Loading...
HomeMy WebLinkAboutFIELDMAN, ROLAPP AND ASSOCIATES - 2001-04-16CITY OF HUNTINGTON BEACH left 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: _ May 14, 2oo1 TO: Fieldman, Rolapp & Associates ATTENTION: Lawrence G. Rolapp Name 2100 Main Street, Suite 201 DEPARTMENT: Street Irvine. CA 92614 REGARDING: Prof. Serv. Contract City, State, Zip _ See Attached Action Agenda Item F-2 Date of Approval 4-16-01 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page x Agreement x Bonds CC: R. Beardsley Name P. Emery Name Name Name RCA Deed DPW x x Department RCA Agreement DPW x x Department RCA Agreement Department RCA Agreement Department RCA Agreement Risk Management Dept. Insurance Other Insurance Other Insurance Other Insurance Other Insurance Other Insurance Telephone: 714-536-5227 ) &ITY OF HUNTINGTON,BEA MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 Council/Agency Meeting Held: Deferred/Continued to: `AA ro ed ❑ Conditiff Ily Approved ❑ Denied M) ' le ' Signature Council Meeting Date: April 16, 2001 Department ID Number: PW 01-47 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR�AND CITY COUNCIL MEMBERS `2" --r -<C x-<C)r, SUBMITTED BY: RAY SILVER, City Administrator,4,d rl-, Z7 n �i PREPARED BY: (1 ' bert F. Beardsley, Director of Public Works j = Cl) J D: SUBJECT: APPROVE A WORK PLAN TO IMPLEMENT THE RECOMMENDATIONS OF THE INFRASTRUCTURE PLANNING COMMITTEE (IPC) . Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The IPC presented their final report on March 26, 2001. Should the City Council accept the IPC Final Report and adopt the recommendations and an action plan that includes a report on the financial impact of the Howard Jarvis lawsuit; and, authorize funding to continue with proposed recommendations? Funding Source: Funds in the amount of $250,000 are available, and must be appropriated from the Unappropriated General Fund balance to the project account. Recommended Action: 1. Approve Items 1-4 of the proposed work plan and the associated schedules implementing the recommendations of the IPC as modified in response to the Howard Jarvis lawsuit; 2. Approve and authorize the Mayor and City Clerk, upon approval of the consultant's insurance policies by the City Attorney, to execute the Professional Services Contract between the City of Huntington Beach and Fieldman, Rolapp and Associates to Provide Financial Advisor Services, in Conjunction with the Recommendations of the Citizens Infrastructure Advisory Committee Reaardina the Formation of a Communitv Facilities District in the City of Huntington Beach for an amount not to exceed $208,400. 3. Waive the $25,000 deductible for both errors and omissions and professional liability insurances. 4. Direct the Finance Director to appropriate $250,000 from the City's Unappropriated General Fund Balance into Account No. 10085102.69365 for the contract, potential change orders and supplemental expenses. 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -2- 4/11101 12:10 PM *-QUEST FOR COUNCIL ACON MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 Alternative Action(s): Deny the recommended action and provide alternative direction to staff to fund the IPC recommendations. Analysis: In August of 2000 the City Council appointed the Infrastructure Planning Committee (IPC) to review the infrastructure needs as identified in the Integrated Infrastructure Management Plan (IIMP) and the Immediate Infrastructure Needs (IIN) list and to make recommendations on funding methods for the plan. At the March 26, 2001 adjourned regular meeting of the City Council, the IPC submitted a final report outlining recommendations, including new revenue sources, public awareness and outreach, revenue enhancement strategies, a city charter amendment and other policy issues. Specifically, the IPC set forth twenty-five recommendations to address the City's infrastructure needs. The following work plan outlines how each of these recommendations will be addressed. The implementation schedule is included as Attachment #2. PROPOSED WORK PLAN 1. New Revenue Sources The IPC recommended implementation of two new revenue sources: a sewer fee and a Community Facilities District. At its regularly scheduled meeting on February 20, 2001, the City Council directed staff to proceed with the implementation of an ongoing sewer charge that fully funds the rehabilitation, replacement, repair and maintenance of all City .owned sewers and lift stations. This fee is intended to replace existing general fund resources, which will be directed to other infrastructure needs. A study session is scheduled for May 7, 2001 where the City Council will review the rate structure, the proposed ordinance and the schedule for public outreach. This fee will be proposed for adoption in July, with the fee appearing on customer's bills in October of 2001. No action of the City Council is required at this time to continue the process. The second new funding source recommended is the development of a Community Facilities District (CFD) to finance unfunded. infrastructure needs. The IPC recommended that the City Council take the necessary steps to propose a CFD on the ballot in March of 2002. To insure inclusion in the March 2002 primary election, it is necessary to begin the district pre- formation activities immediately. Therefore, staff recommends that the City Council approve the agreement with Fieldman, Rolapp & Associates under the provisions provided for in the Municipal Code Chapter 3.03 regarding the retention of professional services in extraordinary circumstances. Fieldman, Rolapp & Associates have worked with the IAC and have demonstrated exceptional qualifications and possess extensive experience in district formation. The work of the consultant includes the research and development of the equivalent dwelling use (EDU) database, the creation of a preliminary tax spread pro -forma and the development of a boundary map. The schedule (Attachment #3) outlines the activities to be completed by the financial consultant and staff to ensure that the CFD is in place for the March 2002 ballot. 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -3- 4/11/01 12:10 PM *QUEST FOR COUNCIL ACANN MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 In addition to the retention of financial consultants it will be necessary to retain consulting legal services as they relate to the CFD formation. The City Attorney's office will be returning to the City Council with a request for authorization, and funding, to enter into an agreement for these services. Concurrent with the activities of the staff and financial and legal consultants, it will be necessary to continue the effort of the IPC on an ad hoc basis to further prioritize projects identified in the IIMP and IIN. The IPC will assist in sizing the district appropriately and providing valuable assistance in public education. It is anticipated that the effort of the IPC will continue through March 2002. Separately from the IPC, a new citizens group will be sought to begin advocacy outreach and foundation development for the success of the CFD. The new outreach group will coordinate any advocacy necessary for the successful implementation of a district. Staff will only work on the education component of the district. 2. Public Awareness and Outreach In February 2000 the City Council authorized the retention of Frank Wilson and Associates (FW&A) to provide educational outreach services highlighting infrastructure needs and reporting the, findings identified in the IIMP. In July 2000, with the completion of the Final Report of the Infrastructure Advisory Committee (IAC), FW&A completed the first phase of activities. On December 18, 2000, the City Council authorized FW&A to begin Phase 2 of the Public Outreach Program. The major components of the outreach program include the development of a brochure, a PowerPoint presentation, a web page dedicated to infrastructure education, scripts for a series of video spots, a speakers' bureau, and a media launch to begin the public outreach program. Throughout this process, a sub -committee of the IPC providing oversight and input will aid program staff and the consultant. Staff will return to Council with an amendment to the consultant contract, extending the outreach and awareness services to March of 2002. Attached is a status report for the Phase 2 activities in the Public Outreach program (Attachment #4). 