Professional Services Agreement
City Attorney Approved, 112717
Agreement No. < >
CITY OF HERCULES
PROFESSIONAL SERVICES AGREEMENT
This Agreement (“Agreement”) for professional services is made on October 11, 2022 , between the City of Hercules, a California municipality (“City”), and Revenue & Cost Specialist (RCS), a Limited Liability Company (“Consultant”) ( “Parties”).
1. Scope of Services. Consultant will provide to City the professional services described in the Scope of Services, attached as Attachment A and incorporated in this Agreement (the “Services”). Only the City Council or the City Manager may authorize any change or addition to the Scope of Services specified in Attachment A.
2. Term. This Agreement will become effective on October 11, 2022 (“Effective Date”), and will terminate upon the full and satisfactory completion of the Services or as otherwise specified in Attachment A, unless terminated sooner in accordance with Section 10 of this Agreement.
Time is of the essence with respect to all provisions of this Agreement that specify a time for
performance.
3. Compensation. For the full and satisfactory completion of the Services, City will pay Consultant in an amount not to exceed $75,400, without prior written authorization by City, pursuant to the terms set forth in Attachment B on Payment, which is attached to and incorporated in this Agreement. Consultant’s compensation is intended to encompass all costs required for performing the Services, including overhead and indirect costs. Except as expressly provided in Attachment B, Consultant will not be entitled to reimbursement for expenses it incurs to provide the Services.
3.1 Payment. City will pay Consultant for Services satisfactorily provided during each calendar month within 30 days following City receipt and approval of a detailed invoice. The invoice must include, at a minimum: a description of the specific Services provided; the name of the individual providing the Services; the date(s) upon which the Services were provided; the time spent providing the Services; the amount due for the Services; and the basis for calculating the amount due.
3.2 Additional Services. If the City requests related services beyond the Scope of Services described in Attachment A, the Consultant will provide City a written estimate for the additional services (“Additional Services”). Consultant will not provide Additional Services until Consultant has received written authorization from the City to perform the Additional Services.
Consultant will not be entitled to payment for Additional Services performed without City’s prior written authorization or for costs to correct Consultant’s errors or omissions.
4. Independent Contractor. The Parties agree that Consultant will act as an independent contractor under this Agreement and will have control of its work and the manner in which the Services are performed. Consultant is not an employee of City and is not entitled to participate in any health, retirement, or similar employee benefits from the City.
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
5. Consultant’s Warranties.
5.1 Consultant warrants that all Services provided under this Agreement will be performed in accordance with generally accepted professional practices and standards for Consultant’s profession in the Bay Area.
5.2 Consultant warrants that all Services provided under this Agreement will be performed in accordance with applicable federal, state, and local laws and regulations, including, but not limited to, conflict of interest laws and City ordinances and policies.
5.3 Consultant warrants that Consultant has no present interest which would conflict in any manner with the performance of Services on the City’s behalf.
5.4 Consultant warrants that it will comply with the City’s Nepotism and Cronyism Policy.
6. Notice. Any notice, billing, or payment required by this Agreement must be made in writing, and sent to the other Party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF (or comparable) file. Notice is effective upon delivery unless otherwise specified. Notice for each Party will be given as follows:
City: Consultant:
City of Hercules Revenue & Cost Specialist (RCS)
111 Civic Drive 1519 E. Chapman, Suite C
Hercules, CA 94547 Fullerton, CA 92831 (510) 799-8200 (714) 992-9027 Attn: City Clerk Attn: Eric Johnson, President
Copy to: Edwin Gato, Finance Director
Email: [email protected]
Copy to: Eric Johnson, President
Email: [email protected]
7. Indemnity. Subsection 7.1 is not applicable to this Agreement if Consultant’s Services are “design professional” services as that term is used and defined in Civil Code section 2782.8. Subsection 7.2 is applicable to this Agreement if Consultant’s Services are “design professional” services as used and defined in Civil Code section 2782.8.
