CONTRACT AMENDMENT
Pro
ject Name: City of Salinas CA No. 2
Client Name: Stormwater Master Plan Project/Phase No. 0886-0022 Attention: Heidi Niggemeyer Date: June 13, 2024
Address: 200 Lincoln Avenue, Salinas, California, 93901 Wal
lace Group requests the Client’s authorization to proceed with revisions to the contract agreement for the above referenced project as herein described. Approval below incorporates this document as a part of the original contract signed December 14,2021. If approved, please return one signed original Contract Amendment to Wallace Group.
Descr
iption and Purpose of the Revision(s)
Wal
lace Group is completing the Storm Water Master Plan. As part of the master plan, the City is requesting to complete a Development Impact Fee Study (DIF) similar to the DIF completed for the Sewer Master Plan. The DIF will be completed by Wallace Group’s subconsultant DTA. Their proposal for the work is provided as Exhibit A. This contract amendment includes the DTA proposal cost estimate of $35,000 plus 15% WG mark up. In addition, the contract amendment includes Wallace Group’s time to manage the contract, attend up to three (3) virtual meetings, and coordinate technical information to support the development of the DIF for a total of $7,500.
The
total contract amendment is in the amount of $47,750.
Revision(s) Represent: Revision(s) Fee:
(x) a change in previous instructions ( ) hourly (time & materials) $ ( ) a change in Scope of Services ( ) progress billing: $ ( ) other: (x) not-to-exceed w/o authorization:$47,750 Revision(s) will be invoiced as:
( ) increase to an item within the existing contract
(x) a new item added to existing contract
Issued
by,
WALLACE GROUP, a California Corporation APPROVED BY CLIENT:
Kar
i E. Wagner, PE C66026 ____________________________________ Principal Signature
612 Clarion Court ____________________________________
San Luis Obispo Printed Name
California 93401 ____________________________________
T 805 544-4011 Title
F 805 544-4294 ____________________________________
www.wallacegroup.us Date
Exhibit B-1
Irvine | San Jose | San Francisco | Riverside
Dallas | Houston | Raleigh | Tampa
www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
SCOPE OF WORK AND FEE
PROPOSAL
CITY OF SALINAS
DEVELOPMENT IMPACT FEE NEXUS STUDY
June 7, 2024
EXHIBIT A
0886-0022
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CITY OF SALINAS
DEVELOPMENT IMPACT FEE NEXUS STUDY
JUNE 7, 2024
Prepared for:
City of Salinas
Public Works Department
200 Lincoln Avenue
Salinas, CA 93901
Attention: Heidi Niggemeyer, NPDES Program Manager
TABLE
OF CONTENTS
SECTION PAGE
I SCOPE OF WORK ................................ ................................ 1 II FEE SCHEDULE ................................ ................................ .... 4 A Disclaimer ................................ ................................ ........... 4 B Limitations ................................ ................................ .......... 5 1 SECTION I
SCOPE OF WORK
City of Salinas June 7, 2024
Proposal for a Development Impact Fee Nexus Study
www.FinanceDTA.com
SCOPE OF WORK
DTA is pleased to submit this proposal to the City of Salinas (the “City”). The tasks described below are envisioned for the proposed Scope of Work. Work products stemming from the work plan described in this section will includea Draft Study and Final Study.
Task 1 – Development of Project Strategy and Kickoff Meeting DTA staff will meet with City staff in a virtual project kickoff meeting to finalize the details of the project, deliverables, timetables, and tasks, discuss the fee methodologies and best practices, identify needed information (i.e., reports, project/needs lists, stakeholder groups, data, etc.), preparethe final schedule, discuss the public process, and resolve other concerns, as appropriate.
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.
Subtask 2A– Population Projections
DTA will gather existing information on present and future population for the City from various sources, includingCitystaff,the General Planand LCP,existing Master Plans, the U.S.
Census, the Association of Monterey Bay Area Governments ( “AMBAG”), the State Department of Finance, and from other data sources, including theCity’s CIP.
Subtask 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 patternsin 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 andpopulation projections for the next 20 years, or such other target year as selected byCity staff.
Subtask 2C– Review Current City Fee Structure
DTA shall review and summarize theCity’s current development fee structures,City policies and procedures, and other regulatory requirements affecting potential fee structures and revenue program requirements.