3. Revenue Enhancements The IPC identified numerous revenue enhancement opportunities that will require additional staff work and future City Council action. The following list identifies the proposed enhancements as well as a brief description of the follow up action required. Utility Users Tax on the AES Plant - The IPC recommended that a ballot measure be included in the March 2002 primary election that would require the AES Corporation to pay taxes on the utilities the plant consumes. It was further recommended that this measure 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -4- 4/11/01 11:54 AM QUEST FOR COUNCIL ACON MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 have an accompanying advisory vote directing the revenue toward infrastructure improvements. Staff will prepare the appropriate ballot language in coordination with the City Attorney and provide the proper noticing for inclusion in the March 2002 primary election. Update City Fees — The IPC recommended that all City fees be updated and where appropriate, that the revenue from these fees be applied to infrastructure. As part of the development of the Fiscal Years 2001-03 budget, staff will review and make recommendations on potential fees. All fees will be evaluated for both cost recovery and the burden to the fee payer. Maximize Grants, Redevelopment Funds and Community Development Block Grants (CDBG) dedicated to infrastructure — In the development of the Fiscal Year 2001-03 operating budget and capital improvement program (CIP), staff will ensure the full utilization of grant funding, CDBG and redevelopment funds dedicated to infrastructure. It is anticipated that the CIP will be presented for Council adoption in August of 2001. Included in the program will be a delineation of grants, CDBG and redevelopment funding. Offshore Oil Drilling Property Tax — The IPC has recommended that the City appeal the current County determination that the offshore oil drilling platforms have no assessed value. If the appeal is upheld, the City may then recover property taxes based on the valuation of those platforms. Staff will proceed with the steps necessary to appeal the existing determination and report back to Council with a status report in September of 2001. Assessment Districts for Localized Projects — Upon completion of the CFD formation and vote in March 2002, City staff will proceed with an evaluation of assessment districts for localized infrastructure improvements. Included in this analysis will be a determination of projects that qualify for this type of funding, an estimated cost of improvements and the costs incurred for administering such a district. Parking Meter Installation — The IPC recommended that additional parking meters be installed in areas serving visitors. Staff will present a report to the Council in the fall of 2001, identifying locations of parking meters and recommendations of locations that may be added or deleted. Included will be an analysis of revenue received from the meters. Winter Recreational Vehicle (RV) Parking - The IPC discussed the potential of expanding the winter RV parking at existing City beach lots to capitalize on this revenue opportunity. Staff will report back in the fall of 2001 with an analysis of the RV parking, including the potential for expansion on City -owned lots at the beach. City -Owned Properties — The IPC recommended that the City review the revenue generating capabilities of City -owned properties including park and beach concessions. A complete analysis of the revenue generated by concessions on City owned property would be developed. 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -5- 4/11/01 11:54 AM QUEST FOR COUNCIL ACAN MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 In conjunction with this report an inventory of non-park/non-essential City owned properties and the potential for disposition of these properties would be analyzed. This analysis should be complete in the fall of 2001 and a report to Council will be included. Corporate Sponsorships — An additional recommendation of the IPC was to increase corporate sponsorships. Staff is continuing its efforts to maximize these sponsorships and will continue to explore all available opportunities in the future. California Infrastructure Bank and State Boat Licensing Fund - Per the recommendation of the IPC, staff will review the above -identified funding sources and report back in the fall of 2001 how these resources could potentially enhance the implementation of infrastructure projects. The preceding revenue enhancement strategies are an ongoing effort to maximize the resources available for infrastructure improvements. Staff will proceed with the recommendations as noted. 4. Policy Recommendations The IPC final report identified specific policies that were recommended for evaluation and implementation, including: 1) a charter amendment establishing an infrastructure fund; 2) a long range financial plan; 3) a financial policy relating to infrastructure; and, 4) the inclusion of alley sweeping in the Public Works Maintenance program. The proposed Charter Amendment (Attachment #5) would establish an- "Infrastructure Fund" that includes a provision for minimum general fund transfers to the fund as well as a Citizens Infrastructure Advisory Board to conduct reviews and audit performance. It is recommended that the City proceed with the charter amendment with a change in the methodology for calculating future expenditures. It is recommended that the expenditure for future infrastructure "shall not be reduced below 15% of general fund revenues based on a five (5) year rolling average". This time frame is recommended for extension from three to five years based on the potential impacts to the general fund from the Howard Jarvis lawsuit and to be synchronous with the five (5) year historical average used to develop the maintenance of effort. The Long-range Financial Plan recommended by the IPC will be presented in coordination with the fiscal year 2001-03 budget. This budget is scheduled for review by the City Council in August of 2001. A draft "Financial Policies Relating to Infrastructure" has been distributed to the City Council and is scheduled for adoption at the April 16, 2001 meeting. This policy outlines the allocation of year-end general fund balances, the allocation of unanticipated/unbudgeted revenues, and the operation of the capital project fund as well capital management policies. 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -6- 4/11101 11:54 AM &QUEST FOR COUNCIL ACAN MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 The final policy recommendation adopted by the IPC was the inclusion of mechanized alley sweeping in the Public Works Maintenance budget. As part of the fiscal year 2001- 03 budget submittal process, the Public works Department will identify the required resources to include alleys in the current twice -monthly sweeping program. The work plan outlined above addresses every recommendation presented by.the IPC to the City Council. Adoption of this action plan will begin the necessary steps to address the findings of the IAC as identified in the IIMP. Environmental Status: N/A Attachment(s): RCA Author: Emery:jm 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -7- 4/11/01 11:54 AM • 0 ATTACHMENT #1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND FIELDMAN, ROLAPP & ASSOCIATES TO PROVIDE FINANCIAL ADVISOR SERVICES, IN CONJUNCTION WITH THE RECOMMENDATIONS OF THE CITIZENS INFRASTRUCTURE ADVISORY COMMITTEE REGARDING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT IN THE CITY OF HUNTINGTON BEACH THIS Agreement is made and entered into this 16th day of April 2001, by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and FIELDMAN, ROLAPP & ASSOCIATES, a California corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide financial advisor services regarding the formation of a Community Facilities District in the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: SCOPE OF SERVICES CONSULTANT shall provide all services as set forth in the Scope of Services attached hereto as Exhibit "A" and incorporated by this reference as though fully set forth herein. The tasks associated with the "Option Phase" described in Exhibit "A" are not included in the work to be performed by CONSULTANT pursuant to this Agreement. These services may sometimes hereafter be referred to as the "PROJECT." 01 agree/Fieldman/4/ 10/01 2. DESIGNATED CONTACTS CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. CONSULTANT hereby designates Lawrence G. Rolapp, who shall represent CONSULTANT and shall be CONSULTANT's primary contract person with CITY. 3. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" excluding the Option Phase, shall be completed no later than thirteen (13) months from the date of this Agreement. These times may be extended with the written permission of CITY. The time for performance of the tasks are set forth in Exhibit "A". This schedule may be amended to benefit the PROJECT if mutually agreed by CITY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates identified in Exhibit "A" a fee not to exceed Two Hundred Eight Thousand Four Hundred and no/100 Dollars ($208,400.00). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A", or changes in the scope of services described in Exhibit "A", CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 01 agree/Fieldman/4/10/01 2 6. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the not to exceed amount set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A". B. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by CITY shall be deemed accepted. C. CONSULTANT shall submit to CITY an invoice for each progress payment due. Such invoice shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and 5) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made within thirty 01 agree/Fieldman/4/10101 3 (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Section 1 shall be suspended until the parties agree thatpast performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for extra work or additional services authorized by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps, memoranda, letters and other documents, shall be turned over to CITY upon termination of this Agreement or upon PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, said materials may be used by CITY in the completion of the PROJECT or as it otherwise sees fit. Title to said materials shall pass to CITY upon payment of fees determined to be earned by CONSULTANT to the point of termination or completion of the PROJECT, 01 agree/Fieldman/4/10/01 4 • • whichever is applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder. HOLD HARMLESS CONSULTANT shall protect, defend, indemnify, save and hold harmless CITY, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with CONSULTANT's negligent performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation. 