HomeMy WebLinkAboutReso 1989-13943 RESOLUTION NO. 13943
RESOLUTION OF THE CITY CCUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY
OF CHULA VISTA AND P&D TECHNOLOGIES FOR
PREPARATION OF PHASE ONE OF THE FISCAL IMPACT
MODEL, APPROPRIATING FUNDS, AND AUTHGRIZING THE
MAYOR TO EXECUTE SAID AGREEMENT
The City Council of the City of Chula Vista does hereby resolve as
follows:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chula Vista that certain agreement between THE CITY OF CHULA VISTA, a
municipal corporation, and P&D TECHNOLOGIES for preparation of a Fiscal Impact
Model for the General Plan dated the 25th day of January ! 1989, a copy
of which is attached hereto and incorporated herein, the same as though fully
set forth herein be, and the same is hereby approved.~
BE IT FURTHER RESOLVED that pursuant to Section 2.56,070 of the
Municipal Code that the Council waives the formal bidding procedure because it
is impractical in that P&D TECHNOLOGIES has performed the fiscal analysis for
the General Plan Update through development of a computerized fiscal impact
model which will be an integral component of this expanded analysis.
BE IT FURTHER RESOLVED that the Mayor Of the City of Chula Vista be,
and he is hereby authorized and directed to execute said agreement for and on
behalf of the City of Chula VIsta.
BE IT FURTHER RESOLVED that the sum of $27,540 be and the same is
hereby appropriated from the reserve of the Development Impact Fee fund.
Presented by Approved as to formby
~eC 5888P
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
Ct' _A VISTA, CALIFORNIA, this 24t-h dOy Of January
19 89 , by the following vote. to-wit:
AYES: Councilmembers McCandliss, Nader, Cox, Malcolm, Moore
NAYES: Counci ] members None
ABSTAIN: Councilmembers None
ABSENT: Counci ]members None
MO e City of C~ulo Visto
ATTES~ify Cle~-~~~
ST. . OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Visto, Colifornio,
DO HEREBY CERTIFY thor the obove ond foregoing is 0 full, true ond correct copy of
RESOLUTION N0. ~_3943 ,ond thor the some hos not been omended or repeoled
)ATED
City Clerk
;C-660 '
AGREEMENT FOR FINANCIAL/FISCAL ANALYSIS SERVICES
BETWEEN THE CITY OF CHULA VISTA AND P&D
TECHNOLOGIES FOR A PHASE I FISCAL IMPACT MODEL
FOR THE GENERAL PLAN UPDATE
IIHEREAS, the C$tY of Chula YIsta ts tn need of professional
flnanc$al/ffscal servtces to prepare an. $ndepth analysis of the cost/revenue
$mpact on the Ctty of the preltmtnar/General Plan Update; and' .
t~HEREAS, the CIty of Chule Vista has tse. qed an Invitation to four
ftrms to subrot thetr proposals for such work; end
1/HEREAS, the City of Chula VIsta staff discussed the Ctt~'s needs
with several consulting fires et an information meeting; and
MEREAS, P&D Technologies end aohn NcTfghe and Associates submt**tted a
proposal and were subsequently Interviewed for possible selection; and
kIHEREAS, P&D Technologies was selected as the most qualtfhd ftrm
with ,lohn t4cTlghe and Associates as a subscontractor to P&D Technologies~ and:
krHEREAS, P&D Technolo~hs has performed ftscal analysts work. o~ the
General Plan Update and has prepared coeputartzed fiscal trapact model 'whtch
w111 be utlllzed fn this expanded analysts.
NCN, THEREFORE, BE IT RESOLVED that the Ctty of Chula Vista and P&D
Technologies, a consulting firm, do hereby mutually agree as follows:
!. PARTZES
The parties to this agreement are the City of Chula Vista, a municipal
corporation (heretnefter referred to as "CZTY"); and P&D Technologies, a
consulting firm (heretnafter referred to as "CONSULTANT").
ZNTENT OF THE PARTZES
Zt is tntent of the CZTY and CONSULTANT that CONSULTANT carry out the
attached I~ork Program (ATTACIf4ENT "A"). Zt Is further the intent o.f the
CITY that CONSULTANT coordinate hts work with !~.. Lyean Christopher, '.
Dtrector of Finance, for the City of Chula Vista.
ZZZ. OBLZGATZ0NS OF THE CONSULTANT
CITY, pursuant to thts agreement, hereby contracts wtth P&D Technologies
(CONSULTANT) to act tn its behalf directly and Indirectly and tn
conjunction with CITY staff in carrying out the attached krork Program
(ATTACHHENT "A" ).
