3. Glass Breakage — Hitting A Bird Or Animal —
Falling Objects Or Missiles
If you carry Comprehensive Coverage for the
damaged covered "auto", we will pay for the
following under Comprehensive Coverage:
a. Glass breakage;
b. "Loss" caused by hitting a bird or animal;
and
c. "Loss" caused by falling objects or missiles.
However, you have the option of having glass
breakage caused by a covered "auto's"
collision or overturn considered a "loss" under
Collision Coverage.
4. Coverage Extensions
a. Transportation Expenses
We will pay up to $20 per day, to a
maximum of $600, for temporary
transportation expense incurred by you
because of the total theft of a covered
"auto" of the private passenger type. We
will pay only for those covered "autos" for
which you carry either Comprehensive or
Specified Causes Of Loss Coverage. We
will pay for temporary transportation
expenses incurred during the period
beginning 48 hours after the theft and
ending, regardless of the policy's expiration,
when the covered "auto" is retumed to use
or we pay for its "loss".
b. Loss Of Use Expenses
For Hired Auto Physical Damage, we will
pay expenses for which an "insured"
becomes legally responsible to pay for loss
of use of a vehicle rented or hired without a
driver under a written rental contract or
agreement. We will pay for loss of use
expenses if caused by:
(1) Other than collision only if the
Declarations indicates that
Comprehensive Coverage is provided
for any covered "auto";
(2) Specified Causes Of Loss only if the
Declarations indicates that Specified
Causes Of Loss Coverage is provided
for any covered "auto"; or
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(3) Collision only if the Declarations
indicates that Collision Coverage is
provided for any covered "auto".
However, the most we will pay for any
expenses for loss of use is $20 per day, to
a maximum of $600.
B. Exclusions
1. We will not pay for "loss" caused by or resulting
from any of the following. Such "loss" is
excluded regardless of any other cause or
event that contributes concurrently or in any
sequence to the "loss".
a. Nuclear Hazard
(1) The explosion of any weapon employing
atomic fission or fusion; or
(2) Nuclear reaction or radiation, or
radioactive contamination, however
caused.
b. War Or Military Action
(1) War, including undeclared or civil war;
(2) Warlike action by a military force,
including action in hindering or
defending against an actual or expected
attack, by any government, sovereign or
other authority using military personnel
or other agents; or
(3) Insurrection, rebellion, revolution,
usurped power or action taken by
govemmental authority in hindering or
defending against any of these.
2. We will not pay for "loss" to any covered "auto"
while used in any professional or organized
racing or demolition contest or stunting activity,
or while practicing for such contest or activity.
We will also not pay for "toss" to any covered
"auto" while that covered "auto" is being
prepared for such a contest or activity.
3. We will not pay for "loss" due and confined to:
a. Wear and tear, freezing, mechanical or
electrical breakdown.
b. Blowouts, punctures or other road damage
to tires.
This exclusion does not apply to such "loss"
resulting from the total theft of a covered
"auto".
4. We will not pay for "loss" to any of the
following:
a. Tapes, records, discs or other similar audio,
visual or data electronic devices designed
for use with audio, visual or data electronic
equipment.
CA00011013
b. Any device designed or used to detect
speed -measuring equipment, such as radar
or laser detectors, and any jamming
apparatus intended to elude or disrupt
speed -measuring equipment.
c. Any electronic equipment, without regard to
whether this equipment is permanently
installed, that reproduces, receives or
transmits audio, visual or data signals.
d. Any accessories used with the electronic
equipment described in Paragraph c.
above.
5. Exclusions 4.c. and 4.d. do not apply to
equipment designed to be operated solely by
use of the power from the "auto's" electrical
system that, at the time of "loss", is:
a. Permanently installed in or upon the
covered "auto";
b. Removable from a housing unit which is
permanently installed in or upon the
covered "auto";
c. An integral part of the same unit housing
any electronic equipment described in
Paragraphs a. and b. above; or
d. Necessary for the normal operation of the
covered "auto" or the monitoring of the
covered "auto's" operating system.
6. We will not pay for "loss" to a covered "auto"
due to "diminution in value".
C. Limits Of Insurance
1. The most we will pay for:
a. "Loss" to any one covered "auto" is the
lesser of.
(1) The actual cash value of the damaged
or stolen property as of the time of the
"loss"; or
(2) The cost of repairing or replacing the
damaged or stolen property with other
property of like kind and quality.
b. All electronic equipment that reproduces,
receives or transmits audio, visual or data
signals in any one "loss" is $1,000, if, at the
time of "loss", such electronic equipment is:
(1) Permanently installed in or upon the
covered "auto" in a housing, opening or
other location that is not normally used
by the "auto" manufacturer for the
installation of such equipment;
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(2) Removable from a permanently installed
housing unit as described in Paragraph
b.(1) above; or
(3) An integral part of such equipment as
described in Paragraphs b.(1) and b.(2)
above.
2. An adjustment for depreciation and physical
condition will be made in determining actual
cash value in the event of a total "loss".
3. If a repair or replacement results in better than
like kind or quality, we will not pay for the
amount of the betterment.
D. Deductible
For each covered "auto", our obligation to pay for,
repair, return or replace damaged or stolen
property will be reduced by the applicable
deductible shown In the Declarations. Any
Comprehensive Coverage deductible shown in the
Declarations does not apply to "loss" caused by
fire or lightning.
SECTION IV - BUSINESS AUTO CONDITIONS
The following conditions apply in addition to the
Common Policy Conditions:
A. Loss Conditions
1. Appraisal For Physical Damage Loss
If you and we disagree on the amount of "loss",
either may demand an appraisal of the "loss".
In this event, each party will select a competent
appraiser. The two appraisers will select a
competent and impartial umpire. The
appraisers will state separately the actual cash
value and amount of "loss". If they fail to agree,
they will submit their differences to the umpire.
A decision agreed to by any two will be
binding. Each party will:
a. Pay its chosen appraiser, and
b. Bear the other expenses of the appraisal
and umpire equally.
If we submit to an appraisal, we will still retain
our right to deny the claim.
2. Duties In The Event Of Accident, Claim, Suit
Or Loss
We have no duty to provide coverage under
this policy unless there has been full
compliance with the following duties:
a. In the event of "accident', claim, "suit" or
"loss", you must give us or our authorized
representative prompt notice of the
"accident' or "loss". Include:
(1) How, when and where the "accident' or
"loss" occurred;
Page S of 12
(2) The "insured's" name and address; and
(3) To the extent possible, the names and
addresses of any injured persons and
witnesses.
b. Additionally, you and any other involved
"insured" must:
(1) Assume no obligation, make no
payment or incur no expense without
our consent, except at the "insured's"
own cost.
(2) Immediately send us copies of any
request, demand, order, notice,
summons or legal paper received
oonceming the claim or "suit".
(3) Cooperate with us in the investigation or
settlement of the claim or defense
against the "suit".
(4) Authorize us to obtain medical records
or other pertinent information.
Submit to examination, at our expense,
by physicians of our choice, as often as
we reasonably require.
c. If there is "loss" to a covered "auto" or its
equipment, you must also do the following:
(1) Promptly notify the police if the covered
"auto" or any of its equipment is stolen.
(2) Take ail reasonable steps to protect the
covered "auto" from further damage.
Also keep a record of your expenses for
consideration in the settlement of the
claim.
(3) Permit us to inspect the covered "auto"
and records proving the "loss" before its
repair or disposition.
(4) Agree to examinations under oath at our
request and give us a signed statement
of your answers.
3. Legal Action Against Us
No one may bring a legal action against us
under this Coverage Form until:
a. There has been full compliance with all the
terms of this Coverage Form; and
b. Under Covered Autos Liability Coverage,
we agree in writing that the "insured" has an
obligation to pay or until the amount of that
obligation has finally been determined by
judgment after trial. No one has the right
under this policy to bring us into an action
to determine the "insured's" liability.
(5)
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4. Loss Payment — Physical Damage
Coverages
At our option, we may:
a. Pay for, repair or replace damaged or
stolen property;
b. Retum the stolen property, at our expense.
We will pay for any damage that results to
the "auto" from the theft; or
c. Take all or any part of the damaged or
stolen property at an agreed or appraised
value.
If we pay for the "loss", our payment will
include the applicable sales tax for the
damaged or stolen property.
5. Transfer Of Rights Of Recovery Against
Others To Us
If any person or organization to or for whom we
make payment under this Coverage Form has
rights to recover damages from another, those
rights are transferred to us. That person or
organization must do everything necessary to
secure our rights and must do nothing after
"accident" or "loss" to impair them.
B. General Conditions
1. Bankruptcy
Bankruptcy or insolvency of the "insured" or the
"insured's" estate will not relieve us of any
obligations under this Coverage Form.
2. Concealment, Misrepresentation Or Fraud
This Coverage Form is void in any case of
fraud by you at any time as it relates to this
Coverage Form. It is also void if you or any
other "insured", at any time, intentionally
conceals or misrepresents a material fact
concerning:
a. This Coverage Form;
b. The covered "auto";
c. Your interest in the covered "auto";
d. A claim under this Coverage Form.
3. Liberalization
If we revise this Coverage Form to provide
more coverage without additional premium
charge, your policy will automatically provide
the additional coverage as of the day the
revision is effective in your state.
4. No Benefit To Bailee — Physical Damage
Coverages
We will not recognize any assignment or grant
any coverage for the benefit of any person or
organization holding, storing or transporting
property for a fee regardless of any other
provision of this Coverage Form.
or
5. Other insurance
a. For any covered "auto" you own, this
Coverage Form provides primary
insurance. For any covered "auto" you don't
own, the insurance provided by this
Coverage Form is excess over any other
collectible insurance. However, while a
covered "auto" which is a "trailer" is
connected to another vehicle, the Covered
Autos Liability Coverage this Coverage
Form provides for the "trailer" is:
(1) Excess while it is connected to a motor
vehicle you do not own; or
(2) Primary while it is connected to a
covered "auto" you own.
b. For Hired Auto Physical Damage Coverage,
any covered "auto" you lease, hire, rent or
barrow is deemed to be a covered "auto"
you own. However, any "auto" that is
leased, hired, rented or borrowed with a
driver is not a covered "auto".
c. Regardless of the provisions of Paragraph
a. above, this Coverage Form's Covered
Autos Liability Coverage is primary for any
liability assumed under an "insured
contract".
d. When this Coverage Form and any other
Coverage Form or policy covers on the
same basis, either excess or primary, we
will pay only our share. Our share is the
proportion that the Limit of Insurance of our
Coverage Form bears to the total of the
limits of all the Coverage Forms and
policies covering on the same basis.
6. Premium Audit
a. The estimated premium for this Coverage
Form is based on the exposures you told us
you would have when this policy began. We
will compute the final premium due when
we determine your actual exposures. The
estimated total premium will be credited
against the final premium due and the first
Named Insured will be billed for the
balance, if any. The due date for the final
premium or retrospective premium is the
date shown as the due date on the bill. If
the estimated total premium exceeds the
final premium due, the first Named Insured
will get a refund.
b. If this policy is issued for more than one
year, the premium for this Coverage Form
will be computed annually based on our
rates or premiums in effect at the beginning
of each year of the policy.
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7. Policy Period, Coverage Territory
Under this Coverage Form, we cover
"accidents" and "losses" occurring:
a. During the policy period shown in the
Declarations; and
b. Within the coverage territory.
The coverage territory is:
(1) The United States of America;
(2) The territories and possessions of the
United States of America;
(3) Puerto Rico;
(4) Canada; and
(S) Anywhere in the world if a covered
"auto" of the private passenger type is
leased, hired, rented or borrowed
without a driver for a period of 30 days
or less,
provided that the 'Insured's" responsibility to
pay damages is determined in a "suit" on the
merits, in the United States of America, the
territories and possessions of the United States
of America, Puerto Rico or Canada, or in a
settlement we agree to.
We also cover "loss" to, or "accidents"
involving, a covered "auto" while being
transported between any of these places.
8. Two Or More Coverage Forms Or Policies
Issued By Us
If this Coverage Form and any other Coverage
Form or policy issued to you by us or any
company affiliated with us applies to the same
"accident", the aggregate maximum Limit of
Insurance under all the Coverage Forms or
policies shall not exceed the highest applicable
Limit of Insurance under any one Coverage
Form or policy. This condition does not apply to
any Coverage Form or policy issued by us or
an affiliated company specifically to apply as
excess insurance over this Coverage Form.
SECTION V - DEFINITIONS
A. "Accident" includes continuous or repeated
exposure to the same conditions resulting in
"bodily Injury" or "property damage".
B. "Auto" means:
1. A land motor vehicle, "trailer" or semitrailer
designed for travel on public roads; or
2. Any other land vehicle that is subject to a
compulsory or financial responsibility law or
other motor vehicle insurance law where it is
licensed or principally garaged.
However, "auto" does not include "mobile
equipment".
C. "Bodily injury" means bodily injury, sickness or
disease sustained by a person, including death
resulting from any of these.
D. "Covered pollution cost or expense" means any
cost or expense arising out of
1. Any request, demand, order or statutory or
regulatory requirement that any "insured" or
others test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in any
way respond to, or assess the effects of,
"pollutants"; or
2. Any claim or "suit" by or on behalf of a
govemmental authority for damages because
of testing for, monitoring, cleaning up,
removing, containing, treating, detoxifying or
neutralizing, or in any way responding to, or
assessing the effects of, "pollutants".
"Covered pollution cost or expense" does not
include any cost or expense arising out of the
actual, alleged or threatened discharge, dispersal,
seepage, migration, release or escape of
"pollutants":
a. That are, or that are contained in any
property that is:
(1) Being transported or towed by, handled
or handled for movement into, onto or
from the covered "auto";
(2) Otherwise in the course of transit by or
on behalf of the "insured"; or
(3) Being stored, disposed of, treated or
processed in or upon the covered
"auto";
b. Before the "pollutants" or any property in
which the "pollutants" are contained are
moved from the place where they are
accepted by the "insured" for movement
into or onto the covered "auto"; or
c. After the "pollutants" or any property in
which the "pollutants" are contained are
moved from the covered "auto" to the place
where they are finally delivered, disposed of
or abandoned by the "insured".
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Paragraph a. above does not apply to fuels,
lubricants, fluids, exhaust gases or other
similar "pollutants" that are needed for or result
from the normal electrical, hydraulic or
mechanical functioning of the covered "auto" or
its parts, if:
(1) The "pollutants" escape, seep, migrate
or are discharged, dispersed or released
directly from an "auto" part designed by
its manufacturer to hold, store, receive
or dispose of such "pollutants"; and
(2) The "bodily injury", "property damage" or
"covered pollution cost or expense"
does not arise out of the operation of
any equipment listed in Paragraph 6.b.
or 6.c. of the definition of "mobile
equipment'.
Paragraphs b. and c. above do not apply to
"accidents" that occur away from premises
owned by or rented to an "insured" with respect
to "pollutants" not in or upon a covered "auto"
if.
(a) The "pollutants" or any property in
which the "pollutants" are contained
are upset, overtumed or damaged as
a result of the maintenance or use of
a covered "auto"; and
(b) The discharge, dispersal, seepage,
migration, release or escape of the
"pollutants" is caused directly by
such upset, overtum or damage.
E. "Diminution in value" means the actual or
perceived loss in market value or resale value
which results from a direct and accidental "loss".
F. "Employee"
"Employee"
worker'.
includes a "leased worker'.
does not include a "temporary
G. "Insured" means any person or organization
qualifying as an insured in the Who Is An Insured
provision of the applicable coverage. Except with
respect to the Limit of Insurance, the coverage
afforded applies separately to each insured who is
seeking coverage or against whom a claim or
"suit" is brought.
H. "Insured contract" means:
1. A lease of premises;
2. A sidetrack agreement;
3. Any easement or license agreement, except in
connection with construction or demolition
operations on or within 50 feet of a railroad;
4. An obligation, as required by ordinance, to
indemnify a municipality, except in connection
with work for a municipality;
5. That part of any other contract or agreement
pertaining to your business (including an
indemnfication of a municipality in connection
with work performed for a municipality) under
which you assume the tort liability of another to
pay for "bodily injury" or "property damage" to a
third party or organization. Tort liability means
a liability that would be imposed by law in the
absence of any contract or agreement; or
6. That part of any contract or agreement entered
into, as part of your business, pertaining to the
rental or lease, by you or any of your
"employees", of any "auto". However, such
contract or agreement shall not be considered
an "insured contract" to the extent that it
obligates you or any of your "employees" to
pay for "property damage" to any "auto" rented
or leased by you or any of your "employees".
An "insured contract" does not include that part of
any contract or agreement:
a. That indemnifies a railroad for "bodily injury"
or "property damage" arising out of
construction or demolition operations, within
50 feet of any railroad property and
affecting any railroad bridge or trestle,
tracks, roadbeds, tunnel, underpass or
crossing;
b. That pertains to the loan, lease or rental of
an "auto" to you or any of your
"employees", if the "auto" is loaned, leased
or rented with a driver; or
c. That holds a person or organization
engaged in the business of transporting
property by "auto" for hire harmless for your
use of a covered "auto" over a route or
territory that person or organization is
authorized to serve by public authority.
I. "Leased worker' means a person leased to you by
a labor leasing firm under an agreement between
you and the labor leasing firm to perform duties
related to the conduct of your business. "Leased
worker" does not include a "temporary worker".
J. "Loss" means direct and accidental loss or
damage.
K. "Mobile equipment" means any of the following
types of land vehicles, including any attached
machinery or equipment:
1. Bulldozers, farm machinery, forklifts and other
vehicles designed for use principally off public
roads;
2. Vehicles maintained for use solely on or next to
premises you own or rent;
3. Vehicles that travel on crawler treads;
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4. Vehicles, whether self-propelled or not,
maintained primarily to provide mobility to
permanently mounted:
a. Power cranes, shovels, loaders, diggers or
drills; or
b. Road construction or resurfacing equipment
such as graders, scrapers or rollers;
5. Vehicles not described in Paragraph 1., 2., 3.
or 4. above that are not self-propelled and are
maintained primarily to provide mobility to
permanently attached equipment of the
following types:
a. Air compressors, pumps and generators,
including spraying, welding, building
cleaning, geophysical exploration, lighting
and well -servicing equipment; or
b. Cherry pickers and similar devices used to
raise or lower workers; or
6. Vehicles not described in Paragraph 1., 2., 3.
or 4. above maintained primarily for purposes
other than the transportation of persons or
cargo. However, self-propelled vehicles with
the following types of permanently attached
equipment are not "mobile equipment' but will
be considered "autos":
a. Equipment designed primarily for.
(1) Snow removal;
(2) Road maintenance, but not construction
or resurfacing; or
(3) Street cleaning;
b. Cherry pickers and similar devices mounted
on automobile or truck chassis and used to
raise or lower workers; and
c. Air compressors, pumps and generators,
including spraying, welding, building
cleaning, geophysical exploration, lighting
or well -servicing equipment.
However, "mobile equipment" does not include
land vehicles that are subject to a compulsory or
financial responsibility law or other motor vehicle
insurance law where it is licensed or principally
garaged. Land vehicles subject to a compulsory or
financial responsibility law or other motor vehicle
insurance law are considered "autos".
L. "Pollutants" means any solid, liquid, gaseous or
thermal irritant or contaminant, induding smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
M. "Property damage" means damage to or loss of
use of tangible property.
N. "Suit" means a civil proceeding in which:
1. Damages because of "bodily injury" or
"property damage"; or
2. A "covered pollution cost or expense";
to which this insurance applies, are alleged.
"Suit" includes:
a. An arbitration proceeding in which such
damages or "covered pollution costs or
expenses" are daimed and to which the
"insured" must submit or does submit with
our consent; or
b. Any other alternative dispute resolution
proceeding in which such damages or
"covered pollution costs or expenses" are
claimed and to which the insured submits
with our consent.
O. 'Temporary worker" means a person who is
fumished to you to substitute for a permanent
"employee" on leave or to meet seasonal or short-
term workload conditions.
P. 'Trailer" includes semitrailer.
© Insurance Services Office, Inc., 2011
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WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 06 34 (Ed. 8-00)
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT - BLANKET We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us).
The additional premium for this endorsement shall be 3% of the total California Workers' Compensation premium otherwise due.
Schedule
Person or Organization Job Description
ANY PERSON / ORG WHEN REQUIRED ALL CA OPERATIONS
BY WRITTEN CONTRACT
Policy Number WSD505781503
Endorsement Effective:10/24/2023
Issue Date:10/20/2023
WC 99 06 34
(Ed. 8-00)
Insured: Brennan Estimating Services, Inc.
DBA: Brennan Fire and Security
Coverage Provided by: Ins Co of the West
Countersigned by:
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o
Placentia Cit Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF FINANCE
DATE: JUNE 18, 2024
SUBJECT: AWARD OF PROFESSIONAL SERVICES MASTER AGREEMENT WITH
ORACLE AMERICA INC FOR ORACLE NETSUITE FOR GOVERNMENT
FISCAL
IMPACT: Expense: FY 2024-25
Budgeted: FY 2024-25
SUMMARY:
$ 67,542
$169,154
$236,696
$300,000
Annual Costs
One-time Implementation Cost
Total Cost
The City is currently utilizing Finance Enterprise 20.2, a Central Square, Inc. product, as its financial enterprise resource planning (ERP) system. The City has been using various versions of this product since 2006, upgrading to new versions when necessary, with the last upgrade completed in Fiscal Year (FY) 2021-22. Central Square has informed the City that it will no longer support our current version, and we will need to upgrade again in December 2024.
Due to the current needs of the City not supported by our existing ERP system, increasing cost of the software and lack of technical support and customer service from Central Square, Staff researched alternative products that would best meet the City's needs. After reviewing other products on the market, Staff is recommending Oracle NetSuite for Government, an ERP platform designed by Oracle specifically for small to mid -size government agencies. Staff is recommending utilizing the National Association of State Procurement Officials (NASPO) cooperative agreement in accordance with the City's purchasing policy for this purchase.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve an initial five (5) year Professional Services Master Agreement with Oracle America, Inc. for NetSuite for Government for an approximate cost of $236,696 for year one (1), and an annual subscription cost of $67,542 for years two (2) to five (5); and
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
1.1. June 18, 2024
City Council Agenda
June 18, 2024
Page2of3
DISCUSSION:
In order to meet the needs of the City and in our continuous pursuit of enhancing operational efficiency and service delivery, we are proposing to enter into a new professional service agreement with Oracle America for NetSuite for Government. Oracle NetSuite for Government is a comprehensive cloud -based ERP solution tailored specifically for small to midsize government organizations that are asked to do more with less. Its unified platform provides modules such as financial management, budgeting, procurement, grant management, and more. Oracle NetSuite for Government's goal is to help agencies streamline operations, enhance transparency, and improve efficiency. It offers real-time data insights, empowering decision -makers with accurate information to make informed decisions and drive strategic initiatives.
Specific functionalities desired in the new system include:
1. Paperless routing and workflow of invoices, purchase requisitions and purchase orders.
This will greatly increase efficiency in the accounts payable and purchasing process as well as improve budget management as purchase orders will be budget verified and encumbered in the system immediately compared to the current paper -based process which takes several days.
2. Cloud -based system accessible from any computer without the need to remote into a dedicated server which is what the City currently utilizes. This will enhance the ability for staff whom work outside of City Hall to work more efficiently and in real time.
3. Enhanced ability to manage project accounting. Our current system does not have capability for easily tracking projects from one fiscal year to the next, however Oracle's ERP includes project management module to more easily manage projects in their totality, as they often span two or more fiscal years.
4. Digital signatures/approvals with complete audit trail for all transactions.
5. Ability to upload backup documentation including multiple quotes, invoice copies, staff reports, etc. into the system for historical record.
6. Seamless integration with the City's new electronic timekeeping and payroll system, UKG.
FISCAL IMPACT
Our current contract with Central Square has an annual increase of five percent (5%), however we've been notified that they will no longer support our current version after 12/31/2024 without an upgrade. We have not yet received a cost estimate for this upgrade. Oracle is offering the City a static five (5) year price commitment for NetSuite for Government. Based on the 5 -year projection below,
Central Square
Oracle NetSuite
Cost Savings
FY 24/25
104,835
236,696
131,861
FY 25/26
110,077
67,542
(42, 535)
FY 26/27
115,581
67,542
(48, 039)
FY 27/28
121,360
67,542
(53,818)
FY 28/29
127,428
67,542
(59,886)
Total
579,281
506,864
(72,417)
City Council Agenda
June 18, 2024
Page3of3
the City will save $72,417 over five (5) years when compared to maintaining the current finance system, not inclusive of the unknown cost for the required upgrade. Funding for the new system is included in the Adopted FY 2024/25 Capital Improvement Program (CIP) budget.
Prepared by:
Gavin Houn
Senior Financial Analyst
Reviewed and approved: Reviewed and approved:
Pte« ffrratt
Jennifer La`mpman Damien R. Arrula
Director of Finance City Administrator
Attachments:
1. Professional Services Ordering Document (Implementation)
2. Oracle Ordering Document (Subscription)
3. NASPO Value Point Participating Addendum
4. DGS Authorization Document
Ewa Ci
PROFESSIONAL SERVICES
ORDERING DOCUMENT
Ordering Document Number: US -16840667
Oracle America, Inc.