9. WORKERS' COMPENSATION INSURANCE Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; CONSULTANT covenants that it will comply with such provisions prior to commencing performance of the work hereunder; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suit, actions, proceedings, and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONSULTANT under this Agreement. CONSULTANT shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each 01 agree/Fieldman/4/10/01 • • occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit CONSULTANT shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractors' employees. CONSULTANT shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation. 10. GENERAL LIABILITY INSURANCE In addition to the workers' compensation insurance and CONSULTANT's covenant to indemnify CITY, CONSULTANT shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. The policy shall indemnify CONSULTANT, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000 for this PROJECT.; The policy shall name CITY, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 01 agree/Fieldman/4/10/01 6 11. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall furnish a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional liability in an amount not less than 51,000,000 per occurrence and in the aggregate. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of the reporting of any circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. 12. CERTIFICATES OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the certificates shall: A. provide the name and policy number of each carrier and policy; B. shall state that the policy is currently in force; and 01 agree/Fieldman/4/ 10/01 C. shall promise that such policies shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by CONSULTANT under the Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. 13. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of the CITY. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 14. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as 01 agree/Fieldman/4/10/01 8 r: provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of the CITY, become its property and shall be delivered to it by CONSULTANT. 15. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the express written consent of CITY. 16. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 17. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 18. NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY's Public Works Director as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: 01 agree/Fieldman/4/10/01 9 • • TO CITY: Public Works Director City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 19. MODIFICATION TO CONSULTANT: Lawrence G. Rolapp Fieldman, Rolapp & Associates 2100 Main Street, Suite 201 Irvine, CA 92614 No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 20. SECTION HEADINGS The titles, captions, section, paragraph, subject headings and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of maters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 21. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as 01agree/Fieldman/4/10/01 10 • • to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 23. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each of the parties hereto shall retain an originally signed copy hereof. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 24. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 25. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 01 agree/Fieldman/4/10/01 11 APR 11 2001 11:19 FR F LDMAN—ROLAPP 9494748773 TO 17143741573 P.14i14 nrm-11—G19U1 1ri' JJ "11 &1'1%J I dil Dr -MI M • Ili J 1- yJ rJ r . A—o, 26. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof, each party shall bear its own anorney's fees. 27. ENTIRETY The Agreement contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding and agreements whether oral or in writing. The foregoing, and Exhibit "A" attached hereto, sets forth the entire Agreement between the patties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. FIELDMAN, ROLAPP & ASSOCIATES Dy: LA�a�ac� print nano ITS: (circle oieJ Chairma rcEi)Vice President AND Dy:• pn me ITS: (circle one ecrelar hief Financial Officer/Asst. Secretary — Treasurer REVIEWED AND APPROVED: City A6ninistrator 01 aene/%ield mWV10/01 12 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California aymc ATTEST: -,City Clerk 614--1-° APPROVED A�q TO FORM: CityAttomey 0/ y�r INITIATED AND APP VED irector of Public Works TAL APR 11 2001 10:56 71A I7d 1C17 PC= 11 P_13 ** TOTAL PAGE.14* 26. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 27. ENTIRETY The Agreement contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding and agreements whether oral or in writing. The foregoing, and Exhibit "A" attached hereto, sets forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. FIELDMAN, ROLAPP & ASSOCIATES By: LA w¢.W oe � _ TZo L �4PP print name ITS: (circle one) Chairman(Ede)Vice President AND By: lild I► l !iS Vl , be.A4arC print name ITS: (circle one) ecretar Chief Financial Officer/Asst. Secretary — Treasurer REVIEWED AND APPROVED: City Administrator CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor ATTEST: City Clerk APPROVED AS TO FORM: f ` -,& o/ F� City Attorney INITIATED AND APPROVED: Director of Public Works 01 agree/Fieldman/4/10/01 12 EXHIBIT A...... .. ... ....... . . ... . .. EXHIBIT "A" SCOPE OF SERVICES General Approach Fieldman, Rolapp & Associates ("FRA"), PSOMAS and David Taussig & Associates ("DTA") will provide multi -discipline expertise utilizng a coordinated team approach (collectively, "Consultant Team") with Fieldman, Rolapp & Associates as the prime consultant. As such, the personnel from each firm will provide specialized expertise under the umbrella of a unified and collective service delivery model. This approach is based on the Infrastructure Planning _ Committee's ("IPC's") recommendation to the City Council for a public vote approval in March 2002 of a City-wide Community Facilities District for funding selected by City infrastructure (the "Project"). This scope of services is organized under four distinct phases of activities 1) Community Facilities District "Pre -Formation Activities", 2) Community Facilities District "Formation Proceedings Activities", 3) Community Facilities District registered voter "Election Activities" and 4) Community Facilities District "Post -Election Activities. In addition, if the city pursues debt (bonding) authorization proceedings, related Consultant Team services are described in the "Option Phase" of the Scope of Services below. The City intends to retain legal counsel ("Bond Counsel") experienced in Community Facilities District formation proceedings to provide the legal services in support of this Project. These proceedings will be conducted pursuant to the Community Facilities Act of 1982 and/or the City's related Ordinance ("Act/City Ordinance"). 01 agree/fieldman/4/10/01 • o� • PROJECT UNDERSTANDING In the mid-1990's, the Huntington Beach City Council initiated a major review of the City's long-term infrastructure needs. This review was started by the Huntington Beach Public Works Department in 1995, initially with the recommendation of the Finance Board, and later the Public Works Commission. The product of the review, the Integrated Infrastructure Management Program (IIMP), provided the first comprehensive investigation of the City's anticipated infrastructure needs over the next 20 years. This IIMP. included a complete inventory of infrastructure components, i.e., streets, sewers, buildings, storm drains, etc. Also included in the inventory were cost estimates for improvements, rehabilitation/replacement, and maintenance, as well as the forecasted available revenues and the resulting unfunded revenue gap. The IIMP revealed a critical need for major infrastructure improvements and a major shortfall in funding to make those improvements. The total needs (in current dollars) over 20 years is forecasted to be over $1.3 billion. Available funding is projected to be less than one-half that amount, leaving a substantial gap.. of over. $800 million of unfunded improvements. In 1998 the City Council appointed 35 committee members and 23 alternates to the Citizens' Infrastructure Advisory Committee (IAC), whose purpose was to review the IIMP and its forecasted funding shortfall, and make recommendations to the City Council regarding the optimum approach for funding the most critical and long-term infrastructure needs of the community. Members of the committee represented a broad spectrum of community organizations, associations and interests. The result was the comprehensive Citizens' Infrastructure Advisory Committee's Infrastructure Needs Report. This landmark report provides documentation of the infrastructure conditions and lays out a blueprint to address the infrastructure challenges faced by the city. The IAC concluded that part of the solution to the infrastructure problem is providing major new funding:that.is restricted for the specific purpose of improvements, maintenance, repair and rehabilitation or replacement. After receiving the Final Report of the IAC, the City Council appointed an.