IV. OBLIGATIONS OF THE CITY
CITY shall regularly consult wlth CONSULTANT for the purpose ,of-:.'
reviewing the progress of the fiscal impact project and to profide,.: .,.
direction and guidance to achieve the objectives of the project. The '!. :'
CITY shall penair access to tts office facilities. files and records. by ..,::
CONSULTANT throughout the term of the contract.
V. AC~4INISTRATION OF CONTRACT
The CITY hereby deslgnates the Director of Planning as the CITY's "
representathe tn the revteqw and administration of the work performed by
CONSULTANT. pursuant to the Ittached Work Program (ATTACHNENT "A" ).
YZZ. TE~
This agreement shall become effecthe.,upon execution .as authorized by -
the I~yor of the CITY. or his .destgnee.*,lnd shall tormtnate. *If not
terminated pursuant toother prov*lslons contained heretn. or otherraise
extended by all parttes. on ~lune 30.-1989;
VZZZ. CONPENSATZON
The compensation to be patd by CITY to. CONSULTANT shall be on a ~txed · ,*"
fee basts tn the amount Of 11ENTY-SEVEN THOUSAND FIVE HUNDRED AND FORTY
DOLLARS ($27.540) tn accordance with ATTACHNENT "B". estimated costs
d
Phase ! tasks. which shall be. use by the.. CITY tn determining .the amount
of work completod~ by.. CONSULTANT and~.~,*'tl~refore. the., percentage ". of
compensation to be ':fd by CITY :tO CONSULTANT each month for work
program elements completed. Work ', program elements shall be completed by
CONSULTANT to the satisfaction of the Dtrector of Planning-and tn
accordance with the Work Program {ATTACHBENT "A"). CITY agrees to' pay ..
the total sum tnvolced and approved by the Dtrector of Planntng each
month during the duration of thts agreement.
IX. INTEREST OF CONSULTANT
CONSULTANT may not conduct buslness for third parties whtch may be tn ,
confllct with CONSULTANT's responsibilities under thts contract.
CONSt,q. TANT may not sollcit any business during the te~. of thts contract
whtch may conflict with hts or her responsibilities under the contract; .
CONSULTANT presently has no bustness relationship with any persons or
firms dotng business wtthtn the Chula Vtsta Planntng Area whtch ~ould
constltute a conflict of Interest. or ghe the appearance of such
confltct.
X. HOLD HAPJqLESS ,:~
CONSULTANT agrees to tndemtfy and hold hahnless the CITY from and./' -:
agatnst all liability, cost End expense (Including without 1 ntta'~lon.. "
attorneys' fees) artsing from 1 f or damage to any property"
OSS 0
whatsoever or tnJut7 to or death of any parson whomsoever caused or . .:..
occasioned by the negllgent act or omission' of CONSULTANT or any agent- "
or employee of CONSULTANT, Errstrig out of or tn connection with this '... ..
agreement or the work to be performed by CONSULTANT hereunder, "
. ,.t
XI, TERNINATION OF AGREEHENT FOR CAUSE " " ...
~',
If, through any cause wtthtn CONSULTANT:s control, CONSULTANTshail fall'.'
to fulfill tn a ttmely and proper manner hts obligations under thts.
agreement, or $f '£ONSULTANT- shall -''~ violate any of the' covenants, .... '
agreements, or stipulations of this agreement,' CITY shall.. have the right
to termlnato this agreement by~'gtvlng.~vritten .nottce tO'CONSULTANT of
such termination end'speclf:ytng the 'effective date thereof at least five'.. : ..-L
(5) days before the effective date of such teatnation," In that event; ~'
811 ftntshed or unfinished documentsl ~date, studies, surveys, drawings, '
maps, reports, End other materials .prepared 'by CONSULTANT. shall, 8t'.the
option of the CITY, become the proparty.of the CITY, and. CONSULTANT
shall be entitled to receive Just and equitable compensation fop":any.
work satisfactorily completed on such doommerits and o~her materials up
to the effective date.of ,ottce. of 'tormtnatton, not to exceed the
amounts payable trader Plrlgrlph 'VIII. be~etnabove,.
..