500 Oracle Parkway
Redwood Shores, CA 94065
Your Name:
Your Address:
City of Placentia
401 E Chapman Avenue
Placentia, CA 92870
Oracle
Representative:
Scott Weir
Your Billing
Contact:
Jennifer Lampman
Address:
17901 Von Karman Ave #800
Irvine, CA 92612
Address:
401 E Chapman Avenue
Placentia, CA 92870
Phone Number:
562-370-3384
Phone Number:
714-993-8237
Email Address:
[email protected]
Email Address:
•[email protected]
You have ordered the Services listed in the table below and detailed in the attached exhibit(s), which are incorporated herein by reference.
Services
Reference
Fees
Estimated
Expenses
Total Fees and
Estimated Expenses
Time and Materials Services
Exhibit 1
$153,754.00
$15,400.00
$169,154.00
Total Fees and Estimated Expenses
$169,154.00
A. TERMS
1. Applicable Master Agreement: This order incorporates by reference the Master Agreement US-GMA-1301562 (AR2487) by and between Oracle America, Inc. ("Oracle") and the State of Utah, as the lead state, and the Participating Addendum US-GMA-1301562 (AR2487)_PA_City of Placentia by and between Oracle and the City of Placentia, California (collectively, the "Master Agreement").
2. Professional Services Delivery Policies: The Oracle Professional Services Delivery Policies ("Policies") available at https://www.oracle.com/a/ocom/docs/corporate/professional-services-delivery-policies.odf apply to and are incorporated into this order.
3. Payment Terms: Net 30 days from invoice date.
4. Currency: US Dollars.
5. Offer Valid through: 31-AUG-2024.
6. Service Specifications: The Service Specifications shall include any exhibit(s) attached to this order (including referenced or incorporated Oracle documents) and the Policies.
7. Order of Precedence: In the event of any inconsistencies, priority shall be established in the following descending order: (a) any exhibit(s) attached to this order; (b) this order; (c) the Policies; and (d) the Master Agreement.
8. Rights Granted: Upon payment, You have the non-exclusive, non -assignable, royalty -free, worldwide, limited right to use the services and anything developed and delivered by Oracle under this order ("services and deliverables") for Your internal business operations. You may allow Your agents and contractors to use the services and deliverables for Your internal business operations, and You are responsible for their compliance in such use. The services and deliverables may be related to Your right to use cloud or hosted/managed services or Products owned or distributed by Oracle which You acquired under a separate order. The agreement referenced in that order shall govern Your use of such services or Products, and nothing in this order is intended to grant a right to use such services or Products in excess of the terms of that order, such as the services period or number and type of US-16840667-v090122-10MAY2024-gbartosh-v2 Page 1 of 6
environments specified in a cloud or hosted/managed service order.
You retain all ownership and intellectual property rights to Your confidential and proprietary information that You provide to Oracle under this order.
B. ADDITIONAL ORDER TERMS
1. When services will be performed on -site at customer location in the US, as required by US Department of Labor regulations (20 CFR 655.734), You will allow Oracle to post a notice regarding Oracle H-1 B employee(s) at the work site prior to the employee's arrival on -site.
City of Placentia Oracle America, Inc.
Authorized Signature: Authorized Signature:
Name: Name:
Title: Title:
Signature Date: Signature Date:
Ordering Document Effective Date: {to be completed by Oracle) US-16840667-v090122-10MAY2024-gbartosh-v2 Page 2 of 6
Lag r
TIME AND MATERIALS EXHIBIT
Your Name:
Ordering Document Number:
Exhibit Number:
City of Placentia
US -16840667
1 1. Description of Services.
Oracle will provide You with up to one hundred fourteen (114) person days of technical and functional Services to assist with the cloud enablement of Oracle NetSuite for Government Cloud Service ("NetSuite for Government") (the "Services").
A. Oracle will assist You in the following phases:
1. Focus Phase:
a. Conduct one (1) project kick-off workshop for up to two (2) person days for Your project team to review the project governance processes and complete strategy sessions including:
1. Scope management;
2. Risk management;
3. Issue management;
4. Communications management;
5. Configuration management;
6. Quality management;
7. Create a getting started guide;
8. Data conversion strategy session;
9. Integration strategy session; and
10. Workflow strategy session.
b. Create and provide an initial project work plan, which will include the following:
1. Tasks; estimated start and end dates, and estimated durations;
2. Assigned resources from You and Oracle; and
3. Known dependencies.
2. Refine Phase:
a. Conduct up to six (6) "Finance Data Migration Workshops" for up to two (2) hours each for Your project team to review the following processes:
1. Chart of accounts ("COA") setup and fund management;
2. Entity setup;
3. Account balances;
4. Historical data;
5. Current fiscal year data import; and
6. Fixed assets.
b. Document the findings from the Finance Data Migration Workshops in a Finance Migration Engagement Report.
c. Assist with the loading of general ledger ("GL")/journal and transactional data for the fiscal year of go -live, only.
d. Conduct up to five (5) "Configuration Workshops" for up to two (2) hours each for Your project team to review the following processes:
1. System administration;
2. Planning and budgeting;
3. Integrations;
4. Analytics and reports; and
5. Workflows and automation.
e. Document the findings from the Finance Data Configuration Workshops in a Finance Configuration Engagement Report.
f. Configure NetSuite for Government hosted environment based upon the Finance Configuration Engagement Report.
US-16840667-v090122-10MAY2024-gbartosh-v2 Page 3 of 6
g. Provide up to four (4) total person days of guidance on configuring integrations to the following third -party applications:
Third Party
Name
Type of Data
One-way/Two-way
Frequency
Method
(Application
Programming
Interface ("API")/flat
file)
Comments
Ultimate
Kronos Group
("UKG")
Payroll
One-way import to
NetSuite for Government
On demand
Flat file
Completed
payroll
transactions.
Brichtly
Permittinc
Two-way
On demand
Flat file
HdL
Companies
Business
licenses
Two-way
On demand
Flat file
Citizens
Business Bank
Bank
reconciliation
One-way import to
NetSuite for Government
On demand
Flat file
3. Enable Phase:
a. Conduct up to four (4) functional training sessions of up to two (2) hours each for Your project team on NetSuite for Government.
b. Create a testing plan with You.
c. Provide up to four (4) person days over the course of six (6) weeks to assist with user acceptance testing ("UAT").
4. Live Operate Phase:
a. Conduct one (1) "Final Data Migration Workshop" for up to two (2) hours to complete final finance data cutover.
b. Provide up to a total of nine (9) person days of consulting post go -live support to be used within the first thirty (30) calendar days immediately following production go -live. c. Facilitate the transition from Your implementation team to the NetSuite for Government support team.
2. Rates, Estimated Fees and Expenses, and Taxes.
A. The Services are performed on a time and materials ("T&M") basis; that is, You shall pay Oracle for the actual time spent performing the Services, plus materials, taxes, and expenses.
B. Rates. For a period of one (1) year from the ordering document effective date, the Services will be provided at the rate of $168.00 per hour. Thereafter, unless otherwise agreed by You and Oracle in an amendment, the Services will be provided at Oracle's consulting rates in effect when the Services are performed.
C. Estimated Fees and Expenses. All fees and expenses will be invoiced monthly. The fee and expense estimates specified in Your order are intended only to be for Your budgeting and Oracle's resource scheduling purposes, and may exceed the specified totals; these estimates do not include taxes. Once fees for Services reach the estimate, Oracle will cooperate with You to provide continuing Services on a T&M basis.
3. Pro'ect Management. You and Oracle each agree to designate a project manager who shall work together to facilitate an efficient delivery of the Services.
4. Your Cooperation.
A. Prior to the commencement of Services, designate and identify a project sponsor and a project manager that will be responsible for coordinating Your participation in this project and provide on -going support for Your implementation of the NetSuite hosted environment. Responsibilities include but are not limited to:
1. Provide user feedback during configuration and validation.
2. Be available as needed during the project to answer Oracle's questions, provide business decisions and other items as required.
US-16840667-v090122-10MAY2024-gbartosh-v2 Page 4 of 6
3. Provide on -going support to internal users following the implementation.
B. Enable administrator access to allow provisioning of Your NetSuite for Government hosted environment prior to the commencement of Services.
C. Modify Your processes as necessary to align with the standard functionality of NetSuite for Government.
D. Complete and return the questionnaire in the NetSuite for Government Welcome Packet to your Oracle project manager prior to the project kick-off workshop.
E. Make Your existing procedure and business process documentation available to Oracle at least two (2) weeks prior to the Configuration Workshops.
F. Notify Oracle within two (2) business days about any inaccuracies or incomplete information in project documentation provided by Oracle to You.
G. Identify Your third -party application(s) to be integrated with NetSuite for Government and provide all relevant specifications.
H. You will be live in production on all of Your third -party applications to be integrated with NetSuite for Government at least six (6) months prior to the planned go -live date of this implementation.
I. You will accept Oracle NetSuite release upgrades.
J. You will not film or record Oracle's delivery of Services, Oracle resources, or any Oracle materials.
K. Be responsible for extracting the data from Your legacy system(s), providing it in the format specified by Oracle, and assisting Oracle resources to complete data cleansing and mapping within three (3) weeks from the project kickoff call. Data to be migrated includes the following:
1. Balances of fully qualified accounts (e.g., Fund-Dept-Obj, and other segments);
2. All general ledger impacting transactions (trial balance details) are summed and compared by each fully qualified account to the provided balances; no transactions are omitted.
3. Transaction details such as purchase orders, bills, invoices, credits, voids, adjustments, payments, checks, wires, etc. must identify which general ledger impacting transaction it is associated with. The values of these details are compared to the general ledger impacting transaction totals to validate that no details are omitted.
L. Provide customer -audited data for data migration, including historical years up through the most recent audited fiscal year.
M. Validate the final list data and transactional data within two (2) weeks from data upload.
N. You are responsible for planning, executing, and managing all aspects of end -to -end and final reviews, including customizing the Oracle provided templates to prepare and execute test cases and plans and reviewing test results.
O. Ensure that Your designated Learning Cloud Support passholder training attendee(s) are completing any implementation training courses assigned to them by the Oracle team in the timeline specified as mutually agreed by You and received from the Oracle at the start of the implementation.
P. Develop any necessary end -user documentation, including, but not limited to, documenting specific business practices, data examples and organization/end-user specific policies and procedures.
Q. Implement and maintain the production and consumption of the file -based interfaces with Your existing systems.
R. Manage the post -production maintenance and support of Your NetSuite for Government hosted environment.
5. Project Assumptions.
A. A person day is defined as one (1) resource working up to eight (8) hours.
B. Standard functionality is defined as the functionality described in applicable documentation, for the NetSuite for Government application, provided by Oracle.
C. A finalized dataset is defined as up to one (1) year's worth of historical data containing all the information that You wish to migrate, as validated by Your project team. Modifying the structure of the data can cause delays in the migration process and/or inconsistencies in the final result. This dataset should have all relevant details comprising the debits and credits against each accounting segment that impacts the general ledger. All transaction lines should be rounded to two (2) decimal places while maintaining balanced debits and credits and aligning with balances for each fiscal year. All transaction detail records (e.g., vendor bills, checks, accounts receivable invoices, cash receipts) must include an associating reference to the general ledger impacting transaction as well its relationship with other detail transactions such as bills -to -purchase orders or checks -to -bills. Subledger transactions details (i.e., subledger project transaction details) should be free of conflicts from their associated general ledger impact transaction.
D. Hosted environment is defined as the combination of systems and supporting resources to which Oracle grants You access as part of the services ordered by You, that are (i) configured for the Oracle Programs operating on it and for specific uses as part of the services, and (ii) used by Oracle to perform the Services. The hosted environment US-16840667-v090122-10MAY2024-gbartosh-v2 Page 5 of 6
consists of the production environment, and any non -production environment(s), as referenced in the applicable ordering document and services policies.
E. The implementation methodology for the Services is the Oracle True Cloud Method ("TCM").
F. Data migration is limited to the assistance described in Section 1.A.2.c.
G. Data provided by Your organization will be validated by the Oracle Local Government implementation team before being loaded into NetSuite for Government. However, any discrepancies or inconsistencies will be returned to You for correction or clarification, up to three (3) revisions. It is recommended that data validation occur prior to submission of the finalized dataset for loading.
H. The amount of time required to import legacy transactions and associated detail is determined by Your ability to provide reconciled data in the format requested. Delays may impact key implementation dates, including go -live.
I. The NetSuite for Government standard chart of accounts segmentation structure will be used as a default segmentation with localization as required.
J. For each third -party application listed in Section 1.A.2.g. You must provide integration specifications, third -party requirements, and have a live operating environment in place in order for the implementation team to perform the Services.
K. If the effort to implement the third -party integrations identified by You exceeds the estimates in Sections 1.A.2.g. such adjustments shall be subject to the change control process.
L. Except to the extent expressly stated in the Description of Services section of this document, the use of the terms "integrate" and "integration" throughout this document is not intended to mean that Oracle will ensure (i) the physical or functional integration of Oracle products with external legacy systems, third party products and/or other software applications; (ii) the functioning of Oracle products as a coordinated whole with such external legacy systems, third party products and/or other software applications; or (iii) any non-standard integration between Oracle products.
Rather, the terms are used to refer to the overall concept of data exchange between the Oracle products and other systems, products or applications identified in this document, and may include interfacing and/or other methods of integration or interoperation as described in the Description of Services section of this document.
M. The following are not included in the scope of, or fees for, Services under this exhibit:
1. Performance testing, tuning, or any management of performance.
2. Testing beyond the activities described in this exhibit.
3. Customizations to NetSuite for Government.
4. Oracle Cloud subscription services.
5. Languages other than U.S. English.
6. Integrations or data conversions beyond what is explicitly described in this exhibit.
7. Cloud middleware, database, operating and other hardware activities.
8. Oracle transactional business intelligence training.
9. Complex business processing or orchestration related to integrations.
10. Transformations or data mapping of elements.
11. Additional workforce structures for future use, expansion, or acquisitions.
12. Extensions, customizations, or custom reports.
13. Localizations other than those made to the chart of accounts structure.
14. Post -production Services exceeding nine (9) person days, or thirty (30) calendar days after go -live, whichever comes first.
15. Anything not expressly listed in the Description of Services.
US-16840667-v090122-10MAY2024-gbartosh-v2 Page 6 of 6
ORACLE'
ORDERING DOCUMENT
Oracle America, Inc.
500 Oracle Parkway
Redwood Shores, CA
94065
Name City of Placentia
Address
New Subscription
401 E Chapman Ave
PLACENTIA CA
92870
Contact Jennifer Lampman
Phone Number +1 (714) 993-8237
Email Address [email protected]
Services Period: 60 months
Cloud Services
Data Center
Re ion
9 Quantity
Term
List Fee
Discount
o7o
Unit Net Price
Net Fee
B94583 - Oracle NetSuite for
NORTH
Government Cloud Service, Standard
1 60 mo
504,000.00
50.0 4,200.00
252,000.00
Edition - Hosted Environment
B108187 - Oracle NetSuite for
AMERICA
NORTH
Government Cloud Service, Bill
1 60 mo
35,940.00
50.0 299.50
17,970.00
Capture - Each
B94584 - Oracle NetSuite for
Government Cloud Service,
AMERICA
NORTH
25 60 mo
73,500.00
50.0 24.50
36,750.00
Additional General User - Hosted
Named User
B94585 - Oracle NetSuite for
Government Cloud Service,
Additional Self Service Users - 5
Hosted Named Users
B94587 - Oracle NetSuite for
Government Cloud Service,
Additional Planning and Budgeting
AMERICA
NORTH
AMERICA
NORTH
AMERICA
6 2
60 mo
60 mo
17,640.00
14,400.00
50.0 50.0
24.50 60.00
8,820.00
7,200.00
User - Hosted Named User
B94592 - Oracle NetSuite for
NORTH
Government Cloud Service, Sandbox
1 60 mo
29,940.00
50.0 249.50
14,970.00
Environment - Each
AMERICA
Subtotal
675,420.00
337,710.00
Fee Description
Net Fee
Cloud Services Fees
337,710.00
CPQ-3375198 - 1
Issued by Oracle America, Inc.
16 -MAY -2024
Fee Description
Net Fee
Net Fees
337,710.00
Total Fees
337,710.00
CPQ-3375198 - 1
Issued by Oracle America, Inc. 16 -MAY -2024
A. Terms of Your Order
1. Applicable Agreement:
a. Public Sector Agreement for Cloud Services US-CSA-CPQ-3375198
2. Cloud Payment Terms:
a. Net 30 days from invoice date
3. Cloud Payment Frequency:
a. Quarterly in Arrears
4. Currency:
a. US Dollars
5. Offer Valid through:
a. 20-JUL-2024
6. Service Specifications
a. The Service Specifications applicable to the Cloud Services and the Consulting/Professional Services ordered may be accessed at http:// www.oracle.com/contracts .
7. Services Period
a. The Services Period for the Services commences on the date stated in this order. If no date is specified, then the "Cloud Services Start Date" for each Service will be the date that you are issued access that enables you to activate your Services, and the "Consulting/Professional Services Start Date" is the date that Oracle begins performing such services.
B. Additional Order Terms
1. Non -Appropriation
In the event funds are not appropriated for a new fiscal year period, You may terminate this order immediately without penalty or expense; provided, however, that: (a) for each of the 12 -month terms of the order, You must provide a purchase order, and (b) Your issuance of each 12 -month purchase order shall signify to Oracle that all funds for the given 12 -month term have been fully appropriated and encumbered. Notwithstanding the foregoing, You agree to pay for all Services performed by Oracle prior to Oracle's receipt of Your notice of non -appropriation.
2. No Auto -Renewal
Notwithstanding any statement to the contrary in the Service Specifications, the parties expressly agree that the Services acquired under this order will not Auto -Renew.
City of Placentia
Signature
Name
Title
Signature Date
Oracle America, Inc.
Signature
Name
Title
Signature Date
CPQ-3375198 - 1
Issued by Oracle America, Inc.
16 -MAY -2024
BILL TO / SHIP TO INFORMATION
BiII To
Customer Name
Customer Address
Contact Name
Contact Phone
Contact Email
City of Placentia
401 E Chapman Ave
PLACENTIA CA
92870
Jennifer Lampman
+1 (714) 993-8237
[email protected]
Ship To
Customer Name
Customer Address
Contact Name
Contact Phone
Contact Email
City of Placentia
401 E Chapman Ave
PLACENTIA CA
92870
Jennifer Lampman
+1 (714) 993-8237
[email protected]
CPQ-3375198 - 1 Issued by Oracle America, Inc.
16 -MAY -2024
NASPO ValuePoint
PARTICIPATING ADDENDUM
CLOUD SOLUTIONS 2016-2026
Led by the State of Utah
NASPO
ValuePoint
Master Agreement #: AR2487
Contractor: ORACLE AMERICA, INC.
Participating Entity: CITY OF PLACENTIA
Oracle America, Inc. ("Oracle") and the State of Utah, Division of Purchasing, are parties to that certain NASPO ValuePoint Master Agreement for Cloud Solutions, effective March 1, 2017 (contract # AR2487, the "Master Agreement"). This Participating Addendum (this "Addendum" or "PA") to the Master Agreement is between Oracle, as Contractor, and City of Placentia, CA (the "Participating Entity"). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Master Agreement.
The following products or services are included in this contract portfolio:
• Oracle products and services listed in Attachment B of the Master Agreement that are commercially available at the time of the order.
Master Agreement Terms and Conditions:
1. Scope: This addendum covers Cloud Solutions led by the State of Utah for use by state agencies and other entities located in the Participating Entity authorized by that State's statutes to utilize State contracts with the prior approval of the State's Chief Procurement Official.
2. Participation: All public entities located within the City of Placentia, CA (collectively, the "Purchasing Entities," and each a "Purchasing Entity") may order Services from Oracle in accordance with the terms and conditions of this Addendum.
By placing an Order under this Addendum, each Purchasing Entity agrees to be bound by the terms and conditions of this Addendum, including the Master Agreement. Each Purchasing Entity shall be responsible for its compliance with and breach(es) of such terms and conditions.
The Participating Entity hereby represents and warrants that the entities listed above have been authorized by the State of California
Department of General Services (DGS) to enter into this Addendum.
3. Term: Orders may be placed under this Addendum for the period commencing upon the Effective Date (as defined below) and ending on the earliest of (i) September 15, 2026, (ii) the date of expiration or termination of the Master Agreement, or (iii) the date of expiration or termination of this Addendum.
4. Primary Contacts: The primary contact individuals for this Participating Addendum are as follows (or their named successors):
NASPO ValuePoint
PARTICIPATING ADDENDUM
CLOUD SOLUTIONS 2016-2026
Led by the State of Utah
NASPO
ValuePoint
Contractor
Name:
Michael Estrada
Address:
613 N.W. Loop 410, Suite 1000, San Antonio, TX 78216
Telephone:
(210) 536-9415
Fax:
N/A
Email:
[email protected]
Participating Entity
Name:
Jennifer Lampman
Address:
401 E. Chapman Avenue, PLACENTIA, CA 92870
Telephone:
(714) 993-8237
Fax:
Email:
[email protected]
5. PARTICIPATING ENTITY MODIFICATIONS OR ADDITIONS To THE MASTER
AGREEMENT
These modifications or additions apply only to actions and relationships within the Participating Entity.
Participating Entity must check one of the boxes below. [J No changes to the terms and conditions of the Master Agreement are required. [] The following changes are modifying or supplementing the Master Agreement terms and conditions.
6. Resellers: No Resellers are eligible to resell Services to the Purchasing Entity under this Addendum.
7. Orders:
a. Any Order placed by a Purchasing Entity for Service available under the Master Agreement and this Addendum shall be deemed to be a sale under (and governed by the prices and other terms and conditions of) the Master Agreement and this Addendum, unless the parties to the Order agree in writing that another contract or agreement applies to such Order.
b. Orders and payments may be made directly to Oracle. Orders are to be submitted as directed to Oracle's sales representative. After the contents of an Ordering Document have been mutually agreed upon, Oracle and the Purchasing Entity shall sign the Ordering Document, and payments shall be submitted in accordance with such Ordering Document and applicable Oracle invoice.
8. Entire Acreement:
NASPO ValuePoint
PARTICIPATING ADDENDUM
CLOUD SOLUTIONS 2016-2026
Led by the State of Utah
A NASPO
ValuePoint
a. Notwithstanding anything to the contrary set forth in the Master Agreement, by placing an order under this Addendum, each Purchasing Entity agrees that this Addendum and any information that is incorporated by written reference into this Addendum or the applicable ordering document (including reference to information contained in a URL or referenced policy), together with the applicable ordering document, are the complete agreement for the Services ordered by such Purchasing Entity and supersede all prior or contemporaneous agreements or representations, written or oral, regarding such Services.
b. It is expressly agreed that the terms of this Addendum and any Oracle order shall supersede the terms in any purchase order, procurement internet portal or any other similar non -Oracle document and no terms included in any such purchase order, portal or other non -Oracle document shall apply to the Services ordered.
IN WITNESS WHEREOF, the parties have executed this Addendum as of the date of execution by both parties below.
Participating Entity: City of Placentia, CA
Oracle America, Inc.
Signature:
Signature:
Name:
Name:
Title:
Title:
Date:
Date:
Effective Date of this Addendum:
DG
S .. I i':..1) R i I c. D, .,,,, , ,.. , 1 O,
GENERAL SERVICES
May 29, 2024
Jennifer Lampman
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
Email: jlampman(a�placentia.orc
Re: NASPO ValuePoint Cooperative Agreement Authorization Dear Jennifer Lampman:
The Department of General Services (DGS) has received your request to enter into a Participating Addendum under the NASPO ValuePoint Cooperative Agreement for Cloud Solutions (2016 - 2026)
This letter provides written authorization to enter into a Participating Addendum with:
• Oracle America, Inc (MA# AR2487)
To ensure that you have the authority to enter into NASPO ValuePoint Cooperative Agreements, please consult your legal counsel.
If you have any questions, please contact the Cooperative Program Manager, Julie Matthews at (279) 946-8118 or via email at Julie.Matthews(1a�dgs.ca.gov.
Thank you,
Michael
Wong
For Angela Shell
Deputy Director
Procurement Division
cc: File
Digitally signed by
Michael Wong
Date: 2024.05.30
08:50:42 -07'00'
Procurement Division -, -. ., . ;] California Gov nrrr r?Operat;ons AL- ncy I oc ' > tn C.4 95'305 t ( 1 •) 375-4365
TO:
VIA:
FROM:
DATE:
SUBJECT:
FISCAL
IMPACT:
Placentia Cit Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
JUNE 18, 2024
PROFESSIONAL SERVICES AGREEMENT WITH DTA TO COMPLETE A
DEVELOPMENT IMPACT FEE NEXUS STUDY UPDATE AND TO CREATE A
PUBLIC SAFETY COMMUNITY FACILITIES DISTRICT
AMOUNT NEEDED FOR AGREEMENT:
STAFF RECOMMENDED CONTINGENCY:
TOTAL COST OF PROPOSED AGREEMENT:
GENERAL PLAN UPDATE FEE FUNDS (749506-6017)
$126,230
S +770
$127,000
$127,000
SUMMARY:
On April 16, 2024, as part of the annual Development Impact Fees program (DIF) update, City Council directed Staff to prepare a new Development Impact Fee Nexus Study Report to facilitate an update of both Citywide Development Impact Fees and Transit -Oriented Development (TOD) Impact Fees to be effective Fiscal Year 2025-26 or earlier. As such, Staff prepared a Request for Proposals (RFP) to update all City DIFs and to create a successor Public Safety Community Facilities District (CFD) for the City of Placentia to address increased public safety costs citywide.