7.1 To the full extent permitted by law, Consultant will indemnify, defend with counsel acceptable to City, and hold harmless City, its governing body, officers, agents, employees, and volunteers (collectively, “City Indemnitees”) from and against any and all liability, demands, loss, damage, claims, settlements, expenses, and costs (including, without limitation, attorney fees, expert witness fees, and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s acts or omissions with respect to this Agreement, except such Liability caused by the active negligence, sole negligence, or willful misconduct of any of the City Indemnitees. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.1 does not apply if the Services to be provided Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.
7.2 To the full extent permitted by law, Consultant will indemnify, defend, and hold harmless City, its City Council, officials, officers, agents, employees, and volunteers from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorney fees and costs and fees of litigation) (collectively, “Liability”) of every nature which arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Consultant in the performance of this Agreement, except such Liability caused by the active negligence, sole negligence or willful misconduct of City. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.2 is applicable if the Services to be provided under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.
8. Insurance. Before providing any Services under this Agreement, Consultant is required to procure and provide proof of the insurance coverage required by this Section in the form of certificates and endorsements. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to City, unless due to nonpayment of premiums, in which case at least 10 days written notice will be made to City. The required insurance must cover the activities of Consultant and its employees or subcontractors relating to or arising from the performance of the Services, and must remain in full force and effect at all times during the term of the Agreement. All required insurance must be issued by an insurer licensed to do business in the State of California, and each such insurer must have an A.M. Best financial strength rating of “A” or better and a financial size rating of “VIII” or better. If Consultant fails to provide any of the required coverage, City may, at its sole discretion, purchase such coverage at Consultant’s expense and deduct the cost from payments due to Consultant.
8.1 The following insurance policies and limits are required for this Agreement:
8.1.1 Commercial General Liability Insurance (“CGL”). CGL insurance issued on an occurrence basis, including coverage of liability arising from Consultant’s acts or omissions in the performance of Services under this Agreement, with limits of at least $1,000,000.00 per occurrence.
8.1.2 Automotive. Commercial automotive liability coverage for owned, non- owned and hired vehicles must provide coverage of at least $1,000,000.00 combined single limit per accident for bodily injury, death, or property damage.
8.1.3 Workers’ Compensation Insurance and Employer’s Liability. The policy must comply with the requirements of the California Workers’ Compensation Insurance and Safety Act, with limits of at least $1,000,000.00. If Consultant is self- insured, Consultant must provide its duly authorized Certificate of Permission to Self-Insure.
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
8.1.4 Professional Liability. This insurance must insure against Consultant’s errors and omissions in the provision of Services under this Agreement, in an amount no less than $1,000,000.00 combined single limit.
8.2 Subrogation Waiver. Each required policy must include an endorsement that the insurer agrees to waive any right of subrogation it may have against City or the City’s insurers.
8.3 The CGL policy and the automotive liability policy must include the following endorsements:
(1) The City, including its Council, officials, officers, employees, agents, volunteers and consultants (collectively, “Additional Insured”) must be named as an additional insured for all liability arising out of the operations by or on behalf of the named insured, and the policy must protect the Additional Insured against any and all liability for personal injury, death or property damage or destruction arising directly or indirectly in the performance of the Agreement.
(2) The inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.
(3) The insurance provided is primary and no insurance held or owned by City will be called upon to contribute to a loss.
(4) Any umbrella or excess insurance must contain or be endorsed to contain a provision that such coverage will also apply on a primary or non-contributory basis for the benefit of City before the City’s own insurance or self-insurance will be called upon to protect it as a named insured.
9. Dispute Resolution. In the event that any dispute arises between the Parties in relation to this Agreement, the Parties agree to meet face to face as soon as possible to engage in a good faith effort to resolve the matter informally. In the event that any dispute arises between the Parties in relation to this Agreement, and the dispute is not resolved by informal discussions, the Parties agree to submit the dispute to mediation.
9.1 Either Party may give written notice to the other Party of a request to submit a dispute to mediation, and a mediation session must take place within 60 days after the date that such notice is given, or sooner if reasonably practicable. The Parties will jointly appoint a mutually acceptable mediator. The Parties further agree to share equally the costs of the mediation, except costs incurred by each Party for representation by legal counsel.
