AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made and entered into this ib day of
NovEmBer, 2020, by and between the City of Merced, a California Charter Municipal Corporation, whose address of record is 678 West 18th Street, Merced, California 95340, (hereinafter referred to as "City") and Kristin Lowell, Inc., a California Corporation, whose address of record is 1420 E. Roseville Parkway #140-342, Roseville, California 95677 (hereinafter referred to as "Consultant").
WHEREAS, City is undertaking a project to form a Property Based Improvement District in Downtown Merced; and,
WHEREAS, Consultant represents that it possesses the professional skills to fully implement California Code Section 36600 to 36671 of the Streets and Highways Code, also cited as Property and Business Improvement District Law of 1994, and form a Property Based Improvement District in Downtown Merced.
NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants hereinafter recited, hereby agree as follows:
1. SCOPE OF SERVICES. The Consultant shall furnish the following services: Consultant shall provide the services described in Exhibit "A" attached hereto.
No additional services shall be performed by Consultant unless approved in advance in writing by the City, stating the dollar value of the services, the method of payment, and any adjustment in contract time. All such services are to be coordinated with City and the results of the work shall be monitored by the Director of Economic Development or designee. However, the means by which the work is accomplished shall be the sole responsibility of the Consultant.
2. TIME OF PERFORMANCE. All of the work outlined in the Scope of Services shall be completed in accordance with the Schedule outlined in Exhibit "A" attached hereto and incorporated herein by reference. By mutual agreement and written addendum to this Agreement, the City and the Consultant may change the requirements in said Schedule.
3. TERM OF AGREEMENT. The term of this Agreement shall
commence upon the day first above written and end on or before March 31, 2022.
X: \Agreements\Economic Development\2020\PSA - Kristen Lowell Inc. Re PBID.docx
4. COMPENSATION. Payment by the City to the Consultant for actual services rendered under this Agreement shall be made upon presentation of an invoice detailing services performed under the Scope of Services, in accordance with the fee schedule set forth in Exhibit "B" attached hereto and incorporated herein by reference. The Consultant agrees to provide all services required under the Scope of Services in Exhibit "A" within the compensation amount set forth in Exhibit "B". For Consultant's services rendered under this Agreement, City shall pay Consultant the not to exceed sum of Eighty-Two Thousand Six Hundred Fifty Dollars ($82,650.00).
5. METHOD OF PAYMENT. Compensation to Consultant shall be paid by the City after submission by Consultant of an invoice delineating the services performed.
6. RECORDS. It is understood and agreed that all plans, studies, specifications, data magnetically or otherwise recorded on computer or computer diskettes, records, files, reports, etc., in possession of the Consultant relating to the matters covered by this Agreement shall be the property of the City, and Consultant hereby agrees to deliver the same to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials including but not limited to those set forth hereinabove, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use.
7. CONSULTANT'S BOOKS AND RECORDS. Consultant shall
maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. Any records or documents required to be maintained shall be made available for inspection, audit and/or copying at any time during regular business hours, upon oral or written request of the City.
8. INDEPENDENT CONTRACTOR. It is expressly understood that Consultant is an independent contractor and that its employees shall not be employees of or have any contractual relationship with the City. Consultant shall be responsible for the payment of all taxes, workers' compensation insurance and unemployment insurance. Should Consultant desire any insurance protection, the Consultant is to acquire same at its expense.
X: \Agreements Economic Development 2020\PSA - Kristen Lowell Inc. Re PBID.docx 2 In the event Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, protect, defend, and hold harmless the City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
9. INDEMNITY. Consultant shall indemnify, protect, defend (with legal counsel selected by the City, save and hold City, its officers, employees, and agents, harmless from any and all claims or causes of action for death or injury to persons, or damage to property resulting from intentional or negligent acts, errors, or omissions of Consultant or Consultant's officers, employees, volunteers, and agents during performance of this Agreement, or from any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct, negligent acts, or omissions of Consultant or its employees, subcontractors, or agents, or by the quality or character of Consultant's work, or resulting from the negligence of the City, its officers, employees, volunteers and agents, except for loss caused by the sole negligence or willful misconduct of the City or its officers, employees, volunteers or agents. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall survive the termination of this Agreement and shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.
10. INSURANCE. During the term of this Agreement, Consultant shall maintain in full force and effect at its own cost and expense, the following insurance coverage:
a. Workers' Compensation Insurance. Full workers' compensation insurance shall be provided with a limit of at least One Hundred Thousand Dollars ($100,000) for any one person and as required by law, including Employer's Liability limits of $1,000,000.00 per accident. The policy shall be endorsed to waive the insurer's subrogation rights against the City.
X: Agreements\Economic Development\2020\PSA - Kristen Lowell Inc. Re PBID.docx 3 b. General Liability.
(i) Consultant shall obtain and keep in full force and effect general liability coverage at least as broad as ISO commercial general liability coverage occurrence Form CG 0001.
(ii) Consultant shall maintain limits of no less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage.
(iii) The City, its officers, employees, volunteers and agents are to be named as additional insureds under the policy, as respects liability arising out of work or operations performed by or on behalf of the Consultant.
(iv) The policy shall stipulate that this insurance will operate as primary insurance for work performed by Consultant and its sub-contractors, and that any other insurance or self insurance maintained by City or other named insureds shall be excess and non-contributory.
(v) Consultant shall maintain its commercial general liability coverage for three (3) years after completion of the work and shall add an additional insured endorsement form acceptable to the City naming the City of Merced, its officers, employees, agents and volunteers for each year thereafter for at least three (3) years after completion of the work. Copies of the annual renewal and additional insured endorsement form shall be sent to the City within thirty (30) days of the annual renewal.
C. Automobile Insurance.
(i) Consultant shall obtain and keep in full force and effect an automobile policy of at least One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
(ii) The City, its officers, employees, volunteers and agents are to be named as additional insureds under the policy, as respects automobiles owned, leased, hired or borrowed by the
Consultant.
X: Agreements Economic Development\2020\PSA - Kristen Lowell Inc. Re PBID.docx (iii) The policy shall stipulate that this insurance will operate as primary insurance for work performed by Consultant and its sub-contractors, and that any other insurance or self insurance maintained by City or other named insureds shall be excess and non-contributory.
d. Professional Liability Insurance. Consultant shall carry professional liability insurance appropriate to Consultant's profession in the minimum amount of One Million Dollars ($1,000,000). Architects and engineers' coverage is to be endorsed to include contractual liability.
e. Qualifications of Insurer. The insurance shall be provided by an acceptable insurance provider, as determined by City, which satisfies all of the following minimum requirements:
(i) An insurance carrier admitted to do business in California and maintaining an agent for service of process within this State; and,
(ii) An insurance carrier with a current A.M. Best Rating of A: VII or better (except for workers' compensation provided through the California State Compensation Fund).
f. Certificate of Insurance. Consultant shall complete and file with the City prior to engaging in any operation or activity set forth in this Agreement, certificates of insurance evidencing coverage as set forth above and which shall provide that no cancellation or expiration by the insurance company will be made during the term of this Agreement, without thirty (30) days written notice to City prior to the effective date of such cancellation-including cancellation for nonpayment of premium.
g. Notwithstanding any language in this Agreement to the contrary, Consultant shall be entitled to be paid pursuant to the terms of this Agreement until Consultant has obtained the insurance required by this Section 10 and provided documentation of said insurance to the City. In addition to any other remedies City may have, City reserves the right to withhold payment if Consultant's insurance policies are not current.
11. ASSIGNABILITY OF AGREEMENT. It is understood and agreed that this Agreement contemplates personal performance by the Consultant and is X: \Agreements\Economic Development 20201PSA - Kristen Lowell Inc. Re PBID.docx 5 based upon a determination of its unique personal competence and experience and upon its specialized personal knowledge. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express written consent of the City.
12. TERMINATION FOR CONVENIENCE OF CITY. The City may
terminate this Agreement any time by mailing a notice in writing to Consultant that the Agreement is terminated. Said Agreement shall then be deemed terminated, and no further work shall be performed by Consultant. If the Agreement is so terminated, the Consultant shall be paid for that percentage of the phase of work actually completed, based on a pro rata portion of the compensation for said phase satisfactorily completed at the time the notice of termination is received.
13. CONFORMANCE TO APPLICABLE LAWS. Consultant shall
comply with its standard of care regarding all applicable Federal, State, and municipal laws, rules and ordinances. No discrimination shall be made by Consultant in the employment of persons to work under this contract because of race, color, national origin, ancestry, disability, sex or religion of such person.
Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. 1101 et seq.), as amended; and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any agency or instrumentality of the federal or state government, including the courts, impose sanctions against the City for such use of unauthorized aliens, Consultant hereby agrees to, and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs, including attorneys' fees, incurred by the City in connection therewith.
14. WAIVER. In the event that either City or Consultant shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or any other covenant, condition or obligation. Waiver shall not be deemed effective until and unless signed by the waiving party.
15. INCONSISTENT OR CONFLICTING TERMS IN AGREEMENT
AND EXHIBITS. In the event of any contradiction or inconsistency between any attached documents) or exhibits) incorporated by reference herein and the provisions of the Agreement itself, the terms of the Agreement shall control.
X: \Agreements\Economic Development\2020\PSA - Kristen Lowell Inc. Re PBID.docx Any exhibit that is attached and incorporated by reference shall be limited to the purposes for which it is attached, as specified in this Agreement. Any contractual terms or conditions contained in such exhibit imposing additional obligations on the City are not binding upon the City unless specifically agreed to in writing, and initialed by the authorized City representative, as to each additional contractual term or condition.
16. AMBIGUITIES. This Agreement has been negotiated at arms' length between persons knowledgeable in the matters dealt with herein. Accordingly, any rule of law, including, but not limited to, Section 1654 of the Civil Code of California, or any other statutes, legal decisions, or common-law principles of similar effect, that would require interpretation of any ambiguities in this Agreement against the party that drafted this Agreement is of no application and is hereby expressly waived.
17. VENUE. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this agreement shall be held exclusively in a state court in the County of Merced.
18. AMENDMENT. This Agreement shall not be amended, modified, or otherwise changed unless in writing and signed by both parties hereto.