`11=member Infrastructure Planning Committee (IPC), which was tasked with reviewing the recommendations of the IAC and recommending an action plan to the City Council. The IPC's. final report is due to b.e presented to the City Council on March 26, 2001. Included as part of the report will be recommendations.regarding new revenue sources to be pursued, which would be devoted to meeting the long term infrastructure needs of the community. Huntington Beach is not unlike many cities across the country faced with aging .infrastructure and insufficient funds to meet the future needs; however, Huntington: Beach's proactive approach to the problem has been uncommonly comprehensive, especially in the early and continuing involvement of its citizens. Indeed, Huntington Beach's landmark Infrastructure Improvement Program can serve as a model to help other cities begin to solve their infrastructure: problems. F:\WORKDIRS\CLIENTS\HUNT—BCH\contract Itr.doc • APPROACH Fieldman, Rolapp & Associates ("FRA"), PSOMAS and David Taussig & Associates ("DTA") will provide multi -discipline expertise utilizing a coordinated team approach (collectively, "Consultant Team") with Fieldman, Rolapp & Associates as the prime consultant. As such, the personnel from each firm will provide specialized expertise under the umbrella of a unified and collective service delivery model. Our approach is based on the Infrastructure Planning Committee's ("IPC's") recommendation to the City Council for a public vote approval in March 2002 of a City-wide Community Facilities District for funding selected City infrastructure (the "Project"). We have organized our scope of services under four distinct phases of activities; 1) Community Facilities District "Pre -Formation Activities", 2) Community Facilities District "Formation Proceedings Activities", 3) Community Facilities District registered voter "Election Activities" and 4) Community Facilities District "Post -Election Activities. In addition, if the City pursues debt (bonding) authorization proceedings, related Consultant Team services are described in the "Option Phase" of the Scope of Services below. It is our understanding that the City will retain . outside legal counsel ("Bond Counsel") experienced in Community Facilities District formation proceedings to provide the legal services in support of our activities. These proceedings will be conducted pursuant to the Community Facilities Act of 1982 and/or the City'srelated Ordinance ("Act/City Ordinance"). F:\WORKDIRS\CLIENTS\HUNT BCFI\contractUndoc • • • SCOPE OF SERVICES Phase I —Pre -Formation Activities Task 1. Coordination Meetings The Consultant Team will meet with City staff to coordinate activities, develop strategies and provide recommendations. PSOMAS will coordinate the meetings with City Staff from various departments. Task 2.Research and Data Base Development The City's GIS staff has indicated that the City's GIS data base does not include all of the information that would be needed for compiling the total EDU's and other data for developing the Preliminary Tax Spread/Pro-Forma. In order to minimize the City's cost pending successful voter approval of the CFD, DTA has assumed that sufficient data can be compiled from several sources provided by the City to develop the estimates for the Preliminary Tax Spreads/Pro-Forma. Upon voter approval of the CFD, a more accurate data base would need to be developed using information purchased from the Orange County Assessor and the City's water billing data base. DTA shall estimate the number of single family residential, multi -family residential, non-residential equivalent dwelling units ("EDUs"), and undeveloped parcels and applicable .property characteristics within the proposed City-wide registered voter approved Community Facilities :District ("CFD"). City staff has indicated that they can provide a computer file containing the assessor parcel number ("APN" ), general plan land use designation, acreage and other relevant information for each parcel within the CFD. City staff has also indicated that it can provide information on the number.•of single-family.. residential units, apartment units, and non-residential uses. City staff has also indicated that gated communities and mobile homes should -be exempt from paying for the cost of some or all local road.improvements: The City will indentify those properties that should not be taxed. for local roads/streets. _._PSOMAS: shall coordinate with the City staff and DTA to help prepare and transmit. this information : in an electronic/downloadable form to DTA. While the City will be.responsible: forproviding and verifying the estimated cost of the public improvements proposed to be funded. by. the: CFD.; PSOMAS will work with the City staff to coordinate this task. DTA shall rely on such data provided by the City, and shall not be responsible for verifying its accuracy. The City may hire other outside consultants to verify this data. The Consultant Team shall also acquire County of Orange Assessor data.. It is estimated there will be approximately 52,000 parcels for which data will be needed. Task 3. Preliminary Tax Spread/Pro-Forma DTA will prepare an initial apportionment of special taxes (the: "Special Tax Spread/Pro-Forma") based on number of estimated residential dwelling units, non=residential EDUs, and residential and non- residential acreage. DTA will consider estimated- benefit unique factors associated with -specific'. property. (le. private streets), vacant land considerations, policy issues, and other :factors in.- order to equitably allocate the special- taxes to each land use: DTA will calculate annual special taxes required from each land use to provide the funding proposed to be supported by special .tax revenue sources subject -to voter approval. The Special Tax Spread/Pro-Forma will provide:a long-term comparison of.CFD expenses and revenues, including the amount and timing of construction funds available to the City from pay-as-you-go revenues and bond proceeds (if any). DTA will also estimate annual special and total property taxes as a percentage of improved property values. F:`•.WORKDIRS\CLIENTS\HL'\T BCIT�contract Itr.doc 3 DTA shall present the Special Tax Spread/Pro-Forma at meetings attended by other members of the Consultant Team, City staff, Bond Counsel and the Public Outreach Consultants and recommend alternative techniques to apportion special taxes to enhance Project feasibility. The City staff shall provide the data necessary for the Special Tax Spread/Pro-Forma, including the information described in Task 2 above. Task 4. Pre -Public Outreach Coordination Meetings The Consultant Team will meet up to nine times with City staff, Bond Counsel and the Public Outreach Consultant to discuss the approach of the public. outreach effort and a community assessment survey. Prior to the initiation of public outreach activities all members of the Consultant Team will provide technical information as it relates to the proposed voter -funding program including preliminary estimated annual special tax levels for various categories. Task 5. Post Public Outreach Coordination Meetings The Consultant Team will meet with City staff, Bond Counsel and the Public Outreach Consultant to review the. findings of the public outreach effort. and the community assessment survey and develop recommended preliminary Special Tax Spread modifications. Based on their results, DTA will modify the Special Tax Spread/Pro-Forma and present it for review and comment. As a result of any recommended modifications agreed to by the City staff, Consultant Team and Bond Counsel, the findings will be presented by the Consultant Team to City Council with any alternative approaches and recommendations. Task 6. Special Tax Spread/Pro-Forma Revisions Based on City Council direction, DTA will prepare additionalrevisions to the Special Tax Spread/Pro . Forma requested by City staff and/or other Consultant Team members and Bond Counsel and present revised Tax Spreadsat subsequent meetings. DTA-will make any further necessary revisions for presentation to the City staff, Bond Counsel and other. members. of the. Consultant Team. DTA shall prepare up to a total of fifteen Special Tax Spreads/Pro-Forma; utilizing various. EDU growth assumptions, cost estimates and funding assumptions. The Consultant Team. will presentthe findings to City Council with any alternative approaches and recommendations: Phase II —Pre -Formation Activities (cont'd.) Task 7. Rate and Method of Apportionment and Public Report DTA will prepare the final recommended Rate and . Method of Apportionment of.: SpecialTax, which describes the methodology used to calculate. the annual special tax levy for the proposed CFD. In addition and as required by the Act/City Ordinance, DTA will prepare the public . report; containing descriptions of the proposed public facilities, their estimated costs, any projected bonded indebtedness (if any) and the anticipated issuance date (see "Option Phase'.'), and projected annual special tax rates. Task 8. Boundary :Ma City staff has indicated that it has the ability and capacity to produce the CFD boundary map. DTA will coordinate the preparation of the CFD boundary map pursuant to the requirements of the Act/City Ordinance and the County of Orange Recorder's Office. FAWORKDIRS\CLIENTS�HUNT BCH\contract Itr.doc 4 Task 9. Document Review and Preparation/Goals and Policies The Consultant Team will meet twice with City Staff and shall assist Bond Counsel with the preparation of required CFD formation documents, including the Resolution of Intention and the Resolution of Formation. FRA will work with Bond Counsel and City Staff to create or conform any existing goals and policies to those required for the CFD. Phase III ---Formation Proceedings Activities Task 10. Coordination Meetings FRA and PSOMAS will meet with City staff to provide advice on the CFD formation process and advise on upcoming activities, develop strategies and provide recommendations. Task 11. Mailed Notices While mailed notice is optional under the Act/City Ordinance, the City has utilized mailed noticesto property owners