Subtask 2D– Review Prior City Fee Justification Studies DTA shall review the approach and methodology utilized in priorCityfee justification studies so they can be evaluatedin light ofthe City’s current needs. 2 SECTION I
SCOPE OF WORK
City of Salinas June 7, 2024
Proposal for a Development Impact Fee Nexus Study
www.FinanceDTA.com
Task 3 – Review Facility/Capital Needs and Levels of Service Wallace Group will prepare and provide the facilities and capital needs required to serve new development in the study area projected in Task 2. DTA willreview andutilizesuch information for the impact fee calculation to be prepared in Task 4 below.
Task 4 – Develop Methodology for Calculating New Fee Amounts This task entails developing the methodology used to establish the fee amount for each fee component to the extent appropriate. There are two critical issues that must be considered in developing a fee program. The fee program must generate revenues in a timely manner and the methodology must meet the nexus or benefit requirements of AB 1600. Since fees of any sort are controversial, it is critical that any fee established be legally defensible.
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;
Determinethe use to which the fee is to be put; if the use is financing public facilities, the facilities must be identified;
Establishif there is a reasonable relationship between the fee’s use and type of development project on which the fee is imposed; and
Ascertain 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 benefitmethodology established in this task will be documented in the Final Report.
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.
Subtask 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 palatable fee levels.
Subtask 5B– Document Fee Derivation
DTA shall document the methodology utilized for the fee calculation model in such a way 3 SECTION I
SCOPE OF WORK
City of Salinas June 7, 2024
Proposal for a Development Impact Fee Nexus Study
www.FinanceDTA.com
that can be understood by the City and public. DTA shall prepare written statements documenting the validity of the methodology for derivingeach of the feesfor theCity. These statements will be made to meet the requirements of AB1600 and documented in the Final Report discussed below.
Subtask 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 thatCity 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.
Deliverables: Proposed Fee Levels; Brief Report of Similar Jurisdictions’ DIFs, Including a Summary Table
Task 6 – Prepare Draft and Final Reports
This task entails the preparation of the Draft and Final Reports for consideration by theCity Council and City staff.
Subtask 6A– Prepare Draft Report for Comments
Based on the work completed in Tasks 1-5, DTA will prepare the Draft Report for review and consideration byCitystaff. 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.
Subtask 6B– Prepare Final Report
Based on the incorporation ofCity staff comments and concerns on the Draft Report, DTA will prepare the Final Report for presentation to the City Council andCity staff.
Deliverables: Draft and Final Reports
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 they have adopted their 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 shallreview and provide feedback onapplicable legal documentsto be prepared bythe City’s legal counsel.
Task 8 – Attend Meetings and Public Outreach
Upon request, DTA shall attend meetings with City staff on a time and materials basis at additional cost.
4 SECTION II
FEE SCHEDULE
City of Salinas June 7, 2024
Proposal for a Development Impact Fee Nexus Study
www.FinanceDTA.com
FEE SCHEDULE
Fees for services shall be charged on an hourly basis according to the rates set forth in the fee schedule below, with invoices being $35,000 for the Scope of Work, including out-of-pocket expenses. Fees for services shall be charged according to the professional services fee schedule identified in Table 1.
Table 1: DTA’s Fee Schedule
Labor Category Labor Rate
President/Managing Director $290/Hour
Senior Vice President $275/Hour
Vice President $240/Hour
Senior Manager $205/Hour
Manager $195/Hour
Senior Associate $185/Hour
Associate III $175/Hour
Associate II $165/Hour
Associate I $150/Hour
Research Associate II $140/Hour
Research Associate I $125/Hour
Out-of-pocket and administrative expenses are included in the maximum budget listed above and shall be equal to 3% of DTA’s billings for labor, plus travel expenses and any outside vendor payments. All hourly rates for services apply through December 31, 2024, 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. Each invoice submitted for payment shall contain a brief description of the work billed on that invoice, total bill ed to date, total paid to date and amount remaining. 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 an d 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.
5 SECTION II
FEE SCHEDULE
City of Salinas June 7, 2024
Proposal for a Development Impact Fee Nexus Study
www.FinanceDTA.com
B Limitations
Attendanceat any 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 Table1 if the maximum fee level has been exceeded. Other examples of additional work shall include:
Additional analyses based on revised assumptions requested by theCity, 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 BIA;
Tasks related to litigation by stakeholders should it occur once the Fee Study has been completed;
Time expended related to obtaining data assigned to the City under “Information to be Provided by theCity”;
Actual implementation of the fee program(s);
Any work related to litigation or any claim or liability arising out of or incident to the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Doradoasking 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, including but not limited to expert witness services; and More than five (5) hardcopies of the Draft or Final Study.
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. 18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969 -4DTA
www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds