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HomeMy WebLinkAboutAgenda Report - December 2, 2020 C-16AGENDA ITEM (240 1 k) hat CITY OF LODI %W COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute a Professional Services Agreement with NBS of Temecula, for Tax Rate Analysis Services ($29,500) and Appropriating Funds ($29,500) MEETING DATE: December 2, 2020 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute a professional services agreement with NBS of Temecula for tax rate analysis services ($29,500) and Appropriating Funds ($29,500) BACKGROUND INFORMATION: The City of Lodi has a longstanding slow growth ordinance aimed at creating a smart, controlled and fiscally sustainable growth pattern within the community. This includes both in fill development and new annexations to the City limits. Annexation places a significant financial burden on the City to deliver new services that stretch existing resources and require expansion of both maintenance efforts and staffing levels at the City. As services are transitioned from the unincorporated County to the City, it is important to the fiscal sustainability of the City that adequate revenue be provided to the City to compensate for the additional service burden created by the new development. The County will continue to provide some services within the incorporated boundaries, however, the County's service burden drops substantially. It is important for the City and the County to have a sustainable, justified and equitable split of revenue to ensure that both agencies can continue to provide services to newly annexed communities. A tax sharing agreement between the City and County needs to look at the service burden before and after annexation for both agencies. It is necessary to analyze all revenue streams currently generated and projected to be generated by new development in addition to existing and projected service levels and service level policies. The information gathered and analysis provided will then be used to inform negotiations between the City and County regarding revenue sharing in potential annexation areas. NBS is a leader in tax rate analysis, including analysis for new development and annexation tax sharing agreements. NBS is familiar with the City of Lodi having preformed a similar analysis for a site specific potential development in 2018 and 2019. The project in question did not move forward, however NBS knowledge gained from this exercise has them well positioned to perform the work necessary to develop the analysis for potential new annexations in all future growth areas surrounding the City. In addition, NBS has administered various financing districts in the City for over a decade. Their local experience and industry wide position as a leader in the field will ensure the City receives a complete and detailed analysis. FISCAL IMPACT: Costs for Tax Rate Analysis services of specific project annexations are paid for by the project applicants. This analysis will be developed to inform negotiations centered on entering into an equitable tax sharing agreement APPROVED: viw Sfr�u{r�ooiv.aoso�rrzcrsn Stephen Schwabauer, City Manager Adopt Resolution Authorizing City Manager to Execute a Professional Services Agreement with NBS of Temecula, for Tax Rate Analysis Services ($29,500) and Appropriating Funds ($29,500) December 2, 2020 Page 2 with San Joaquin County. As such, there is a general benefit to the analysis and costs will be borne by the City's General Fund. FUNDING AVAILABLE: 10010000.72450 Andrew Keys Deputy City Manager/Internal Services Director AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on 2420, by and between the CITY OF LOBI, a municipal corporation (hereinafter `CITY"), and NBS Government Finance Group, 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 Tax Rate Analysis (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 2.5, 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 the completion of the Scope of Services or on 2 2020 and terminates upon . 2021, whichever occurs first. 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 6 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 ail 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 ail 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 Responsibillity 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 personalty 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: Andrew Keys To CONTRACTOR. NBS Government Finance Group 32605 Temecula Parkway, Suite '100 Temecula, CA 95292 Attn: Michael Rentner 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 61 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,_J_urisdiction, 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 parry 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: JENNIFER M. FERRAIOLO City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney CITY OF LOD], a municipal corporation STEPHEN SCHWABAUER City Manager NBS Government Finance Group Bv: Name: Michael Rentner jdm Title: President & CEO Attachments: Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Funding Source: 10010000.72450 (Business Un it & Account No.) Doc I ❑: CA:Rev.Q1.2Q 15 IC,4:11=11W.1 CONSULTANT SCOPE OF SERVICES Fiscal Impact Analysis INTRODUCTION AND PROJECT SCHEDULE NBS will coordinate with City staff and other interested parties to: Establish lines of communication for effective interaction. of all involved parties Clarify the specific project goals and criteria needed to meet the City's preference Identify any special circumstances regarding the project and proposed development, if any - Develop a working schedule to achieve agreed upon project milestones DATA COLLECTION AND RESEARCH NBS will gather and review data relevant to the project area. Data needs will be identified and obtained from various sources, including City records, County records, and, if applicable, developer documents related to the project area. NBS will conduct additional research, from secondary markets and data sources to aid in ascertaining assessed values, taxable sales, and other relevant data assumptions for the various land uses proposed in the project area. SERVICE LEVEL ANALYSIS NBS will review the current baseline level of service provided by both the City and the County and will compare the current baseline level of service to the City and County optimal level of service desired. NBS will compare the current services provided and the proposed services to be provided by the special financing district to distinguish the appropriate funding to be provided by each applicable funding mechanism. NBS will rely on the City and County to provide the current baseline level of service and the optimal level of service desired to inform the analysis. IDENTIFY REVENUES APPLICABLE TO PROJECT AREA DEVELOPMENT NBS will calculate revenue estimates for taxes such as property tax, sales tax, transient occupancy