19. INTEGRATION. This Agreement constitutes the entire
understanding and agreement of the parties and supersedes all previous and/or contemporaneous understanding or agreement between the parties with respect to all or any part of the subject matter hereof.
20. AUTHORITY TO EXECUTE. The person or persons executing this Agreement on behalf of the parties hereto warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of their entity and has/have the authority to bind their party to the performance of its obligations hereunder.
21. COUNTERPARTS. This Agreement may be executed in one or more counterparts with each counterpart being deemed an original. No counterpart shall be deemed to be an original or presumed delivered unless and until the counterparts executed by the other parties hereto are in the physical possession of the party or parties seeking enforcement thereof.
X: Agreements Economic Development\20201PSA - Kristen Lowell Inc. Re PBID.docx IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first above written.
CITY OF MERCED
A California Charter Municipal
Corporation
BY:
Interim City Manager
ATTEST:
STEPHANIE R. DIETZ, INTERIM CITY CLERK
BY
Assistant/Deputy City Clerk
1889
APPROVED AS TO FORM:
thudha a mh
BY: 11/2/2020
City Attorney Date
301399 PO#140239
ACCOUNT DATA:
BY: Wunr
Verified by Finance Officer T-18609
Funds availade. us 11/23120
074-2002-572-17-00 FL 1/23/20
#82,1050.00
X: \Agreements\Economic Development\20201PSA - Kristen Lowell Inc. Re PBID.docx 8 CONSULTANT
KRISTIN LOWELL, INC.,
A California Corporation
By Kuste Fall
(Signature)
Kristen Lowell
(Typed Name)
Its: Chief Executive Officer
(Title)
(Signature
Kristin Lowell
(Typed Name)
Its:_
Scentery
(Title)
Taxpayer I.D. No. 56-2491470
ADDRESS: 1420 E. Roseville Pkwy
#140-342
Roseville, CA 95661
TELEPHONE: (916) 786-9686
FAX: (916) 786-0529
E-MAIL: [email protected]
X: Agreements Economic Development 2020\PSA - Kristen Lowell Inc. Re PBID.docx 9 EXHIBIT A
MERCED
PHILOSOPHY
"Community engagement is a
cornerstone of any effective
revitalization effort and must be an
early ingredient in building a strong
PROPOSAL FOR THE downtown".
SUBMITTED BY:
DOWNTOWN MERCED Kristin Lowell, Inc. and
Hormann & Associates
PROPERTY-BASED
BUSINESS
IMPROVEMENT DISTRICT
Kristin Lowell Inc.
Public Finance Solutions
October 29, 2020
Frank Quintero
City of Merced
678W. 18th Street
Merced, CA 95340
RE: RFP - Downtown Merced Property Based Improvement District Formation (Amended) Dear Mr. Quintero:
On behalf of Kristin Lowell, Inc. (KLI), and Hormann & Associates, I am pleased to submit this AMENDED consulting proposal to assist the City of Merced in forming a Property Based Business Improvement District ("PBID") for Downtown Merced.
The consultant firms, Kristin Lowell, Inc. and Hormann & Associates ("Consultant Team"), are the project team to assist the City of Merced staff and community leaders in public outreach, education and formation of a PBID and the positive impacts it will have on the community. Kristin Lowell, Inc. will be the prime consultant responsible for the PBID formation and project management. Hormann & Associates, a subconsultant, will be responsible for public outreach and consensus building.
Both firms are well qualified with a long history in this industry. Kristin Lowell, Inc has been forming major public financing districts for over 25 years. Hormann & Associates, one of the original PBID consulting firms in California, is a leader in community outreach and public involvement. Some of our more recent projects include:
Downtown Chico, CA
Contact: Tom DiGiovanni, 530.893.8400
Nancy Hormann and Kristin Lowell worked with the downtown stakeholders through a grass- roots effort to establish the city's first PBID. There was no business organization to start with so we began the process with just a few interested property owners. Through successful leadership and guidance, the PBID was formed with an 81% voter approval. 1420 E. ROSEVILLE PARKWAY SUITE 140-342| TEL 916.786.9686 FAX 916.786.0529 ROSEVILLE CALIFORNIA 95661 [email protected]
Downtown Ventura, CA
Contact: Kevin Clerici, 805.641.1090
Kristin Lowell was the original consultant to help Downtown Ventura form their PBID in 2009.
Due to its success over the last decade, the Downtown Ventura Partners, engaged Kristin's services again in 2019 to not only renew the existing PBID but to also expand the district to encompass a much larger area of downtown. The expansion process is much like the formation process in having to educate and garner support from property owners in order for the district to be approved.
City of Modesto, CA
Contact: Josh Bridegroom, 209.202.5525
Nancy Hormann started working with Downtown Modesto to create their Downtown Parking Plan. During the creation of the plan it was determined the organization was not capable of carrying out the duties needed to manage the program. Additionally there were two competing Downtown Organizations (BID &PBID) that did not work together at all. She was then asked to facilitate their BID association reorganization, conduct the Executive Search to replace retiring Director and created a plan and path to move forward with the consolidation of their BID and PBID organizations. That process has garnered support of the membership (through community outreach) and from both Boards of Directors and the City Council. They are in the process of implementing the plan.