XII, TERNZNATZON OF AGREE)qENT FOR'CONVENIeNCE OF CITY
CITY may tealhate this agreement at any ttme and for any reason by
givln specific written notice'.to' CONSULTANT of such termination and
specify ng the effective date .thereof, at..least thirty (30) days before
t
the effective date of such termination, In that event, 811 finished and.
unfinished documents and other materials' described tn Pa~agraph.:VllI
hereinabove shill, It the optton .of CITY, .~become CzTY'S sole. and
exclusive property, If the agreement ts .teathated by CITY as provided
tn this paragraph, CONSULTANT shall be entitled to 'receiVed Just and
equitable compensation for a 'satisfactory work completed'on such
docmoents and other mater1~s to the effective date of .. such
temination, CONSULTANT hereby expressly wotves any an~. all claimS':;for
damages or compensation aristng under this agreement except as set forth
tn P~ragraph VIii herelnabove in the event of such termination,
.:.
CONSULTANT shall not asstgn any 1riterest tn this agreement, and she11
not transfer any triterest tn the same (whether by asstgnnmnt or
novEaton), ~thout prtor writton consent of CITY.
.
-3- , : · .-.
· ., , , . :,
· ',;,..
XZ¥. OWNERSHZP, PUBLXCATXON, REPROOUCTXOM AND USE ..OF. MATERIAL
All reports, studies, information, .data, statistics, forms, designs,
plans, procedures, systems, and any other matertais or properties
produced under thts agreement shell be the sole and exclusfve property
of CITY, No such materials or properties produced In whole
under this agreement shall be subject to private use,
patent rtghts by CONSULTANT In the tintted States or tn any o~er c..',~ntry.
vl shout the express wt tten consent of CITY. CZTY shal 3 hays
unrestricted authority to publtsh, titsclose (as ma~ t~e 1tatted h.y the
provisions of the Publlc Records Act), distribute, and otherqds~ use,
copyright or patent, in whole or in part, any such reports, styrites,
data, statistics, forms cr other materials or properties produced under
this agreement.
XV. ZNDEPENDENT CONTRACTOR
CITY Is triterested only in the results obtatned and CONSULTANT shall '.
perform as an tndepandent contractor wtth sole control of the manner and
means of performing the servtces requtred under this agreement. CZTY
maintains the right only to reject or accept CONSULTANT'S ~ork
product(s). CONSULTAKr and any of CONSULTANT'S agents, employees,
representatives are, for all purposes under thts agreement',. an
Independent contractor, and shall be entttled to any beneftts to whtch
CZTY employees are entitled, Including but not 1trotted to, overtime,
retirement benef ts, worker's compensation benefits, tn3ury leave or
other leave benefits.
XV !. CHANGES
CZTY may from ttme to ttme require changes tn the scope of the services
by CONSULTANT to be performed under this agreement. Such changes,
Including any change In the amount of CONSULTANT'S compensation whtch
are mutually agreed upon by CZTY and CONSULTANT shall be effecthe as
amendments to thtS agreement only ~hen tn ~rtttng.
:IN I~[TNESS MHEREOF, CITY and CONSULTANT have executed this Contract for
planntng Servtces {agreement) this 2~h day Of ~lanuary, 1989.
CITY OF CHULA VISTA CONSULTANT
X~ styMot
CGf is Dtvtston Senior Vice President/
wl>C 5889P
...- ATTACHMENT "A"
SCOPE OF WORK
ANALYSIS OF OUTSTANDING FISCAL/FINANANCIAL ISSUES RELATED
TO THE PROPOSED GENERAL PLAN UPDATE . ,
BACKGROUND
It is ta~derstood that the CIty is concerned that rev~.n~s projected by the Fevlo~
fiscal impact ~nalysis o! the proposed General Plan Update may not be suifictent
to assure that tumidpal services can be provided at current levels through' buildout
.o: the plan, The issues causing concern lndude~ FIrst, potential Inflation, coupled
with Proposition 13 limits on property tax Increases, could erode the projected
surplus, possibly resd~ng in a net deftrill second, changes In the expected type' or
rate ot tuture development could also reduce the projected revenuq and third,
while new lniras~ructure win be paid for by new development, the CIty wilt be
faced with the costs of replacing aglng~ existing lrdrastructure,
To provide answers to these cluesdons and enable the City to define Its options and
formdate polldes to guide the orderly development of the General Plan area, P&D
TechnoloSies and 3ohn McTlShe and Associates (the Consdtant) wlU perform the
work described here.
APPROACH AND/~HOD~OGY
;In order to meet the antidpated scheduling of review and adoption of the General
Plan, the issues of concern to the City have been divided into two groups. First Is
a set of issues which may be grouped ruder the heading of "revenue sufficiency".