The RFP for both tasks was circulated for approximately 30 days. The recommended actions would approve a Professional Services Agreement with DTA, formerly David Taussig & Associates, in a not -to -exceed amount of $127,000.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve a Professional Services Agreement with DTA to provide professional services to facilitate an update of both Citywide Development Impact Fees, Transit -Oriented Development Impact Fees and to create a successor Public Safety Community Facilities District (CFD) for the City of Placentia for an amount not to exceed $127,700; and
2. Authorize the City Administrator to execute the necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Keep Development Impact Fees current and updated to facilitate cost recovery by requiring new development to pay a fair share of costs for City facilities, as Objective Number 1.3 is to Update fJ ©;d o
Jun /dB, 2032
City Council Agenda
June 18, 2024
Fee Study/Cost Allocation. In addition, this action is consistent with Objective Number 3.12 to secure funding for affordable housing as the Citywide Residential Affordable Housing Impact Fees will likely be adjusted commensurate with the nexus fee study prepared by DTA.
BACKGROUND:
DIFs are a commonly used method of collecting a proportional share of funds from new development for infrastructure improvements and/or other public facilities capital improvements that would be needed as a result of the new development. These fees are seen as paying for the aforementioned future required infrastructure costs as opposed to the General Fund and are therefore seen as cost recovery in nature. With rare exceptions, DIFs are one-time funds restricted to funding capital costs for new facilities or upgrades to existing facilities and are not used for annual operations and/or maintenance. Impact fees may only be imposed on new development, and the fee proceeds must be spent on improvements needed as a result of the new development.
Pursuant to the Mitigation Fee Act ("Act"), California Government Code Section 66000, et seq. (also known as AB 1600), adoption of impact fees requires documentation of the "nexus" between the fees being charged, the impacts of new development, the benefit of the facilities needed to mitigate such impacts, and the proportional cost allocation among different fee categories. Impact fee programs must be adopted by the City Council via an ordinance, however, once the program is adopted, the fees could potentially be automatically updated via City Council resolution. Impact fees are imposed either jurisdiction -wide or in a relatively large area anticipating significant amounts of new development, such as a specific plan area or community plan area. In Placentia, we have both citywide (includes affordable housing) impact fees and TOD District specific impact fees.
In 2017, the City prepared development impact fee nexus studies for the purpose of updating DIFs pursuant to California Government Code Section 66000. Three different nexus studies were completed in 2017 and were utilized respectively to adopt the current citywide DIFs, the housing impact fee, and the TOD DIFs. The DIF program that is currently in place was adopted by City Council in October 2017, implemented by Ordinance Nos. O-2017-09 (TOD DIFs), O-2017- 10 (Citywide DIFs), O-2017-11 (Housing Impact Fee) and became effective in December 2017.
Although the 2017 DIF update was comprehensive in nature, the City did not update the DIFs between 2017 and 2020. The 2021 DIF update adjusted the fees commensurate with the CCI from December 2017 to February 2021. As part of updating the DIFs in 2021, City Council codified how annual updates to the DIFs will occur. The Municipal Code now states that the annual fee adjustment shall be based on April -to -April Construction Cost Index for Los Angeles as published by the Engineering News -Record for the preceding 12 months (April to April), with the exception of the 2022 fee update which was based upon February 2021 to April 2022 Construction Cost Index for Los Angeles as published by the Engineering News -Record.
In April 2023, two specific fees were updated commensurate with actual costs. The fees that were specifically updated beyond CCI are the Public Safety Impact Fee (now known as Fire, Police Animal Shelter fees) and TOD Sewer Impact Fee. Those specific fees were updated beyond CCI because the City performed the "City of Placentia Development Impact Fee Nexus Study" dated
City Council Agenda
June 18, 2024
April 2023. The balance of all Development Impact Fees were adjusted by CCI .23% as measured from April 2022 to April 2023.
In April 2024, City Council adjusted all Development Impact Fees for Fiscal Year 24-25 by CCI as measured from April 2023 to April 2024. As part of that update City Council directed Staff to prepare a new Development Impact Fee Nexus Study Report to be employed for the future update of both Citywide Development Impact Fees and Transit -Oriented Development (TOD) Impact Fees for fiscal year 2025-26 or earlier, with a cost increase metric that most closely reflects the current cost indices average for cost trends for specific construction trade labor and materials in the current construction environment. This recommendation was also included in the April 2023 staff report.
DISCUSSION:
Development Impact Fee Update
The existing DIFs currently in place include the following:
• Citywide Public Safety Impact Fee Program (Now known as Fire, Police Animal Shelter fees pursuant to the City of Placentia Development Impact Fee Nexus Study" dated April 2023)
• Citywide Park and Recreation Impact Fee Program
• Citywide Quimby Land Dedication and In -Lieu Fee Program • Citywide Sewer Impact Fee Program
• Citywide Traffic Impact Fee Program
• Citywide Storm Drainage Impact Fee Program
• TOD Traffic Impact Fee
• TOD Sewer Impact Fee (Now updated pursuant to the City of Placentia Development Impact Fee Nexus Study" dated April 2023)
• TOD Streetscape Infrastructure Impact Fee
• A Residential Affordable Housing Impact Fee ("RAHIF") requiring developers to pay a fee to mitigate the additional demand for affordable housing that is created by proposed market rate residential development.
As stated in the RFP, the City is proposing to keep and update all of the existing aforementioned DIFs already in place. DTA will conduct a Nexus Study to update all of those fees commensurate with actual and projected impacts. In addition, DTA's Nexus Study would consider the following components/programs for the DIFs at a minimum:
• Updated Public Safety DIF to adequately capture Police, Placentia Fire and Life Safety, Emergency Medical Services (EMS), and Dispatch, as well as Animal Control Services • Create Public Facilities DIF
• Create Information Technology DIF
City Council Agenda
June 18, 2024
Successor Public Safety Community Facilities District (CFD) The City implemented CFD 2014-01 to help offset rising police department operating costs attributed to new residential development. Although successfully implemented in 2014, it did not capture properties developed during the City's exponential growth spurt between 1970 and 2014.
Also, since that time the City has started its own fire department, contracted with a private 911 paramedic service provider, and expanded its emergency communications (dispatch) operations as well.
The boundaries of CFD 2014-01 cover the entire City and all new development projects are conditioned to be annexed into the CFD as a condition of receiving development entitlements and other project approvals. Rather than try to modify the existing CFD (requiring participant voting) to include the new added public safety operating costs, an entirely new successor CFD can be created, including aforementioned added public safety costs. Future development would then be conditioned to annex into the newly created successor CFD. It is envisioned that the boundaries of the new CFD will also match the City's boundaries.
Request for Proposals
A Request for Proposals for both the Development Impact Fee Update and Successor Public Safety Community Facilities District was widely circulated for approximately 30 days. DTA, formerly David Taussig & Associates submitted a proposal including both tasks for a total amount of $126,230. The DTA proposal was the sole proposal received. The DTA proposal was reviewed by the Directors of Finance and Development Services, as well as by the Public Works Department Senior Management Analyst. The reviewing team unanimously agrees that the DTA proposal is a complete and reasonable proposal. Development Services staff has positive experience working with DTA on the recently completed Old Town CFD, which was completed on time and within budget.
FISCAL IMPACT:
The FY 2024-2023 CIP Budget includes $127,000 for the Development Impact Fee Update and Successor Public Safety Community Facilities District project. As such, the recommended actions would approve a Professional Services Agreement with DTA, formerly David Taussig & Associates in a not -to -exceed amount of $127,000.
Prepared by: Reviewed and approved:
Joseph M. Lambert ° Jennifer Lampman
Director of Development Services Director of Finance
City Council Agenda
June 18, 2024
Reviewed and approved:
PoAiun, awula
Damien R. Arrula
City Administrator
Attachments:
1. Professional Services Agreement with DTA
Exhibit A. Scope of Work and Cost Proposal
Exhibit B. Insurance Requirements
Exhibit C. Certificates of Insurance
CITY OF PLACENTIA
PROFESSIONAL SERVICES AGREEMENT
WITH
David Taussig and Associates, Inc. dba DTA
THIS AGREEMENT is made and entered into this 18th day of June, 2024 ("Effective Date"), by and between the CITY OF PLACENTIA, a municipal corporation ("City"), and David Taussig and Associates, Inc. dba DTA ("Consultant").
WITNESSETH:
A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to provide professional services to facilitate an update of both Citywide Development Impact Fees, Transit Oriented Development Impact Fees and to create a successor Public Safety Community Facilities District (CFD) for the City of Placentia, as more fully described herein; and
B. WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and C. WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit "A" (the "Project") and desire to set forth their rights, duties, and liabilities in connection with the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
1.1. Scope of Services. Consultant shall provide the professional services described in the Consultant's Proposal ("Proposal"), attached hereto as Exhibit "A" and incorporated herein by this reference.
1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. Officers and employees shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.
1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the complete satisfaction of the City and within the hereinafter specified. Evaluations of the work
will be done by the City Administrator or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the matters of concern;
(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.
1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation insurance and safety in employment; and all other Federal, State, and local laws and ordinances applicable to the services required under this Agreement. Consultant warrants that it is not suspended or debarred from doing business with the United States government and can legally be paid from federal funds. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above -mentioned laws, which may be incurred by reason of Consultant's performance under this Agreement.
1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender, or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay, or other forms of compensation and selection for training, including apprenticeship.
Consultant agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
Consultant shall, in all solicitations and advertisements for employees placed by, or on behalf of Consultant shall state that all qualified applicants will receive consideration for employment without regard to age, race, color, religion, sex, marital status, national origin, or mental or physical disability. Consultant shall cause the paragraphs contained in this Section to be inserted in all subcontracts for any work covered by the Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement.
1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant's sole cost 2 DTA
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and expense. All insurance requirements contained in this Agreement are independently applicable to any and all subcontractors that Consultant may engage during the term of this Agreement.
1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement.
2.0. COMPENSATION AND BILLING
2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "A". Consultant's total compensation shall not exceed one hundred thousand twenty-six two hundred thirty dollars ($126,230) + seven hundred seventy dollars ($770) contingency fora total amount of one hundred twenty seven thousand dollars ($127,000), unless authorized herein.
2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant's Proposal or which is inconsistent with or in violation of the provisions of this Agreement unless the City or the Project Manager for this Project, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.
Should the City request in writing additional services that increase the hereinabove described "Scope of Services", an additional fee based upon the Consultant's standard hourly rates shall be paid to the Consultant for such additional services. Such increase in additional fees shall be limited to 10% of the total contract sum. The City Administrator is authorized to approve a Change Order for such additional services. Where the original contract is $40,000.00 or less, City Council approval shall be required prior to any increase bringing the total compensation to more than $40,000.00.
2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices.
2.4. Records and Audits. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times for a period of three (3) years from the Effective Date.
3.0. TIME OF PERFORMANCE
3 DTA
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3.1. Commencement and Completion of Work. The professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit "A".
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present documentation satisfactory to the City to substantiate any request for a time extension.
4.0. TERM AND TERMINATION
4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 18 months, ending on December 18, 2025, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties.
4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending, or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates, or abandons a portion of this Agreement such suspension, termination, or abandonment shall not make void or invalidate the remainder of this Agreement.
If the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
The City shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should:
a. Be adjudged a bankrupt;
b. Become insolvent or have a receiver of its assets or property appointed because of insolvency;
c. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any 4 DTA
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indebtedness under this Agreement;
e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or
f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs.
4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City's written notice of termination within thirty-five (35) days after service of the notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein.
In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant. City shall not be liable for any claim of lost profits.
4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps, and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City's sole risk and without liability or legal expense to Consultant.
5M. INSURANCE
5.1. Insurance. The Consultant and all subcontractors, if any, shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement, including any extension thereof, insurance as set forth in Exhibit "B" attached hereto and incorporated herein by this reference.
Neither the City nor any of its officers, officials, agents, employees, or volunteers makes any representation that the types of insurance and the limits specified to be carried by Consultant under this Agreement are adequate to protect Consultant. If Consultant believes that any such insurance coverage is insufficient, Consultant shall provide, at its own expense, such additional insurance as Consultant deems adequate.
5.2. Deductible or Self -Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self -insured retention.
5.3. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages, as well as providing the City with the required endorsements in a form and content approved by City, prior to performing any services under this Agreement.
The certificates of insurance and endorsements shall be attached hereto as Exhibit "C" and 5 DTA
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incorporated herein by this reference.
5.4. Non -limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.
6.2. Representatives. The City Administrator or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives, and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives, and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement.
6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement. It shall be the Consultant's responsibility to assure that the Project Manager is kept informed of the progress of the performance of the services and the Consultant shall refer any decision, which must be made by City, to the Project Manager. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Project Manager.
Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement and who shall not be changed by Consultant without the express written approval by the City. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City.
6.4. Notices. Any notices, documents, correspondence, or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile or if mailed, shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.
IF TO CONSULTANT: IF TO CITY:
DTA City of Placentia
18201 Von Karman Ave. #220 401 E. Chapman Ave.
6 DTA
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Irvine CA 92612
[email protected]
Tel: (800) 969-4382 x208
Fax
Attn: Andrea Roess
Placentia, CA 92870
Tel: (714) 993-8234
Fax: (714)961-0283
Attn: Joseph Lambert
6.5. Attorneys' Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.
6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California. Consultant agrees to submit to the personal jurisdiction of such court in the event of such action.
6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet, or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting, or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.
6.8. Indemnification and Hold Harmless. Consultant agrees to protect, defend, indemnify, and hold free and harmless the City, its officers, officials, agents, employees, and volunteers, at Consultant's sole expense, from and against any and all claims, liabilities, demands, actions, expenses, damages, suits or other legal proceedings brought against the City, its officers, officials, agents, employees, and volunteers arising out of or in any way connected with the performance of the Consultant, its employees, and/or authorized subcontractors' work undertaken pursuant to this Agreement including all acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of the Consultant, its employees and/or subcontractors. The defense obligation provided for hereunder shall apply whenever any claim, action, complaint or suit asserts liability against the City, its officers, officials, agents, employees, and volunteers based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable, and whether or not there is any evidence of fault or wrongdoing by the Consultant, its employees and/or its subcontractors. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Consultant's Proposal, which shall be of no force and effect.
Not withstanding the above, in light of the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado, DTA will not defend, indemnify, or hold free and harmless the 7 DTA
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City or any of its agents from any claim arising out of, pertaining to, or incident to the U.S.
Constitution's Fifth Amendment Takings Clause.
6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.
Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.
6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or 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, defend, and hold harmless 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.
Notwithstanding any other agency, State, or Federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require.
6.12. Ownership of Documents. All findings, reports, documents, information, and data including, but not limited to, computer tapes or discs, preliminary notes, working documents, files, and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City but shall be made available to the City within ten (10) days of request or within ten (10) days of termination. Any use of such documents for other 8 DTA
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projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant.
Consultant shall deliver to City any findings, reports, documents, information, data, preliminary notes and working documents, in any form, including but not limited to, computer tapes, discs, files audio tapes, or any other Project related items as requested by City or its authorized representative, at no additional cost to the City. Consultant or Consultant's agents shall execute such documents as may be necessary from time to time to confirm City's ownership of the copyright in such documents.
6.13. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information, and data, including, but not limited to, computer tapes, discs, or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 7920.000 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 7924.510, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.
6.14. Conflict of Interest. Consultant and its officers, employees, associates, and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section 1090.
During the term of this Agreement, Consultant and its officers, employees, associates, and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates, or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant's duties and services under this Agreement shall not include preparing or assisting the City with any portion of the City's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the City. The City shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.
Consultant's participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications.
Consultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project, if any, have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by Consultant pursuant to this Agreement.
6.15. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City's representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design 9 DTA
Rev. 01/2024
drawings, estimates, and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction.
6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect.
6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, the conflict shall be resolved by giving precedence in the following order, if applicable:
This Agreement, the City's Request for Proposals, the Consultant's Proposal.
6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.
6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.
6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
6.21. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
6.22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.
6.23. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
6.24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this 10 DTA
Rev. 01/2024
Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.
6.25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
6.26. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.
CITY OF PLACENTIA,
A municipal corporation
Date:
Mayor
ATTEST:
City Clerk and ex -officio Clerk
of the City of Placentia
CONSULTANT:
Date:
Signature
Name and Title
Social Security or Taxpayer ID Number
APPROVED AS TO FORM:
11 DTA
Rev. 01/2024
Date:
Christian L. Bettenhausen, City Attorney
APPROVED AS TO INSURANCE:
Date:
Risk Manager
APPROVED AS TO CONTENT:
Date:
Joseph Lambert, Project Manager
DEPARTMENTAL APPROVAL:
Date:
Joseph Lambert, Director of Development Services
12 DTA
Rev. 01/2024
EXHIBIT A
CONSULTANT'S PROPOSAL AND SCOPE OF WORK
13 Rev. 01/2024
PROPOSAL
DEVELOPMENT IMPACT FEE UPDATE
AND CREATION OF SUCCESSOR
PUBLIC SAFETY COMMUNITY
FACILITIES DISTRICT
April 29, 2024
Response to RFP
•
CITY OF PLACENTIA
AI
SUBMITTED BY:
Andrea Roess
Managing Director
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
800-969-4DTA
[email protected]
dta
www.FinanceDTA.com
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CITY OF PLACENTIA
DEVELOPMENT IMPACT FEE UPDATE AND CREATION OF
PUBLIC SAFETY COMMUNITY FACILITIES DISTRICT
PROPOSAL SUBMISSION DEADLINE:
APRIL 29, 2024, AT 5:00 P.M.
Prepared for:
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
Attention: Joseph Lambert, Development Services Director Project Contact:
Andrea Roess
Managing Director, DTA
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
Phone: (800) 969-4DTA x208
dta
www.FinanceDTA.com
I
18201 Von }Carman Avenue, Suite 220
Irvine, CA 92612
April 29, 2024
Mr. Joseph Lambert
Development Services Director
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
RE: Request for Proposals ("RFP") for Development Impact Fee Update and Creation of Public Safety Community Facilities District
Dear Mr. Lambert:
DTA, formerly David Taussig £t Associates, is pleased to submit this proposal to the City of Placentia (the "City"). It is our understanding that the City is seeking a qualified consultant to conduct a Development Impact Fee ("DIF") update and create a successor Public Safety Community Facilities District ("CFD"). The Assembly Bill ("AB") 1600 DIF Nexus Study ("Fee Study") would recommend the appropriate fee justification methodology and fee levels to support specific types of City -selected capital facilities needed to serve new growth. The City is proposing to keep and significantly update all of the existing Citywide, Transit -Oriented Development ("TOD"), and Affordable Housing DIFs already in place, in addition to adding components/programs to the Citywide DIFs, including a Public Facilities DIF and Information Technology DIF. The City wishes to adopt a new Public Safety Services CFD to help fund its annual public safety operating costs.
Notably, DTA was recently hired by the City in January 2023 to form the Old Town Placentia CFD (CFD 2024-1), an annexable CFD comprising the Old Town area at Chapman Avenue and Alta Street. The area is made up of a diverse mix of commercial land uses, surrounded by residential neighborhoods to the west, east, and north and properties will be annexed into the CFD as new development and rehab projects occur. DTA is currently preparing the upcoming annual levy for the CFD.
As described in greater detail in the attached proposal, DTA is a public finance consulting firm with offices in Irvine, San Jose, San Francisco, and Riverside, California, as well as Dallas and Houston, Texas, Raleigh, North Carolina, and Tampa, Florida. Since its establishment in 1985, DTA has completed consulting assignments for more than 3,000 clients in 22 states. During this period, the firm has been involved in the formation of more than 2,000 public finance districts, with total bond authorizations exceeding $75 billion. Our financing programs have utilized a variety of public financing mechanisms, such as Assessment Districts ("ADs"), CFDs, Certificates of Participation ("COPs"), Tax Allocation Bonds, Sewer and Water Revenue Bonds, Marks -Roos Bond Pools, Landscaping and Lighting Districts ("LLDs"), Integrated Financing Districts, and various types of fee programs. DTA is licensed and registered with the U.S. Securities and Exchange Commission ("SEC") and Municipal Securities Rulemaking Board ("MSRB") as a Municipal Advisor (No. 867-01160) and follows all the fiduciary requirements associated with this designation.
With respect to DIF Nexus Studies, each of DTA's AB 1600 studies includes a cost -benefit analysis and the determination of nexus between the facilities financed and specific financing mechanism, which in this case would be the DIF(s). DTA has prepared approximately 500 fee justification studies to date for a variety of public improvements, including transportation, water, sewer and flood control facilities, fire and police stations, parks, libraries, and other types of infrastructure. In recent years, our firm has prepared AB 1600 -compliant DIF justification studies for the Cities of Anaheim, Blythe, Brawley, Calexico, Campbell, Cathedral City, Cerritos, Chino Hills, Colton, Coronado, Costa Mesa, Daly City, Desert Hot Springs, Fontana, Fowler, Hesperia, King City, Los Banos, Mammoth Lakes, Palo Alto, Pasadena, Paso Robles, Perris, Redlands, San Francisco, San
dta
www.FinanceDTA.com
18201 Von }Carman Avenue, Suite 220
Irvine, CA 92612
Jacinto, San Jose, San Luis Obispo, Temple City, Torrance, Tustin, Upland, Victorville, and Yucaipa, and the Counties of Fresno, San Bernardino, San Jose, San Luis Obispo, Santa Barbara, Shasta, and Yuba, among others. We also continue to keep abreast of impact fee legislation and legislative updates, including the recent U.S. Supreme Court decision in Sheetz vs. County of El Dorado.
In addition to the above, most recently, DTA has been rehired by the County of San Bernardino and hired by the Cities of Coronado, Daly City, Fontana, Ione, La Verne, Morro Bay, National City, Redlands, Redwood City, Rialto, San Jose, Upland, and Yucaipa to prepare comprehensive fee updates in compliance with AB 602. DTA has closely followed the evolution of AB 602 and is prepared to implement recently amended Government Code Sections 65940.1 and 66019 and the added Section 66016.5, as necessary. As the City will be adopting its new DIF ordinance after July 1, 2022, we have included a discussion of AB 602 and our experience in other states with similar impact fee requirements in the enclosed proposal.
Given our extensive experience in special district formation and administration, we believe our firm is well qualified to provide consulting services for this project. DTA's high level of experience in providing financial and administrative services related to assessments and taxes has put us in a unique position within the municipal finance industry. Having provided these services for our first special district in 1985, our assessment/special tax formulas have generated revenues to support hundreds of bond issues over the past 39 years, all of which have withstood the test of time. During this period, we have developed a number of assessment/special tax methodologies that have become the standards of our industry. Additional information on DTA is available on our website ( www.FinanceDTA.com) .
DTA has assembled a project team for the City with the breadth of experience required to provide consulting services in a professional and timely manner. This project would be primarily handled out of DTA's Irvine office. Andrea Roess, Managing Director, would be the Principal -in -Charge and have the City's primary account responsibility. She will be assisted by Nehal Thumar, a Vice President at DTA, and Steve Runk, P.E., Vice President of Engineering Services at DTA, in addition to other support staff. Brief resumes for each of our team members are included in Section III of this proposal. All personnel will be available full-time (100%) for the duration of the project.
This proposal shall remain valid for 180 days from the due date of the proposals. No addenda have been issued by the City in response to this solicitation.
If you have any questions regarding DTA, our team members, or the enclosed proposal, please contact Andrea Roess during the proposal evaluation period at (800) 969-4DTA x208 or by e-mail at Andrea(aFinanceDTA.com. Thank you for the opportunity to work with you on this engagement.