This is an exciting project and we thank you for the opportunity to submit our proposal for your consideration. Please contact me at if I may provide any additional information. I look forward to hearing from you.
Sincerely,
Kristin Lowell,
President
enclosures
1420 E. ROSEVILLE PARKWAY SUITE 140-342 TEL 916.786.9686 FAX 916.786.0529 ROSEVILLE CALIFORNIA 95661 [email protected]
Kristin Lowell Inc
Public Finance Solutions
CLIENT REFERENCES
Kristin Lowell Inc
Public Finance Solutions
CLIENT REFERENCES
City of San Francisco City of Chico
Chris Corgas Tom DiGiovanni
Senior Program Manager
Board Chair
Office of Economic and Workforce
Chico Downtown Association
Development
1 Dr. Carlton B. Goodlett Place, Room 448 530.893.8400-office San Francisco, CA 94102 530-624-5091-cell
O: 415-554-6661
[email protected] • Downtown Chico PBID formation • Discover Polk CBD City of Modesto
Japantown CBD Josh Bridegroom
Noe Valley CBD Executive Director
Downtown Modesto Partnership & Downtown
Modesto Association
City of Ventura
Kevin Clerici 209.202.5525-office
Executive Director 209.497.1020-cell
Downtown Ventura Partners
805.641.1090-office Downtown Parking Plan
805.302.1660-cell • BID reorganization and Executive
www.DowntownVentura.org Search
• Consolidation Plan for BID and PBID
• Downtown Ventura PBID formation and
renewals
Kristin Lowell Inc
Public Finance Solutions
STAFF EXPERIENCE
Kristin Lowell Inc
Public Finance Solutions
STAFF EXPERIENCE
The project team will consist of staff from Kristin Lowell, Inc. and Hormann & Associates. Kristin Lowell will act as the project manager and oversee all operations. Resumes for key personnel are attached.
The team members are:
KRISTIN LOWELL, Project Manager that will oversee all aspects of the project and be the main point of contact for the City. Ms. Lowell will also serve as the assessment engineer that will work with the City and steering committee in creating an assessment formula that is tailored to the unique needs of Downtown Merced.
NANCY HORMANN, will oversee the Community outreach, PBID sales and marketing as well as determining the needs and wants of the property owners. She will oversee the creation of the workplan for the PBID
Kristin Lowell Inc
Public Finance Solutions
KRISTIN A. LOWELL
President
EXPERTISE
Kristin Lowell has more than 28 years of experience helping public agencies fund over $750 million of capital improvement projects, maintenance and operations, and revenue monitoring. Kristin has extensive knowledge of various public financing laws, including; assessment districts, business improvements districts, community facilities districts, and school facilities improvement districts. Kristin is a recognized expert in public finance formations to fund capital improvement projects and operations and maintenance activities.
EXPERIENCE
• Business Improvement Districts. BIDs fund improvements and activities such as enhanced safety, maintenance, economic development and marketing campaigns to underutilized commercial and business corridors. Kristin has helped over 40 communities in both California and Nevada in forming/renewing BIDs including; Los Angeles, Berkeley, Pasadena, Santa Monica, San Diego, San Francisco, Reno, Visalia, Stockton, Oakland, Hollywood, and others.
The County of Marin imposed a storm drainage fee to help fund flood control projects to alleviate the perpetual flooding problems in the Ross Valley Watershed area. We initially formed the fee district and every year we update the fee based on the current year's project budget and property database. The fee is imposed on approximately 16,000 parcels and is based on the land use of the parcel and its percentage of impervious area. The higher the imperviousness the higher the fee. We determined the imperviousness for the parcels and calculated the appropriate fee
MST Recycled Water Community Facilities District funded the construction of a water pipeline for recycled water. Its purpose is for the sole use of vineyard and golf course irrigation. The CFD special tax was based on each parcel's estimated irrigated acreage. The construction cost for this project was $15 million and amortized for 20 years.
The Town of Truckee streetscape improvements CFD funds the annual maintenance cost of the sidewalk and streetscape improvements that the Town of Truckee constructed. They used the CFD model instead of a PBID because of the flexibility within the CFD financial model. The special tax rate structure was based on both the building size and square feet of sidewalk frontage. Annually this district raises approximately $70,000 from the CFD special tax.
Napa County Flood Control Maintenance and Watershed Management Programs. This flood protection benefit assessment district annually raises funds that allow the county flood control district to maintain the Napa River and its tributaries. Kristin's responsibilities included compiling a property database of over 44,000 parcels, dividing these parcels into appropriate flood drainage areas, analyzing the benefit that each parcel receives from the flood maintenance programs, and allocating the flood project costs to each parcel based on the benefit that each parcel receives
RECOGNITION
Kristin has been a featured speaker for U.C. Davis, U.C.L.A. and Georgetown University on current best practices on district formations and the legalities of Proposition 218.
EDUCATION
University of California, Davis - Bachelor of Arts, 1987 Kristin Lowell Inc
Public Finance Solutions
NANCY HORMANN
President
Hormann & Associates
urban marketing and management
EXPERTISE
With over 30 years of experience in developing, marketing and management of downtown programs, Ms.