9.2 Good faith participation in mediation pursuant to this Section is a condition precedent to either Party commencing litigation in relation to the dispute.
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
10. Early Termination.
10.1 Termination for Convenience. City may terminate this Agreement for convenience by giving 10 calendar days written notice to Consultant. In the event City elects to terminate the Agreement without cause, it will pay Consultant for Services satisfactorily provided up to that date.
10.2 Termination for Cause. If either Party breaches this Agreement by failing to timely or satisfactorily perform any of its obligations or otherwise violates the terms of this Agreement, the other Party may terminate this Agreement by giving written notice five calendar days prior to the effective date of termination, specifying the reason and the effective date of the termination. Consultant will be entitled to payment for all Services satisfactorily provided up to the effective date of termination, except that the City may deduct from that payment the amount of costs the City incurred, if any, because of Consultant’s breach of the Agreement.
11. Work Product. City will be the sole owner of all rights to any work product in any form which has been prepared by Consultant on City’s behalf pursuant to this Agreement, unless otherwise specified in writing by the Parties.
12. Records. Unless otherwise specified in Attachment A, Consultant will maintain records related to this Agreement for a period of four years from expiration or termination of this Agreement, including records of the Services performed, on a daily basis if necessary. Consultant’s accounting systems will conform to generally accepted accounting principles, and all records will provide a breakdown of total costs charged under this Agreement, including properly executed payrolls, time records, invoices, and vouchers. Consultant will permit City to inspect and examine Consultant’s books, records, accounts, and any and all data relevant to this Agreement at any reasonable time.
13. General Provisions.
13.1 Assignment and Successors. Consultant may not assign its rights or obligations under this Agreement, in part or in whole, without City’s written consent. This Agreement is binding on Consultant’s and City’s lawful heirs, successors, and permitted assigns.
13.2 Third Party Beneficiaries. There are no intended third-party beneficiaries to this Agreement.
13.3 Nondiscrimination. Consultant will not discriminate in the employment of persons under this Agreement because of race, color, ancestry, national origin, religion, sex, marital status, age, medical condition, disability, or other prohibited basis. All nondiscrimination rules or regulations required by law to be included in this Agreement are incorporated by this reference.
13.4 Choice of Law and Venue. This Agreement will be governed by California law, and venue will be in the Superior Court of Contra Costa County, and no other place.
13.5 Integration. This Agreement and the documents incorporated in this Agreement constitute the final, complete, and exclusive terms of the agreement between the City and the Consultant.
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
13.6 Severability. If any provision of this Agreement is determined to be illegal, invalid, or unenforceable, in part or in whole, the remaining provisions of the Agreement will remain in full force and effect.
13.7 Amendment. No amendment or modification of this Agreement will be binding unless it is in a writing duly authorized and signed by the Parties to this Agreement.
13.8 Provisions Deemed Inserted. Every provision of law required to be inserted in this Agreement will be deemed to be inserted, and this Agreement will be construed and enforced as though included. If it is discovered that through mistake or otherwise that any required provision is not inserted, or not correctly inserted, this Agreement will be amended to make the insertion or correction.
13.9 Precedence. If any provision in any document attached to or incorporated in this Agreement conflicts with or is inconsistent with the provisions set forth in the body of this Agreement, the provisions set forth in the body of this Agreement will control over any such conflicting or inconsistent provisions.
13.10 Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement will be effective unless it is in writing and signed by the Party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless the writing so specifies.
13.11 Force Majeure. If either Party is delayed or hindered in or prevented from the performance of any act required under this Agreement because of strikes, lockouts, inability to procure labor or materials, failure of power, riots, insurrection, war, fire or other casualty, or other reason beyond the reasonable control of the Party delayed, excluding financial inability (“Force Majeure Event”), performance of that act will be excused for the period during which the Force Majeure Event prevents such performance, and the period for that performance will be extended for an equivalent period. Delays or failures to perform resulting from lack of funds will not be Force Majeure Events.
13.12 Headings. The headings in this Agreement are included for convenience only and will not affect the construction or interpretation of any provision in this Agreement or any of the rights or obligations of the Parties to this Agreement.