for other matters of broad public interest. Utilizing the water. billing database,. DTA and PSOMAS will assist the City in any mass mailing related to the CFD. It is assumed that any mailing costs will be borne by the Citv. Task 12. Public Workshops/Forums The Consultant Team will participate in up to sixpublic workshops and forums held by the City to educate the citizens on the factual issues related to the CFD public hearing. Task 13. Protest Hearing The Consultant Team will be available to testify on behalf of the City at the "Protest Hearing" or other public meetings. Phase IV ---Election Activities Task 14. Public Workshops/Forums The Consultant Team will participate in up to eight public workshops and forums held by the City to educate the voters on the factual issues related to the ballot measure. Task 15. Election DTA and other members of the Consultant Team :will assist the City . and Bond_ Counsel with the verification of registered voters living within the proposed CFD and the preparation and tabulation of CFD election materials. It is assumed that this City wide election will be conducted by the Orange County Registrar of Voters. F:\WORKDIRS\CLIENTS\HUNT BCH\contract Itr.doc 5 • • Phase V—Post Election Activities Task 16. Coordination Meetings The Consultant Team will meet twice with City staff to debrief and to coordinate future activities, develop strategies and provide recommendations. Additional meetings before City Council may be required to determine the direction that the City wishes to pursue as determined by the results of the registered voter election. F:` WORKDIRS`•,CLIENTS�.HUN'T_BCH`I.contract Itr.doc 6 • • Task 17. CFD Data Base If the ballot process results in a successful registered voter election, DTA shall assemble a real property data base that includes for each Assessor's parcel within the CFD/City, the APN, special tax class, the number of dwelling units or EDU's and acreage. This information will form the basis for levying the annual special tax on property in the CFD. DTA will coordinate activities to place the annual special taxes on the property tax roll. It is assumed that the City will pay for any costs associated with acquiring the County's "Attribute File", if required. The Consultant Team will also provide necessary data and advice to Bond Counsel regarding the implementation of the CFD, including but not limited to policies that address changes in land uses which occurs after district formation. • • Option Phase Option Task 1. Pre Debt Issuance Services. If, prior to commencing Phase II Formation Proceedings activities, the City decides to initiate debt authorization proceedings, the Consultant Team will assist the City staff and Bond Counsel in drafting CFD debt policies as required under the Act/City Ordinance. The Consultant Team will also review and provide comments to debt proceedings resolutions that are prepared by Bond Counsel. Option Task 2. Debt Issuance Services. If CFD proceedings are successfully completed and if the registered voters affirmatively vote for the creation of the CFD, the levy of a special tax and the issuance of debt, FRA and other members of the Consultant Team shall assume primary responsibility for assisting the City in coordinating the planning and execution of each debt issue relating to the Project. Insofar as FRA and the Consultant Team are providing Debt Issuance Services which are rendered only to the City, the overall coordination of the financing shall be such as to minimize the costs of the transaction coincident with. maximizing. the City's financing flexibility and capital market access. The FRA and the Consultant Team's proposed Debt Issuance Services may include, but shall not be limited to, the following: • Establish the Financing Objectives • Develop the Financing Schedule-- • Monitor the Transaction Process • Prepare the Official Statement, " both preliminary . and final (Optional Option Activity, subject to additional charges) •" Procure and Coordinate Additional Service Providers- - - - • Provide Financial Advice to the City Relating to Financing Documents • Compute Sizing and Design Structure of the Debt Issue • Plan and Schedule Rating Agency Presentation and Investor Briefings • Conduct Credit Enhancement Procurement and Evaluation • Conduct Market Analysis and Evaluate Timing of Market Entry • Recommend Award of Debt Issuance • Provide Pre -Closing and Closing Assistance Option Task 3. Document Review and Preparation The Consultant Team will assist Bond Counsel and any. other financing counsel with the.preparation of required legal documents, including the Resolution of Issuance" Official Statement and ":related items. DTA and other Consultant Team members will also assist in the formation of an advisory_board to make decisions regarding the issuance of parity bonds, special tax appeals and/or the.. enrollment of special taxes. F:\WORKDIRS\CLIE\TS`.HU\T BCH',.contract Itr.doc 8 Option Task 4. Bond Sizing FRA and DTA will assist the City in sizing of bond issue (e.g., use of increasing debt service, capitalized interest, etc.) to establish an optimal schedule of bond sales to maximize funding capacity and generate the greatest possible benefit to all interested parties, as well as to alleviate cash flow constraints. Option Task 5. Special Tax Consultant Certificate DTA shall prepare and execute a Special Tax Consultant Certificate confirming the adequacy of special taxes to meet debt service requirements for the first bond issue. Option Task 6. Additional Consulting Services For additional fees, DTA and other Consulting Team members shall complete other tasks related to financing and administration of the CFD as agreed upon by City and the Consulting Team. Such tasks may include holding additional meetings with various participants in the formation process, preparing additional computerized Special Tax Spreads/Pro-Formas or a detailed value-to-lienor overlapping debt analysis for the CFD. • • SUMMARY OF DELIVERABLES Work Product 1. Special Tax Spread/Fundin2 Pro -Forma DTA will calculate estimated annual special taxes required from each land use to support the funding proposed to be supported by special tax revenue sources subject to voter approval. The Special Tax Spread/Pro-Forma will provide a long-term comparison of CFD expenses and revenues, including the amount and timing of construction funds available to the City from pay-as-you-go revenues and bond proceeds (if any). Work Product 2. Boundary Map City.staff has indicated that it has the ability and capacity to produce the CFD boundary maps. DTA will coordinate the preparation of the CFD boundary map pursuant to the requirementsof the Act/City Ordinance and the County of Orange Recorder's Office. Work Product 3. Rate and Method of Apportionment DTA will prepare the Rate and Method of Apportionment of Special Tax, which describes the methodology used to calculate the maximum amounts of special tax and the annual special tax levy for each taxing category of the CFD. Work Product 4. Public Report DTA will prepare the public report, containing descriptions of the proposed public facilities, estimated. costs, projected bonded indebtedness (if any) the anticipated issuance dater (if applicable) and the projected annual special tax rates. Work Product 5. CFD Debt Policies Pursuant to the Act/City Ordinance, local goals and policies must be considered and adopted prior to initiation of a CFD. FRA will assist Bond Counsel to create policies or.conform any existingpolicies to those required for the CFD. The local goals and policies include statements of 1) priority of kinds of public facilities 2) credit quality of any debt 3) disclosure to purchasers of property 4) equity of taxing formulas and 5) CFD appraisal standards if applicable. Work Product 6. Project Schedule FRA will prepare and update on a regular basis a schedule of activities, outlining the various steps required to plan and process the CFD. The schedule. will. be an expanded version of -the Critical Path Schedule shown herein. F:k.WORKDIRS\CLIENTS\HUNT BCH\contract Itndoc 10 CITY OF HUNTINGTON BEACH CRITICAL PATH SCHEDULE* CITY WIDE COMMUNITY FACILITIES DISTRICT As of March 16, 2001 APRIL 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 JULY 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 OCTOBER 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 JANUARY 2002 S bt T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 MAY 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 AUGUST 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NOVEMBER 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24. 25 26 27 28 29 30 FEBRUARY 2002 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13' 14 15 16 17 18 19 20 21 22 23. 