Hormann brings a depth and breadth of successful, hands-on experience in business district formation and management; downtown revitalization; tourism and hospitality management and promotion, and marketing and event design and execution
EXPERIENCE
Began her executive career in the City of Solvang, CA (a tourism-centric Danish Village), creating both the organization and subsequently serving as the founding CEO of the then newly-formed Solvang Visitor's Bureau.
With 28 years of experience in executive leadership, and developing innovative and cost effective downtown marketing and management programs, Nancy has extensive practitioner knowledge, too. As an executive in these arenas, Ms. Hormann has applied her expertise as the Downtown executive in cities as diverse as Dallas, Sacramento, San Francisco, Raleigh and Tempe. She is well versed and eminently qualified and experienced in all aspects of commercial district (re)vitalization, including district formation, executive leadership, special events, district service management, parking, retail recruitment/retention and program development and implementation.
Working closely with property owners, municipal elected and management leaders and community stakeholders, she has guided more than 20 cities across the nation through the creation of improvement districts. Ms. Hormann was honored to form the State of California's first property-based Business Improvement District, and in Flagstaff, AZ, she and lent her hand in creating Arizona's first Revitalization District.
As VP/General Manager of Southlake Town Square, she took charge of the newly-built suburban downtown, from pre-opening through three expansions, and, in less than 2 years, positioned the project as one of the top shopping/entertainment destinations in the Dallas/ Fort Worth Metroplex.
Starting in 2009 for six years, she led the effort to (re)vitalize Downtown Tempe's Mill Avenue District. While in Tempe she created a successful comprehensive parking program. Taking over the operations, management and maintenance of all on-street and off-street parking for both the public and private sector throughout downtown.
Within the first year the District also took on the responsibility of enforcement. This award winning approach is being replicated across the country. By 2012 Downtown Tempe grew to be the second most sought after office destination in the nation.
EDUCATION
University of California, Los Angeles - Bachelor of Arts, 1971 Kristin Lowell Inc
Public Finance Solutions
CONSULTANT TEAM
Kristin Lowell Inc
Public Finance Solutions
CONSULTANT TEAM
The Consultant Team has unmatched history in successfully forming PBIDs throughout the state since the PBID law was approved in 1994. Nancy Hormann was one of the original consultants to form PBIDs in the state and Kristin Lowell was one of the first assessment engineers to write an Engineer's Report for these districts.
KRISTIN LOWELL, INC. is a public financing firm specializing in public financing district formation and administration. In its twenty-eight years of experience assisting public agencies, KLI has helped public agencies raise more than $750 million through CFD or assessment district formations to finance a variety of projects in California. Because of the differing needs of each project we work with each client to develop unique strategies that are tailored to meet those needs. The firm's specialties include; analyzing financing district options; establishing special tax formulas and assessment methodologies, quantifying special and general benefit, database management, and tracking development after financing plans are adopted. KLI has consulted for over 45 business improvement districts in California and Nevada to revitalize downtown areas which have helped increase local tax revenue and enhance property values.
Throughout California we have assisted over 45 cities and business districts to form property-based Business Improvement Districts ("PBIDs"). These PBIDs fund supplemental public services, such as; enhanced safety, maintenance, economic development and marketing campaigns in designated commercial areas. Some of the cities we have helped establish PBIDs are; San Francisco, Sacramento, Los Angeles, Berkeley, San Diego, Visalia, Stockton, Oakland, Santa Monica, and numerous others.
Some of the more recent projects in California are:
• Japantown CBD; San Francisco, CA
Contact: Chris Corgas, 415.554.6661, [email protected] KLI assisted community business and residential leaders to form one of San Francisco's newest CBDs. The two-year process included a recalibration of boundaries to align the district more closely with common needs and community support. We facilitated the community outreach process to develop the CBD Management Plan and Engineer's Report and guided the subsequent petition and ballot processes.
• Downtown Chico, CA
Contact: Tom DiGiovanni, 530.893.8400
Nancy Hormann and Kristin Lowell worked with the downtown stakeholders through a grass- roots effort to establish the city's first PBID. There was no business organization to start with so we began the process with just a few interested property owners. Through successful leadership and guidance, the PBID was formed with an 81% voter approval.
Kristin Lowell Inc.
Public Finance Solutions
• Oakland, CA (Downtown PBID, Lake Merritt PBID renewals) Ventura, CA (Downtown PBID renewal and expansion)
• Santa Paula, CA (Downtown PBID formation)
HORMANN & ASSOCIATES, LLC, was founded in 1991 by Nancy Hormann, the firm's principal. With over 35 years of experience in developing, marketing and management of downtown programs, Ms.
Hormann brings a depth and breadth of successful, hands-on experience in business district formation and management; downtown revitalization; tourism and hospitality management and promotion, and marketing and event design and execution that is seldom found in business district consulting. Ms.