13.13 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.
13.14 Authorization. Each individual signing below warrants that he or she is authorized to do so by the Party that he or she represents, and that this Agreement is legally binding on that Party. If Consultant is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code section 313.
[Signature page follows.]
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
The Parties agree to this Agreement as witnessed by the signatures below:
CITY: Approved as to form:
s/ s/
Dante Hall, City Manager Patrick Tang, City Attorney
Date: Date:
Attest:
s/
Name/Title
Date:
CONTRACTOR:
Business Name
s/
Name/Title
Date:
s/
Name/Title
Date:
Attachments:
Attachment A: Scope of Services Attachment B: Payment
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
Scope of Services
Attachment A
SCOPE OF SERVICES
Proposal for Cost Allocation Plan and Comprehensive Fee Study
APPROACH TO WORK
The City’s RFP request two separate processes, discussed below: (1) cost allocation plan and comprehensive user fee study, and (2) impact fee study. Each study requires different staffing team, calculation methodologies, fiscal analysis and legal tests.
Unique to RCS is our approach to calculate the full cost of all City services, rather than just the itemized cost of user fees. Doing so makes it easier to explain the function s of city services, and strengthens the study’s legal defensibility.
COST ALLOCATION PLAN & COMPREHENSIVE USER FEE STUDY
First, the City wants to identify the full costs of services that are either currently charged a fee or could be charged a fee (user fees). As part of this study, a Cost Allocation Plan (CAP) is necessary to calculate the fully burdened hourly rates for employees, distribute the overhead costs to funds, departments, and the end-user services, and make the full costs of services study more
defensible.
Based on the full cost information, RCS will review
with staff a proposed user fee structure that will
recover these costs in the most equitable and efficient way possible. This may involve flat fees, deposits,
valuation-based fees, step -increase fees, or a
combination of these. But the eventual fee
recommendations included in the final report and
master fee resolution will be defensible, easy to
understand, and be supported by City staff.
RCS will construct user fees that represent how
operations are conducted in the City. We will review with staff suggested fee structures that recover costs in the most equitable and efficient way possible. This may involve flat fees, deposits, valuation-based fees, step-increase fees or a combination of these. The eventual fee recommendations included in the final report and master fee resolution will be defensible, easy to understand and supported by City staff.
The most important part of our work is performed through a series of focused meetings with staff. Face -to-face meetings commit staff to the timeline and ensure that our study draws from the most knowledgeable person on the subject matter. A series of meetings also gives City staff time to digest and reflect on the information generated. RCS uses only company principals with more than 20-plus years of experience to conduct these meetings, which makes the process quicker and the results more accurate. Our process provides the City with well-documented and defensible service costs that will be used to develop fees that comply with Propositions 4, 218 and 26.
Attachment A
Proposal for Cost Allocation Plan and Comprehensive Fee Study
We also identify 100% of the staff time on 100% of the services they provide. This gives City staff a complete perspective on their time allocations instead of merely looking at time allocations for individua l services in a vacuum. These methods will ensure that City staff feels confident about the data and, therefore, confident in supporting the results in public hearings.
The other key result of identifying 100% of City services is that we are identifying not only the cost of fee services, but of community-supported services, such as police, street and park maintenance services. This allows us to have a real discussion with real numbers with the City Council about tax subsidy policy. Since we are identify ing the full costs of fee services, we are also identifying the current subsidy of general tax dollars for these services.
Therefore, we can show the City Council how much fee services are subsidized at the expense of community-supported services. Does the City want to continue to use precious tax dollars to support, for instance, a bathroom remodel and permitting inspection that only benefits a particular property owner or use those tax dollars on things that can only be supported by tax dollars, like police patrol and park maintenance? They will now have that information to be able to make that conscious choice.
Changing the discussion from fee increases to tax subsidy policy along with RCS’ experience in successfully presenting the results of similar studies to City Councils ensures that the City will be able to meet its policy objectives.