24 25 26 27 28 JUNE 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SEPTEMBER 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 DECEMBER 2001 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2425 26 27 28 29 30 31 *Tentative — Does not include internal Consultant Team meetings and all Coordinatio. meetings or City Committee meetings. F:\WORKDIRS\.CLIENTS\HUNT—BCH\contract Itr.doc 1] 0 CITY OF HUNTINGTON BEACH CITY WIDE COMMUNITY FACILITIES DISTRICT As of April 2, 2001 City = City of Huntington Beach FA = Financial Advisor/Fieldman, Rolapp & Associates STC = Special Tax Consultant/David Taussig & Associates CL = City Liaison/PSOMAS BC = Bond CounseLrFo Be Determined CL = City Liaison/PSOMAS PR = Public Outreach Consultant/Frank Wilson and Associates Registrar = Registrar of Voters or City Clerk Voters = All Registered Voters Eligible to Vote All = Consultant Team/City staff/Bond Counsel City council meets the first and third Monday of each month RESPONSIBLE DATE DESCRIPTION PARTIES STATUS Phase I — Pre -Formation Activities April 2, 2001 (assumed date) • Retain necessary consultants: — Special Tax Consultant ("STC") — Bond Counsel ("BC") — Financial Advisor ("FA") — Public Relations/pollster ("PR") April -10, 2001 • Initial coordination meetings (+3) to establish All initial assignment of tasks April 3-10, 2001 • Initiate assembly of data base STC April 17, 2001 • All Hands Coordination Meeting to review ` All data collection May 14, 2001 • All Hands Coordination Meeting to verify all All information for data base has been obtained May 23, 2001 • Preliminary Special. Tax .Spread/Pro=Forma. STC . distributed May 30, 2001 • All Hands Coordination Meeting to discuss _ All Special Tax Spread/Pro-Forma: June 4- 2001 • Revised preliminary Special Tax Spread/Pro� ' STC Forma distributed June 8, 2001 • Pre -Public Ascertainment/Survey Coordination All, PR Meeting F:\WORKDIRS\CLIENTS\JiUNT—BCH\contract Itr.doc 12 July 11, 2001 • Completion of public assessment survey PR July 18, 2001 • Post -Public Outreach Coordination Meeting to All, PR review findings July 25, 2001 • Revised preliminary Special Tax Spread/Pro- STC Forma distributed July 30, 2001 • All Hands Coordination Meeting to discuss All revised preliminary Special Tax Spread/Pro- Forma Phase H — Pre -Formation Activities (cont'd) August 3, 2001 • All Hands conference call to make a All determination of: - — Boundaries of proposed community facilities district — Improvements to be financed — Local goals and policies — Costs of improvements to be financed — Annual cost of maintenance/services to be financed — Maximum authorized bonded indebtedness, if required August 6, 2001 • City Council meeting to provide results of PR, All Public Outreach Program and implications on. voter -approval funding program August 10, 2001 • Finalize Special Tax Spread/Pro-Forma and STC revised Rate and Method of Apportionment of special tax August 17, 2001 • Preparation of: STC with review. — Boundary map of proposed community. by City, BC & FA facilities district — Rate and Method of Apportionment of special tax — Local goals and policies FA; BC F:\WORKDIRS\CLIENTS\HUNT—BCHBcontract Itndoc 13 Phase III — Formation Proceedings Activities September 17, • Submission of the following resolutions to City BC 2001 staff: — Resolution approving boundary map — Resolution declaring intention to form community facilities district — Resolution declaring intention to incur bonded indebtedness (optional) October 1, 2001 • City Council adopts foregoing resolutions City Council October 2, 2001 • All Hands coordination meeting to review tasks All required prior to the Public Hearing October 11. 2001 • Public Workshop/Forum All October 17, 2001 • Recordation of the Boundary Map City • Last day for mailing notice of the public hearing to registered voters and/or property owners (optional) October 18. 2001 • All Hands Coordination Meeting to review All .progress of pre -Public Hearing activities October 22, 2001 • Submission of the following resolutions to City BC Staff: — Resolution making preliminary findings and passing on protests — Resolution forming and establishing the community facilities district — Resolution declaring the necessity to incur a bonded indebtedness (optional) — Resolution calling an election October 25, 2001 • Public Workshop/Forum All October 29, 2001 • Last day for publication of notice of public City hearing (Mandatory) F:\WORKDIRS\CLIENTS\HU\T BCH\contrlct Undoc 14 November 5, 2001 • Public Hearing — Upon conclusion of the public City Council hearing, the City Council will consider adoption of the following resolutions: — Resolution making preliminary findings and passing on protests — Resolution forming and establishing the community facilities district — Resolution declaring the necessity to incur a bonded indebtedness (optional) — Resolution calling an election Phase IV — Election Activities November 7, 2001 • All Hands coordination meeting to review pre- All election activities December 5, 2001 • All Hands coordination meeting to review pre- All election activities January 9, 2001 • All Hands coordination meeting to review pre- All election activities January 17, 2001 • Public Workshop/Forum All February 6, 2001 • All Hands coordination meeting to review pre- All election activities February 21, 2001 • Public Workshop/Forum All February 27, 2001 • All Hands coordination meeting to review pre- All election activities March 5, 2002 • Election held to consider approval of: — Authorization to levy special taxes — Authorization to incur a bonded . indebtedness (optional) — Establishment of an appropriations limit for the community facilities district Phase V — Post -Election Activities March 6, 2001 • All Hands Coordination Meeting to evaluate All election results March 18, 2001 • Presentation to City Council of election results All and receive direction of any further action F:\WORKDIRS\CLIENTS\IiUNT—BCH\contract ltr.doc 15 LI • PETITION INITIATED CFD B 1. 10% Landowners E 2. 10% Registered voters G 3. Payment of pre -formation ( costs Within 90 days N H E LOCAL AGENCY INITIATED CFD E 1. Written request of 2 members of legislative body, or 2. Majority approval of legislative body Usual Sequence of Events for Mello Roos LEGISLATIVE BODY COMMENCES PROCEEDINGS Community Facilities Districts (Commencing with Section 63311 of the Government Code) 1. Sell and deliver bonds and receive bond proceeds 2. Initiate construction or acquisition 3. Commence activities to administer debt, levy and collect special taxes and comply with continuing disclosure requirements 1. Record Notice of Special Tax Lien 2. Initiate validation proceedings, if necessary 3. 30 day statute of limitations 1. Adopt Goals and Policies 2. Adopt resolutions to: a. Approve boundaries b. Designate name of CFD c. identify types of facilities & services d. Declare Intention to: 1) Form CFD 2) Levy special tax 3) Issue bonds e. Set time and place of public hearing f. Establish voting procedures ACTIONS BY LEGISLATIVE BODY 1. Certify election results 2. Enact ordinance to levy special tax 3. Authorize issuance of bonds 4. Approve Preliminary Official Statement and Continuing Disclosure Agreement ©1997 Fieldman, Rolapp & Associates Prepare Report Public hearing held not less than 30 days or not more than 60 days from adoption of Resolution of Intention REQUIRED I Publish notice (not later than 7 days before Public Hearing) OPTION -- Mailed notice (not later than 16 days before Public Mean g PUBLIC HEARING May be continued up to 30 days, or with finding up lo 6 months. If no majority protest, resolutions adopted to form CFD' by: 1. Establishing boundaries 2. Determining necessity to incur bonded indebtedness 3. Authorizing levy of special tax 4. Approving types of facilities and services 6. Setting election If more than 60% of registered voters (at least 6), or if the owners of more than 50% of the land area protest, then CFD abandoned for one year. If majority protest only against specific facilities, services or special tax, only that facility, service or tax must be dropped. ' Environmental review should be completed before formation of CFD GENERAL ELECTION Ior SPECIAL ELECTION 90/180 days from Resolution of Formation (unless time period shortened by 100% of electors) I 2/3 vote required (if less than 12 registered voters or if no tax on residential property -- landowner election) ELECTION Voters consider: 1. Levy of Special Tax 2. Establish appropriations limit 3. Authorize issuance of bonds Fieldman, Rolapp & Associates Independent Financial Advisors to Government 949-660-8500 • COMPENSATION The Consultant Team proposes to be compensated on an hourly basis with a "not -to -exceed" fee amount, which will be billed monthly using the hourly billing rates shown on the attached schedule: For Phases I, II III and election debriefing and the initial City Council presentation under Phase IV the Consultant Team proposes a "not —to -exceed" fee of $208,400. This "not —to -exceed" amount assumes up to a total of twenty-seven meetings with City staff, City committees and the City Council, and up to 15 Special Tax/Pro-Formas.' . The following table is an estimate of time and fees for individuals performing the various tasks for the phases described in the Scope of Services: Fieldman, Maim & Assoc. PSOMAS David Taussi2 & Total Assoc. Hours Amount Hours Amount Hours Amount Phase I 142 $27,056 144 $21,600 116 $17,500 $66,156 Phase II 36 6,764 48 7,200 50 7,500 21,464 Phase III 116 1 22,040 192 28,800 166 25,000 75,840 Phase IV 130 24,700 16 2,400 66 10;000 37,100 Phase V 16 3,040 16 2,400 16 2,400 7; Total 440 $83,600 416 F $62,400 414 $62,400 208,400 In the event of a successful CFD election, it is estimated that the Consultant Teams' "not -to -exceed" amount will be increased by $73,800 to cover the CFD post -election activities, including the detailed data base and performing tasks required to place the annual special taxes on the property tax roll. . ' Additional meetings may also be requested by the City to discuss. or .present the Rate and Method of Apportionment, Public Report; or other items prepared. by DTX and -the Consultant Team They may also be used for the protest hearing or other public meetings. After a totalW twenty-seven meetings attended by the Consultant Team have been completed, additional meetings Will require fees beyond themaximum established "not -to -exceed" in the Fee Schedule if. the -budgeted amount has been completely expended based on hourly rates quoted herein. Similarly, the preparation of more than fifteen-- computerized Special Tax Spreads may require