Hormann, while serving as the CEO of the Downtown Sacramento Partnership, help create California's PBID legislation and then created the first PBID in the state. She then went on to create The Hollywood Media Business Improvement District, The Hatch Road Business Improvement District, The Van Nuys Auto Row Business Improvement District, The Downtown San Bruno Business Improvement District, The Union Square Business Improvement District, The Telegraph Avenue Business Improvement District, The Downtown Sacramento Business Improvement District, Florin Road Improvement District, Downtown El Cajon Business Improvement District, Lakeshore Avenue Business Improvement District, Downtown Center Los Angeles Business Improvement District, Downtown San Diego Business Improvement District, Buckhead Improvement District, Downtown Seattle Business Improvement District, Downtown Flagstaff Business Improvement & Revitalization District
Ms. Hormann and her colleagues uniquely are able to effectively and efficiently assess a community's current status and competitive position and respond to the unique context of each community.
Hormann & Associates creates solutions that are based on reality and that have been tested in the marketplace.
Some of the more recent projects:
Over the last 3 years we have created the Downtown Parking Plan, facilitated their BID association reorganization, conducted the Executive Search to replace retiring Director and created a plan and path to move forward with the consolidation of their BID and PBID organizations. • City of Modesto, CA
Contact: Josh Bridegroom, 209.202.5525
Nancy Hormann started working with Downtown Modesto to create their Downtown Parking Plan. During the creation of the plan it was determined the organization was not capable of carrying out the duties needed to manage the program. Additionally there were two competing Downtown Organizations (BID &PBID) that did not work together at all. She was then asked to facilitate their BID association reorganization, conduct the Executive Search to replace retiring Kristin Lowell Inc
Public Finance Solutions
Director and created a plan and path to move forward with the consolidation of their BID and PBID organizations. That process has garnered support of the membership (through community outreach) and from both Boards of Directors and the City Council. They are in the process of implementing the plan.
Other recent projects include:
• Downtown Phoenix - Roosevelt Row (Downtown BID Formation) Chico, CA (Downtown PBID formation)
• Chandler, AZ (Downtown BID renewal and organization compliance) • Downtown Phoenix - (PBID and Economic Development Organization consolidation) Kristin Lowell Inc.
Public Finance Solutions
SCOPE OF SERVICE
Kristin Lowell Inc
Public Finance Solutions
SCOPE OF SERVICE
Working in concert with downtown Merced stakeholders and the City of Merced, the consultant team of district development professionals will assist in creating a new PBID tailored to the unique needs and real estate dynamics of downtown Merced.
We will guide a strategically-led process that includes facilitating stakeholder education and consensus building, developing a PBID management district plan, preparing for a property owner petition drive, managing a property owner petition campaign, and securing adoption of the PBID by the Merced City Council.
Specific project objectives include:
• Assess the current dynamics of Downtown Merced's economic, political and planning environment, including significant market changes that have occurred and those that can be reasonably expected through the next five years.
• Determine how the PBID should best be positioned and organized to respond to current challenges and opportunities.
• Affirm program priorities for the PBID and develop a holistic district management plan and engineer's report to ensure that initiatives strengthen and unify overall district management efforts.
• Engage a variety of Downtown Merced PBID stakeholders (i.e. property owners, businesses, civic leaders, etc.) in a participatory process to form the PBID. • Capitalize on collective expertise and provide hands-on training to the Downtown Merced Advisory Board to prepare the organization for the eventual management of PBID services.
In order to complete the project objectives, three phases are anticipated as follows:
Phase One: Initial Analysis and Review
Deliverable: Site Analysis and Information Needs
In order for the Consultant team to become fully knowledgeable of downtown's dynamics, we will review plans and market studies that been completed.
1.1 Orientation Site Visit
The consultant team will undertake an initial project orientation site visit to become acquainted with the downtown area. During this visit we will meet with influential property and business Kristin Lowell Inc
Public Finance Solutions
owners, civic leaders and city officials. An initial workshop to finalize expectations and parameters for the process will be convened with the PBID Steering Committee.
1.2 Database Development
The Consultants will coordinate with the City to establish a comprehensive property database from available information at the City, County and other existing sources. The database will be designed for a variety of uses, including periodic mailings to property owners, source data for assessment scenarios and tracking for the PBID petition and 218 ballot campaigns.
Upon conclusion of the site visit, the consultant team will work with steering committee members and city staff to outline necessary information needed to move forward with PBID formation and education efforts.
Phase Two: Document Preparation and Benefit Analysis
Deliverable: Management District Plan Summary Report
Based upon our understanding of the current market conditions obtained in Phase One we will draft an initial PBID Management District Plan Summary Report for the district. In order to do so, we will conduct the following tasks.
2.1 Consensus Building/Education
Reaching out to District property owners, business owners and civic leaders, the Consultants propose a mix of focus groups, direct mail surveys and one-on-one meetings to identify PBID service priorities and the degree of financial support needed for the desired services.
Stakeholder Focus Groups: The consultant team will conduct a series of no less than four focus groups with selected Roosevelt Row stakeholders. Each focus group will contain participants representing a stakeholder segment within the proposed district (i.e. retail, service, hospitality, property owners, City officials, etc.) and/or a specific geographic sub-district. The focus groups will aim to identify priorities for specific District services and the willingness of stakeholders to pay something to receive new services. Other organizational issues will be explored.
Focus group segments and participants will be identified by the Roosevelt Row CDC board. It will be the responsibility of Task Force members, with administrative support, to ensure that invited participants attend the focus groups.