A comprehensive fee study by RCS will do more than update the City’s current fees. We take a deep dive into each and every fee, discussing its purpose, structure, legal defensibility, payment collection effectiveness, and value to the community. Based on our 42 years of experience, we are comfortable recommending the restructuring, addition and removal of fees to make it better for the City.
RCS’ Comprehensive Fee Study will do the Following
Proposal for Cost Allocation Plan and Comprehensive Fee Study
In addition to user fees, this Study will allow Hercules to update your rents/permit to use fees and fines/bails. RCS’ Proposal will perform all project tasks listed in the City’s Request for Proposal. The task descriptions below further explain the steps and timeline of RCS’ fee study. The project tasks in the City’s RF P shall prevail should there be conflicting language with RCS’ proposal.
Project Kick-Off
Task 1: Obtain Budget & Personnel Data
RCS will review and prepare necessary files for the project. This includes obtaining and reviewing prior user fee reports and fee schedules, line -item budget details, salary schedules, MOUs and fringe benefit details.
Task 2: Kick-off Meeting
RCS will conduct a Citywide meeting, explaining the operationa l methodology of the study and the role of staff. We will review any possible issues that may arise as well as answer any questions from staff about the process. This meeting is crucial for the process as we want to ensure that everyone understands the va rious steps in the process and what is expected of them.
Full Cost Allocation Plan
Task 1: Identify Central Services and Allocate Staff Time RCS will meet with various departments to identify and review central services and allocate staff time and costs for those services. Examples of central services include payroll, risk management, and facility maintenance. City staff time involved in the meetings is typically one hour per central service department.
Task 2: Develop Allocation Factors
RCS will meet with City staff to develop the allocation factors for each central service identified in the above task . These factors will form the basis for determining fully burdened hourly rates and allocating central service costs. This meeting will be concurrent with the time allocation meeting. Though City staff involvement in data gathering is a function of the availability of the required information, RCS will develop allocation factors that are easily reproducible from year to year but still equitably allocate central service costs.
RCS will calculate allocations to the functional centers and review the results with the managers of the various central service departments. City staff time to review the results of the allocations will be less than 1 hour per department.
Proposal for Cost Allocation Plan and Comprehensive Fee Study
Task 3: Initial Calculation Review
RCS will prepare a Draft Cost Allocation Plan Report with allocations to end user departments using our 20 -step allocation model. RCS will review this Draft Report with the City , making any necessary adjustments to ensure that costs are allocated properly.
Task 4: Prepare Final Cost Allocation Plan
RCS will then prepare a Final Report with allocations to end user departments. These results will be used for the general overhead component of the Fee Study and can also be used to determine the amounts for transfers to the General Fund for support provided to other f unds. RCS will consult with City Staff as necessary to defend the cost allocation plan in the event of audits or other challenges.
Federal Cost Allocation Plan
Task 1: Prepare CFR Part 225 Compliant Cost Allocation Plan In addition to a full -cost plan, RCS will perform an OMB Compliant Cost Allocation Plan. The Office of Management and Budget (OMB) 2 Code of Federal Regulations (CFR) Part 225 Compliant Cost Allocation Plan is required to be based on audited actual expenditures. RCS will use the FY 2020-21 audited expenditures once the audit process is complete. For the time allocations to the various central services the OMB Circular requires verifiable time allocations. Therefore, RCS will work with City staff to determine the level of time detail that e xists. Most likely this will require time allocations at the divisional level. The end result will be a Cost Plan with appropriate overhead rates for each department and division so that staff may be charged to federal grant programs.
Task 2: Assist staff in reporting
RCS will then work with City staff on submitting the Cost Plan to the relevant agencies and work with those agencies until the Cost Plan is approved.
User Fee Study
Task 1: Review the Service List with Staff
RCS will review the service list through meetings with each department . We will acknowledge fees that are properly structured, introduce new fees for services currently provided without a charge, discuss deletion of fees no longer valid, and consider any changes to any fee structure and calculation methods. The end result, whichever method is used, will be a fee structure that best fits the City going forward.
While this list will change during the course of the Study as it is refined, it will be the Proposal for Cost Allocation Plan and Comprehensive Fee Study
initial basis from where we start. City staff time for this review will be approximately 1 hour per department.