Best Regards,
David Taussig
Chairman/Managing Director
Phone: (800) 969-4DTA
[email protected]
TABLE
OF CONTENTS
SECTION PAGE
I QUALIFICATIONS, RELATED EXPERIENCE, AND
REFERENCES 1
A DIF-Specific Experience 1
B Special District Experience 3
C Administration Experience 4
D Analytical Capabilities 6
E References 7
F Required Statements 9
II FIRM OVERVIEW 10
A Firm Profile 10
B Relevant Experience 13
III PROPOSED STAFFING AND PROJECT
ORGANIZATION 16
A DTA Team Biographies 17
IV WORK PLAN/TECHNICAL APPROACH 21
A Project Management Process 21
B Fee Study 22
C Formation of a Public Safety CFD 30
APPENDICES
APPENDIX A REQUESTED CONTRACT EXCEPTIONS
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
QUALIFICATIONS, RELATED EXPERIENCE, AND REFERENCES
DTA, formerly David Taussig £t Associates, is pleased to submit this proposal to the City of Placentia (the "City"). It is our understanding that the City is seeking a qualified consultant to conduct a DIF update and create a successor Public Safety CFD. The AB 1600 -compliant Fee Study would recommend the appropriate fee justification methodology and fee levels to support specific types of City -selected capital facilities needed to serve new growth. The City is proposing to keep and significantly update all of the existing Citywide, TOD, and Affordable Housing DIFs already in place, in addition to adding components/programs to the Citywide DIFs, including a Public Facilities DIF and Information Technology DIF. The City wishes to adopt a new Public Safety Services CFD to help fund its annual public safety operating costs.
Notably, DTA was recently hired by the City in January 2023 to form the Old Town Placentia CFD (CFD 2024-1), an annexable CFD comprising the Old Town area at Chapman Avenue and Alta Street. The area is made up of a diverse mix of commercial land uses, surrounded by residential neighborhoods to the west, east, and north and properties will be annexed into the CFD as new development and rehab projects occur. DTA is currently preparing the upcoming annual levy for the CFD.
A DIF-Specific Experience
DTA has been performing public facilities fee consulting services since DIFs were enacted under AB 1600 by the California Legislature and codified under California Government Code 566000 et seq., also referred to as the Mitigation Fee Act. We have prepared approximately 500 fee justification studies to date for a variety of public improvements, including transportation, water, sewer and flood control facilities, fire and police stations, parks, libraries, school facilities, and other types of infrastructure. DTA has extensive experience preparing DIF studies that have complied with Section 66000 et seq. of the Government Code and withstood legal scrutiny to the extent that none of our prior studies have been subject to any litigation.
Regarding the land valuation calculations that apply to Park Impact Fees and/or Quimby in -lieu fee calculations, DTA staff accesses multiple data resources and employs a variety of analytical strategies to ensure that the final recommended land valuation is one that properly smooths out the data to address the dramatic high and low figures that can be common in the Orange County real estate market. We subscribe to the CoStar real estate database that provides us with current and historical sales prices and lease rates for all local real estate transactions.
DTA recently created an internal task force comprised of 10 DTA staff members dedicated to working through and understanding the recent legislation known as AB 602 to ensure that our fee studies comply with all applicable legal requirements. We shall also have other support staff available to assist the City, as needed.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
Currently, DTA is working on approximately 18 DIFs across the State, all of which are of similar scope to the City's DIF but are at different stages of completion. In addition, DTA is also engaged in other projects that include fiscal/economic impact analyses, CFD/AD feasibility, formations, and bond issuance, special district administration, and other consulting engagements. These projects are also generally of similar size (in terms of hours and timeline) to the proposed engagement. All DTA projects are staffed and coordinated across various teams in our 50+ employee organization. For this engagement, our team would have adequate bandwidth and redundancy to meet the City's desired schedule.
In recent years, our firm has prepared AB 1600 -compliant DIF justification studies for the municipalities listed below, among others. Most recently, DTA has been hired by the County of San Bernardino and Cities of Coronado, Daly City, Fontana, Ione, La Verne, Morro Bay, National City, Redlands, Redwood City, Rialto, San Jose, Upland, and Yucaipa to prepare comprehensive fee updates in compliance with AB 602. Contact information for the clients listed below shall be provided upon request.
■ City of Anaheim;
■ City of Blythe;
■ City of Brawley;
■ City of Calexico;
■ City of Campbell;
■ City of Cathedral City;
■ City of Cerritos;
■ City of Chino;
■ City of Chino Hills;
■ City of Colton;
■ City of Costa Mesa;
■ City of Cypress;
■ City of Desert Hot Springs;
■ City of Escalon;
■ City of Firebaugh;
■ City of Fontana;
■ City of Fowler;
■ City of Glendale;
■ City of Hesperia;
■ City of Ione;
■ City of Kingsburg;
■ City of Lakeview;
■ City of Live Oak;
■ City of Los Banos;
■ City of Manteca;
■ City of Napa;
■ City of Palo Alto;
■ City of Pasadena;
■ City of Paso Robles;
■ City of Perris;
■ City of Red Bluff;
■ City of Redlands;
■ City of San Bernardino;
• City of San Francisco;
• City of San Jacinto;
• City of San Jose;
• City of San Luis Obispo;
• City of Santa Ana;
• City of Soledad;
• City of South San Francisco;
• City of Torrance;
• City of Tustin;
• City of Upland;
• City of Victorville;
• County of Colusa;
• County of Fresno;
• County of Kings;
• County of Pasadena;
• County of Riverside;
• County of San Bernardino;
• County of San Francisco
• County of San Luis Obispo;
• County of Santa Barbara;
• County of Santa Clara Fire Department;
• County of Shasta;
• County of South Santa Clara Fire District;
• County of Yuba;
• Town of Loomis;
• Town of Mammoth Lakes;
• Beaumont Cherry Valley Recreation and Parks District; • Denair Community Services District;
• El Dorado Hills Fire Department;
• Jurupa Area Recreation and Park District;
• San Gorgonio Memorial Hospital;
• San Gorgonio Pass Water Agency; and
• South Yuba Transportation Improvement Authority.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
B Special District Experience
Typically, municipalities seek out the services of a Special Tax Consultant/Assessment Engineer to utilize the consultant's specialized qualifications to advise and provide technical assistance to ensure numerical and technical accuracy in the assessments being charged, develop a legally defensible and equitable distribution of public improvement and/or services costs, and otherwise assist with the structuring and implementation of each special district in a mariner consistent with the municipality's stated goals and policy objectives. DTA has the necessary expertise to provide these consulting services by virtue of its professional staff's many years of experience specializing in the formation and administration of special districts. Notably, the firm has been involved in the enrollment and collection of special assessments for 39 years.
DTA's special district experience takes many forms, as illustrated in the discussion below. • Broad -Based Experience: DTA has considerable experience with virtually every CFD/AD scenario imaginable. We have participated in districts with single and multiple property owners, improvement areas or zones, single and multiple series of bonds, escrowed bonds, fixed and variable rate and capital appreciation bonds, and residential and non-residential land uses. DTA has developed apportionment methodologies for the financing of Master Plan capital improvements, local subdivision improvements, public services, and even the undergrounding of existing overhead utilities. We have participated in the formation of land -secured districts containing fewer than 20 dwelling units and those with more than 38,000 dwelling units. Our staff has participated in numerous refundings and restructurings as well. This experience gives us the ability to analyze our clients' needs and match those needs with the financing mechanism that will maximize the capacity of the financing program while minimizing burdens on homebuyers and other property owners. Furthermore, the variety of financing structures for which we have provided these services have given us a perspective and level of skill that is unmatched. DTA's financial consulting services and work products reflect the scrutiny and refinement that can only come through such extensive experience. This proficiency can be crucial in identifying and resolving issues and helping our clients avoid the pitfalls that we have seen cause problems for other municipalities.
DTA's assessment apportionment methodologies and special tax formulas have been utilized for the sale of hundreds of bond issues and provided the firm with considerable experience working with property owners, public agencies, underwriters, bond counsels, and financial advisors to provide benefit apportionment methods satisfactory to all parties.
In the process, DTA has also worked frequently with institutional bond purchasers, all of whom are familiar with the firm and its expertise in the field of assessment engineering and special tax consulting.
• Legal Knowledge: Our senior professional staff is not only intimately familiar with the Mello -Roos Community Facilities Act of 1982, Municipal Improvement Act of 1911, Municipal Improvement Act of 1913, Improvement Bond Act of 1915, Landscaping and Lighting Act of 1972, Benefit Assessment Act of 1982, and Prop 218, but also has extensive real -world experience with each of their respective applications. This means that our advice and consulting services are grounded in a true understanding of each law and not merely restatements of industry practices.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
DTA is committed to providing independent, objective, and unbiased work product. DTA staff regularly reviews legal opinions, regulations, and statutes that impact or modify the provisions of Prop 218 (and related case law). As such, DTA is committed to providing unbiased deliverables that reflect the most current developments in public finance and real property law.
As a result, DTA's work products are designed specifically to comply with the California Courts' latest findings. For example, several of the Maintenance Assessment Districts ("MADs") for which DTA is currently acting as Assessment Engineer on behalf of the City of Ventura will be utilized to fund park maintenance services and, as such, are being specifically structured to comply with the State Court of Appeals' decision in Beutz v. County of Riverside. We have also previously acted as an Assessment Engineer in the establishment of ADs to incorporate the Court's findings in Silicon Valley Taxpayers Association, Inc. v.
Santa Clara County Open Space Authority, Golden Hills Neighborhood Association v.
City of San Diego, and Concerned Citizens v. West Point Fire Protection District. We are also frequently asked to provide expert witness testimony to support litigation efforts and recently provided testimony on behalf of the City of San Diego in its lawsuit against the assessment engineering firm that poorly structured and administered the Golden Hills MAD.
Innovation: Having been involved with Mello -Roos consulting since its infancy, DTA has pioneered many of the industry's techniques and standards. DTA's special assessment and special tax formulas, some of which have been in use since 1985, are based on a variety of methodologies that have withstood the test of time. Our firm's objective has been to take a balanced approach and utilize innovative and state-of-the-art techniques that enable all parties to receive the maximum benefit from public financing. DTA is aware of and has contributed to the most innovative and creative concepts in special district financing. Today, DTA continues to seek innovative solutions and refine our work product to better serve and protect our clients.
Adaptability: Each member of DTA's professional staff has considerable experience in computer -based financial analyses and modeling. This experience gives DTA the ability to adapt and create new models to meet any of the municipality's changing needs.
High -Level Support: DTA's clients receive high levels of personal attention from senior staff, with a Principal, Senior Vice President, or Vice President always available to meet with public agency staff and other groups. Due to the loyalty of DTA's senior staff, many of whom have worked with us for 20 years or more, DTA is able to offer a level of management expertise that is unequalled throughout the field of assessment/special tax consulting.
C Administration Experience
DTA has been a State leader in the enrollment and collection of special taxes/assessments for 39 years. DTA has served as the Special Tax/Assessment Consultant for numerous cities, counties, water districts, and school districts. For your reference, we levied over 3,010,000 Assessor parcels in over 800 districts in fiscal year 2023-24. In addition, we prepared and/or disseminated over 300 Continuing Disclosure Reports in the last 12 months.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District /4
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
Our staff is extremely knowledgeable with respect to the relevant law governing the enrollment of special taxes and has helped establish the industry's practices through our participation in various trade groups, such as CASTOFF. We are also intimately familiar with County Auditor -Controller, Assessor, Treasurer -Tax Collector, and Recorder practices, which is critical for the successful administration of special districts. The fact that DTA, unlike other firms, encourages its employees to work on both the formation and the administration of ADs has provided our staff with a much more comprehensive understanding of the details involved in implementing a successful CFD/AD. DTA's district administration experience takes many forms, including the following:
• Data Collection: DTA will establish procedures for capturing parcel data (e.g., approved tentative maps, recorded final maps, parcel changes, County Assessor's roll, and parcel payment status). District information will be maintained in a relational database with the Assessor Parcel Number ("APN") as the key field. Changes to the district database will be recorded independently, with actual updates made programmatically to increase accuracy, preserve history, and leave an audit trail. In other words, parcel deletions and additions and building permit information will be recorded in separate files and then programmatically linked to the district database to reflect changes. • Fund Accountability Analysis: DTA maintains its own fund account database that allows us to produce management -level account activity reports. This facilitates the indenture compliance review and reconciliation of disbursements, special tax and assessment receipts, and investment earnings. In our experience, trust account statements are virtually useless for management purposes. There is simply too much paper with a 5 to 10 -page statement produced for each account each month. DTA rekeys the statement data into a database and can run consolidated reports for any time period that show all accounts on a single page. Inconsistencies with the indenture will be communicated to the trustee.
• Calculation and Enrollment of Special Taxes and Assessments: Using the data compiled in the fund accountability analysis, DTA will prepare an evaluation of year-end sources and the uses of funds. Budgeted revenues and expenditures will be compared to actuals and year-end balances will be estimated. DTA will determine the coming year's special district expenditures, calculate the assessment installments, and enroll the assessment installments with the applicable county.
• Public Information: DTA will serve as the point of contact for taxpayers and other interested parties. Our professionals can be reached using a toll -free "800" number and will respond to telephone inquiries directly and/or in writing, as requested. • Delinquency Management: DTA will meet with City staff to review existing and/or establish delinquency management guidelines to ensure appropriate procedures are in place, in the event foreclosure action is required, and guarantee compliance with appropriate bond covenants. DTA will review property tax payment data and prepare a report that lists each delinquent parcel and the corresponding amount of delinquent special taxes. Delinquency data will be reviewed after each tax installment due date, at fiscal year-end, and prior to the initiation of foreclosure proceedings. Delinquency City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
dta
www.FinanceDTA.com
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
Notices will be mailed to property owners and/or lenders in accordance with the established delinquency management procedures.
Disclosure: DTA will prepare and file the various Disclosure Reports required in connection with each series of bonds. Disclosure Reports will include the lien and principal balance notification to the Assessor required pursuant to Revenue and Taxation Code Section 163.
1 Analytical Capabilities
In addition to the qualifications discussed above, DTA has the special qualification of having developed MuniAnalytics, the most advanced cloud -based software available for assessment/special tax administration. This software allows DTA to easily automate the management of district data, including parcels and property ownership, and calculation of special tax/assessment rates. MuniAnalytics is capable of managing large, complex districts, year after year, while maintaining historical data for audit and compliance purposes. MuniAnalytics leverages a rule -based approach, allowing DTA to model each district's special tax/assessment formula in order to consistently automate the assignment of property classifications and calculation of special tax/assessment rates for individual parcels. In addition to system validations, DTA can visually verify the results using detailed summarization screens to show the allocation of tax classifications and combined totals for each class. Extensive reporting and dashboards provide even further visualization of the resulting data that can be easily shared among the team.
With MuniAnalytics, DTA can enforce governance over each phase of a district's administration life cycle. This allows DTA staff to focus on quality and consistency while leveraging technology to ensure process and data compliance. These and other advantages are discussed below.
Web -Based: MuniAnalytics is web -based and accessible using a browser anytime and anywhere. Data is encrypted using 128 -bit encryption and only available to users with authorization. Authorized users have access to district data and can view district information at any point in a district's administration life cycle.
Data Governance: MuniAnalytics performs data consistency and validation checks for data entered into the system. This ensures the integrity and completeness of all district data.
Once a district is established in MuniAnalytics, the data is automatically versioned each fiscal year. This maintains a snapshot in time for past work completed and ensures the current fiscal year is always working with the latest version of the data. Versioning the data also eliminates the need for manual data processing, which is subject to human error and transposition.
Process Governance: MuniAnalytics enforces a consistent process for administering districts. This allows DTA staff to focus on quality and customer service. The system guides administrators through a process of calculations and validation steps while providing tools to inspect and verify the quality and consistency of the resulting calculations.
Partitioning, Data Isolation, and Integrity: MuniAnalytics is based on a cloud computing paradigm. Data are stored on highly redundant and encrypted disk arrays. The data for each district is partitioned and versioned. This allows MuniAnalytics to store historical data going City of Placentia Apri129, 2024
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back decades that can be searched and recalled instantly using a simple web browser. This data is also available for reporting and trend analyses.
Security, Authorization, and Auditing: The district administration functions of MuniAnalytics are only accessible to authorized users. Every access attempt, whether successful or not, is audited. Once authorized, any changes to district data are also audited.
In addition to the versioning capabilities of the system, it is possible to determine who changed what and when.
l9 References
DTA has also provided public finance consulting services for over 325 school districts, water districts, and fire protection districts throughout California. Listed below are six (6) references for DTA's recent work involving public finance consulting services for municipalities in California. We encourage you to contact our references to learn firsthand how well DTA staff meets the needs of its clients.
E.1 City of Placentia
Table 1: Reference Information
Location
City of Placentia, CA
Client Contact
Jeannette Ortega
Title 7
Deputy Director of Administrative Services
Address mil
401 E. Chapman Ave., Placentia, CA 92870
Phone Number '
(714) 993-8264
E-mail Address '
[email protected]
Project Dates A
January 2023 -Present
U Project Budget 1
$35,000
1 Project Team I
Andrea Roess and Nehal Thumar
ILL)roject Description
Formation of Old Town Placentia CFD (CFD No. 2024-1)
E.2 City of Redlands
Table 2: Reference Information
. Location
City of Redlands, CA
Client Contact
Danielle Garcia
Title
Management Service Director
- Address
35 Cajon Street, Redlands, CA 92373
IP Phone Number-
(909) 335-4791
e E-mail Address
[email protected]
Project Dates '
2001 -Present
r Project Budget
I
$49,980 (DIF Update)
L Project Team
_I
Andrea Roess, Steve Runk, and Nehal Thumar
Project Description
i
CFD Formation, Annual CFD Administration, DIF Study (Adopted), and DIF Study Update (In Progress)
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E.3 City of Anaheim
SECTION I
QUALIFICATIONS, RELATED
EXPERIENCE, AND REFERENCES
Table 3: Reference Information
Location
City of Anaheim, CA
Client Contact
Debbie Moreno
D'Anne Lee
Title
Finance Director
Budget Supervisor
Address
200 South Anaheim Blvd., Suite 276, Anaheim, CA 92805
Phone Number
(714) 765-5195
(714) 765-4574
-mail Address
[email protected]
[email protected]
roject Dates
1989 -Present
roject Budget
$53,000/Fiscal Year for District Administration
roject Team
Andrea Roess, Steve Runk, and Nehal Thumar
roject Descriptio
Special Tax Consultant/Assessment Engineer for an Existing MAD and for the Disneyland Resort Area and Two (2) Existing CFDs, In Addition to the Update of the City's DIF Program
E.4 City of Oceanside
Table 4: Reference Information
Location
City of Oceanside, CA
Client Contact
Jill Moya
Title
Financial Services Director
Address
300 North Coast Highway, Oceanside, CA 92054
hone Number
(760) 435-3887
-mail Address
[email protected]
Project Dates
2000 -Present
roject Budget
$35,000/Fiscal Year
Project Team
Andrea Roess, Nehal Thumar, and Diego De Leon
Project Description
Special Tax Consultant for Formation for All Four of the City's Active CFDs E.5 County of Orange
Table 5: Reference Information
Location
County of Orange, CA
Client Contact
Louis McClure
Title
Administrative Manager - County Executive Office
Address
10 Civic Center Plaza, 3rd Floor, Santa Ana, CA 92701
'hone Number
(714) 834-5999
-mail Address
[email protected]
Project Dates
1986 -Present
roject Budget
$44,250 [Formation of CFD No. 2023-1 (Rienda)]
Project Team
Andrea Roess, Nehal Thumar, and Diego De Leon
Project Description
Formation of All the County's Special Districts Since 1994; Administrator for 12 of the County's CFDs/IAs, One AD, and One Reassessment District ("RAD") City of Placentia April 29, 2024
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E.6 City of Cathedral City
Table 6: Reference Information
r Location '
City of Cathedral City, CA
. Client Contact-
Kevin Biersack
Patrick Bumstead
lw Title IM
Financial Services Director
Financial Analyst II
Address
68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234
III Phone Number-
(760) 770-0378
(760) 202-2475
. E-mail Address-
KBiersackcaCathedralCity.gov
PBumstead(aCathedralCity.orq
. Project Dates 1
2005 -Present
. Project Budget '
$10,000 in CY 2023 (Formation of IAs)
I' Project Team '
Andrea Roess, Nehal Thumar, and Diego De Leon
Project Description
CFD Formation, Annexations, and Annual CFD Administration F Required Statements
DTA has not been involved in any litigation during the last 7 years regarding DIF or CFD updates, nor in the firm's history. DTA and/or any individual who will perform the work for our firm is free of any conflict of interest. In addition, no contracts have been terminated, neither partially nor completely, by clients for convenience or default within the past 7 years, nor in the firm's history.
DTA currently has a staff of approximately 50 employees, all of whom are directly involved solely in public finance. Staff members come from backgrounds in a number of fields, including land development, public administration, civil engineering, investment banking, economic consulting, redevelopment, law, and land use planning. This diversity of experience and expertise allows DTA to meet a wide variety of challenges related to both the actual work product and client management. DTA's staff members all have considerable experience in computer -based financial analyses and modeling, which is a key component of the firm's consulting services. This fact ensures that the review and development of any computer model(s) will be in experienced hands. DTA's turnover rate is below the industry standard of 10%. In fact, over the last 3 years, our average staff turnover rate is 8%.
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II FIRM OVERVIEW
A Firm Profile
SECTION II
FIRM OVERVIEW
DTA is a California public finance consulting firm with a national practice focusing on public -private partnerships and the establishment and implementation of infrastructure and public services financing programs for local municipalities in California and 21 other states.
Organized as a corporation, the firm has its corporate headquarters in Irvine, as well as branch offices in Riverside, San Jose, and San Francisco, California, Dallas and Houston, Texas, Raleigh, North Carolina, and Tampa, Florida. Additional information on DTA is available on our website ( www.FinanceDTA.com) .
DTA, a corporation, was incorporated in the State of California on May 15, 1986, and has been providing public finance consulting services for over 38 years. Company headquarters are located at 18201 Von Karman Avenue, Suite 220, Irvine, CA 92612. The corporation has two officers, specifically David Taussig, Chairman/Managing Director, and Cecily Burke, Secretary, both of whom are authorized to bind the firm. DTA does not hold controlling or financial interests in any other organization and is not owned or controlled by another person or organization. DTA's management personnel consists of four principals identified as David Taussig, Chairman/Managing Director, Kelly Wright, Chief Executive Officer, Andrea Roess, Managing Director, and Kuda Wekwete, Managing Director.
DTA currently has a staff of approximately 50 employees, all of whom are directly involved solely in public finance. Staff members come from backgrounds in a number of fields, including land development, public administration, civil engineering, investment banking, economic consulting, redevelopment, law, and land use planning. This diversity of experience and expertise allows DTA to meet a wide variety of challenges related to both the actual work product and client management. DTA's staff members all have considerable experience in computer -based financial analyses and modeling, which is a key component of the firm's consulting services. This fact ensures that the review and development of any computer model(s) will be in experienced hands. All DTA staff members are available by phone at (800) 969-4DTA and our hours of operation are Monday through Thursday from 6:00 am to 5:30 pm and Friday from 6:00 am to 4:30 pm.
DTA is a privately -owned company and not a subsidiary of a "parent company." In addition, DTA does not hold controlling interest in any other organization and has not been associated with any mergers, acquisitions, or sales of the firm within the last 10 years, nor in its lifetime.
DTA has never filed for bankruptcy in its 39 years in business. DTA does not have any organizational conflicts of interest that may affect the ability of the firm to perform the required duties. Notably, the firm is not debarred, suspended, or otherwise declared ineligible to contract with any Federal, state, or local public agency. DTA's Data Universal Number System ("DUNS") number is 197812571.
DTA has been performing public facilities fee consulting services for over 37 years, since 1987.
Impact fees, in particular, were enacted under AB 1600 by the California Legislature in 1987 and codified under California Government Code 866000 et seq., also called the Mitigation Fee Act (the "Act" or "AB 1600"). DTA has had extensive experience preparing fee and rate studies that City of Placentia Apri129, 2024
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have complied with the legal code and local policies and withstood legal scrutiny to the extent that none of our prior studies have been subject to any litigation.
In addition, DTA is a registered Municipal Advisor with the SEC/MSRB (MSRB ID #K0961).
According to the SEC, as of September 12, 2017 (due to a new regulatory requirement), representatives of Municipal Advisor firms must have earned the Series 50 license in order to engage in municipal advisory activities. DTA managers at the Vice President level and above are Series 50 licensed and therefore duly authorized by the SEC/MSRB to engage in municipal advisory activities. As a firm that focuses solely on public finance, our conflict "checks" and procedures capture the whole of our business activities. We will not have an affiliate, parent, or subsidiary company making decisions that implicate the integrity of the City or its DIF/CFD program. Relatedly, our firm has a strict policy on Political Contributions (as defined in MSRB Rule G-37) and, because of this, our marketing efforts in Orange County never conflict with our ability to provide unbiased, expert advice.
DTA is particularly known for its specialized expertise in the design and annual administration of ADs and CFDs, levies of a variety of rates and charges, and issuance of municipal bond issues.
In addition, the firm's public finance group provides fiscal and economic impact and DIF consulting services. We are also experienced in grant writing for Federal and state funding and tax credit programs.
DTA's level of experience with levying fixed charges and the formation and issuance of bonds for special financing districts is unequaled as our firm is the State of California's leading Special Tax Consultant, having prepared special tax formulas on behalf of public agencies for the establishment of over 1,500 special financing districts. We take a hands on, detail -oriented approach with an emphasis on accuracy, efficiency, and reliability. Automation is a key component of our services as it aids in the elimination of errors, documentation of procedures, and development of audit trails.