Internet Survey: To complement the focus groups and expand stakeholder participation, an internet survey link can be sent to District property and business owners. Similar to the focus Kristin Lowell Inc.
Public Finance Solutions
groups, the survey would aim to assess priority needs and the appetite for financially supporting new district services.
One-on-One Meetings: The consultant team, working with The Roosevelt Row board, can arrange one-on-one meetings with key District stakeholders to provide an BID overview, determine service priorities and issues related to the PBID formation process.
Clarification of City and County PBID participation policies will begin during this step, including the development of a Base Level of Services Agreement and determination of both the City and County's "fair share" contribution.
2.2 District Priorities and Budget
The Consultants will work with the Steering Committee to identify the top PBID services and activities as identified in Step 2.1. Once the top 2-3 services have been identified Consultants will prepare a budget to fully fund the BID's first year of operation.
2.3 Owners' Association Creation (Addendum to move to Phase Three) Upon successfully forming the PBID, Consultants will work with the steering committee to setup the management organization
2.4 Draft Management District Plan Summary
Consultants will prepare the draft Management District Plan Summary Report that will outline the parameters of the PBID; including district boundary, PBID services and activities, budget, assessment rates, governance, and district duration.
2.5 Stakeholder Review (Go/No Go)
Consultants will present the draft Management District Plan Summary Report to the Steering Committee and key stakeholders to obtain consensus. Upon Steering Committee direction to proceed, Consultants will move into Phase Three to prepare the final documents and legal formation.
Upon conclusion of Phase Two services, the consultant team and steering committee will recommend whether or not to proceed with the PBID formation.
Kristin Lowell Inc
Public Finance Solutions
Phase Three: Management Plan and Engineer's Report
Deliverable: Final Reports and Formation Documents
3.1 Finalize Database
Consultants will finalize the database; i.e. update property ownership and parcel characteristics used to calculate assessments and to generate the petitions.
3.2 Assessment Methodologies (Addendum to move to Phase Two Using the information obtained in the above steps, the Consultants will calculate up to 3 assessment methodologies that will equitably assess each property in direct relation to the special benefits each parcel receives. In order to do so, Consultant will quantify both the special benefits and general benefits for the PBID services and activities.
3.3 Prepare Final Management District and Engineer's Report Using the Management District Plan Summary Report, Consultants will craft the final Management District Plan. Following the Management District Plan a certified engineer will prepare the Engineer's Report to be in compliance with Proposition 218. The Report will detail the assessment methodology and how each parcel specially benefits from the proposed improvements and activities and identify if there are any general benefits. The Engineer's Report is a requirement of California's Proposition 218. Note: The City will be responsible for preparing the requisite map.
3.4 Final Legal Review
The City Attorney will undertake a final review of the Management District Plan and Engineer's Report and initiate preparations for the property owner petition drive, including review of the draft petition and petition collection procedure.
3.5 Petition Preparation and Distribution
The Consultants will prepare the petition and a summary newsletter that communicates the parameters and benefits of the PBID. The newsletter will summarize the Management District Plan and will be distributed with petitions. The actual petition package for property owners will consist of several items, including a summary of the PBID Management District Plan, petition and newsletter. The Consultant will work with the district to ensure that these materials are assembled and prepared properly. It is the responsibility of the client to mail the petition packets.
Kristin Lowell Inc
Public Finance Solutions
3.6 Campaign Strategy and Training
In concert with steering committee, Consultants will develop a campaign strategy and timetable to complete the property owner support drive. Elements of campaign strategy will include individual property owner, executive and board roles in securing petitions, campaign marketing tools, geographic strategies and other considerations.
Consultants will work with steering committee to identify a Task Force to help sell the PBID.
Throughout the PBID formation process, the membership of this Task Force is anticipated to grow. In preparation for the petition drive, the Task Force members will be mobilized per the campaign strategy. Sector captains may be appointed to oversee campaign activities within specific areas. To support the Task Force communication tools will be developed.
Talking Points: Talking points will be developed to assist members of the PBID Task Force to communicate accurate and targeted information about the PBID.
Visual Presentation: A PowerPoint presentation will be developed to educate property owners and other stakeholders on the benefits of PBIDs and the specific services proposed within the PBID. The slide presentation could be posted online to broaden its distribution and use.
3.7 Ballots, Notice and Resolutions
Following the submission of petitions to the City Council, the Consultant will prepare the Assessment Ballots and Assessment Notice that will be mailed to all assessed property owners upon City Council approval of the Resolution of Intention. Consultant will prepare draft Resolutions needed for the City to complete the Prop. 218 ballot process.
3.8 Public Hearing
Consultants will attend the Public Hearing in which the City Clerk will be directed to open and tabulate the assessment ballots received. Consultants will be available to answer any questions and/or make a presentation to the City Council.
Kristin Lowell Inc
Public Finance Solutions
Project Timeline
The Consultant shall work with the steering committee to make sure that all necessary steps and procedures are completed by Summer 2021. The following is the estimated timeline for such completion.
