporation (hereinafter "CONTRACTOR"). Section 1.2 Purpose CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for Development Impact Fee Update (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to 1 weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffing CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on June 1, 2017 and terminates upon the completion of the Scope of Services or on May 31, 2018, whichever occurs first. 2 ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of Payment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. 3 ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1 Nondiscrimination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsible for any liability arising under this Agreement. 4 Section 4.5 Responsibility of CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Rebecca Areida-Yadav To CONTRACTOR: Harris & Associates, Inc. 1401 Willow Pass Road, Suite 500 Concord, CA 94520 Attn: Alison Bouley, P.E. Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of 5 the services and work to be performed hereunder. CITY, however, retains the right to require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. 6 Section 4.14 City Business License Requirement CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder. Section 4.15 Captions The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. Section 4.16 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.17 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.18 Severability The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.19 Ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. 7 Section 4.20 Authority The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.21 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: CITY OF LODI, a municipal corporation JENNIFER M. FERRAIOLO STEPHEN SCHWABAUER City Clerk City Manager APPROVED AS TO FORM: HARRIS & ASSOCIATES, INC., a California JANICE D. MAGDICH, City Attorney Corporation By: Attachments: Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) By: Name: Title: Funding Source: 50599000.77020/53399000.77020/56299000.77020/53599000.77020/30899 000.77020/43599000.77020/43699000.77020143799000.77020/43899000.77020/43999000.7702 0/43499000.77020 (Business Unit & Account No.) Doc ID:K:\WP\PROJECTS\PSA's\2017\Harris PSA.doc CA:Rev.01.2015 8 Harris & Associates. April 21, 2017 Charles Swimley Director of Public Works City of Lodi 221 West Pine Street Lodi, CA 95240 Development Impact Fee Update Dear Charlie: Exhibit A/B I enjoyed speaking with you regarding updating your impact fee program. As you know, in 2012, Harris prepared the master plans and impact fees for the City. As such, we are intimately familiar with the program. As part of the requirements of AB1600, the City must update the program every 5 years. Harris has performed impact fee updates for a variety of agencies and we look forward to working with you again. Based on our conversation, Harris will work with the City to identify new infrastructure that needs to be added to the program, update the costs of the already included Infrastructure, incorporate fund balances and update development assumptions. We will work with the various departments within the City, as appropriate, to obtain the required information. We will also support the City in the impact fee adoption, by holding meetings with the development community and attending City Council meetings. The updated impact fee study, will support the City's planned projects and will ensure compliancy with AB1600. The benefits of selecting Harris for this project include: Specialists in AB1600 Requirements. Our team understands the requirements of AB1600 and the issues related to the adoption of impact fee programs. We recently completed a similar nexus study in the City of Manteca as well as in the City of Tracy. Our philosophy is to create a sound, technical based fee program that stands up to the scrutiny of the development community while providing an adequate source of funding for the City. Engineers and Financial Experts. As registered engineers with extensive experience in developing fee programs, we will make sure that there is a solid link between the nexus of the facilities, the cost estimates, and the impact fees. Because of our engineering background, we will work with the City to update protect costs and determine fair share proportionality. Familiarity with the Program. Having developed the program in 2012, we are familiar with the City and the program and can work expeditiously to update the various components. This will allow us to expedite the process and minimize the City's effort in getting us up to speed. The following outlines our proposed scope of services and estimated fee to provide these services. PROJECT UNDERSTANDING Your impact fee program was developed in 2012 at a time when the economy was still recovering. As such, your fees were set lower than was necessary to capture needed funding and limitations were set on your ability to update them. However, 5 years have now passed, and AB1600 law requires that the fee program be updated. In addition, development activities have picked up and the timing is right to review the program to determine today's needs. 