These capabilities are frequently combined with our infrastructure finance consulting services to develop public infrastructure and services financing strategies and plans.
Since its establishment in 1985, DTA has completed consulting assignments for more than 3,000 clients in 22 states. During this period, the firm has been involved in the formation of more than 2,000 public finance districts, with total authorized bonded indebtedness in excess of $75 billion.
Our financing programs have utilized a variety of public financing mechanisms, such as ADs, CFDs, Certificates of Participation, Tax Allocation Bonds, Sewer and Water Revenue Bonds, Marks -Roos Bond Pools, Landscaping and Lighting Districts ("LLDs"), Integrated Financing Districts, and various types of fee programs. DTA has served as the Special Tax Consultant and/or Assessment Engineer for numerous cities, counties, water districts, and school districts.
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DTA's consulting services include:
• Proposition ("Prop") 218 and Assembly Bill ("AB") 1600 compliance studies; • Assessment engineering and special tax consulting;
• Annual administration of ADs and CFDs;
• Public infrastructure and services financing plans and strategies; • Fiscal and economic impact analyses;
• Rate and fee studies;
• Federal and state grant and loan applications;
• Economic development and revitalization studies; and
• Public improvement construction management services.
On a national basis, DTA has planned and implemented Public Facilities Financing Plans ("PFFPs") that have ranged from the quantitative analysis of a single financing mechanism for an individual facility to the preparation of a comprehensive public financing plan covering multiple facilities and public services through a series of financing mechanisms. Our financial analyses provide public officials, landowners, and other interested parties with the level of information necessary to make fully informed decisions regarding land use, infrastructure, and public services financing issues. Furthermore, DTA staff has extensive experience working with various stakeholder groups, including public agencies, local residents and businesses, property owner associations, land developers, public finance professionals, local Chambers of Commerce, and other interested parties.
DTA's special tax and assessment formulas, some of which have been in use since 1985, are based on a variety of methodologies that have withstood the test of time and legal scrutiny. Our firm's objective has been to take a balanced approach and utilize innovative and state-of-the-art techniques that enable all parties to receive the maximum benefit from public financing. DTA is aware of and has contributed to the most innovative and creative concepts in land -secured public financing. Our knowledge and experience have enabled us to maximize the capacity of land -secured financing programs while minimizing burdens on homebuyers and other property owners.
DTA has provided public finance consulting services to virtually every major city and urban county in the State of California. Our city clients are too numerous to list individually but include the Cities of Anaheim, Fresno, Long Beach, Los Angeles, Oceanside, Sacramento, San Diego, San Francisco, and San Jose. Our county clients have included the Counties of Alameda, Butte, Contra Costa, Fresno, Imperial, Los Angeles, Madera, Marin, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, Santa Barbara, Shasta, Sutter, Stanislaus, and Yuba. DTA has also provided public finance consulting services to over 325 school districts, water districts, and fire protection districts throughout California.
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B Relevant Experience
Table 7 lists a selection of public agency contracts for special district formation and administration services that DTA has been awarded in recent years. DTA served as the lead consultant for each of the efforts noted below and key personnel included the proposed project team members, along with other DTA staff. For each of these projects, additional client contact information can be provided upon request. In order to protect our clients' rights under existing agreements, budget information may only be disclosed on a client -by -client basis with approval by each such client. Please refer to Section I for six (6) references for DTA's recent work involving public finance consulting services for municipalities in California. We encourage you to contact our references to learn firsthand how well DTA staff meets the needs of its clients.
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Table 7: List of Recent Contracts Awarded to DTA
SECTION II
FIRM OVERVIEW
Client
Client Contact
Phone No.
Term of Contract
Type of Service
City of San Mateo
Hossein Golestan
(650) 522-7102
2008 -Present
District Formation and Administration
County of Orange
Louis McClure
(714) 834-5999
1986 -Present
District Formation and Administration
County of San Bernardino
Donna Shiley
(909) 386-8830
2002 -Present
District Formation and Administration
Lake Arrowhead Community Services District
John O'Brien
(909) 336-7108
2009 -Present
District Formation and Administration
Borrego Water District
Jessica Clabaugh
(760) 767-5806
1995 -Present
District Formation and Administration
Rancho California Water District
Jeff Armstrong
(951) 296-6900
1995 -Present
District Formation and Administration
Santa Margarita Water District
Paul Pender
(949) 459-6507
1999 -Present
District Formation and Administration
CSCDA
James Hamill
(925) 476-5644
2001 -Present
District Formation and Administration
Elsinore Valley Municipal Water District
Margie Armstrong
(951) 674-3146 x8306
1999 -Present
District Formation and Administration
Schell -Vista Fire Protection District
Jeanne Williams
(707) 287-2272
1996 -Present
District Formation and Administration
Casitas Municipal Water District
Steve Wickstrum
(805) 649-2251
2015 -Present
District Formation and Administration
City of Fontana
Lisa Strong
(909) 350-7671
1991 -Present
District Formation
City of Los Angeles
Ha To
(213) 473-7526
1994 -Present
District Formation and Administration
County of Los Angeles
John Patterson
(213) 974-7175
1998 -Present
District Formation and Administration
City of South San Francisco
Richard Lee
(650) 829-6619
2015 -Present
District Formation
Temescal Valley Water District
Jeff Pape
(951) 277-1414
2015 -Present
District Formation and Administration
City of Fullerton
Kriste Saldana
(714) 738-6521
1992 -Present
District Formation and Administration
City of Ione
Jane Wright
(209) 274-2412
2005 -Present
District Administration and Refunding/Workout
City of Rancho Cucamonga
Noah Daniels
(909) 477-2700 x2403
2002 -Present
District Formation
City of Redwood City
Sylvia Bravo Peters
(650) 780-7070
2010 -Present
District Administration and Refunding/Workout
City of Simi Valley
Dan Paranick
(805) 583-6701
2005 -Present
District Formation and Administration
Granada Sanitary District
Delia Comito
(650) 726-7093
2009 -Present
District Administration
Rancho Santa Fe Community Services District
Chuck Duffy
(760) 479-4125
2006 -Present
District Administration and Refunding/Workout
Capistrano Bay Community Services District
Donald Russell
(949) 496-6576
1998 -Present
District Formation and Administration
City of Malibu
Reva Feldman
(310) 456-2489 x226
1997 -Present
District Formation and Administration
City of Richmond
Yader A. Bermudez
(510) 620-6530
2015 -Present
District Administration
City of San Juan Bautista
Ed Tewes
(831) 623-4661
2018 -Present
District Formation
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SECTION II
FIRM OVERVIEW
Client
Client Contact
Phone No.
Term of Contract
Type of Service
City of Soledad
Donald Wilcox
(831) 223-5173
2015 -Present
District Formation and Administration
County of Riverside
Brian Nestande
(951) 955-1110
2017 -Present
EIFD Consultation
County of Marin
Leelee Thomas
(415) 473-6697
2015 -Present
District Formation and Administration
Tejon Ranch Public Facilities Financing Authority
Allen Lyda
(661) 248-3000
2000 -Present
District Formation and Administration
City of San Marcos
Isaac Etchamendy
(760) 744-1050 x3273
1988 -Present
District Formation and Administration
County of Contra Costa
Marie O. Rulloda
(925) 646-2186
2000 -Present
District Administration
County of Imperial
Lorraine Martinez
(442) 265-1119
1998 -Present
District Formation and Administration
CSUCI Site Authority
Missy Jarnagin
(562) 951-4674
2004 -Present
District Formation and Administration
Santa Barbara County
Steven Fung
(805) 568-2477
2002 -Present
District Formation and Administration
City of Show Low
Justin Johnson
(928) 532-4024
2014 -Present
District Administration
County of Madera
Eric Fleming
(559) 675-7703
2000 -Present
EIFD Formation and Administration
City of Anaheim
Debbie Moreno and/or
Rudy Emami
(714) 765-5195
(714) 765-5176
1990 -Present
District Formation and Administration
City of Montclair
Mikey Fuentes
(909) 625-9497
2011 -Present
District Formation and Administration
City of Buena Park
Sung Hyun
(714) 562-3713
2001 -Present
District Formation and Administration
City of Cathedral City
Kevin Biersack
(760) 770-0378
2001 -Present
District Formation and Administration
City of Tustin
John Buchanan
(714) 573-3107
2000 -Present
District Formation
City of Oceanside
Jill Moya
(760) 435-3887
2000 -Present
District Formation and Administration
North County Fire Protection District
Stephen Abbott
(760) 723-2012
2017 -Present
District Formation
City of Cupertino, Public Works
Alex Wykoff
(408) 777-3255
July 2019 -Present
Storm Drain Fee Administration
Lake Canyon Community Service
Stacey Johnson
(408) 834-7745
July 2019 -Present
Community Services District Administration
Lions Gate Community Services District
Kurtis Shenefiel
(408) 226.3300
July 2019 -Present
Community Services District Administration
San Martin County Water District
Peter Forest
(408) 683-4101
July 2019 -Present
Parcel Tax Administration
Santa Clara County Library
Chuck Griffen
(408) 293-2326 x3003
July 2019 -Present
CFD Administration
Silver Creek Valley Country Club
Ed Abelite
(408) 221-6259
July 2019 -Present
Geologic Hazard Abatement District
Administration
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SECTION III
PROPOSED STAFFING AND
PROJECT ORGANIZATION
III PROPOSED STAFFING AND PROJECT ORGANIZATION
DTA has assigned personnel to this project who bring experience and technical expertise to each unique element of study. Our team organization is illustrated below. Project roles of our key team members are described below and followed by professional biographies. All personnel will be available full-time (100%) for the duration of the project. Please refer to the enclosed Pricing Proposal for a breakdown of the proposed hours per task per labor category.
Figure 1: Team Organization Chart
a
dta
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Andrea Rc'e s
Managing Dvector
SPnnnpai-infihargzl
Profed Managal
Nichol Ttuanar
Vice Preskient
(CuPmled Manager)
Stem Runt. P.F.
Yiioe President.
(Prated tS+gh+eer)
DTA has assembled a project team for the City with the breadth of experience required to provide consulting services in a professional and timely manner. This project would be primarily handled out of the Irvine office. Andrea Roess, Managing Director, would be the Principal -in -Charge and serve as the day-to-day contact for the City. She will be assisted by Nehal Thumar, a Vice President at DTA, and Steve Runk, P.E., Vice President of Engineering Services at DTA, in addition to other support staff.
Ms. Roess and Mr. Thumar will serve jointly as the Project Managers for the DTA team and be the City's primary points of contact throughout this engagement. They will handle the ongoing execution and completion of the entire Scope of Work and match DTA's work and deliverables with the City's needs and objectives. Ms. Roess and Mr. Thumar will also manage the work of DTA's project team, including leading data collection efforts, directing the development of our technical model, providing senior -level analysis, reviewing progress and work products with City staff and stakeholders, presenting study findings at project meetings, and finalizing study documentation. They will be assisted in these tasks by support staff.
Steve Runk, P.E., the Vice President of Engineering Services, will provide engineering expertise, prepare and/or review facilities cost estimates, and contribute to the apportionment analysis of specific facilities to be included in the fee program and for property included in the proposed CFD.
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PROPOSED STAFFING AND
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Key personnel will be available to the extent proposed, or designated by the City, for the duration of the project and no person designated as "key" to the project shall be removed or replaced without the prior written concurrence of the City. In addition, DTA is not behind schedule or past the completion date for any active projects and has a long history of delivering projects on a timely basis and adhering to agreements.
DTA has an enviable reputation for producing high -quality work in a quick and efficient manner to correspond with even the most aggressive project schedule. DTA's clients also receive high levels of personal attention from senior staff, with a Principal, Senior Vice President, or Vice President always available to meet with public agency staff and other groups.
According to the SEC, as of September 12, 2017 (due to a new regulatory requirement), representatives of Municipal Advisor firms must have earned the Series 50 license in order to engage in municipal advisory activities. DTA managers at the Vice President level and above are Series 50 licensed and therefore duly authorized by the SEC/MSRB to engage in municipal advisory activities.
A DTA Team Biographies
Andrea Roess
Managing Director I [email protected]
Project Role - Principal-in-Charge/Project Manager
Since joining DTA in 1992, Ms. Roess has participated in all aspects of the formation and implementation of special finance districts to fund infrastructure and services. She has managed the formation and annual administration of more than 300 land -secured financing districts, including several Property Assessed Clean Energy ("PACE") programs. In addition, Ms. Roess established and manages DTA's water and sewer practice and is a leader in the development of PACE programs.
Ms. Roess has utilized her computer skills to develop numerous state -of -the art computer models that evaluate cash flows related to funding infrastructure and public services. This ability has enabled her to develop sophisticated bond structuring concepts for CFDs and ADs, as well as complex fiscal impact and fee impact models. She has also prepared hundreds of Engineer's Reports for ADs and been involved in the development of escrow release formulas and bond pool financing structures. In addition, Ms. Roess has experience in the preparation of PFFPs, Water/Sewer Revenue Bond analyses, and tax increment analyses. She is also the Project Manager in charge of annual special tax administration for more than 120 financing districts throughout California, Florida, Hawaii, Missouri, and Nevada.
Notably, Ms. Roess is very familiar with the City's CFD financing program, as DTA was recently hired by the City in January 2023 to form the Old Town Placentia CFD (CFD 2024-1), comprising an area approximately 32 acres in size and consisting of 147 parcels made up of a diverse mix of commercial land uses, surrounded by residential neighborhoods to the west, east, and north. This CFD funds annual maintenance services. She is currently preparing the upcoming levy for the CFD.
In addition, Ms. Roess has become an influential voice in the world of CFDs and public finance through an intimate understanding of CFD subject matter that is unrivaled in the industry. Her City of Placentia Apri129, 2024
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direct and innovative approach to solving problems has led to a variety of innovative and successful solutions for her clients. This success has not gone unnoticed in the CFD circle. For years, industry professionals have sought her guidance and insights on a wide variety of issues that they faced. She is regularly asked to participate at speaking engagements and conferences to share her experiences and knowledge related to CFD structuring and other public finance topics.
For your reference, listed below is a sampling of current clients to whom Ms. Roess provides both district formation and annual administration consulting services.
Borrego Water District
City of Anaheim;
City of Blythe;
City of Brawley;
City of Calexico;
City of Cathedral City;
City of Los Angeles;
City of Oceanside;
County of Imperial;
County of Imperial;
County of Los Angeles;
County of Orange;
County of San Bernardino;
County of Santa Barbara;
Laguna Beach Unified School District;
Riverside Unified School District;
San Diego County Fire Protection District; and
Upland Unified School District.
In addition, Ms. Roess has prepared numerous fee and rate studies for various public agencies, including cities, counties, and water districts. In recent years, Ms. Roess has completed impact fee studies for numerous municipalities, including the Cities of Anaheim, Brawley, Hesperia, and Redlands, County of Riverside, Jurupa Area Recreation and Park District, and San Gorgonio Pass Water Agency.
Ms. Roess holds an M.B.A. degree with a concentration in finance from San Francisco State University and a B.A. in psychology/public policy analysis from Pomona College.
Ms. Roess is also active in industry groups, including Women in Public Finance, CSMFO, and many others. In addition, Ms. Roess serves on the Board of Directors for the Association of Women in Water, Energy, and Environment ("AWWEE") and has participated on numerous panels and workshops related to public financing. She also holds a Series 50 license as a registered Municipal Advisor with the SEC/MSRB under rules promulgated following the Dodd -Frank Act in 2010.
Nehal Thumar
Vice President I [email protected]
Project Role - Co -Project Manager
Since joining DTA in 2000, Mr. Thumar has been involved in all aspects of the formation and implementation of numerous Mello -Roos CFDs located throughout California. Mr. Thumar's responsibilities related to these CFDs have included the preparation of tax spread proforma analyses, Rates and Methods of Apportionment ("RMAs"), Public Reports, and overlapping debt analyses. In addition, he has managed the annual administration of over 25 CFDs in Southern California and prepared due diligence, tax projections, and Disclosure Reports related to land -secured bond issuances for numerous clients in California, Nevada, and Arizona.
Additionally, Mr. Thumar's involvement on both the CFD formation and annual administration side has provided him with a unique perspective. For instance, he has reviewed numerous CFD City of Placentia Apri129, 2024
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formation and legal documents from the standpoint of how each CFD may impact interested stakeholders down the line through an annual administration point of view. This type of exposure to both CFD formation and annual administration has afforded Mr. Thumar the ability to identify any future pitfalls prior to the actual formation of a district.
Mr. Thumar is also very familiar with the City's CFD financing program, having assisted Ms. Roess in the formation of the Old Town Placentia CFD (CFD 2024-1) as of January 2023. In addition, he is assisting with preparing the upcoming levy for the CFD.
For your reference, listed below is a sampling of current clients to whom Mr. Thumar provides both district formation and annual administration consulting services. ■ Borrego Water District
■ City of Anaheim;
■ City of Blythe;
■ City of Brawley;
■ City of Calexico;
■ City of Cathedral City;
■ City of Los Angeles;
■ City of Oceanside;
■ County of Imperial;
• County of Imperial;
• County of Los Angeles;
• County of Orange;
• County of San Bernardino;
• County of Santa Barbara;
• Laguna Beach Unified School District;
• Riverside Unified School District;
• San Diego County Fire Protection District; and
• Upland Unified School District.
Mr. Thumar has also prepared Consultant Reports and tax increment models for numerous Redevelopment Project Areas ("RPAs") located within the City of San Diego and Fiscal Impact Reports ("FIRs") for various public agency clients. In addition, Mr. Thumar has worked on the preparation of numerous fee and rate studies for various public agencies, including cities, counties, and water districts. His work during the impact fee justification and apportionment analysis process for each respective project has included the preparation of capital improvement and public facilities needs lists, fee model development, report writing, data collection, and interactions with city/county staff and key stakeholders. In recent years, Mr. Thumar has completed impact fee studies for numerous municipalities, including the Cities of Anaheim, Brawley, Hesperia, and Redlands and the Jurupa Area Recreation and Park District.
Mr. Thumar received his M.B.A. degree with a concentration in finance and Bachelor of Arts degree in economics in 2005 and 2000, respectively, from the University of Southern California. He also holds a Series 50 license as a registered Municipal Advisor with the SEC/MSRB under rules promulgated following the Dodd -Frank Act in 2010.
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Steve Runk, P.E.
Vice President, Engineering Services I [email protected] Project Role - Engineer (State License Number C23473 - California Registered Civil Engineer) Mr. Runk has over 45 years of experience in the design and construction management of major civil engineering projects, including roadways, bridges, sewer and water improvements, and flood control facilities, grading for public works projects, and construction of commercial and industrial buildings.
Mr. Runk's specific responsibilities have included design, quality control, specifications, estimates, construction bid packages, construction coordination and management, cost analyses and cost control, scheduling, manpower forecasting, staffing, and marketing. He has also assisted public agencies and developers in the procurement of funding from the California Department of Transportation ("Caltrans") and other Federal and state agencies.
Mr. Runk has a proven track record of meeting schedules and adhering to budgets. Since joining DTA in 2000, he has worked with local agencies to resolve community issues and negotiate scope changes with contractors to ensure the timely and satisfactory completion of construction projects.
He has also acted as the Project Manager for the establishment of ADs and preparation of numerous AB 1600 DIF justification studies. Mr. Runk specializes in preparing assessment apportionment formulas and fee studies for roads, storm drains, and water and wastewater facilities. He has been involved in preparing needs lists and apportioning facilities costs for many of DTA's AB 1600 studies, including those in the Cities of Anaheim, Brawley, Coachella, Chino Hills, Hesperia, Paso Robles, San Luis Obispo, Tustin, and Victorville, as well as the County of San Bernardino and a number of water districts, including the San Gorgonio Pass Water Agency. He was also closely involved in DTA's previous work as the AB 1600 consultant for the County of Riverside.
Prior to joining DTA, Mr. Runk, as the Senior Construction Manager for Holmes & Narver, Inc., successfully completed the construction of the SR -41 Freeway in Fresno County, which was the County's first Measure "C" sales tax -funded freeway. Prior to this project, Mr. Runk successfully completed the construction of the SR -71 Freeway in Chino/Chino Hills, California. This $98 million project was the first Measure "M" sales tax -funded project for the San Bernardino Associated Governments ("SANBAG"). Mr. Runk's responsibilities on both projects included contract management, quality control, public relations, cash flow analyses, project closeout, and compliance with Federal and State funding requirements.
Previously, Mr. Runk held positions with various public and private engineering entities in which he delivered projects requiring a wide variety of engineering expertise. He holds a B.S. in engineering from the University of California at Los Angeles and an M.S. in civil engineering from California State University at Long Beach. Mr. Runk is a registered Civil Engineer in the State of California.
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IV WORK PLAN/TECHNICAL APPROACH
DTA's client contact and interaction continue beyond the basic deliverables. DTA is a customer and community -centric firm committed to excellence, quality products, and an open and interactive communication environment. We employ these practices in the workplace, in cities, counties, and towns, and with the many clients that we have served for 39 years. DTA realizes that every client, like every person, is a distinct entity best understood and served in a direct and collaborative manner.
DTA serves clients in small towns, medium-sized cities, and larger municipalities. Our service philosophy is three -pronged: we strive to know our customers, understand the communities we're privileged to serve, and always provide the best care, advice, and products. At DTA, we also understand that every project is different, and every outcome is special to our team. Our values of accountability, integrity, and excellence underly all work performed.
DTA has assembled an experienced and capable team with expertise in all the requirements of the consulting services requested by the City. One goal for this project will be to complete all the tasks of the project within the agreed -upon budget and schedule. Time and time again, DTA has proven its ability to adhere to contract agreements and understand the importance of good project management.
A Project Management Process
In addition to the elements identified in the City's proposed Scope of Work, DTA would recommend incorporating the following key strategies:
• Reviewing prior studies and effectively managing data requests and data gathering/consolidation;
• Ensuring key stakeholder input is received prior to writing any reports, so work need not be duplicated;
• Leveraging technology to request and track information from various sources and stakeholders;
• Setting up standing conference calls or Teams meetings (i.e., bi-weekly), in addition to scheduled meetings with City staff in order to stay on track with tasks and deliverables and discuss critical project elements; and
• Preparing internal report drafts for City staff review and discussion on conference call(s).
Finally, as part of the completion of this Scope of Work, DTA suggests evaluation of some other key considerations, including:
• Should a "fee credit" program be established for developers who build or oversize facilities on the City's facilities needs list?
• Should a stakeholders' committee or group be established to ensure outside input prior to the preparation of the Fee Study?
• Should the automatic fee escalator be reviewed to possibly further mitigate the impacts of inflation on the fee program prior to the preparation and adoption of the next fee program by the City?
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DTA utilizes the software application Vision to track project expenditures. This program is always available to DTA's employees and provides detailed project information ranging from the execution of the contract to completion of the project. To manage this contract effectively in terms of team performance, schedule compliance, and budget adherence, Ms. Roess and Mr. Thumar, DTA's Project Managers, will utilize these tools:
Bi-weekly assignment checklists throughout the life of the contract to ensure each task remains on schedule by utilizing proper staffing assignments.
Consistent communication with City staff via e-mail, telephone, and in -person meetings, as needed.
Weekly budget review to ensure no budget overruns occur. DTA's customized accounting system will enable us to track the expenditures to date each week and ensure budget compliance.
Regular meetings with City staff to discuss progress and any issues and receive guidance.
At DTA, all our multidisciplinary team members come from diverse backgrounds, and we put people first. We pride ourselves on developing strong relationships with our clients and working closely with them to understand the big picture and goals they want to achieve as a result of our engagement, as well as how DTA's work may impact other initiatives both now and in the future. At DTA, we understand that public finance isn't only about raising funds to pay for infrastructure or services. Public finance is about ensuring that communities can thrive by assessing what the best solution is for the community as a whole and what will help the community reach and sustain growth goals.
DTA brings an unbiased perspective combined with real -world experience in working with municipalities, which gives us the ability to understand and communicate with all stakeholders throughout the process. Regarding our engagement approach, we will work closely with City leadership to engage with property owners, business owners, and community leaders to understand any issues or pressure points, as well as what is envisioned for the future.
Finally, DTA will provide independent, objective, and impartial work product. DTA staff regularly reviews legal opinions, regulations, and statutes that impact or modify public finance -related case law. DTA is committed to providing deliverables that reflect the most current developments in public finance and real property law.
B Fee Study
B.1 Project Approach
With respect to the Fee Study, DTA would provide all-inclusive professional and technical support to the City in developing a conceptual project scope, in addition to reviewing any existing City DIF studies, the City's General Plan, Specific Plans, Municipal Code, and the Capital Improvement Program ("CIP"). DTA's comprehensive review of required impact fee and capacity fee levels shall be documented in a formal Nexus Study prepared under California Government Code 66000 et seq.
Having previously been subject to legal and developer scrutiny, DTA has developed a streamlined approach and methodology that establishes a rational and substantial nexus between new development and the need for public facilities.