tax, and other general taxes, if applicable to the ana€ysis. Further, NBS will rely on accepted industry standard approaches such as the multiplier method approach (per defined variables such as persons, employees, square feet, etc.) for allocating other recurring revenues to the project area. One-time fees, such as development impact fees, and other fees for service will not be considered in this fiscal impact analysis. IDENTIFY COSTS APPLICABLE TO PROJECT AREA DEVELOPMENT NBS wilt review the current level of service costs and the City and County optimal level of service costs, if applicable, and calculate cost estimates for the project area. Costs will be identified and allocated to the project area based upon accepted industry standard approaches, such as the case study approach or the multiplier method approach (per defined variables such as persons, employees, square feet, etc.). NBS will rely on the City and County to provide the necessary cost data required to inform the analysis, as well as secondary market research, as needed. ION1 BS City of Lodi i �y Fiscal impact Analysis DETERMINE PROJECT AREA DEVELOPIVICNVS NET FISCAL IMPACTS Based upon the revenue and cost findings, NBS will ascertain the potential positive or negative fiscal impacts that the project area's proposed development will have on the City as well as the County. Further, NBS will provide recommendations to mitigate any identified negative fiscal impacts, as well as provide recommendations for potential revenue generators, such as special taxes, assessments or fees, as needed. PREPARE FINAL FISCAL IMPACT REPORT Based on the results of the aforementioned fiscal impact analysis and review, NBS will provide the City with a final report that discusses the fiscal impact findings, as well as any potential recommendations far further consideration. NBS will be available by conference call to present the fiscal impact findings identified in the report. CITY'S RESPONSIBILITIES The City shall furnish NBS with any pertinent information that is available to City and applicable to the Services. The City shall designate a person to act with authority on its behalf in respect to the Services. The City shall promptly respond to NBS' requests for reviews and approvals of its work, and to its requests for decisions related to the Services. City understands and agrees that NBS is entitled to rely on all information, data and documents (collectively, "Information") supplied to NBS by City or any of its agents, contractors or proxies or obtained by NBS from other usual and customary sources including other government sources or proxies as being accurate and correct and NBS will have no obligation to confirm that such Information is correct and that NBS will have no liability to City or any third party if such Information is not correct. 4 )NBS City Lodi Fisca l I Impact Analysis EXHIBIT B COMPENSATION FOR SERVICES Fiscal Impact Analysis ConsultingFee................................................................................................... ................$ 28,500 EstimatedExpenses (1).........................................................................................................$ 1,000 TotalNotto Exceed.............................................................................................................$ 29,500 (1) See description of expenses below EXPENSES Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These expenses may include, but not be limited to, mailing fulfillment, postage, reproduction, telephone, travel, meals and various third -party charges for data, maps, and recording fees. ADDITIONAL SERVICES The following table shows our current hourly rates. Additional services authorized by the City but not included in the scope of services will be billed at this rate or the then applicable hourly rate. Director $225 Associate Director $210 Senior Consultant 1 Manager $175 Consultant $155 Analyst $130 Clerical/Support $105 TERMS Consulting services will be invoiced on a monthly basis. Expenses will be itemized and included in the next regular invoice. Fees for all other services will be invoiced upon completion of the task. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per month. Either party may cancel this contract with 30 days written notice. N B5 City of Lodi Fiscal Impact Analysis 3 RESOLUTION NO. 2020-289 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH NBS, OF TEMECULA, FOR TAX RATE ANALYSIS SERVICES; AND FURTHER APPROPRIATING FUNDS WHEREAS, the City has a longstanding slow growth ordinance aimed at creating a smart, controlled and fiscally sustainable growth pattern within the community, including both in fill development and new annexations to the City limits; and WHERAS, annexation places a significant burden on the City to deliver new services that stretch existing resources and require expansion of both maintenance efforts and staffing levels at the City; and WHEREAS, as services are transitioned from the unincorporated County to the City, it is important to the fiscal sustainability of the City that adequate revenue be provided to the City to compensate for the additional service burden created by the new development; and WHEREAS, a tax sharing agreement between the City and County needs to look at the service burden before and after annexation for both agencies. It is necessary to analyze all revenue streams currently generated and projected to be generated by new development in addition to existing and projected service levels and service level policies; and WHEREAS, the information gathered and analysis provided will then be used to inform negotiations between the City and County regarding revenue sharing in potential annexation areas; and WHEREAS, NBS is a leader in tax rate analysis, including analysis for new development and annexation tax sharing agreements. NBS is familiar with the City of Lodi having preformed a similar analysis for a site-specific potential development in 2018 and 2019, positioning them to perform the work necessary to develop the analysis for potential new annexations in all future growth areas surrounding the City. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby authorize the City Manager to execute a Professional Services Agreement with NBS, of Temecula, California, for tax rate analysis services in the amount of $29,500; and BE IT FURTHER RESOLVED that the City Council does hereby authorize the increase to the General Fund budget in account 10010000.72450 and appropriate funds in the amount of $29,500; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: December 2, 2020 I hereby certify that Resolution No. 2020-289 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 2, 2020 by the following votes: AYES: COUNCIL MEMBERS — Chandler, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAIN: COUNCIL MEMBERS —None f�FR�C �JENNIFEUS City Clerk 2020-289