1401 Willow Pass Road, Suite 500, Concord, CA 94520 • (925) 827-4900 • WeAreHarris.com We will work with the City to educate the council on the decisions made in 2012 and the needs today. This will help the City make an educated decision on the impact fee update. We also understand that infrastructure needs have changed since that time, and we will work with the City to incorporate new projects into the program. SCOPE OF SERVICES Scope of Services TASK 1— DATA COLLECTION AND REVIEW Harris will meet with the City to collect information related to the Development Impact fee update and will review all provided information. This will include: • Development agreements • Fund Balances • Fees Collected to date • Permits pulled to date • Remaining Landuse information • Development Assumptions • New Project Information • Status of Existing Projects • Other relevant information TASK 2 — UPDATE PROJECT COSTS Harris will work with the City to review the projects and costs that have been included in the fee program. Harris will incorporate any new projects provided by the City and will assist in developing appropriate costs and costs share for those facilities. Harris will update the remaining project costs using either the ENR construction cost index (CCI), consumer price Index (CPI), or other estimating means. TASK 3 — UPDATE CALCULATIONS Harris will incorporate the information from Tasks 1 and 2 into the impact fee spreadsheets. This will include updating landuse information, project status, remaining costs, new projects, and fund balances. Harris will provide the updated fee calculations to the City for review. Harris will participate in a conference call with the City to discuss the calculations and address any changes in the calculations. Harris will discuss with the City the significance of the changes and will discuss potential options for implementation of the program. TASK 4 — FEE COMPARISON Harris will prepare a fee comparison of neighboring communities to compare the proposed fees in Lodi with surrounding communities. This information will be presented in the public meetings to help with decision making on the fee update. TASK 5 — PUBLIC MEETINGS Harris will meet with the development community to review the proposed fee increases. Harris will prepare an agenda for this meeting and will make the presentation. Meeting minutes will be prepared following the meeting. Harris will debrief with the City and any required changes will be incorporated into the fee calculations. Harris will attend a workshop with the City Council to present the draft fees and give options for updating the fee program with clearly identified pros and cons for each option. Harris will Incorporate any feedback received at this meeting Into the calculations. Harris & Associates, Inc • Development Impact Fee Update 2 of 5 TASK 6— UPDATE IMPACT FEE STUDY Harris will incorporate the spreadsheets and policy decisions into the updated Impact Fee Study. Harris will make all findings required under AB1600 into the document and clearly document any assumptions and changes. Harris will provide a draft pdf document for City review including all back-up calculations. Harris will participate in a conference call with the City to review any changes and will Incorporate a consolidated set of comments into the document. A final draft document will be prepared and a pdf provided to the City. Once any final comments are received Harris will prepare the final draft and will provide the City with a final pdf. Any background information will be incorporated into the report or be provided as a separate document per the City's preference. TASK 7 — FINAL PUBLIC MEETINGS Harris will meet with the development community a second time to review and answer questions on the final impact fee documents. Harris will prepare an agenda for this meeting and will make the presentation. Meeting minutes will be prepared following the meeting. Harris will debrief with the City and any required changes will be incorporated into the documents prior to the City Council Meeting. Once any final comments are received Harris will prepare the final draft and will provide the City with 10 hard copies as well as the final pdf. Any background information will be incorporated into the report or be provided as a separate document per the City's preference. Harris will attend a Clty Council meeting for adoption of the Impact fee program. Harris will present the final information to the City. OPTIONAL TASK — ADDITIONAL MEETINGS AND REVISIONS Additional meetings and iterations of calculations and reports will be priced on a time and materials basis. Based on our experience, our scope includes the number of meetings and iterations normally required for these types of projects, however depending on the City Council and development community, additional iterations and meetings may be required. Assumptions and Exclusions • City will provide a project manager to coordinate the project. • Harris will attend a total of five in-person meetings. Additional meetings will be at an additional cost. • City will provide Harris with all background information. • City will review all documents and provide consolidated comments in a timely manner. • City will coordinate setting up all meetings and preparing all City Council Documents. • No updates to the