Jan - Feb 2021: Site orientation and project logistics
March - May: Assessment Scenarios
Draft Management District Plan (MDP) for review,
Public Outreach to build consensus
June: Final MDP and Engineer's Report upon City review
July: Prepare petitions and petition packets to include; Management District Plan Summary, PBID newsletter, official petition and petition instructions Aug-Oct: Petition kick-off (allow 3 months)
November: City Council approves Resolution of Intention and calls for public hearing; Assessment ballots mailed to all assessed property owners December 2021: City Council public hearing, tabulate ballots (45 days later) Winter 2022: PBID organizational structure and PBID services begin (with loan from City of bank) Kristin Lowell Inc
Public Finance Solutions
CONTRACT TERMINATION
Kristin Lowell Inc
Public Finance Solutions
CONTRACT TERMINATION
The consultant team has not experienced any contract termination.
Kristin Lowell Inc
Public Finance Solutions
BUDGET
Kristin Lowell Inc
Public Finance Solutions
BUDGET
Below is the amended budget to reflect the additional cost for GIS mapping.
LOWELL HORMANN
TRAVEL
Rate Rate
and
TASK Hrs 175 Hrs 175 EXPENSES* TOTAL
PHASE ONE: INITIAL ANALYSIS AND REVIEW
1.1 Project Orientation 20 3,500 20 3,500 1,250 8,250
1.2 Database Development 40 7,000 0 7,000
Phase One Sub-Total 60 10,500 20 3,500 1,250 15,250
PHASE TWO: DOCUMENT PREPARATION AND BENEFIT ANALYSIS
2.1 Consensus Building/Education 20 3,500 40 7,000 1,250 11,750
2.2 District Priorities and Budget 10 1,750 5 875 2,625
2.3 Owners' Assocation Setup 0 10 1,750 1,750
2.4 Draft MDP Summary 20 3,500 5 875 6,000 10,375
2.5 Stakeholder Review (Go/No-Go) 12 2,100 12 2,100 1,250 5,450 Phase Two Sub-Total 62 10,850 72 12,600 8,500 31,950
PHASE THREE: MANAGEMENT PLAN AND ENGINEER'S REPORT
3.1 Finalize Database 5 875 0- 0 875
3.2 Assessment Methodologies 20 3,500 875 4,375
3.3 Management Plan and Engineer's Report 50 8,750 10 1,750 10,500
3.4 Final Legal Review 5 875 0 875
3.5 Petition Prep and Distribution 20 3,500 5 875 1,250 5,625
3.6 Campaign Strategy and Training 0 0 25 4,375 750 5,125
3.7 Ballots, Notice and Resolutions 15 2,625 0 0 2,625
3.8 Public Hearing 12 2,100 12 2,100 1,250 5,450
Phase Three Sub-Total 127 22,225 57 9,975 3,250 35,450
TOTAL 249 43,575 149 26,075 13,000 82,650
* Note: Estimate 5 trips for Lowell @ $500/trip, and 6 trips for Hormann @ $750/trip.
Kristin Lowell Inc.
Public Finance Solutions
EXHIBIT B
Kristin Lowell Inc.
Public Finance Solutions
DOWNTOWN MERCED PBID
AMENDED Fees and Expenses
LOWELL HORMANN
Rate Rate TRAVEL and
TASK Hrs 175 Hrs 175 EXPENSES* TOTAL
PHASE ONE: INITIAL ANALYSIS AND REVIEW
1.1 Project Orientation 20 3,500 20 3,500 1,250 8,250
1.2 Database Development 40 7,000 0 7,000
Phase One Sub-Total 60 10,500 20 3,500 1,250 15,250
PHASE TWO: DOCUMENT PREPARATION AND BENEFIT ANALYSIS
2.1 Consensus Building/Education 20 3,500 40 7,000 1,250 11,750
2.2 District Priorities and Budget 10 1,750 5 875 2,625
2.3 Owners' Assocation Setup 10 1,750 1,750
2.4 Draft MDP Summary 20 3,500 5 875 6,000 10,375
2.5 Stakeholder Review (Go/No-Go) 12 2,100 12 2,100 1,250 5,450 Phase Two Sub-Total 62 10,850 72 12,600 8,500 31,950
PHASE THREE: MANAGEMENT PLAN AND ENGINEER'S REPORT
3.1 Finalize Database 875
3.2 Assessment Methodologies 3,500 875 4,375
3.3 Management Plan and Engineer's Report 50 8,750 10 1,750 10,500
3.4 Final Legal Review 875 0 875
3.5 Petition Prep and Distribution 20 3,500 5 875 1,250 5,625
3.6 Campaign Strategy and Training 0 25 4,375 750 5,125
3.7 Ballots, Notice and Resolutions 15 2,625 2,625
3.8 Public Hearing 12 2,100 12 2,100 1,250 5,450
Phase Three Sub-Total 127 22,225 57 9,975 3,250 35,450
TOTAL 249 43,575 149 26,075 13,000 82,650
* Note: Estimate 5 trips for Lowell @ $500/trip, and 6 trips for Hormann @ $750/trip. 1420 E. ROSEVILLE PARKWAY SUITE 140-342 TEL 916.786.9686 FAX 916.786.0529 ROSEVILLE CALIFORNIA 95661 [email protected]