additional fees. F:`,WORKDIRS'•CLIENTS\HUNT BCH'.contract Itr.doc 16 CONSULTANT TEAM MEMBERS Fieldman, Rolapp & Associates Personnel Hourly Rate Managing Principal $275.00 Principals $225.00 Vice Presidents $175.00 Assistant Vice Presidents $160.00 Associates of the Firm $130.00 Administrative Assistants $65.00 Clerical (Other) $35.00 David Taussig & Associates Personnel Hourly Rate President - $160/Hour Vice President - $150/Hour Director - $145/Hour Manager - $135/Hour Senior Associate - $120/Hour Associate - $100/Hour Financial Analyst - $ 85/Hour Research Assistant - $ 65/Houi PUBLIC WORKS ENGINEERING SERVICES FEE SCHEDULE Effective through July 1, 2001 CLASSIFICATION RATE ($) Senior Consultant / Project Director Project Manager Principal Engineer/Analyst Senior Engineer/Analyst Engineer/Analyst . Asst. Engineer/Analyst Technician/CADD Engineering Aide/Researcher Administrative Asst./Word Processor/Analyst Hourly rates include direct labor, overhead, fringe benefits and fee. REIMBURSABLE EXPENSES $150.00 - $175.00 $130.00 - $165.00 $130.00 - $160.00 $110.60 - $140.00 $ 80.00 - $120.00 $ 60.00 - $ 90.00 $ 55.00 - $ 90.00 $ 40.00 - $ 65.00 $ 40.00 - $ 55.00 Mileage for field travel is charged at. 35/mile and parking expenses incurred by office employees are charged at cost. Prints, messenger service, subsistence and other direct expenses will be charged at cost plus ten percent. The services of outside consultants will be charged at cost plus fifteen percent. SPECIAL EQUIPMENT Standard computer and technology costs are incorporated into the hourly rates shown above. F1Pi61ieWm DYSARWUBUC WORKS FEE SCFffDULEJWy 12001.do • • ATTACHMENT #2 0 ATTACHMENT 1 0 WORKPLAN IMPLEMENTATION CALENDAR Sewer Charge 1) Study session regarding rate structure, proposed May 7 ordinance and public outreach 2) Conduct public outreach, notice of meetings to May -June 2001 consider ordinance 3) Council conducts public meetings and introduces July 2001 ordinances 4) Second reading of ordinance Aug 2001 5) Charge appears on utility bills November 2001 Community Facility District 1) Pre -formation activities April 1-July 2001 2) Formation activities August -October 2001 3) Election activity Nov -march 2002 Public Awareness and Outreach 1) program brochure, PowerPoint, public service May 2001 announcements 2) Media launch May 22, 2001 3) Public Workshops May 32, 2001 4) Community Survey TBD Revenue Enhancements 1) Utility user's tax on the AES plant update March 2002 2) City fees August 2001 3) Maximize grants, redevelopment funds and CDBG to August 2001 infrastructure 4) Offshore oil drilling property tax September 2001 5) Assessment districts for localized projects Spring 2002 6) Parking meters Fall 2001 7) Winter RV parking Fall 2001 8) City -owned properties Fall 2001 9) Corporate sponsorship On -going 10) California infrastructure bank and State boat licensing Fall 2001 fund Policy Recommendations 1) Charter Amendment March 2002 2) Long-range financial plan August 2001 3) Financial policies relating to infrastructure April 16, 2001 4) Alley sweeping August 2001 • • ATTACHMENT #3 • ATTACHMENT 2 • COMMUNITY FACILITIES DISTRICT ACTIVITIES SCHEDULE Phase I — Pre -Formation Activities Initiate Assembly of Data April 23 Data Collection April 23 — May 14 Special Tax Spread/Pro Forma May 23 Public Assessment Survey July 25 Revised Tax Spread/Pro Forma August 3 Determine Boundaries, Improvements August 10 Council Meeting to review results of August 20 Public Outreach Program Phase II — Formation Proceedings Resolutions September 17 • Approving boundary map • Intent to form district Council adopts resolution October 1 Record Boundary Map October 17 Public Hearing November 5 • Resolution - making preliminary findings • Forming and establishing district • Calling for election Phase III — Election Activities Public Workshop Forum January 17 & February 21 Election March 5 ATTACHMENT #4 . ATTACHMENT 3 Huntington Beach Infrastructure Improvement Program Public Outreach Program Phase 2 Status Report Task Status Estimated Completion Program Brochure Review Creative Brief Mid May Power Point Mid May Presentation & Outline being prepared by FW&A Script Video PSA's Script writing underway First PSA Mid May Tabletop Display Estimate being reviewed. Mid May Web Page Content Will follow brochure Mid May Plan Media Date to be determined May 22, 2001 Launch Tuesday News Late May Releases/Story Per media launch date Pitching Editorial Board To be developed Late May Briefings Speakers Bureau Date to be determined May 5, 2001 Training Saturday Schedule Beginning Mid presentations Underway May Infoline F.A.Q. Following Media Launch Mid May Summer Sands Articles To be written per publication schedule edition article complete Bill Stuffers (3) To be written per publication schedule Information As materials are available Mid May Repositories Public Workshops To be scheduled May 31, 2001 Thursday Community To be scheduled Survey • ATTACHMENT #5 • ATTACHMENT 4 • Section 617 of the Charter of the City of Huntington Beach is hereby added to read as follows: - Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council after November 5, 2000, for the purpose of infrastructure shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include sewers, sewage lift stations, storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, street lights, block walls along arterial highways, and all public buildings and public ways. Interest earned on funds in the Infrastructure Fund shall accrue to that account. Funds shall not be transferred, loaned or otherwise encumbered and shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration, and property acquisition. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five (5) year period of 1996 to 2001, is and was 14.95%. Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a three (3) year rolling average. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council prior to adoption of the following fiscal year budget. This draft of proposed Charter §617 was approved by the Citizens' Infrastructure Advisory Committee on June 1, 2000, jrnp/misc/charter language C7 • ATTACHMENT #6 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION To: Ray Silver, City Administrator From: Clay Martin, Director of Administrative Services Subject: FIS 2001-36 Implement the Recommendations of the Infrastructure Planning Committee (IPC) Date: April 9, 2001 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Implement the Recommendations of the Infrastructure Planning Committee (IPC)." If the City Council approves this request (total appropriation $250,000) the estimated unreserved General Fund balance at SeptembeL 0, �M1 vyi l-lke reduced to $9,194,921. Clay Mart. , Director of Administrative Services Fund Balance - General Fund Adopted Budget Current Estimate Beginning Fund Balance 10/1/2000 (unaudited) $ 11,727,000 $ 11,727,000 Plus: Estimated Revenue 127,315,000 130,815,000 Less: Estimated Expenditures (130,660,000) (129,986,000) Pending/Approved FIS's: (3,612,301) (3,111,079) Less: FIS 2001-36 (250,000) (250,000) Estimated 9/30/2001 Unreserved Balance $ 4,519,699 $ 9,194,921 Less Reserve for Economic Uncertainty (9,100,000) (9,100,000) Amt Unreserved, Undesignated 1 (4,580,301)1 94,921 General Fund Balance 2000/2001 $14,544, U '. 111 111 '111 111 ' 11 111 '1 ' '111 11 111 111 '. 111 111 Adopted Current Budget Estimate ■ Unreserved Undesignated El Reserved for Economic Uncertainity • • ATTACHMENT #7 Huntington Beach TO: FROM: SUBJECT: CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION Ray Silver, City Administrator Clay Martin, Director of Administrative Services IMPACT OF THE HOWARD JARVIS LAWSUIT ti = DATE: April 9, 2001 y a c Pursuant to your request, the Budget & Research and Accounting ffvisg the Administrative Services Department has analyzed the impact of tN ju : t in the Howard Jarvis lawsuit which falls into the following categories: -0 -r,A c-> >[ " • Past exposure prior to the date of the Superior Court judgmen, -.,' c, • Future impact to current and future budget. PAST EXPOSURE Table 1 describes the elements of the Superior Court judgment. It uses, for convenience, a period from July 1, 1997 to March 31, 2001. Further, it should be noted that the information presented corresponds to the State's fiscal year (July 1 to June 30) rather than the city's or federal fiscal year (October 1 to September 30). The estimated total exposure for the period prior to the Superior Court decision is approximately $17 million. The following lists important assumptions and notes relative to the estimated total exposure. This assumes that the employer contribution to PERS is not impacted by the final Superior Court judgment or a decision on appeal. That is, it is assumed the tax is allowed to the extent it was used to pay employer contributions, without distinguishing between pre and post — 1978 retirement benefits. • This assumes that the City Council determines that all taxpayers receive refunds consistent with the Howard Jarvis lawsuit judgment as if they filed a claim seeking refunds retroactively to tax year 1997/98. Future exposure will be mitigated by the city's holding revenue associated with the Property Tax Override for the remainder of this year (April 1, 2001 through September 30, 2001) in a separate fund. The projected amount of this revenue is approximately $4 million. Table 2 describes the estimated total exposure including interest beginning on April 1, 2001. For the purposes of this calculation the appropriate interest rate is assumed to be five percent. An amount equal to approximately $25 million would be required to cover the return of all revenue impacted by the Jarvis lawsuit. This