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DTA's Final Report shall not address whether any current or proposed DIFs are valid under the U.S. Constitution's Fifth Amendment Takings Clause. On April 12, 2024, in Sheetz v. County of El Dorado (2024), the U.S. Supreme Court held that its decisions in Nollan v. California Coastal Comm'n (1987) 483 U.S. 825 and Dolan v. City of Tigard (1994) 512 U.S. 374 apply to legislatively imposed conditions on land -use permits. That said, the Supreme Court left it to the California appellate court on remand to address the validity of the traffic impact fee at issue in the case and determine how to apply Nollan/Dolan in this context. DTA cannot predict how courts will resolve such issues in the future and is providing no services or guarantees of any kind concerning the validity of any impact fees under the U.S. Constitution's Fifth Amendment Takings Clause.
State Legislation: With the approval by the State Legislature of AB 602, the City must be in compliance with nexus requirements that apply to any DIF studies approved by the City Council after January 1, 2022. Starting on that date, if the City decides to adopt infrastructure standards that are above its existing levels of service, the DIF analysis must include an explanation of why the new level of service is necessary. Furthermore, the City's approved impact fees must either be levied on residential development on a per square foot basis or the Fee Study must include specific findings explaining why square footage is not an appropriate metric to calculate the fees. DTA is familiar with this residential square foot metric based on work we have performed on fee studies in Califomia and other impact fee studies outside of Califomia, including fee studies in Arizona and other states where new higher levels of service must be justified.
General Approach to Development Impact Reviews and Nexus Studies: In determining a reasonable nexus for each specific type of public facility, DTA will utilize one or more of the methodologies discussed below depending upon the data and other information available from the City and its current infrastructure policies. All of these fee methodologies employ the concept of an Equivalent Dwelling Unit ("EDU") to allocate benefit among various land use classes. EDUs are a means of quantifying different land uses in terms of their equivalence to a residential dwelling unit, where equivalence is measured in terms of potential infrastructure use or benefit from each type of public facility. For many types of facilities, EDUs are calculated based on the number of residents or employees generated by each land use class. For other facilities, different measures, such as the number of service calls, quantity of trip miles, or amount of storm water run-off, more accurately represent the benefit provided to each land use class. Transportation facilities typically demand EDU calculations predicated on a per unit or per trip basis, or according to Vehicle Miles Traveled ("VMT") criteria.
The three types of fee methodologies used by DTA to establish EDUs for a public facility within a typical AB 1600 study are based on either an existing Infrastructure Plan, a predetermined capacity amount, or a generic standard.
Plan -Based Fees: The first method of apportioning fees is based on a "plan," such as a Master Plan of Facilities, that identifies a finite set of improvements. These Facilities Plans generally identify a specific set of facilities needed by the public agency and are developed according to assessments of facilities needs prepared by staff and/or outside consultants and adopted by the public agency's legislative body. With this plan -based approach, specific costs can be projected and assigned to all land uses planned in the future, often with a specific time period in mind that reflects new City of Placentia Apri129, 2024
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development projections. In preparing an impact fee analysis, facilities costs can be allocated in proportion to the amount of demand caused by each type of future development. It works well when it is difficult to measure the actual service needed by a land use type or where capacity cannot be directly related to demand. Roads and flood control improvements are examples where plan -based fees are often used. These fees are typically per unit assessments. This type of plan -based approach is generally preferable to the two other approaches to cost allocation listed below, but it does require the existence of a Facilities Plan, which is not always available.
Capacity -Based Fees: A second method of fee assessment is based on the "capacity" of a service or system, such as a water tank or a sewer plant. This kind of fee is not dependent on a particular Land Use Plan (i.e., amount or intensity), but rather it is based on a rate or cost per unit of capacity that can be applied to any type of development as long as the system has adequate capacity. This type of fee is useful when the costs of the facility or system are unknown at the outset, but it requires that the amount of capacity used by a particular land use type be measurable or estimable.
Capacity -based impact fees are assessed based on the demand rate per unit. This type of fee would most typically be assessed for water or wastewater systems.
Standard -Based Fees: A third method of assessing fees is based on "standards" where costs are based on units of demand. This method establishes a generic unit cost for capacity, which is then applied to each land use per unit of demand. Parks are an excellent example of this type of fee structure. California's Quimby Act allows cities and counties to establish a service standard, typically
3.0 to 5.0 acres of parkland per thousand residents, that may be required of all new residential development. Thus, this standard is not based on cost but rather on a standard of service. This methodology provides several advantages, including not needing to know the cost of a specific facility, identifying how much capacity or service is provided by the current system, or having to commit to a specific size of facility.
In preparing its analysis, DTA will apply one or more of these three methodologies to each facility type to generate applicable fee levels. However, the results of our quantitative analyses will be tempered by real -world factors to be at least considered by the City prior to the adoption of revised fee levels.
B.2 Proposed Scope of Work
Work products stemming from the work plan described in this section will include a memorandum ("memo") summarizing the fee methodology options and the Draft and Final Reports.
Task 1 — Development of Project Strategy and Kickoff Meeting DTA staff shall meet with City staff in a virtual project kickoff meeting to finalize the details of the engagement, deliverables, timetables, and tasks, discuss the fee methodologies and best practices, identify needed information (i.e., reports, project/needs lists, stakeholder groups, data, etc.), prepare the final project schedule, discuss the public process, and resolve other concerns, as appropriate.
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Task 2 — Develop Population and Dwelling Unit Projections DTA will compile and document existing and future population and development estimates for the City. The projections resulting from this task will ultimately calculate fee levels. This task comprises four subtasks.
2A Population Projections: DTA will gather existing information on present and future population for the City from various sources, including City staff, the General Plan, existing Master Plans, Specific Plans, Municipal Code and other relevant City documents, the U.S. Census, the Orange County Transportation Authority ("OCTA"), the State Department of Finance, and from other data sources, including the City's CIP.
2B Conduct Entitlement Research and Projections: DTA will coordinate with the City Planning Division to determine existing and future residential and non-residential development within the City over the planning horizon. To complete this subtask, DTA will review the General Plan/CIP and related plans to determine expected development land use patterns in the City, assess City records to identify existing entitlements for dwelling units and commercial/industrial development, and project the number of new dwelling units and commercial/industrial development based on existing entitlements and population projections for the next 20 years, or such other target year as selected by City staff. 2C Review Current City Fee Structure: DTA shall review and summarize the City's current development fee structures, City policies and procedures, and other regulatory requirements affecting potential fee structures and revenue program requirements. 2D Review Prior City Fee Justification Studies: DTA shall review the approach and methodology utilized in prior City fee justification studies so they can be evaluated in light of the City's current needs.
Task 3 - Review Facility/Capital Needs and Levels of Service This task entails DTA's review of the facilities and capital needs required to serve new development in the City as projected in Task 2. DTA will use existing City materials as base documents and focus our effort on updating this information.
For any fee program to be comprehensive in its scope, it is necessary to complete a thorough identification and review of all the facilities that will be impacted by additional growth, including those already discussed in the General Plan or CIP. This task will require close coordination with all appropriate City departments. DTA will consider updates to the City's current impact fees related to Fire Facilities, Police Facilities, Animal Shelter Facilities, TOD Sewer Facilities, and Affordable Housing, in addition to adding components/programs to the Citywide DIFs, including a Public Facilities DIF and Information Technology DIF.
3A Survey/Interview City Staff: DTA shall survey/interview City staff to review projected facilities in the City, along with major equipment needs, the timing at which improvements will be needed, and any physical data that would assist in developing the costs estimated below in Subtask 3C. Based upon the results of the surveys and interviews, DTA will verify and, if appropriate, expand the list of new facilities found in the General Plan/CIP to be included within the fee program for the City.
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3B Facilities List: Based on the information collected in Subtask 3A, DTA shall prepare a needs list that details the new facilities and equipment to serve new development in the City. 3C Review Cost Estimates: DTA's engineering and technical staff will, as necessary, consult with City department heads and/or engineering staff or equivalent to ascertain and understand in-house cost data for existing and projected facilities and equipment, apply inflation and cost -of -living escalators to the list of projected public facilities to determine future costs, review and/or refine existing cost data, examine major sources of revenue to fund the construction of new public facilities, and provide a proportional estimate between projected costs for new facilities and estimated revenue from mitigation fees and other sources. 3D Infrastructure or Facilities Improvement Plan: DTA will prepare an Infrastructure or Facilities Improvement Plan that reflects the costs of infrastructure, improvements, real property, financing, other capital and associated appurtenances, equipment, vehicles, furnishings, and other eligible items that are associated with meeting future needs necessary for public facilities as allowed per State statutes.
Deliverables: Infrastructure or Facilities Improvement Plan; Needs Assessment Report Task 4 — Develop Methodology for Calculating New Fee Amounts (Weeks 10-18) DTA's Fee Study methodology must meet the nexus or benefit requirements of AB 1600, which requires that there be a nexus between the fees imposed, use of the fees, and development projects on which the fees are imposed. Furthermore, there must be a relationship between the amount of the fee and cost of the improvements. In order to impose a fee as a condition for a development project, the methodology must accomplish the following:
Identify the purpose of the fee;
Determine the use to which the fee is to be put; if the use is financing public facilities, the facilities must be identified;
Ascertain if there is a reasonable relationship between the fee's use and type of development project on which the fee is imposed; and
Identify if there is a reasonable relationship between the need for the public facility and type of development project on which the fee is being imposed.
Implicit in these requirements is a stipulation that a public agency cannot impose a fee to cure existing deficiencies in public facilities or improve public facilities beyond what is required based on the specific impacts of new development. The benefit methodology established in this task will be documented in the Final Report.
DTA shall prepare a memo to be submitted to City staff summarizing available methodologies, as well as their respective pros and cons, and providing detailed examples of other cities', counties', or agencies' impact fee programs. Methodologies to review will include programs based on auto vehicle trips or VMT, all mode trips (e.g., auto, transit, bike, and walk), square footages, or household units, etc. The memo will also discuss, as applicable, context -sensitive adjustments and "credits" for capital improvements required as part of a project application.
DTA will recommend a Fee Expenditure Plan to ensure that projects can be fully funded and implemented within any required time limits for expenditures of such funds, as well as possible City of Placentia Apri129, 2024
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flexibility to allow collected fees to be used to provide the City with a match for grant applications. Finally, the memo will include recommendations for methodology and next steps.
Upon review and discussion by City staff, a methodology will be selected.
Deliverable: Memo Summarizing the Fee Methodology Options Task 5 - Determine Fee Levels
This task entails calculating the fee amounts based upon the dwelling unit and commercial/industrial development projections completed in Task 2, facilities needs and costs determined in Task 3, and methodology selected in Task 4. Should the City decide to adopt its fees in a manner consistent with recently approved AB 602, the fee amounts would be calculated on a per square foot basis for residential development. 5A Calculate Recommended Fee Amounts: DTA shall calculate fees for the City by inputting the data compiled under the preceding tasks and computing each fee to be levied. This work will be done in a spreadsheet format that can be updated annually. DTA will also evaluate this data in comparison to surrounding cities so as to arrive at comparable and acceptable fee levels. 5B Document Fee Derivation: DTA shall document the methodology utilized for the fee calculation model in such a manner that can be easily understood by the City, the public, and various stakeholders. DTA shall prepare written statements documenting the validity of the methodology for deriving each of the fees for the City. These statements will be made to meet the requirements of AB 1600 and documented in the Final Report discussed below. 5C Legal Review: DTA shall coordinate with City staff and City legal regarding their review of the calculation of the fees, the justification of the needs list, and other items as required under the recent Supreme Court case mentioned earlier. DTA expects that City legal will review all aspects of the fee calculation methodology and provide the necessary feedback so that such fees are in compliance with the latest legal codes and court cases.
Task 6 — Prepare Draft and Final Reports
This task entails the preparation of the Draft and Final Reports for consideration by the City Council and City staff. Based on the work completed in Tasks 1-5, DTA will prepare the Draft Report for review and consideration by City staff. The Draft Report will be prepared under the standards of AB 1600 and is expected to include an executive summary, population projections, the facilities and improvements list, areas of benefit (if applicable), fee calculations, recommended fee levels, and the suggested process for keeping fees current. After the incorporation of City staff comments and concerns on the Draft Report, DTA will prepare the Final Report for presentation to the City Council and City staff.
Deliverables: Draft and Final Reports
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Task 7 - Outline Tasks Required for the Implementation and Administration of the Fee Program DTA will prepare a list of tasks required of the City once it has adopted its new fee program. These tasks include the determination of actual fee levels if the City decides not to impose the maximum fee levels allowed under the Fee Study, the implementation of the fee credit program, and other issues the City may face when implementing the fee program. In addition, DTA shall prepare a Draft Ordinance to adopt the fee program, subject to review and approval by the City's legal counsel.
Task 8 — Attend Additional Meetings and Public Outreach This task entails attendance at a total of two (2) in -person meetings with City staff, focus groups, stakeholders, or the City Council to present information regarding the status of the impact fee program, Draft Fee Study, and Final Report to obtain input, in addition to a virtual kickoff meeting with City staff. DTA can attend additional meetings on a time and materials basis at additional cost, as requested by the City. During these meetings, we will take into account community and stakeholder input. For this purpose, DTA will develop handouts for these meetings that summarize the findings and analysis from the Public Review Draft. We shall also schedule standing conference calls or virtual meetings (i.e., bi-weekly) with City staff, including the kickoff meeting, to stay on track with tasks and deliverables.
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B.3 Proposed Work Schedule
DTA's typical schedule of tasks for a DIF program/AB 1600 Nexus Study is outlined below. Given the City's desired project timeline, this timeline of events can and will be completed within the proposed time frame according to the City's specifications. Notably, the firm shall provide ongoing communication, education, and outreach throughout the duration of the project. DTA will be able to begin work with minimum notice.
Table 8: Proposed Schedule
Task
Description
Weeks
1 t4
Weeks
5 to 8
Weeks
9 to 12
Weeks
13 to 16
Weeks
17 to 20
Weeks
21 to 22
1 Development of Project Strategy and Kickoff Meeting
2 Develop Population and Demographic Projections
3 Review Facility/Capital Needs and Levels of Service
4 Develop Methodology for Calculating New Fee
Amounts
5 Determine Fee Levels
41 6
Prepare Draft and Final Impact Fee Methodology
Reports
7 Outline Tasks Required for the Implementation and
Administration of the Fee Program
8 Attend Two (2) In -Person Meetings, Plus Regular
Virtual Meetings for Bi-Weekly Updates
Ongoing
Communication, Education, and Outreach of Project
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B.4 Information to be Provided by the City
DTA requests that the following information be provided by the City at no charge and in a timely manner such that the project does not extend beyond six (6) months from the date of authorization to proceed:
• The City's General Plan, any Specific/Master Plans, Development Agreements, and data regarding existing entitlements;
• To the extent available, detailed description of the proposed public facilities, including the facility name and number of square feet, acres, etc. (as applicable for each type of facility); • Inventory of completed facilities within the City, including type, size, and location of facility; • Cost estimates for proposed facilities (DTA anticipates that the City's cost data and estimates will be reviewed by DTA staff and discussed with City staff); and • Identification of any committed revenue sources pledged to fund proposed facilities.
C Formation of a Public Safety CFD
C.1 Approach
The central focus of DTA's responsibilities associated with its CFD formation Scope of Work would be to assist the City in structuring the financing program and negotiating the terms of the CFD, as well as preparing an RMA to establish a tax formula for the CFD. In developing the RMA, much of DTA's work would involve imparting information to City staff regarding the allocations of special taxes and preparing detailed quantitative analyses prior to the actual preparation of the RMA for the CFD. DTA's objectives related to these issues shall be as follows:
• The special tax formula is structured so it follows the City's approved CFD policies; and • If appropriate, multiple public financing mechanisms (e.g., impact fee revenues) are evaluated in cash flow analyses to complement CFD financing and maximize the feasibility of the project.
DTA has pioneered many innovations now utilized in CFD formations throughout the State. The City's Special Tax Consultant should be able to evaluate the long-term impact that changes in land use, product mix, and absorption have on special tax rates, future debt service coverage, and parity bond issues. DTA's proformas have been honed from years of experience modeling cash flows for new districts. Issuers should not make the mistake of refunding or issuing bonds without a proforma offering these features:
• "What if" analyses to evaluate changing development scenarios; • Special tax rate projections;
• Revenue forecasting;
• Debt service coverage calculations;
• Parity bond analyses; and
• Bond refunding feasibility.
DTA prepares a series of such proformas on all of its CFD financings, enabling both issuers and property owners to make informed decisions regarding district formations and bond sales.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District /30
dta
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SECTION IV
WORK PLAN/TECHNICAL
APPROACH
In managing CFDs, DTA recognizes that every jurisdiction and financing program is different and that it is important for a Special Tax Consultant to consider a multitude of factors intended to protect a public agency from the vagaries of the economy, future development patterns, the bond market, and any contingencies that may occur. DTA's unmatched experience in the formation and implementation of hundreds of successful CFDs over the past 39 years has enabled our firm to anticipate problems before they occur, thereby ensuring that our tax formulas can adapt to virtually any future situation.
C.2 Proposed Scope of Work
DTA shall undertake the Scope of Work detailed below to provide the special tax consulting services requested in the RFP to meet the City's objectives for this engagement.
Task 1- CFD Boundaries (Database Setup)
DTA will work with the City to prepare a map of the area within the City to be included in the initial CFD. If necessary, the map will identify the zones to be established within the CFD based on input from City staff and proximity to locations of proposed Services. DTA will organize a database of all assessable parcels within each zone based on sources such as the Orange County ("County") Assessor's Office and service maps provided by the County.
Task 2 - Registrar of Voter's Certification
DTA shall request from the County Registrar of Voters confirmation of registered voters' status residing in the boundaries of the CFD prior to the adoption of the Resolution of Formation (Government Code Section 553322).
Task 3 — Services Cost Apportionment Methodology
DTA will develop alternative methodologies for apportioning Services costs by land use (e.g., single- family attached residential, multi -family attached residential, retail, and non -retail commercial/industrial). Typically, cost apportionment methodologies are EDU-based to reflect benefit. Therefore, development of the methodology alternatives is anticipated to involve the determination of dwelling unit equivalencies for each land use type.
Task 4 - Preliminary Special Tax Rates
Based upon the selected cost apportionment methodology, DTA will compute special tax rates by land use type in an amount sufficient to cover projected Services costs, administrative expenses, and reserves.
Task 5 — CFD Proforma
DTA shall prepare a tax spread or cash flow analysis to assist in structuring the levy and collection of the special tax to provide funds when costs are incurred. DTA will recommend alternative techniques to apportion special taxes or time the collection of such taxes to protect the City's General Fund. DTA will prepare up to ten (10) tax spread analyses utilizing various development scenarios and cost assumptions.
Deliverable: Analysis of Up to Ten (10) Tax Spread Analyses City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District /31
dta
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SECTION IV
WORK PLAN/TECHNICAL
APPROACH
Task 6 - Tax Apportionment Formula
DTA will prepare the special tax apportionment methodology, subject to City constraints and financing objectives, and City policy guidelines. This task includes the preparation of the RMA. We will prepare revisions to the initial RMA until all parties are satisfied.
Deliverables: Special Tax Apportionment Methodology; RMA Task 7 - Preparation of Boundary Map
DTA shall prepare the initial CFD boundary map pursuant to the Mello -Roos Act and County Recorder's Office and record the map at the County Recorder's Office.
Deliverable: CFD Boundary Map
Task 8 - Document Review and Preparation
DTA will prepare the CFD Public Report and assist CFD Formation Counsel with preparing all required documents, including the Resolution of Intention, Resolution of Formation, and related items. We shall also provide necessary data and advice to CFD Formation Counsel regarding implementing the CFD.
Deliverable: CFD Public Report
Task 9 - Notice of Special Tax Lien
DTA shall provide a list of Assessor's parcels to be attached to the Notice of Special Tax Lien and coordinate its recordation with the County under the Streets and Highway Code 53114.5.
Task 10 — Meetings and Workshops
DTA staff shall participate in unlimited conference calls with City staff to stay on track with tasks and deliverables. Attendance shall be limited to two (2) in -person meetings within this Scope of Work.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District / 32
dta
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SECTION IV
WORK PLAN/TECHNICAL APPROACH
C.3 Proposed Work Schedule
Our proposed schedule for the formation of a Public Safety CFD is outlined in Table 9. Given the City's desired project timeline, this timeline of events can and will be completed within the proposed time frame according to the City's specifications. The tasks listed in Tables 8-9 may run concurrently.
Table 9: Proposed Schedule for Initial CFD Formation
Task Description
Weeks
5 to 8
Weeks
13 to 16
Weeks
17 to 20
Weeks
21 to 24
1 CFD Boundaries (Database Setup)
2 Registrar of Voter's Certification
3 Services Cost Apportionment Methodology
4 Preliminary Special Tax Rates
5 CFD Proforma
6 Tax Apportionment Formula
7 Preparation of Boundary Map
8 Document Review and Preparation
lir
9 Notice of Special Tax Lien
10 Meetings and Workshops
City of Placentia
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District April 29, 2024
/ 33
APPENDIX A
City of Placentia
Request for Proposals
Development Impact Fee Update and Creation of Public Safety Community Facilities District
REQUESTED
CONTRACT
EXCEPTIONS
dta
www.FinanceDTA.com
REQUESTED CONTRACT EXCEPTIONS
APPENDIX A
REQUESTED CONTRACT
EXCEPTIONS
DTA accepts the terms, conditions, and general form of the City's Sample Professional Services Agreement, including the insurance requirements, except for the revisions noted below.' Section 6.8, "Indemnification and Hold Harmless"
"Consultant agrees to protect, defend, indemnify, and hold free and harmless the City, its officers, officials, agents, employees, and volunteers, at Consultant's sole expense, from and against any and all claims, liabilities, demands, actions, expenses, damages, suits or other legal proceedings brought against the City, its officers, officials, agents, employees, and volunteers arising out of or in any way connecter. with 'esulting from the performance of the Consultant, its employees, and/or authorized subcontractors' work undertaken pursuant to this Agreement including all acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of the Consultant, its employees and/or subcontractors.
The defense obligation provided for hereunder shall apply whenever any claim, action, complaint or suit asserts liability against the City, its officers, officials, agents, employees, and volunteers based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors arc specifically named or otherwise asserted to De liable, and whether or not there is any evic.ence of fault or wrongdoing by the Consultant, its employees and/or its subcontractors. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City.
This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Consultant's Proposal, which shall be of no force and effect.
Notwithstanding the above, in light of the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado, DTA will not defend, indemnify, or hold free and harmless the City or any of its agents from any claim arising out of, pertaining to, or incident to the U.S. Constitution's Fifth Amendment Takings Clause."
Our proposed language would require that DTA covers any claims related to our negligence, rather than having us be liable for any and all claims wherein we did not make a mistake.
Addition of the following phrase to the end of Section 6.12, "Ownership of Documents":
"Notwithstanding the above, computer software (including without limitation financial models, compilations of formulas and spreadsheet models), prepared by Consultant are Instruments of Service of Consultant and shall remain the property of Consultant. Consultant shall likewise retain all common law, statutory and other reserved rights, including the copyright thereto."
This supplemental language has been requested to provide us with adequate trade secret protection. We have developed our computer models over the past 39 years and the formulas inherent in the models are proprietary. However, the ultimate work product itself belongs to the City.
1 Text with a strikethrough indicates language we are requesting be removed and the text in red indicates language we'd like added in its place.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
dta
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APPENDIX A
REQUESTED CONTRACT
EXCEPTIONS
■ Exhibit B, "Insurance Requirements": Exhibit B notes that the City requires a combined single limit of $2,000,000 per accident in Automobile Liability Insurance, in addition to $2,000,000 per occurrence and $3,000,000 in general aggregate in Professional Liability Insurance.
While we only carry $1,000,000 per accident in Automobile Liability Insurance and $2,000,000 per claim in Professional Liability Insurance, we also carry an Umbrella Liability Policy with a limit of $5 million per occurrence that provides additional liability coverage above our existing Commercial General Liability, Automobile Liability, and Professional Liability Policies.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
www.FinanceDTA.com
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public -Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
dtct
PRICING PROPOSAL
PRICING PROPOSAL
Fees for services shall be charged on an hourly basis according to the rates set forth in the fee schedule below, with invoices being submitted to the City monthly. The estimated fees for services for the Fee Study and Public Safety CFD formation, including out-of-pocket expenses, are detailed below in Tables 1-2. Notably, the figures listed in Tables 1-2 for each task are just estimates and the charges assigned to any one task may be transferred to another task, as long as the overall invoices submitted by DTA do not exceed $99,445 for the Fee Study and $26,785 for the Public Safety CFD formation, including out-of-pocket expenses. Fees for services shall be charged according to the professional services fee schedule identified in Table 3.