Master Plans are being completed. • No major changes to the program are to occur beyond those mentioned in the scope. Harris & Associates, Inc a Development Impact Fee Update 3 of 5 PROJECT TEAM Alison Bouley, PE Project Manager Our Project Manager, Alison Bouley, PE, is a Director in our Public Finance Group and has 17 years of experience working on public finance projects. She has extensive experience establishing impact fees and facilitating discussion among public agency representatives and building industry representatives. Alison will be the key point of contact for the project and will be responsible for managing the project team. Adam Marston Senior Project Analyst Adam Marston Is a Senior Project Analyst in our public finance group and has experience in GIS mapping, preparing excel spreadsheets, developing impact fee programs and facility planning. He will be supporting Alison in the update of the development impact fee program. PROPOSED FEES Dennis Klingelhofer, PE Principal -in -Charge Principal -In -Charge, Dennis laingelhofer, PE, has 25 years of experience as a consultant in public finance and special assessment procedures and has provided consulting services to public agencies in all areas of fee development, including the adoption of AB1600 fees. Dennis will serve as a technical advisor to the project and will provide QA/QC review. Joel Nagamine, EIT Project Engineer Joel Nagamine is a Project Engineer in our public finance group and has experience in updating cost estimates, development impact fee updates and AutoCAD. He will support Alison in the update of the development impact fee program primarily in updating project costs. Harris will perform the scope of work on a time and material basis not to exceed the amount shown below. NOT TO EXCEED $40,000 Harris & Associates, Inc ■ Development Impact Fee Update 4 of 5 Protect Director $250/hr Hours Project Manager $225/hr Hours Protect Engineer $135/hr Hours Protect Analyst $135/hr Hours Total (Estimated Hours Total Estlmated Fee Task 1 We CoUaciron Ano Rouew 12 16 29 $ 4860 Task 2 Uptlaie PRI act Costs 4 32 36 5 5 220 Task 3 Update CatCtdailona 'Pea 1 6 40 47 S Task 4 Comparison 2 8 10 5 1530 Tisk 6 Pulite Meetings 12 12 24 5 4,320 T4ak 5 Update impact Fee Study 1 8 32 41 5 5370 Task 7 Final Prdlllc Meetings 12 16 28 5 4.860 Tata? 2 56 32 124 214 $ 34,160 NOT TO EXCEED $40,000 Harris & Associates, Inc ■ Development Impact Fee Update 4 of 5 Harris Is excited to work with the City of Lodi again In the update of your development Impact fee program. Please let me know If you have any questions or comments. Sincerely, Harris & Associates, Inc. Alison Bouley, PE Director, Public Finance (949) 536-2513 • Alison.Bouley@WeAreHarris.com Harris & Associates, Inc • Development Impact Fee Update 5 of 5 Exhibit C Insurance Requirements for Consultant The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: 1 COMPREHENSIVE GENERAL LIABILITY $1,000,000 Each Occurrence $2,000,000 General Aggregate 2. COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the proiect that it is insuring. (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. Page 1 I of 2 pages Risk: rev.08.2015 (e) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (f) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (g) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. (h) Failure .to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the names) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1s) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (i) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation Insurance The Contractor shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 21 of 2 pages Risk: rev.08.2015 RESOLUTION NO. 2017-97 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH HARRIS AND ASSOCIATES, INC., OF TRACY, FOR DEVELOPMENT IMPACT MITIGATION FEE PROGRAM UPDATE, AND FURTHER APPROPRIATING FUNDS WHEREAS, in 1991, the City Council approved the Impact Mitigation Fee Program (1MFP) that established impact fees in the categories of water, wastewater, storm drainage, streets, police, fire, parks, and general City facillities; and WHEREAS, an electric utility impact fee was later established in 2007; and WHEREAS, on August 15, 2012, the City Council approved the updated IMFP Report and the recommended schedule of fees for water, wastewater, storm drainage, transportation, police, fire, parks, electric, general city facilities, and art in public places; and WHEREAS, on October 16, 2013, the City Council approved an amendment to the storm and parks fees; and WHEREAS, to conform with State law, staff recommends authorizing the City Manager to execute a Professional Services Agreement with Harris and Associates, Inc., of Tracy, for Development Impact Mitigation Fee Program update, in the amount of $40,000; and WHEREAS, staff further recommends appropriating funds in the amount of $40,000 as set forth below. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Professional Services Agreement with Harris and Associates, Inc., of Tracy, California, for Development Impact Mitigation Fee Program update, in the amount of $40,000; and BE IT FURTHER RESOLVED that the Lodi City Council does hereby appropriate funds to project PWIMF.0001, from the respective fund balances, as follows: Fund (all are Impact ` Account Budget Amount Mitigation Fee Funds Electric Utility 50599000.77020 $ 1,787 Wastewater 53399000.77020 9,145 Water 56299000.77020 6,715 Storm Drain 53599000.77020 3,015 Streets 30899000.77020 1,537 Police 43599000.77020 1,632 Fire 43699000.77020 835 Parks and Recreation 43799000.77020 8,422 Facilities 43899000.77020 1,335 Neighborhood Parks 43999000.77020 5,402 Art in Public Places 43499000.77020 175 TOTAL ALL FUNDS 9 $ 40,000 , Dated: May 17, 2017 I hereby certify that Resolution No. 2017-97 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 17, 2017 by the following vote: AYES: COUNCIL MEMBERS — Johnson, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Chandler and Mounce ABSTAIN: COUNCIL MEMBERS — None .J2AA-6,Jo NNIFERLM. FERRAIOLO City Clerk 2017-97 ipm,t,2-.ap_01 cfvue_ G-2 LODI CITY COUNCIL LODI CITY MANAGER CLAIM OF MAY 17, 2017 MAKE CHANGES TO THE IMPACT MITIGATION FEE PROGRAM (IMFP) THIS IS A CLAIM ON BEHALF OF THE CITIZEN RATE PAYERS OF THE LODI WASTEWATER, WATER UTILITY ENTERPRISES. Reference Agenda Item C-08 meeting of May 17, 2017 1. Add funding item titled Recycled Water Fund. This fund would support the new portion of the Water Utility Enterprise enabling the City to establish design, and installation of infrastructure to connect the City Limits of Lodi with the White Slough Wastewater recycling plant, with the purpose of suppling non -potable water sources to the new developments within the City of Lodi. These funds would be restricted for use within the Water Utility Enterprise for the sole purpose as described above and the operating budgets would be incorporated into the Water Utility. Enterprise as a subset of the potable water enterprise. The City of Lodi has already studied the infrastructure and implementation cost of establishing the non -potable recycled water facilities back in 2001 water studies. The City already has an estimate of non -potable water usage in the current water billing. The comparison between potable winter usage and summer outside water consumption provides a basis to establish future IMF costs to Developers. 2. Restrict the use of each fund for Wastewater, Water, Recycled Water and Storm Water to be solely used within the designated fund. NO inter fund loans! Money restricted to designated fund use only. Example: The City borrowed 1.9 million dollars plus from the Water IMF fund in 2002 for the construction of Fire House number 4 and 15 years later still Page 1 of 3 has not paid this loan back to the Water IMF and shorting the Utility Rate Payers this funding. 3. Restrict the City of Lodi from reducing the amount of Impact Mitigation Fee established and charged to the Developers. When looking at the individual Enterprise Budgets covered under Prop 218 the City of Lodi has had a past practice of not supporting the revenues of each enterprise 100 percent with revenues from the IMFP. The City of Lodi through its Municipal Funding Corporation establishes Certificates of Participation, by-passing the requirement of both Prop 13 and 218 voter authority and expanding the Enterprise budgets and inflating the need for Utility Rate increases. The Certificates of Participation specifically state the funds to be repaid by Utility Rate revenues and are not the responsibility of the City or the General Fund obligation. Therefore the necessity of restricted fund use, so that 100 percent of the IMF is collected and used solely within the designated Enterprise. 4. Change the way the Annual IMF Report is presented. Add to the report the total number of Developer units within each development. Show the number of current year units paid by that development into each fund. Show how many units left to be paid for and carried over to the next reporting year/years. 5. The current format of the Annual Report is more of a summary report lacking details of transactions. If you compare the yearly reports to one another there are discrepancies in the ending and beginning balances year to year. They lack the detail of interest accrued on each inter fund loan, showing only the original loan balance amount borrowed year to year. There should be line item details of payables and receivables not just note references of some of the transactions that affect the balances. Page 2 of 3 You as the City Council or a City Employee have to ask the question, can I understand the detail of what the City is doing from this report as it exists in its current form? I respectfully request that these changes be made in the City of Lodi's municipal code and the format of the Impact Mitigation Fund's Report. Mike Lusk disclaimer: All the information contained in this Claim is meant to support the argument of the Claim and not in any way meant to miss -lead the intention of this Claim. The representation of sources and excerpts were taken from official documents in part or in whole but may not contain all of the information of the source document. Persons reviewing this Claim are urged to review all source documents in their entirety if further understanding is required. This Claim is directed at the City of Lodi and not to anyone individual or individuals within the City Government. Respectfully Mike Lusk 2518 Colony Dr. Lodi, Calif. Page 3 of 3