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Staff Report
City Council
Item No. 7.A
Meeting Date: March 8, 2023
From: Robert Rodriguez, Director of Planning/Building
Title: Contract for Thousand Palms Annexation Fiscal Analysis City Council
RECOMMENDATION:
To approve a contract with Terra Nova Planning & Research, Inc in an amount not to exceed $70,070, which reflects the base contract of $63,700 and a 10% contingency of $6,300, and authorize a budget amendment in the amount of $70,070.
BACKGROUND:
At their Annual Goal Setting Strategy Session held in January 2022, the City Council directed staff to update the Thousand Palms Fiscal Analysis. Last updated in 2018, the Fiscal Analysis provided the fiscal effect of a potential annexation of the City’s Sphere of Influence (SOI) at four stages: immediately upon annexation (Phase 1); at the time 10 percent of the currently vacant land is developed (Phase 2); at the time 50 percent of the currently vacant land has been developed (Phase 3); and at build out (Phase 4). It also described how the demand for local services will be met when the annexed area is developed.
The Analysis examined anticipated annual costs needed to serve the future annexation area at the four phases of development including general government and public safety services, projected annual revenues including property, local sales tax, and transient occupancy tax, projected cannabis tax and what the costs and revenues would be for the City should that revenue not be available, one-time revenue sources, and significant one- time costs associated with Fire Department facilities and roadway improvements to bring currently substandard streets to City standards.
A review of the 2018 fiscal analysis was discussed with the City Council in a study session on August 24, 2022. After discussion, Council provided direction to develop a scope of work for a new fiscal analysis with specific direction to include an analysis of current and proposed development in the eastern end of the sphere of influence and an analysis of options for the provision of public safety services in the sphere considering both direct provision of services by the City and the use of contractual arrangements at least in the early stages of annexation.
A proposed scope of work was presented to the City Council in a study session on
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October 26, 2022. After discussion, the City Council directed staff to move forward with the Request for Proposal (RFP) process as recommended by staff.
DISCUSSION:
Staff developed a Request for Proposals (RFP) to identify consultants with the ability to prepare the annexation fiscal analysis. The RFP was issued on December 23, 2022, and responses were due on January 20, 2023. The RFP was sent to firms previously identified through the 2018 analysis and posted on the City’s website. Upon the due date, proposals were received from two firms:
Consultant Location
Terra Nova Planning & Research, Inc. Palm Desert, California Civic Solutions, Inc. San Juan Capistrano, California
The proposals were reviewed and evaluated by an internal committee of staff members.
Each proposal was evaluated based on experience, project approach, scope of work, schedule, and cost. The two proposals were ranked as follows:
Consultant Ranking (1
Highest)
Schedule Cost
Terra Nova Planning &
Research, Inc.
1 6 months $63,700
Civic Solutions, Inc. 2 8 months $149,819
The committee ranked Terra Nova as the highest due to their familiarity with the City and project, previous local experience including preparing the fiscal analysis of the Acrisure Arena for the City of Palm Desert, and cost, which was more than 50% less than the other proposal.
FISCAL IMPACT:
Approving the contract with Terra Nova Planning & Research, Inc. will require a budget amendment in the amount of $70,700.
ATTACHMENTS:
Cathedral City Services Agreement - Terra Nova Research & Planning Terra Nova Planning & Reserch Proposal