Table 1: Proposed Budget for the Fee Study
Description
Title Hourly Rate Est. Hours Total Cost
Task #1: Development of Project
Strategy and Virtual Kickoff Meeting
President/MD
$290
6 $1,740
Vice President
$250
8 $2,000
Manager
$180
8 $1,440
Associate II
$165
0 $0
Task 1
22 $5,180
Task #2: Develop Population and
Demographic Projections
President/MD
$290
10 $2,900
Vice President
$250
16 $4,000
Manager
$180
10 $1,800
Associate II
$165
4 $660
Task 2
40 $9,360
Task #3: Review Facility/Capital
Needs and Levels of Service
President/MD
$290
8 $2,320
Vice President
$250
8 $2,000
Manager
$180
20 $3,600
Associate II
$165
8 $1,320
Task 3
44 $9,240
Task #4: Develop Methodology for
Calculating New Fee Amounts
President/MD
$290
15 $4,350
Vice President
$250
18 $4,500
Manager
$180
15 $2,700
Associate II
$165
10 $1,650
Task 4
58 $13,200
Task #5: Determine Fee Levels and
Document Comparative Fees
President/MD
$290
8 $2,320
Vice President
$250
12 $3,000
Manager
$180
12 $2,160
Associate II
$165
5 $825
Task 5
37 $8,305
Task #6: Prepare Draft and Final
Impact Fee Methodology Reports
President/MD
$290
25 $7,250
Vice President
$250
40 $10,000
Manager
$180
40 $7,200
Associate II
$165
10 $1,650
Task 6
115
$26,100
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
www.FinanceDTA.com
dtct
PRICING PROPOSAL
Description
Title Hourly Rate Est. Hours Total Cost
Task #7: Outline Tasks Required for
the Implementation and
Administration of the Fee Program
President/MD
$290
8 $2,320
Vice President
$250
0 $0
Manager
$180
11 $1,980
Associate II
$165
8 $1,320
Task 7
27 $5,620
Task #8: Attend Two (2) In -Person
Meeting, Plus Regular Virtual
Meetings for Bi-Weekly Updates
President/MD
$290
30 $8,700
Vice President
$250
30 $7,500
Manager
$180
18 $3,240
Associate II
$165
0 $0
Task 8
78 $19,440
President/MD
$290
110
$31,900
Total Not to Exceed
Vice President
$250
132
$33,000
Manager
$180
134
$24,120
Associate II
$165
45 $7,425
Subtotal
421
$96,445
Out -of -Pocket Expenses (Maximum)
$3,000
Total Not to Exceed
$99,445
Table 2: Proposed Budget for the Public Safety CFD Formation Description
Title
Hourly Rate
Est. Hours
Total Cost
President/MD
$290
1 $290
Task #1: Database Setup
Vice President
$250
1 $250
Manager
$180
4 $720
Associate II
$165
3 $495
Task 1
9 $1,755
Task #2: Registrar of Voter's
Certification
President/MD
$290
0 $0
Vice President
$250
2 $500
Manager
$180
0 $0
Associate II
$165
0 $0
Task 2
2 $500
Task #3: Services Cost
Apportionment Methodology
President/MD
$290
4 $1,160
Vice President
$250
5 $1,250
Manager
$180
1 $180
Associate II
$165
0 $0
Task 3
10 $2,590
Task #4: Preliminary Special Tax
Rates
President/MD
$290
2 $580
Vice President
$250
4 $1,000
Manager
$180
2 $360
Associate II
$165
0 $0
Task 4
8 $1,940
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
www.FinanceDTA.com
dtct
PRICING PROPOSAL
Description
Title
Hourly Rate
Est. Hours
Total Cost
President/MD
$290
4 $1,160
Task #5: CFD Proforma
Vice President
$250
10 $2,500
Manager
$180
3 $540
Associate II
$165
0 $0
Task 5
17 $4,200
Task #6: Tax Apportionment
Formula
President/MD
$290
3 $870
Vice President
$250
6 $1,500
Manager
$180
2 $360
Associate II
$165
0 $0
Task 6
11 $2,730
Task #7: Preparation of Boundary
Map
President/MD
$290
2 $580
Vice President
$250
8 $2,000
Manager
$180
0 $0
Associate II
$165
0 $0
Task 7
10 $2,580
Task #8: Document Review and
Preparation
President/MD
$290
5 $1,450
Vice President
$250
15 $3,750
Manager
$180
1 $180
Associate II
$165
0 $0
Task 8
21 $5,380
Task #9: Notice of Special Tax
Lien
President/MD
$290
1 $290
Vice President
$250
1 $250
Manager
$180
0 $0
Associate II
$165
0 $0
Task 9
2 $540
Task #10: Meetings and
Workshops
President/MD
$290
8 $2,320
Vice President
$250
5 $1,250
Manager
$180
0 $0
Associate II
$165
0 $0
Task 10
13 $3,570
President/MD
$290
30 $8,700
Total Not to Exceed
Vice President
$250
57 $14,250
Manager
$180
13 $2,340
Associate II
$165
3 $495
Subtotal
103
$25,785
Out -of -Pocket Expenses (Maximum)
$1,000
Total Not to Exceed
$26,785
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
PRICING PROPOSAL
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www.FinanceDTA.com
For your reference, DTA's hourly rate schedule are provided in the table below.
Table 3: DTA's Fee Schedule
Labor . • r
Labor Rat
President/Managing Director
$290/Hour
Senior Vice President
$275/Hour
Vice President
$250/Hour
Senior Manager
$210/Hour
Manager
$190/Hour
Senior Associate
$180/Hour
Associate III
$175/Hour
Associate II
$165/Hour
Associate I
$150/Hour
Research Associate II
$140/Hour
Research Associate I
$125/Hour
Additional in -person meetings [more than the four (4) in -person meetings specified in the Scope of Work, including two (2) in -person meetings per phase of the Scope of Work] shall be billed on a time and materials basis. DTA staff shall also schedule standing conference calls or virtual meetings (i.e., weekly or bi-weekly) with City staff, including the kickoff meeting, to stay on track with tasks and deliverables.
Out-of-pocket and administrative expenses shall be equal to 3% of DTA's billings for labor, plus travel expenses and any outside vendor payments, not to exceed $4,000. All hourly rates for services apply through June 30, 2025, and are subject to a cost -of -living increase. On or about the first two weeks of each month during which consulting services are rendered hereunder, DTA shall present to the City an invoice covering the current consulting services performed and reimbursable expenses incurred pursuant to this Notice of Authorization. Invoices shall be paid by the City within 30 days of the date of each invoice. A 1.2% charge may be imposed monthly against accounts that are not paid within 45 days of the date of each invoice. The prevailing party in any legal action brought by one party against the other and arising out of this Consultant Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorneys' fees.
A Disclaimer
While DTA has a fiduciary responsibility as a licensed Municipal Advisor, DTA is not, unless otherwise stipulated, acting as the City's Municipal Advisor. The services discussed herein do not constitute any financial advice or fall under the category of municipal advisory services as defined by the SEC.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District /4
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B Limitations
PRICING PROPOSAL
B.1 Fee Study Limitations
The labor costs in the table above include attendance at a total of two (2) in -person meetings with City staff, stakeholders, or the City Council, in addition to a virtual kickoff meeting with City staff. Attendance at more meetings, detailed written responses to resolve disputes, or the preparation of more than one set of major revisions to the Draft Report will be classified as additional work and may require further billing at the hourly rates identified in Table 3 if the maximum fee level has been exceeded.
Other examples of additional work shall include:
Additional analyses based on revised assumptions requested by the City, including possible changes in the needs list, infrastructure costs, population projections, future land uses, and related data once the preparation of the Draft Report has been initiated, as well as adjustments to assumptions once the Draft Report has been approved;
Additional meetings or lengthy negotiations with stakeholders, including representatives of the Building Industry Association ("BIA"); Tasks related to litigation by stakeholders should it occur once the DIF Study has been completed;
Time expended related to obtaining data assigned to the City under "Information to be Provided by the City";
In light of the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado asking the California courts to reevaluate impact fees adopted under the California Mitigation Act to ensure they do not violate the U.S. Constitution's Fifth Amendment Takings Clause, any additional work related to litigation arising out of or incident to this Supreme Court decision, including but not limited to expert witness services, shall be considered out of scope and will be billed on a time and materials basis at additional cost; and
Actual implementation of the fee program(s).
The maximum fee listed above assumes the review and implementation of the fee program with a schedule between initiation of services and public outreach that is within the proposed time frame according to the City's specifications.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
PRICING PROPOSAL
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B.2 CFD Formation Limitations
Should improvement areas or zones be established within the CFD that are characterized by more than one set of special taxes, additional time and materials maybe charged, up to a maximum of $6,000 per improvement area or zone, if these improvement areas or zones cause the maximum fee levels listed above to be exceeded. Any additional tasks and professional services beyond those described in the Scope of Work will be billed at the hourly rates listed in Table 3.
Any additional tasks not listed in the Scope of Work that are assigned by the City shall require fees above the maximum amount listed and be billed at the hourly rates listed above if the total fee listed above has been exceeded.
City of Placentia Apri129, 2024
Proposal for Development Impact Fee Update and Creation of Public Safety Community Facilities District
EXHIBIT B
INSURANCE REQUIREMENTS
A. Minimum Scope and Limits of Insurance
City reserves the right to review any and all of the required insurance policies and/or endorsements, but has no obligation to do so. Failure to demand evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Consultant from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance, including any extension thereof, of this Agreement.
Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement, including any extension thereof, all of the following minimum scope of insurance coverages:
1. Commercial General Liability Insurance
Broad -form commercial general liability, with coverage at least as broad as the most current version of ISO Commercial General Liability coverage form CG 00 01, in a form at least as broad as ISO form CG 00 01 04 13, and shall include insurance for premises and operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury, and personal and advertising injury with a policy limit of not less than Two Million Dollars ($2,000,000.00) per occurrence and Four Million Dollars ($4,000,000.00) general aggregate. The aggregate limit, encompassing the above coverage, shall apply separately to this project/location. If Consultant maintains higher limits than the specified minimum limits, City requires and shall be entitled to coverage for the higher limits maintained by the Consultant.
2. Business Automobile Liability Insurance
Business automobile liability for all owned, hired, leased, and non -owned vehicles at least as broad as the most current version of ISO Business Auto Coverage Form CA 00 01, with a policy limit of not less than One Million Dollars ($1,000,000.00) combined single limit per accident. If Consultant maintains higher limits than the specified minimum limits, City requires and shall be entitled to coverage for the higher limits maintained by the Consultant.
3. Workers' Compensation and Employer's Liability Insurance Workers' compensation insurance as required by the State of California and Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000.00) per accident for any employee or employees of Consultant. Consultant agrees to waive and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, officials, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies.
14 DTA
Rev. 01/2024
By signing this Agreement, the Consultant acknowledges and agrees to the following:
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
The Consultant shall also comply with Section 3800 of the Labor Code by securing, paying for, and maintaining in full force and effect for the duration of this Agreement, complete workers' compensation insurance, and shall furnish a certificate of insurance to the Project Manager before execution of this Agreement by the City. The City, its officers, officials, agents, employees, and volunteers shall not be responsible for any claims in law or equity occasioned by failure of the Consultant to comply with this Section.
4. Professional Errors and Omissions ("E&O") Liability Insurance Professional errors and omissions ("E&O") liability insurance on an occurrence based policy with policy limits of not less than Two Million Dollars ($2,000,000.00) per occurrence. Architects' and engineers' coverage shall be endorsed to include contractual liability. The retroactive date must be shown, and this date must be before the date of the contract or the beginning of contract work. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of the contract of work. If coverage is canceled or non -renewed, and not replaced with another policy form with a retroactive date prior to the contract effective date, the Consultant must purchase "extended reporting coverage" for a minimum of three (3) years after completion of contract work. A copy of the claims reporting requirements must be submitted to the Project Manager for review. If Consultant maintains higher limits than the specified minimum limits, City requires and shall be entitled to coverage for the higher limits maintained by the Consultant.
5. Standards for Insurance Companies
All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commission to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide.
B. Documentation and Other Provisions
1. The commercial general liability insurance policy and business automobile liability policy shall be endorsed to contain the following: The City of Placentia, its officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied, or used by the Consultant; and automobiles owned, leased, hired, or borrowed by the Consultant. General liability coverage can be provided in the form of an 15 DTA
Rev. 01/2024
endorsement to the Contractor's insurance at least as broad as one of the following ISO ongoing operations forms: CG 20 10 or CG 20 26 or CG 20 33 (not allowed from subcontractors), or CG 20 38; and one of the following ISO completed operations forms:
CG 20 37, 2039 (not allowed from subcontractors), or CG 20 40.
2. Said policies shall not terminate, nor shall they be cancelled or coverage reduced, without at least thirty (30) days' written notice to the City. In the event of any cancellation or reduction in coverage or limits of any insurance, Consultant shall forthwith obtain and submit proof of substitute insurance. Should Consultant fail to immediately procure other insurance, as specified, to substitute for any cancelled policy or reduction in the required coverage limits, the City may procure such insurance at Consultant's sole cost and expense.
3. The Consultant's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City of Placentia, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Placentia shall be excess and not contributing with the insurance provided by this policy.
4. Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Placentia, its officers, officials, agents, employees, and volunteers.
5. Defense fees and costs shall not deplete the limits of any insurance provided under this Agreement.
6. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
7. Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure the City is an additional insured on insurance required from subcontractors.
8. Consultant agrees to waive, and to obtain endorsements from insurers waiving, subrogation rights against the City, its officers, officials, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their insurance policies.
9. Coverage shall be on a standard occurrence form. Claims -made forms are not acceptable. Modified, limited, or restricted occurrence forms are not acceptable. 16 DTA
Rev. 01/2024
EXHIBIT C
CERTIFICATES OF INSURANCE AND ENDORSEMENTS
17 Rev. 01/2024
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NOTICE OF CANCELLATION TO CERTIFICATE HOLDER(S)
This policy is subject to the following additional Conditions:
A. If this policy is cancelled by the Company, other
than for non-payment of premium, notice of such
cancellation will be provided at least thirty (30) days in advance of the cancellation effective date to the
certificate holder(s) with mailing addresses on file
with the agent of record or the Company.
B. If this policy is cancelled by the company for non-
payment of premium, or by the insured, notice of
such cancellation will be provided within ten (10)
days of the cancellation effective date to the
certificate holder(s) with mailing addresses on file
with the agent of record or the Company.
Any notification rights provided by this endorsement
apply only to active certificate holder(s) who were issued a certificate of insurance applicable to this policy's term.
If notice is mailed, proof of mailing to the last known mailing address of the certificate holder(s) on file with the agent of record or the Company will be sufficient
proof of notice.
Form SS 12 24 06 11
© 2011, The Hartford
BUSINESS LIABILITY COVERAGE FORM
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the stock insurance company member of The Hartford providing this insurance.
The word "insured" means any person or organization qualifying as such under Section C. - Who Is An Insured.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. - Liability And Medical Expenses Definitions.
A. COVERAGES
1. BUSINESS LIABILITY COVERAGE (BODILY
INJURY, PROPERTY DAMAGE, PERSONAL
AND ADVERTISING INJURY)
Insuring Agreement
a. We will pay those sums that the insured
becomes legally obligated to pay as
damages because of "bodily injury",
"property damage" or "personal and
advertising injury" to which this insurance
applies. We will have the right and duty to
defend the insured against any "suit"
seeking those damages. However, we will
have no duty to defend the insured against
any "suit" seeking damages for "bodily
injury", "property damage" or "personal and
advertising injury" to which this insurance
does not apply.
We may, at our discretion, investigate any
"occurrence" or offense and settle any claim
or "suit" that may result. But:
(1) The amount we will pay for damages is
limited as described in Section D. -
Liability And Medical Expenses Limits
Of Insurance; and
(2) Our right and duty to defend ends when
we have used up the applicable limit of
insurance in the payment of judgments,
settlements or medical expenses to which
this insurance applies.
No other obligation or liability to pay sums or
perform acts or services is covered unless
explicitly provided for under Coverage
Extension - Supplementary Payments.
b. This insurance applies:
(1) To "bodily injury" and "property
damage" only if:
(a) The "bodily injury" or "property
damage" is caused by an
"occurrence" that takes place in the
"coverage territory";
(b) The "bodily injury" or "property
damage" occurs during the policy
period; and
(c) Prior to the policy period, no insured
listed under Paragraph 1. of Section
C. — Who Is An Insured and no
"employee" authorized by you to give
or receive notice of an "occurrence"
or claim, knew that the "bodily injury"
or "property damage" had occurred,
in whole or in part. If such a listed
insured or authorized "employee"
knew, prior to the policy period, that
the "bodily injury" or "property
damage" occurred, then any
continuation, change or resumption
of such "bodily injury" or "property
damage" during or after the policy
period will be deemed to have been
known prior to the policy period.
(2) To "personal and advertising injury"
caused by an offense arising out of your
business, but only if the offense was
committed in the "coverage territory"
during the policy period.
c. "Bodily injury" or "property damage" will be
deemed to have been known to have
occurred at the earliest time when any
insured listed under Paragraph 1. of Section
C. — Who Is An Insured or any "employee"
authorized by you to give or receive notice
of an "occurrence" or claim:
(1) Reports all, or any part, of the "bodily
injury" or "property damage" to us or
any other insurer;
Form SS 00 08 04 05 Page 1 of 24
© 2005, The Hartford
BUSINESS LIABILITY COVERAGE FORM
(2) Receives a written or verbal demand or
claim for damages because of the "bodily
injury" or "property damage"; or
Becomes aware by any other means that
"bodily injury" or "property damage" has
occurred or has begun to occur.
d. Damages because of "bodily injury" include
damages claimed by any person or
organization for care, loss of services or
death resulting at any time from the "bodily
injury".
e. Incidental Medical Malpractice
(1) "Bodily injury" arising out of the
rendering of or failure to render
professional health care services as a
physician, dentist, nurse, emergency
medical technician or paramedic shall
be deemed to be caused by an
"occurrence", but only if:
(a) The physician, dentist, nurse,
emergency medical technician or
paramedic is employed by you to
provide such services; and
(b) You are not engaged in the
business or occupation of providing
such services.
(2) For the purpose of determining the
limits of insurance for incidental medical
malpractice, any act or omission
together with all related acts or
omissions in the furnishing of these
services to any one person will be
considered one "occurrence".
2. MEDICAL EXPENSES
Insuring Agreement
a. We will pay medical expenses as described
below for "bodily injury" caused by an
accident:
(3)
(1) On premises you own or rent;
(2) On ways next to premises you own or
rent; or
(3) Because of your operations;
provided that:
(1) The accident takes place in the
"coverage territory" and during the
policy period;
(2) The expenses are incurred and reported
to us within three years of the date of
the accident; and
(3) The injured person submits to
examination, at our expense, by
physicians of our choice as often as we
reasonably require.
b. We will make these payments regardless of
fault. These payments will not exceed the
applicable limit of insurance. We will pay
reasonable expenses for:
(1) First aid administered at the time of an
accident;
(2) Necessary medical, surgical, x-ray and
dental services, including prosthetic
devices; and
(3) Necessary ambulance, hospital,
professional nursing and funeral
services.
3. COVERAGE EXTENSION -
SUPPLEMENTARY PAYMENTS
a. We will pay, with respect to any claim or
"suit" we investigate or settle, or any "suit"
against an insured we defend:
(1) All expenses we incur.
(2) Up to $1,000 for the cost of bail bonds
required because of accidents or traffic
law violations arising out of the use of
any vehicle to which Business Liability
Coverage for "bodily injury" applies. We
do not have to furnish these bonds.
The cost of appeal bonds or bonds to
release attachments, but only for bond
amounts within the applicable limit of
insurance. We do not have to furnish
these bonds.
(4) All reasonable expenses incurred by the
insured at our request to assist us in the
investigation or defense of the claim or
"suit", including actual loss of earnings
up to $500 a day because of time off
from work.
All costs taxed against the insured in
the "suit".
(6) Prejudgment interest awarded against
the insured on that part of the judgment
we pay. If we make an offer to pay the
applicable limit of insurance, we will not
pay any prejudgment interest based on
that period of time after the offer.
All interest on the full amount of any
judgment that accrues after entry of the
judgment and before we have paid,
offered to pay, or deposited in court the
part of the judgment that is within the
applicable limit of insurance.
Any amounts paid under (1) through (7)
above will not reduce the limits of insurance.
(3)
(5)
(7)
BUSINESS LIABILITY COVERAGE FORM
b. If we defend an insured against a "suit"
and an indemnitee of the insured is also
named as a party to the "suit", we will
defend that indemnitee if all of the
following conditions are met:
(1) The "suit" against the indemnitee
seeks damages for which the insured
has assumed the liability of the
indemnitee in a contract or agreement
that is an "insured contract";
(2) This insurance applies to such liability
assumed by the insured;
The obligation to defend, or the cost of
the defense of, that indemnitee, has
also been assumed by the insured in
the same "insured contract";
(4) The allegations in the "suit" and the
information we know about the
"occurrence" are such that no conflict
appears to exist between the interests
of the insured and the interest of the
indemnitee;
The indemnitee and the insured ask
us to conduct and control the defense
of that indemnitee against such "suit"
and agree that we can assign the
same counsel to defend the insured
and the indemnitee; and
(6) The indemnitee:
(a) Agrees in writing to:
(3)
(5)
(i)
Cooperate with us in the
investigation, settlement or
defense of the "suit";
(ii) Immediately send us copies of
any demands, notices,
summonses or legal papers
received in connection with
the "suit";
(iii) Notify any other insurer whose
coverage is available to the
indemnitee; and
(iv) Cooperate with us with
respect to coordinating other
applicable insurance available
to the indemnitee; and
(b) Provides us with written
authorization to:
(i) Obtain records and other
information related to the
"suit"; and
(ii) Conduct and control the
defense of the indemnitee in
such "suit".
So long as the above conditions are met,
attorneys' fees incurred by us in the
defense of that indemnitee, necessary
litigation expenses incurred by us and
necessary litigation expenses incurred
by the indemnitee at our request will be
paid as Supplementary Payments.
Notwithstanding the provisions of
Paragraph 1.b.(b) of Section B. —
Exclusions, such payments will not be
deemed to be damages for "bodily
injury" and "property damage" and will
not reduce the Limits of Insurance.
Our obligation to defend an insured's
indemnitee and to pay for attorneys' fees
and necessary litigation expenses as
Supplementary Payments ends when:
(1) We have used up the applicable limit
of insurance in the payment of
judgments or settlements; or
(2) The conditions set forth above, or the
terms of the agreement described in
Paragraph (6) above, are no longer met.
B. EXCLUSIONS
1. Applicable To Business Liability Coverage
This insurance does not apply to:
a. Expected Or Intended Injury
(1) "Bodily injury" or "property damage"
expected or intended from the
standpoint of the insured. This
exclusion does not apply to "bodily
injury" or "property damage" resulting
from the use of reasonable force to
protect persons or property; or
(2) "Personal and advertising injury" arising
out of an offense committed by, at the
direction of or with the consent or
acquiescence of the insured with the
expectation of inflicting "personal and
advertising injury".
b. Contractual Liability
(1) "Bodily injury" or "property damage"; or
(2) "Personal and advertising injury"
for which the insured is obligated to pay
damages by reason of the assumption of
liability in a contract or agreement.
This exclusion does not apply to liability
for damages because of:
(a) "Bodily injury", "property damage" or
"personal and advertising injury" that
the insured would have in the
absence of the contract or
agreement; or
Form SS 00 08 04 05 Page 3 of 24
BUSINESS LIABILITY COVERAGE FORM
(b) "Bodily injury" or "property damage"
assumed in a contract or agreement
that is an "insured contract",
provided the "bodily injury" or
"property damage" occurs
subsequent to the execution of the
contract or agreement. Solely for
the purpose of liability assumed in
an "insured contract", reasonable
attorneys' fees and necessary
litigation expenses incurred by or for
a party other than an insured are
deemed to be damages because of
"bodily injury" or "property damage"
provided:
(i)
Liability to such party for, or for
the cost of, that party's defense
has also been assumed in the
same "insured contract", and
(ii) Such attorneys' fees and
litigation expenses are for
defense of that party against a
civil or alternative dispute
resolution proceeding in which
damages to which this
insurance applies are alleged.
c. Liquor Liability
"Bodily injury" or "property damage" for
which any insured may be held liable by
reason of:
(1) Causing or contributing to the
intoxication of any person;
(2) The furnishing of alcoholic beverages to
a person under the legal drinking age or
under the influence of alcohol; or
Any statute, ordinance or regulation
relating to the sale, gift, distribution or
use of alcoholic beverages.
This exclusion applies only if you are in the
business of manufacturing, distributing,
selling, serving or furnishing alcoholic
beverages.
d. Workers' Compensation And Similar
Laws
Any obligation of the insured under a
workers' compensation, disability benefits
or unemployment compensation law or
any similar law.
e. Employer's Liability
"Bodily injury" to:
(1) An "employee" of the insured arising
out of and in the course of:
(a) Employment by the insured; or
(3)
(b) Performing duties related to the
conduct of the insured's business, or
(2) The spouse, child, parent, brother or
sister of that "employee" as a
consequence of (1) above.
This exclusion applies:
(1) Whether the insured may be liable as
an employer or in any other capacity;
and
(2) To any obligation to share damages
with or repay someone else who must
pay damages because of the injury.