Task 2: Develop Staff Time Allocations
RCS will interview personnel providing end -user services to ensure that costs from all functional areas dir ectly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. There will be two to four meetings with supervisory level staff in each functional area to create and verify the amount of time spent by staff on the services identified in the task above.
Total time commitment per department varies from 2 -10 hours, through a series of working meetings.
We do not ask City staff to do our job by filling out forms detailing how they spend their time. This interactive process, and the fact that we allocate 100% of all departmental staff, ensures that the information being generated is valid and reliable.
A sample Time Detail Report is included in this proposal.
Task 3: Develop Fully Allocated Hourly Rates
RCS will develop a fully allocated hourly rate for each departmental employee, including salaries and benefits, miscellaneous operating services and supply costs, citywide overhead and departmental overhead. This fully burdened rate is needed to calculate the full cost of each fee service.
Task 4: Calculate Fee Cost Recovery
All the information from tasks 1 -3 above are entered into our costing software and calculated. The calculation will present us with the current fee for each service, th e full cost for each service, and the subsidy level that the City is absorbing. Since we gathered the number of times the fee service occurs per year, we can identify the per- item as well as per-year fiscal impact.
Task 5: Prepare Draft Report
RCS will prepare a Draft Report that identifies the total costs for each service, along with current fees, and makes fee recommendations for each service presented as well potential new fees for services the City provides but does not charge for. Service costs will be compared with existing recovery levels. RCS will review this report with the departments so that each will have input on the fees presented in the Final Report.
City staff time would be approximately 1 -2 hours per department for those departments that have fee services.
Proposal for Cost Allocation Plan and Comprehensive Fee Study
Task 6: Prepare Final Report
Based on staff input, RCS will prepare a Final Report, which will have recommendations for new fees , subsidy percentages and revenue projections from those fees. The Report will include text and summary tables that will clearly explain the results and the context. All recommended fees will comply with Propositions 4, 218, 26 and any other applicable laws.
Hardcopies and editable electronic copies will be provided to the City. All documents developed during the Study will be provided, including the final comprehensive review, final report along with associated models, tables, graphs, related schedules, cost documentation as well as all related sup porting documents, including records and professional time spent. RCS will consult with staff as needed to defend the fee study in the event of audits or other challenges.
Task 7: Present Report to the City Council
RCS will assist City staff and the City Council in the review and adoption of revised user fees and subsidy percentages. RCS will assist City staff in the implementation of the revised user fees.
DEVELOPMENT IMPACT FEE STUDY
To make certain the City of Hercules continues to provide basic municipal services as the City grows, RCS proposes to undertake the calculation and textual support of a new Development Impact Fee Calculation and Nexus Report. RCS staff will perform the following to complete the Development Impact Fee (DIF) calculation and quantify the costs generated by new development in terms of an Impact Fee Schedule for city land uses.
Based on RCS’ preliminary review of the reports and documentations available with the City, we propose considering Development Impact Fees for the following infrastructures.
1. Law Enforcement Facilities, Vehicles and Equipment
2. Storm Drainage Collection System
3. Public Use Facilities (community, senior, teen centers, et. al.),
4. Park Land Acquisition, Open Space and Park Improvements
5. Library Space and Collection Items
6. General Facilities (City Hall and City Maintenance Yard)
RCS has the experience and determination to research and identify the maximum financial impact from future developments in Hercules. With this information, staff can realize what the best funding and implementation policies are for the City.
Proposal for Cost Allocation Plan and Comprehensive Fee Study
We plan to use a series of direct, focused meetings between RCS experts and knowledgeable City staff to produce a final product that is accurate, logical and defensible. RCS' objective is to ensure that City staff feels confident about the data and the report, therefore confident in supporting the results at public hearings.
The fee recommendations included in RCS' final Development Impact Fee Calculation and Nexus Report will be legally defensible, easy to understand and supported by City staff. Our experience as local government finance officers and impact fee consultants makes certain this project will be completed successfully on time.