That is, how stable is the estimated surplus In operatins revenues, when assumi>-
tions are altered about cos: inflation, builcf~ut conditions, and chanSes In !and u~e?
These issues wilt be examined throuSh a series o[ sensitivity analyses based on a
revised version of the existins fiscal Impact model. The analyses will be completed
and reported in time for Council deliberations on the adoption of the General Plan
Update, currently scheduled for March or April 1989.
Second i$ · set ot long-term concern~ related to the monitoring ol actual
developments ·rid implement·tion o! the General Plan. Answers to these conceml
· squire · perlocic reanalysis o[ [iscal Impact' bued on updated dat· on urban
development and regional economic conditions. This requires development of a
new fiscal Impact modal which would be maintained End operated by the City
The model will also require Input (d·t·)from ~eYeral efforts which are oJrrently
on-&oing In the City, Inducing the Growth Management Program and the second
ph·se of the Public F~cillties Study. Results from these efforts are not expected
m be avaUable until 3une of thb year.
One of the long-term concerns to be addressed by the model i$ the method
~funding the replacement of existing infrLstructure in the older sections of the C|ty
and, in the future, In the newly developed sections. A thorough analysis of this
issue requires an undertt&nclng of the phy,acal conditions of the existing network.
oI lnfrastcucture and estimates of replacement cost. Both information will
available only alter currant mcles am c~mpleted In ml&1989. Identifying the
fmd~ng/[inanctng source~ foe' lnfrutructure replacement will also require analysis
of capital, as weg u operating budget. The f~scal model used for the General Pl·n
does not lnducle the caplt, tl budget. The proposed long-term Impact
however, win contain beth capital and operating budgets.
The potential complexity of the long-term model requires a phased ·ppro·ch
toward its devdopment and implementation. During the first phase, bued on ·
thorough discussion with the City st&[t rerftrding their information and analysis
needs, input and output specifications for the model should be established. The
:second phase would then be devoted to the actual construction of the model and
performance of Initial analySIs ~'um. The fo"owing scope o! work is based on this
approach.
PHASE i. REVENUE SUFfiCIENCY AtiAL YSZS
Task 1. Review Recent City Operations and Fiscal Data. Revise/Update Fiscal
impact Model lot Ge,-~ral Plan Update.
· The previous liscal analysis ol the proposed General Plan Update was conducted
· between 1987 and 1948, using data from the FY 1986-87 Budget. Since that time,
-2-
the FY I1gT-gl ard the FY IgLI udiet~ have been prepared, and actual data
from FY 19~741 have become available. The Consultant will review these data
and update the lineadd assumptions ot the liscai impact model where appropriate,
The model structure may also be modified 1o enable the sensitivity analy~e$
proposed for thts phue.
Task 2. Analysis of Pro~ected Land Uses at Buildout
Following the City staffs directires. the previous analysis examined the fiscal
imptots of lard uses which were expected to be In place In the target year of 200~
rather than at buildout. As noted in the adden~rns to the report, the buildout land
use plan contlm a greater ix'oportJon of commatrial and Industrial rues than was
'-
expected to be absorbed by the market by the t~rget year. The model wit]
therefore be applied to the buildout land use pllns and the results will form the
"base case" against which the sensitivity analyses would be conducted.
Task 3. Analysis of Differential Rates o! Revenue and Cost Escalatlon
The City Manager has pointed out in his review ol the previous fiscal analysis that
the impact of general Flee Inflation is often different tot revenue and expenditure
items. His concern focused on the potential "lag" ot revenue Increases behind
operating cost escalatlon. Howavers it may also be the case that some revenues,
property taxes In particulars may increase taster than inflation, if real estate
values escalate [aster than general Inflation. Th~ ComuJtant will work with the
City staff to identify reasonable scenarios by which, differential price escalation
· may occur In the fuRre and test those seerlarios for the projected impact on net
operating revenues.
Tssk ~. Identification of Alternative Revenue Sources
The Coredrant win analyze possible :nethods to increase the revenue surplus
identified in the base case fiscal analysis. These methods may include new revenue
sources, restructuring of existing revenue streams, or deferral of expenditures .to
other entities. The Comultant will meet with the api~-opriate City department
heads to discuss alternative sources. Where additional programs appear workable,
based on the experience of other jurisdictions in the Comty and elsewhere, they
-3-
will be recommended and the Impacts of their adoption win be examined through
the fiscal model.