This exclusion does not apply to liability
assumed by the insured under an "insured
contract".
f. Pollution
(1) "Bodily injury", "property damage" or
"personal and advertising injury"
arising out of the actual, alleged or
threatened discharge, dispersal,
seepage, migration, release or escape
of "pollutants":
(a) At or from any premises, site or
location which is or was at any
time owned or occupied by, or
rented or loaned to any insured.
However, this subparagraph does
not apply to:
(i)
"Bodily injury" if sustained within
a building and caused by
smoke, fumes, vapor or soot
produced by or originating from
equipment that is used to heat,
cool or dehumidify the building,
or equipment that is used to
heat water for personal use, by
the building's occupants or their
guests;
(ii) "Bodily injury" or "property
damage" for which you may be
held liable, if you are a
contractor and the owner or
lessee of such premises, site or
location has been added to your
policy as an additional insured
with respect to your ongoing
operations performed for that
additional insured at that
premises, site or location and
such premises, site or location
is not and never was owned or
occupied by, or rented or
loaned to, any insured, other
than that additional insured; or
BUSINESS LIABILITY COVERAGE FORM
(iii) "Bodily injury" or "property
damage" arising out of heat,
smoke or fumes from a
"hostile fire";
(b) At or from any premises, site or
location which is or was at any
time used by or for any insured or
others for the handling, storage,
disposal, processing or treatment
of waste;
(c) Which are or were at any time
transported, handled, stored,
treated, disposed of, or processed
as waste by or for:
(i) Any insured; or
(ii) Any person or organization for
whom you may be legally
responsible;
(d) At or from any premises, site or
location on which any insured or
any contractors or subcontractors
working directly or indirectly on
any insured's behalf are
performing operations if the
"pollutants" are brought on or to
the premises, site or location in
connection with such operations
by such insured, contractor or
subcontractor. However, this
subparagraph does not apply to:
(i)
"Bodily injury" or "property
damage" arising out of the
escape of fuels, lubricants or
other operating fluids which are
needed to perform the normal
electrical, hydraulic or
mechanical functions
necessary for the operation of
"mobile equipment" or its parts,
if such fuels, lubricants or other
operating fluids escape from a
vehicle part designed to hold,
store or receive them. This
exception does not apply if the
"bodily injury" or "property
damage" arises out of the
intentional discharge, dispersal
or release of the fuels,
lubricants or other operating
fluids, or if such fuels,
lubricants or other operating
fluids are brought on or to the
premises, site or location with
the intent that they be
discharged, dispersed or
released as part of the
operations being performed
by such insured, contractor or
subcontractor;
(ii) "Bodily injury" or "property
damage" sustained within a
building and caused by the
release of gases, fumes or
vapors from materials brought
into that building in connection
with operations being performed
by you or on your behalf by a
contractor or subcontractor; or
(iii) "Bodily injury" or "property
damage" arising out of heat,
smoke or fumes from a
"hostile fire"; or
(e) At or from any premises, site or
location on which any insured or any
contractors or subcontractors
working directly or indirectly on any
insured's behalf are performing
operations if the operations are to
test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize,
or in any way respond to, or assess
the effects of, "pollutants".
(2) Any loss, cost or expense arising out
of any:
(a)
Request, demand, order or statutory
or regulatory requirement that any
insured or others test for, monitor,
clean up, remove, contain, treat,
detoxify or neutralize, or in any way
respond to, or assess the effects of,
"pollutants"; or
(b) Claim or suit by or on behalf of a
governmental authority for
damages because of testing for,
monitoring, cleaning up, removing,
containing, treating, detoxifying or
neutralizing, or in any way
responding to, or assessing the
effects of, "pollutants".
However, this paragraph does not
apply to liability for damages because
of "property damage" that the insured
would have in the absence of such
request, demand, order or statutory or
regulatory requirement, or such claim
or "suit" by or on behalf of a
governmental authority.
Form SS 00 08 04 05 Page 5 of 24
BUSINESS LIABILITY COVERAGE FORM
g.
Aircraft, Auto Or Watercraft
"Bodily injury" or "property damage" arising
out of the ownership, maintenance, use or
entrustment to others of any aircraft, "auto"
or watercraft owned or operated by or rented
or loaned to any insured. Use includes
operation and "loading or unloading".
This exclusion applies even if the claims
against any insured allege negligence or
other wrongdoing in the supervision, hiring,
employment, training or monitoring of others
by that insured, if the "occurrence" which
caused the "bodily injury" or "property
damage" involved the ownership,
maintenance, use or entrustment to others of
any aircraft, "auto" or watercraft that is
owned or operated by or rented or loaned to
any insured.
This exclusion does not apply to:
(1) A watercraft while ashore on premises
you own or rent;
(2) A watercraft you do not own that is:
(a) Less than 51 feet long; and
(b) Not being used to carry persons
for a charge;
Parking an "auto" on, or on the ways
next to, premises you own or rent,
provided the "auto" is not owned by or
rented or loaned to you or the insured;
(4) Liability assumed under any "insured
contract" for the ownership,
maintenance or use of aircraft or
watercraft;
"Bodily injury" or "property damage"
arising out of the operation of any of
the equipment listed in Paragraph f.(2)
or f.(3) of the definition of "mobile
equipment"; or
(6) An aircraft that is not owned by any
insured and is hired, chartered or loaned
with a paid crew. However, this
exception does not apply if the insured
has any other insurance for such "bodily
injury" or "property damage", whether
the other insurance is primary, excess,
contingent or on any other basis.
h. Mobile Equipment
"Bodily injury" or "property damage"
arising out of:
(1) The transportation of "mobile equipment"
by an "auto" owned or operated by or
rented or loaned to any insured; or
(3)
(5)
J•
(2) The use of "mobile equipment" in, or
while in practice or preparation for, a
prearranged racing, speed or
demolition contest or in any stunting
activity.
i. War
"Bodily injury", "property damage" or
"personal and advertising injury", however
caused, arising, directly or indirectly, out of:
(1) War, including undeclared or civil war;
(2) Warlike action by a military force,
including action in hindering or
defending against an actual or
expected attack, by any government,
sovereign or other authority using
military personnel or other agents; or
Insurrection, rebellion, revolution,
usurped power, or action taken by
governmental authority in hindering or
defending against any of these.
Professional Services
"Bodily injury", "property damage" or
"personal and advertising injury" arising
out of the rendering of or failure to render
any professional service. This includes
but is not limited to:
(3)
(1) Legal, accounting or advertising
services;
(2) Preparing, approving, or failing to
prepare or approve maps, shop
drawings, opinions, reports, surveys,
field orders, change orders, designs or
drawings and specifications;
Supervisory, inspection, architectural
or engineering activities;
(4) Medical, surgical, dental, x-ray or
nursing services treatment, advice or
instruction;
Any health or therapeutic service
treatment, advice or instruction;
(6) Any service, treatment, advice or
instruction for the purpose of
appearance or skin enhancement, hair
removal or replacement or personal
grooming;
Optical or hearing aid services
including the prescribing, preparation,
fitting, demonstration or distribution of
ophthalmic lenses and similar
products or hearing aid devices;
(3)
(5)
(7)
BUSINESS LIABILITY COVERAGE FORM
(8) Optometry or optometric services
including but not limited to examination
of the eyes and the prescribing,
preparation, fitting,demonstration or
distribution of ophthalmic lenses and
similar products;
(9) Any:
(a) Body piercing (not including ear
piercing);
(b) Tattooing, including but not limited
to the insertion of pigments into or
under the skin; and
(c) Similar services;
(10) Services in the practice of pharmacy;
and
(11) Computer consulting, design or
programming services, including web
site design.
Paragraphs (4) and (5) of this exclusion do
not apply to the Incidental Medical
Malpractice coverage afforded under
Paragraph 1.e. in Section A. - Coverages.
k. Damage To Property
"Property damage" to:
(1) Property you own, rent or occupy,
including any costs or expenses
incurred by you, or any other person,
organization or entity, for repair,
replacement, enhancement,
restoration or maintenance of such
property for any reason, including
prevention of injury to a person or
damage to another's property;
(2) Premises you sell, give away or
abandon, if the "property damage" arises
out of any part of those premises;
(3)
(4) Personal property in the care, custody
or control of the insured;
That particular part of real property on
which you or any contractors or
subcontractors working directly or
indirectly on your behalf are performing
operations, if the "property damage"
arises out of those operations; or
(6) That particular part of any property
that must be restored, repaired or
replaced because "your work" was
incorrectly performed on it.
(5)
Property loaned to you;
Paragraphs (1), (3) and (4) of this
exclusion do not apply to "property
damage" (other than damage by fire) to
premises, including the contents of such
premises, rented to you for a period of 7 or
fewer consecutive days. A separate Limit
of Insurance applies to Damage To
Premises Rented To You as described in
Section D. - Limits Of Insurance.
Paragraph (2) of this exclusion does not
apply if the premises are "your work" and
were never occupied, rented or held for
rental by you.
Paragraphs (3) and (4) of this exclusion do
not apply to the use of elevators.
Paragraphs (3), (4), (5) and (6) of this
exclusion do not apply to liability assumed
under a sidetrack agreement.
Paragraphs (3) and (4) of this exclusion do
not apply to "property damage" to
borrowed equipment while not being used
to perform operations at a job site.
Paragraph (6) of this exclusion does not
apply to "property damage" included in the
"products -completed operations hazard".
I. Damage To Your Product
"Property damage" to "your product"
arising out of it or any part of it.
m. Damage To Your Work
"Property damage" to "your work" arising
out of it or any part of it and included in the
"products -completed operations hazard".
This exclusion does not apply if the
damaged work or the work out of which
the damage arises was performed on your
behalf by a subcontractor.
n. Damage To Impaired Property Or
Property Not Physically Injured
"Property damage" to "impaired property"
or property that has not been physically
injured, arising out of:
(1) A defect, deficiency, inadequacy or
dangerous condition in "your product"
or "your work"; or
(2) A delay or failure by you or anyone
acting on your behalf to perform a
contract or agreement in accordance
with its terms.
This exclusion does not apply to the loss
of use of other property arising out of
sudden and accidental physical injury to
"your product" or "your work" after it has
been put to its intended use.
Form SS 00 08 04 05 Page 7 of 24
BUSINESS LIABILITY COVERAGE FORM
o. Recall Of Products, Work Or Impaired
Property
Damages claimed for any loss, cost or
expense incurred by you or others for the
loss of use, withdrawal, recall, inspection,
repair, replacement, adjustment, removal
or disposal of:
(1) "Your product";
(2) "Your work"; or
(3) "Impaired property";
if such product, work or property is
withdrawn or recalled from the market or
from use by any person or organization
because of a known or suspected defect,
deficiency, inadequacy or dangerous
condition in it.
p. Personal And Advertising Injury
"Personal and advertising injury":
(1) Arising out of oral, written or electronic
publication of material, if done by or at
the direction of the insured with
knowledge of its falsity;
(2) Arising out of oral, written or electronic
publication of material whose first
publication took place before the
beginning of the policy period;
Arising out of a criminal act committed
by or at the direction of the insured;
(4) Arising out of any breach of contract,
except an implied contract to use
another's "advertising idea" in your
"advertisement";
(5) Arising out of the failure of goods,
products or services to conform with
any statement of quality or
performance made in your
"advertisement";
(6) Arising out of the wrong description of
the price of goods, products or services;
Arising out of any violation of any
intellectual property rights such as
copyright, patent, trademark, trade
name, trade secret, service mark or
other designation of origin or
authenticity.
However, this exclusion does not
apply to infringement, in your
"advertisement", of
(a) Copyright;
(b) Slogan, unless the slogan is also
a trademark, trade name, service
mark or other designation of origin
or authenticity; or
(3)
(7)
(c) Title of any literary or artistic work;
(8) Arising out of an offense committed by
an insured whose business is:
(a) Advertising, broadcasting,
publishing or telecasting;
(b) Designing or determining content
of web sites for others; or
(c) An Internet search, access,
content or service provider.
However, this exclusion does not
apply to Paragraphs a., b. and c.
under the definition of "personal and
advertising injury" in Section G. —
Liability And Medical Expenses
Definitions.
For the purposes of this exclusion,
placing an "advertisement" for or
linking to others on your web site, by
itself, is not considered the business
of advertising, broadcasting,
publishing or telecasting;
Arising out of an electronic chat room
or bulletin board the insured hosts,
owns, or over which the insured
exercises control;
(10) Arising out of the unauthorized use of
another's name or product in your e-mail
address, domain name or metatags, or
any other similar tactics to mislead
another's potential customers;
(11) Arising out of the violation of a
person's right of privacy created by
any state or federal act.
However, this exclusion does not
apply to liability for damages that the
insured would have in the absence of
such state or federal act;
(12) Arising out of:
(a) An "advertisement" for others on
your web site;
(b) Placing a link to a web site of
others on your web site;
(c) Content from a web site of others
displayed within a frame or border
on your web site. Content includes
information, code, sounds, text,
graphics or images; or
(d) Computer code, software or
programming used to enable:
(i) Your web site; or
(ii) The presentation or functionality
of an "advertisement" or other
content on your web site;
(9)
BUSINESS LIABILITY COVERAGE FORM
q•
(13) Arising out of a violation of any anti-
trust law;
(14) Arising out of the fluctuation in price or
value of any stocks, bonds or other
securities; or
(15) Arising out of discrimination or
humiliation committed by or at the
direction of any "executive officer",
director, stockholder, partner or
member of the insured.
Electronic Data
Damages arising out of the loss of, loss of
use of, damage to, corruption of, inability
to access, or inability to manipulate
"electronic data".
r. Employment -Related Practices
"Bodily injury" or "personal and advertising
injury" to:
(1)
A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person's
employment; or
(c) Employment -related practices,
policies, acts or omissions, such as
coercion, demotion, evaluation,
reassignment, discipline,
defamation, harassment, humiliation
or discrimination directed at that
person; or
(2) The spouse, child, parent, brother or
sister of that person as a
consequence of "bodily injury" or
"personal and advertising injury" to the
person at whom any of the
employment -related practices
described in Paragraphs (a), (b), or (c)
above is directed.
This exclusion applies:
(1) Whether the insured may be liable as
an employer or in any other capacity;
and
(2) To any obligation to share damages
with or repay someone else who must
pay damages because of the injury.
s. Asbestos
(1) "Bodily injury", "property damage" or
"personal and advertising injury"
arising out of the "asbestos hazard".
(2) Any damages, judgments, settlements,
loss, costs or expenses that:
(a)
May be awarded or incurred by
reason of any claim or suit
alleging actual or threatened injury
or damage of any nature or kind to
persons or property which would
not have occurred in whole or in
part but for the "asbestos hazard";
(b) Arise out of any request, demand,
order or statutory or regulatory
requirement that any insured or
others test for, monitor, clean up,
remove, encapsulate, contain,
treat, detoxify or neutralize or in
any way respond to or assess the
effects of an "asbestos hazard"; or
(c) Arise out of any claim or suit for
damages because of testing for,
monitoring, cleaning up, removing,
encapsulating, containing, treating,
detoxifying or neutralizing or in any
way responding to or assessing the
effects of an "asbestos hazard".
t. Violation Of Statutes That Govern E -
Mails, Fax, Phone Calls Or Other
Methods Of Sending Material Or
Information
"Bodily injury", "property damage", or
"personal and advertising injury" arising
directly or indirectly out of any action or
omission that violates or is alleged to
violate:
(1) The Telephone Consumer Protection
Act (TCPA), including any amendment
of or addition to such law;
(2) The CAN-SPAM Act of 2003, including
any amendment of or addition to such
law; or
Any statute, ordinance or regulation,
other than the TCPA or CAN-SPAM Act
of 2003, that prohibits or limits the
sending, transmitting, communicating or
distribution of material or information.
Damage To Premises Rented To You —
Exception For Damage By Fire, Lightning
or Explosion
Exclusions c. through h. and k. through o. do
not apply to damage by fire, lightning or
explosion to premises rented to you or
temporarily occupied by you with permission of
the owner. A separate Limit of Insurance
applies to this coverage as described in
Section D. - Liability And Medical Expenses
Limits Of Insurance.
(3)
Form SS 00 08 04 05 Page 9 of 24
BUSINESS LIABILITY COVERAGE FORM
2. Applicable To Medical Expenses Coverage
We will not pay expenses for "bodily injury":
a. Any Insured
To any insured, except "volunteer workers".
b. Hired Person
To a person hired to do work for or on behalf
of any insured or a tenant of any insured.
c. Injury On Normally Occupied Premises
To a person injured on that part of
premises you own or rent that the person
normally occupies.
d. Workers' Compensation And Similar
Laws
To a person, whether or not an
"employee" of any insured, if benefits for
the "bodily injury" are payable or must be
provided under a workers' compensation
or disability benefits law or a similar law.
e. Athletics Activities
To a person injured while practicing,
instructing or participating in any physical
exercises or games, sports or athletic
contests.
f. Products -Completed Operations Hazard
Included with the "products -completed
operations hazard".
Business Liability Exclusions
Excluded under Business Liability Coverage.
C. WHO IS AN INSURED
1. If you are designated in the Declarations as:
a. An individual, you and your spouse are
insureds, but only with respect to the
conduct of a business of which you are the
sole owner.
b. A partnership or joint venture, you are an
insured. Your members, your partners, and
their spouses are also insureds, but only with
respect to the conduct of your business.
c. A limited liability company, you are an
insured. Your members are also insureds,
but only with respect to the conduct of your
business. Your managers are insureds, but
only with respect to their duties as your
managers.
d. An organization other than a partnership,
joint venture or limited liability company, you
are an insured. Your "executive officers" and
directors are insureds, but only with respect
to their duties as your officers or directors.
Your stockholders are also insureds, but only
with respect to their liability as stockholders.
g.
e. A trust, you are an insured. Your trustees
are also insureds, but only with respect to
their duties as trustees.
2. Each of the following is also an insured:
a. Employees And Volunteer Workers
Your "volunteer workers" only while
performing duties related to the conduct of
your business, or your "employees", other
than either your "executive officers" (if you
are an organization other than a
partnership, joint venture or limited liability
company) or your managers (if you are a
limited liability company), but only for acts
within the scope of their employment by
you or while performing duties related to
the conduct of your business.
However, none of these "employees" or
"volunteer workers" are insureds for:
(1) "Bodily injury" or "personal and
advertising injury":
(a) To you, to your partners or
members (if you are a partnership
or joint venture), to your members
(if you are a limited liability
company), or to a co -"employee"
while in the course of his or her
employment or performing duties
related to the conduct of your
business, or to your other
"volunteer workers" while
performing duties related to the
conduct of your business;
(b) To the spouse, child, parent,
brother or sister of that co -
"employee" or that "volunteer
worker" as a consequence of
Paragraph (1)(a) above;
(c) For which there is any obligation
to share damages with or repay
someone else who must pay
damages because of the injury
described in Paragraphs (1)(a) or
(b) above; or
(d) Arising out of his or her providing
or failing to provide professional
health care services.
If you are not in the business of
providing professional health care
services, Paragraph (d) does not apply
to any nurse, emergency medical
technician or paramedic employed by
you to provide such services.
(2) "Property damage" to property:
(a) Owned, occupied or used by,
BUSINESS LIABILITY COVERAGE FORM
(b) Rented to, in the care, custody or
control of, or over which physical
control is being exercised for any
purpose by you, any of your
"employees", "volunteer workers",
any partner or member (if you are
a partnership or joint venture), or
any member (if you are a limited
liability company).
b. Real Estate Manager
Any person (other than your "employee" or
"volunteer worker"), or any organization
while acting as your real estate manager.
c. Temporary Custodians Of Your
Property
Any person or organization having proper
temporary custody of your property if you
die, but only:
(1) With respect to liability arising out of the
maintenance or use of that property; and
(2) Until your legal representative has
been appointed.
d. Legal Representative If You Die
Your legal representative if you die, but
only with respect to duties as such. That
representative will have all your rights and
duties under this insurance.
e. Unnamed Subsidiary
Any subsidiary and subsidiary thereof, of
yours which is a legally incorporated entity
of which you own a financial interest of
more than 50% of the voting stock on the
effective date of this Coverage Part.
The insurance afforded herein for any
subsidiary not shown in the Declarations
as a named insured does not apply to
injury or damage with respect to which an
insured under this insurance is also an
insured under another policy or would be
an insured under such policy but for its
termination or upon the exhaustion of its
limits of insurance.
3. Newly Acquired Or Formed Organization
Any organization you newly acquire or form,
other than a partnership, joint venture or
limited liability company, and over which you
maintain financial interest of more than 50% of
the voting stock, will qualify as a Named
Insured if there is no other similar insurance
available to that organization. However:
a. Coverage under this provision is afforded
only until the 180th day after you acquire
or form the organization or the end of the
policy period, whichever is earlier; and
b. Coverage under this provision does not
apply to:
(1) "Bodily injury" or "property damage"
that occurred; or
(2) "Personal and advertising injury"
arising out of an offense committed
before you acquired or formed the
organization.
4. Operator Of Mobile Equipment
With respect to "mobile equipment" registered in
your name under any motor vehicle registration
law, any person is an insured while driving such
equipment along a public highway with your
permission. Any other person or organization
responsible for the conduct of such person is
also an insured, but only with respect to liability
arising out of the operation of the equipment, and
only if no other insurance of any kind is available
to that person or organization for this liability.
However, no person or organization is an insured
with respect to:
a. "Bodily injury" to a co -"employee" of the
person driving the equipment; or
b. "Property damage" to property owned by,
rented to, in the charge of or occupied by
you or the employer of any person who is
an insured under this provision.
5. Operator of Nonowned Watercraft
With respect to watercraft you do not own that
is less than 51 feet long and is not being used
to carry persons for a charge, any person is an
insured while operating such watercraft with
your permission. Any other person or
organization responsible for the conduct of
such person is also an insured, but only with
respect to liability arising out of the operation
of the watercraft, and only if no other
insurance of any kind is available to that
person or organization for this liability.
However, no person or organization is an
insured with respect to:
a. "Bodily injury" to a co -"employee" of the
person operating the watercraft; or
b. "Property damage" to property owned by,
rented to, in the charge of or occupied by
you or the employer of any person who is
an insured under this provision.
6. Additional Insureds When Required By
Written Contract, Written Agreement Or
Permit
The person(s) or organization(s) identified in
Paragraphs a. through f. below are additional
insureds when you have agreed, in a written
Form SS 00 08 04 05
BUSINESS LIABILITY COVERAGE FORM
contract, written agreement or because of a
permit issued by a state or political
subdivision, that such person or organization
be added as an additional insured on your
policy, provided the injury or damage occurs
subsequent to the execution of the contract or
agreement, or the issuance of the permit.
A person or organization is an additional
insured under this provision only for that
period of time required by the contract,
agreement or permit.
However, no such person or organization is an
additional insured under this provision if such
person or organization is included as an
additional insured by an endorsement issued
by us and made a part of this Coverage Part,
including all persons or organizations added
as additional insureds under the specific
additional insured coverage grants in Section
F. — Optional Additional Insured Coverages.
a. Vendors
Any person(s) or organization(s) (referred to
below as vendor), but only with respect to
"bodily injury" or "property damage" arising
out of "your products" which are distributed
or sold in the regular course of the vendor's
business and only if this Coverage Part
provides coverage for "bodily injury" or
"property damage" included within the
"products -completed operations hazard".
(1) The insurance afforded to the vendor
is subject to the following additional
exclusions:
This insurance does not apply to:
(a) "Bodily injury" or "property
damage" for which the vendor is
obligated to pay damages by
reason of the assumption of
liability in a contract or agreement.
This exclusion does not apply to
liability for damages that the
vendor would have in the absence
of the contract or agreement;
(b) Any express warranty
unauthorized by you;
(c) Any physical or chemical change
in the product made intentionally
by the vendor;
(d) Repackaging, except when
unpacked solely for the purpose of
inspection, demonstration, testing,
or the substitution of parts under
instructions from the manufacturer,
and then repackaged in the
original container;
(e) Any failure to make such
inspections, adjustments, tests or
servicing as the vendor has
agreed to make or normally
undertakes to make in the usual
course of business, in connection
with the distribution or sale of the
products;
(f) Demonstration, installation,
servicing or repair operations,
except such operations performed
at the vendor's premises in
connection with the sale of the
product;
Products which, after distribution
or sale by you, have been labeled
or relabeled or used as a
container, part or ingredient of any
other thing or substance by or for
the vendor; or
(h) "Bodily injury" or "property
damage" arising out of the sole
negligence of the vendor for its
own acts or omissions or those of
its employees or anyone else
acting on its behalf. However, this
exclusion does not apply to:
(i) The exceptions contained in
Subparagraphs (d) or (f); or
(ii) Such inspections, adjustments,
tests or servicing as the vendor
has agreed to make or normally
undertakes to make in the usual
course of business, in
connection with the distribution
or sale of the products.
(2) This insurance does not apply to any
insured person or organization from
whom you have acquired such products,
or any ingredient, part or container,
entering into, accompanying or
containing such products.
b. Lessors Of Equipment
(1)
(g)
Any person or organization from
whom you lease equipment; but only
with respect to their liability for "bodily
injury", "property damage" or
"personal and advertising injury"
caused, in whole or in part, by your
maintenance, operation or use of
equipment leased to you by such
person or organization.