To provide the basis for the Development Impact Fees, the following steps would be taken by the Revenue & Cost Specialist staff, working with City staff and other consultants where necessary and appropriate:
Task 1: Preliminary Research
Prior to any meetings , RCS will perform a field "windshield" survey to become acquainted with the physical characteristics and general improvement needs and standards of the City. We will request and review all City maps, land -use documents and available master plans, especial ly the Comprehensive General Plan , before the kick-off meeting. We will review the City's history of impact fee schedules, resolutions, ordinances, and Annual and Five -Year Reports per Government Code Sections 66006 and 66001. RCS will review recent Operat ing Budgets, CIP Budgets, Comprehensive Annual Financial Reports and fixed asset reports
RCS will meet and discuss the City’s planning, capital financing process and community development standards with the City Engineer, City Planner, and other executive staff to determine the improvements that most likely will evolve from the project planning documents and be needed to support and give validity to the City's Comprehensive General Plan.
Task 2: Series of Working Meetings
RCS will meet with City staff responsible for each infrastructure to help identify all projects needed through theoretical build -out via use of master plans, specific plans and other service requirement studies. The more supporting documents we can find, the better the Study will be. The greatest support would be an engineer -prepared Master Plan. If such a document is not available, RCS will endeavor to increase the validity of available information. RCS will request from the City all reports, master plans, specific plans and other related reports identifying needed infrastructure. If needed, RCS can assist the City with developing project lists and supporting data. RCS will review project cost estimates and textual explanations for accuracy and completeness.
Proposal for Cost Allocation Plan and Comprehensive Fee Study
RCS will identify and analyze the demand drivers specific to each infrastructure or service area. The drivers are the factors of nexus demand related to each land use and would be based upon the project plans or City productivity records. These demand drivers will help determine the distribution of the benefits of, nexus for and impact of each group of projects on each of the above categories of land use. The proportional analysis necessary to identify what burdens would be placed upon the existing and future infrastructure would be undertaken.
Task 3: Draft Development Impact Fee Calculation and Nexus Report Since the Report is based on information and estimates provided by City staff, it is important that all participants are comfortable with the methodology and data presented. RCS will prepare a draft report consisting of the fee structures and the necessary relevant nexus text and report with recommended fees. This meeting will include discussions on policy issues, implemen tation strategies and revenue collection procedures. RCS will provide the draft report for staff consideration and distribution.
Task 4: Presentation of Proposed Development Impact Fee Calculation and Nexus Report to the City Council
RCS will a ttend the City Council meeting to discuss the report methodology and present findings, providing a formal presentation and answering questions about those findings . RCS will have the necessary supporting documentation for the meeting and will be the primary contact to answer all questions, following up with any City Council direction with the assistance of City staff.
CLIENT INPUT
RCS will make every effort to advise, seek input from and, in general, explain the work as it is being performed. For a project to be completed successfully, we depend on dedicated and engaged staff participation. Most of the staff participation is to attend working meetings with RCS. There will be no “homework” to be completed and returned to us.
The City should also designate a Project Coordinator for the fee study who will:
1) Identify key City staff and coordinate the kick-off meeting(s) 2) Assist in obtaining requested information
3) Coordinate the review of draft reports, and
4) Provide project direction if needed
Proposal for Cost Allocation Plan and Comprehensive Fee Study
PROJECT SCHEDULE
RCS’ references will attest that out timelines are ideal for fee studies. RCS suggest starting the project in September 2022, completing and presenting the User Fee Study to the City Council in January 2023, and presenting the Impact Fee Study to the City Council in March 2023. The process may be completed faster, however our experience is that working meetings in November and December take longer to coordinate.
Phasing the Development Impact Fee af ter the User Fee allows staff and RCS to focus on what’s important. Wait for the facilities master plan to be completed could also benefit the City.
This schedule, of course, will require the cooperative participation of City staff . We will be having mee ting with staff every two to three weeks and providing them with updates.
Department meetings will be 30 minutes to two hours each.