Task ~. Analysis of Potential ,Chan~es in the Buildout Land Use
The Consultant win investigate posslNee limited cl~nges to the buildout land use
mix assumed in th~ General Plan Uixlate. The focus of this effort will be limited
to numerical variations In the land use mlx~ and not on the pattern of land use
shown In the General Plan diagram. Tha obJectiv~ Is to Investigate incremental
changes to t!~ mix, which are broadly condstent with the assumed market
conditions, and their implications ,for the Ixdldout operating budget,
Task 6. Recommendations ReRarclnK a Lon~Ranl~e FIscal Model
A fiscal Impact analysis ot a long-term project such as the Implementation o[ a
General Plan must be based on numerous assumptions regarding City operatlo~s~
service standarcls0 and regional economic conditions. In order to provide a reliable
"- method of monitoring the fiscal dtects ot on-going changas .In land use and
projecting future Ziscal mqulmmants, It Is necessary to perform periodic studies
based on updated inlormation. The need fo¢' such 8 long-range list41 Impact model
has been identified previously by the City staff. The first step In the construction
of such a model is to estaNlsh appropriate specifications for data Input"
(asumptions) and output (reports). Based on discussions with the City staLI~ l~he
Comultant will recommend a set ot Input/output speclflcatlons~ which will meet
the anticipated needs of the City. Such spedtications win reLlect the data and
assumptions examined In the previous tasks. For intorrnation~ a preliminary
diagram of input/output data tot the model Is shown In FiguP. 1.
Task 7. Attendance at PlannlnK Commission and CIty Cots~dl HearinKs
Tasks I through 6 include meetings with the City staff to obtain lnfocmation and
input regardin8 the work and attendance at one City Coundl meeting to present
the final report and recommendations, Any additional attendance at Planning
Commission or CltyCots~dl meetin~ or hearings will be at additional cost,
CalHtal Imlx'mrr *~ Pavement ' '
emerit Program rllnlgement
General Pla~ ..
~ . ~ Rest~tlll
; ~111
I~fflll Implement
~,~ Ptrmlts ~
FISCAL.~EL
FIscal I~ltl~
S~lce St~ " ~ltl~ Cost & First Yev Operatl~
C~11 ~llcI~
ExtKnal FaCtoct
Ird'lltlO~
[mDtoyment
IN::Ome
Lr'Jlslatlcn
CITY OF CHULA VISTA
LONG; RANG;E FISCAL NODEL '~""""""'"""""""""'"""'
,.
PHASE il. LONG-RANGE FISCAL MODEl.
Based on the recommended spectfic&tions formulated durin8 "hue I, the'
Consultant will, if requested, develop · lonl-term llscal model to help monitor the
impact of the type and rate o[ develolxnent, any thanSos to the General Plan, and
the reed for new End replN:ement lnlmtructure systems. This model 'would be
used and maintained by the Clty"l FInance Department End incorporate caNtal as
well u operating expenditures. The m,~xlel would have the capability to alter
assumptions mgerc~nt C~elltlt Nld future land uses and phaslnS (~ot 2, 10, l ~ years,
and bull.~ut)l calttal and opemtin~ ~ aml sources End laY·Is of revenue. The
model, once establld~l. muld be run as often u necessN-y to determine the
effects of changes In date or the underl)4nl mts~ptlonso '
PI~RSONNEL~ COST. AND S(:iEDULB ,
The proposed work will be performed by 3re Ona~a End "eter Mc~Mahon of P&D
Technologies and 3ohn McTighe of 3ohn McTlghe end Associate, assisted .by
technical support staff of P&D Technologies.
Approximate assignments of senior and technical support personnel and estimated
cost to perform the tasks are summarized lnTable 1. The total estimated cost to
complete '~hase I tasks Is ~27,~t~0. This estimate Includes all required meetinSs
with the sta/f plus attendance at one CIty Couqdl meetInS by 3~10naka and 3ohn
McTighe. Attendance at · PlanninS Commission meetInS or additional CIty
Cornall meetings will be at additional cast, to be billed on a time-and-material
basis ·
The detailed cost estimates by task have been provided for the Cites Information
only. it is pmposcd ttlat "'base I wuc'k be performed for a fixed fee, equal to the
total estimated cost.
Invoices will be sulxnitted monthly, bag, d on percent of work completed to date,
Payment will be due one month liter receipt of invoice. A detailed program of '-
work, costs 8ml Kt!lNlu!e far Phlse il .will be prepared upon eequest during or after
Phase Io