does not include any administrative costs associated with returns. FUTURE IMPACT Table 3 describes the future impact to the current and future budget. The chart makes the following assumptions: The General Fund will stop using all Property Tax Override revenue starting April 1, 2001 and hold this revenue in a separate fund pending the final outcome of the Jarvis Lawsuit. • All departments will reduce their budgets by 5% across-the-board in the FY 2001-02 Budget. • All infrastructure expenditures/transfers using General Fund revenue will average at 15% over a five-year period starting with FY 2001-02. The table does not include two major General Fund revenue sources that are in immediate danger of being reduced or cut. Both revenue sources are in jeopardy because of the state of the electrical crisis in California. The Utility Users Tax (UUT) is in danger of being capped at FY 1999-00 levels through State legislative action. This would result in a loss of revenue estimated at $2 million in the current fiscal year to $10 million in the 2005-06 fiscal year. In addition, the Vehicle License Fee (VLF) backfill is in danger of being discontinued beginning as early as the current fiscal year. This would result in a loss of revenue estimated at $3 million in the current fiscal year to $7 million in the 2005-06 fiscal year. The combined effect of these two revenue losses would be nearly as much as the possible impact of the Jarvis Lawsuit. c: William P. Workman, Assistant City Administrator Department Heads Attachments Table 7. Estimated Past Exposure prior to the Superior Court Judgment Fiscal Year (July 1 - June 30) Revenue associated with Property Tax Override (A) Employer Contribution to PERS B) Net Revenue associated with Property Tax Override (C Expenditures „ at issue" with Jarvis Lawsuit JARVIS LAWSUIT EXPOSUREP): A - B = C 1997-98 6,588,212 4,494,050 2,094,162 6,238,800 1998-99 6,995,177 4,063,388 2,931,789 6,335,832 1999-00 7,702,617 1,192,074 6,510,543 7,098,013 2000-01(') 5,816,710 0 5,816,710 3,430,183 TOTAL 27,102,716 9,749,512 17;35320 w..,_.. �_.1 .. �.... ...... 23,102,828 NOTES: (�l July 1, 2000 through March 31, 2001. All data is estimated and does not reflect a complete year. (2) Exposure assumes that the employer contribution is an acceptable use of property tax override revenue. • .7 Table Z. Estimated Total Exposure from the Jarvis Lawsuit Fiscal Year (July 1 - June 30) Net Revenue associated with Property Tax Override Cumulative Interest Calculation (1) 1997-98 2,094,162 1998-99 2,931,789 5,025,951 1999-00 6,510,543 11,536,494 200"1 (2) 10,000,000 21,805,700 2001-02 0 22,895,985 2002-03 0 24,040,784 __� � ��25 242824 2003-04 NOTES: (1) Assumes 5% interest rate (2) Includes revenue for entire fiscal year (s) Assumes payment in the 2003-04 fiscal year E • Table 3. Future Budget Impact from the Jarvis Lawsuit DESCRIPTION FY 99/00 ENDING FY 00/01 BUDGETED FY 01/02 ESTIMATE FY 02/03 ESTIMATE FY 03/04 ESTIMATE FY 04/05 ESTIMATE FY 05/06 ESTIMATE General Fund Revenue 139,942,607 138,852,838 144,250,098 150,068,275 152,272,152 155,797,720 General Fund Expenditure 128,986,307 126,580,209 133,34t441 140,973,391 146,341,043 151,036,333 General Fund Balance 7,900,000 10,956,300 12,272,629 10,908,657 9,094,884 5,931,109 4,761,387 Reserve Percentage 6.22% 8.49% 9.70% 8.18% 6.45% 4.05% 3.15% NOTES: Property Tax Override Revenue (April 1, 2001 - September 30, 2001) is approximately $4 million. This revenue. is not included above. Assumes $2.5 million added to expenditure beginning in FY 03/04 for bond debt service for estimated total exposure from the Jarvis lawsuit. Assumes $4 million annual expenditure for unanticipated or emergency expenditures. • • RCATZOUTING 9HEET INITIATING DEPARTMENT: Public Works SUBJECT: APPROVE A WORK PLAN TO IMPLEMENT THE RECOMMENDATIONS OF THE INFRASTRUCTURE PLANNING COMMITTEE IPC COUNCIL MEETING DATE: Aril 16, 2001 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) . Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Find in s/Conditions for Approval and/or Denial Not Applicable .. EXPLANATION FOR MISSING ATTACHMENTS (Below Space For City Clerk's Use Only) IPC Work Plan ImplenAntation April 16, 2001 Implementation Work Plan Recommendations of the Infrastructure Planning Committee Background 1995 - 2000 Assessment of City' s Infrastructure Needs by Infrastructure Advisory Committee (IAC) 2000 — 2001 Refinement of IAC recommendations by Infrastructure Planning Committee (IPC) March 2001 Presentation to City Council by IPC on March 26 1 Late Communication Item F-2 IPC Work Plan lm-plen-Mntation April 16, 2001 Proposed Work Plan 1. New Revenue Sources • Sewer Service Charge a Community Facilities. District 2. Public Awareness and Outreach 3. Revenue Enhancements 4. Policy Recommendations Proposed Sewer Service Charge Includes total costs of construction, rehabilitation, replacement & maintenance of city sewer system Overview scheduled for City Council Study Session of May 7h Charge to appear on customer bills in October/November 2001 Redirects current General Fund dollars to other infrastructure 2 Late Communication Item F-2 IPC Wo?k Plan Implen-Mntation Community Facilities District (CFD) v Supplement the General Fund, Enterprise Funds, Grant and Intergovernmental Revenue directed to Infrastructure Scheduled for public vote on March 2002 Election Requires two-thirds majority CFD Formation Activities k Establish equivalent dwelling unit base Create tax spread information { a Develop and record boundary map Finalize the identification of improvements to be funded Public outreach and hearings Services to be provided by Fieldman, Rolapp & Associates April 16, 2001 3 Late Communication Item F-2 IPC Work Plan Implen-Mntation April 16, 2001 Public Awareness and Outreach Programs Communicate existing infrastructure conditions Emphasize benefits of preserving existing infrastructure Encourage community participation in infrastructure solutions Revenue Enhancements Utility Users Tax on AES plant Update city fees Maximize grant opportunities Appeal offshore drilling property tax valuation Consider assessment district for localized projects 4 Late Communication Item F-2 IPC Wofk Plan Implentation April 16, 2001 Policy Recommendations Charter Amendment 4 Establishes Infrastructure Fund ? Provides minimum annual General Fund resources Long -Range Financial Plan Financial Policies Relating to Infrastructure 4 Propose mechanized alley sweeping in Public Works budget i,7 Late Communication Item F-2 QUEST FOR COUNCIL ACAN i��M C � 3 a3 MEETING DATE: April 16, 2001 DEPARTMENT ID NUMBER: PW 01-47 Alternative Action(s): Deny the recommended action and provide alternative direction to staff to fund the IPC recommendations. Analysis: In August of 2000 the City Council appointed the Infrastructure Planning Committee (IPC) to review the . infrastructure needs as identified in the Integrated Infrastructure Management Plan (IIMP) and the Immediate Infrastructure Needs (IIN) list and to make recommendations on funding methods for the plan. At the March 26, 2001 adjourned regular meeting of the City Council, the IPC submitted a final report outlining recommendations, including new revenue sources, public awareness and utreach, revenue enhancement strategies, a city charter amendment and other policy is es. Specifically, the IPC set forth twenty-five recommendations to address the City's infrastructure needs. The following work plan outlines how each of these recommendations will be addressed. The implementation schedule is included as Attachment #2. PROPOSED WORK PLAN 1. New Revenue Sources The IPC recommended implementation of two new revenue sources: a sewer fee and a Community Facilities District. At its regularly scheduled meeting on February 20, 2001, the City Council directed staff to proceed with the implementation of an ongoing sewer charge that fully funds the rehabilitation, replacement, repair and maintenance of all City owned sewers and lift stations. This fee is intended to replace existing general fund resources, which will be directed to other infrastructure needs. A study session is scheduled for May 7, 2001 where the City Council will review the rate structure, the proposed ordinance and the schedule for public outreach. This fee will be proposed for adoption in July, with the fee appearing on customer's bills in October of 2001. No action of the City Council is required at this time to continue the process. The second new funding source recommended is the development of a Community Facilities District (CFD) to finance unfunded infrastructure needs. The IRC recommended that the City Council take the necessary steps to propose a CFD on the ballot in March of 2002. To insure inclusion in the March 2002 primary election, it is necessary to begin the district pre- formation activities immediately. Therefore, staff recommends that the City Council approve the agreement with Fieldman, Rolapp & Associates under the provisions provided for in the Municipal Code Chapter 3.03 regarding the retention of professional services in extraordinary circumstances. Fieldman, Rolapp & Associates have worked with the IAC and have demonstrated exceptional qualifications and possess extensive experience in district formation. The work of the consultant includes the research and development of the equivalent dwelling use (EDU) database, the creation of a preliminary tax spread pro -forma and the development of a boundary map. The schedule (Attachment #3) outlines the activities to be completed by the financial consultant and staff to ensure that the CFD is in place for the March 2002 ballot. 01-047 April 16 Emery (Fieldman, Rolapp for CFD) -3- 4111101 12:10 PM