CAP & User Fee Study Sep
2022
Oct
2022
Nov
2022
Dec
2022
Jan
2023
Feb
2023
Mar
2023
Kick-Off Meeting
Obtain Budget & Personnel Data
Review of Central Services/Time
Review Allocation Factors
Prepare Draff and Final CAP
Review Service Fee List
Review Staff Time Allocations
Develop Fully Alloc. Hourly Rates
Review Draft Report with Staff
Prepare Final Report
Present User Fee Study to Council
Development Impact Fee Study Sep
2022
Oct
2022
Nov
2022
Dec
2022
Jan
2023
Feb
2023
Mar
2023
Land-use Database Compilation
Determine Infrastructure LOS
Discuss Desired Projects w. Staff
Review Project Costs & Descriptions
Review Demand Drivers (Nexus)
Apply Nexus Distribution Factors
Review Draft DIF Report with Staff
Prepare Final DIF Report
Present DIF Study to Council
Proposal for Cost Allocation Plan and Comprehensive Fee Study
ONSITE MEETINGS AND VIDEO CONFERENCING MEETINGS
For the project kick-off and working meetings on the same day, the City may choose to have RCS onsite or conduct the meetings through a video conferencing account.
All working meetings will be through our Zoom account or a video conferencing software of the City’s choice. Our experience has determined video conferencing is more flexible in scheduling meetings, lets City staff quickly access reports and files on their computers, and allowing everyone to view and discuss the same documents at the same time.
RCS plans to participate in the City Council meetings onsite at the City of Hercules.
Professional Services Agreement City Attorney Approved, 112717 Agreement No. < >
Payment
Attachment B PAYMENT
FEE PROPOSAL
RCS proposes the following project costs, with a NOT TO EXCEED AMOUNT OF $ 75,400.
The not to exceed amount includes a $4,000 travel budget for actual travel expenses.
Task Milestones/Deliverables Hours Total Cost
Cost Allocation Plan (Full & Federal)
Kick-Off Meeting Informational Meeting 8 1,400
Build Budget and Positions Schedule of Positions and Budget 16 2,800 Review Central Services/Times List of Central Services 8 1,400 Develop Allocation Factors Index of Allocation Factors 16 2,800 Initial Calculation Review Draft Cost Allocation Plan 16 2,800 Prepare Final Cost Allocation Plan Final Cost Allocation Plan 8 1,400 Total Cost Allocation Plan 72 $12,600
User Fee Study
Develop Service List Preliminary Service List 16 2,800
Develop Staff Time Allocations Time Detail Reports 60 10,500 Develop Fully Alloc. Hourly Rates Fully Alloc. Hourly Rate Reports 16 2,800 Prepare Draft Report Draft Fee Study Report 24 4,200
Prepare Final Report Final Report 16 2,800
Public Meetings Presentations (2) 16 2,800
Total User Fee Study 148 $25,900
Development Impact Fee Study
Preliminary Research 24 4,200
Identify Land-Use Build Out Land Use Database 16 2,800
Identify Current/Future Needs Schedule of Capital Costs 28 4,900 Mathematical Nexus Calculation Spreadsheets of Calculations 48 8,400 Textual Nexus Draft & Final DIF Reports 56 9,800
Public Meetings Presentations (2) 16 2,800
Total Impact Fee Study 188 $32,900
Reimbursible Travel Budget $4,000
TOTAL PROJECT COST 408 $75,400
The above costs are based on a charge of $175 per hour. The billing rate for any additional work not covered by this proposal would be $195 per hour. Our proposal covers all costs except for the following additional costs that the City may incur:
Attachment B
• Insurance coverage beyond our basic general liabil ity and workers compensation requiring an additional premium. RCS standard coverage includes workers compensation pursuant to state law, comprehensive liability Insurance with a combined single limit coverage of $2,000,000 and professional liability insura nce with a combined coverage of $2,000,000.
• Report reproduction beyond the number of copies identified in the RFP. • Excessive public meeting attendance.
RCS will submit four equal invoices for the Cost Allocation Plan and Comprehensive User Fee Study and four equal invoices for the Development Impact Fee Study, plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten days after the start of each. Invoices will be due within 30 days of submission.