Loading...
HomeMy WebLinkAboutRDA 03 KATZ-HOLLIS AG 12-02-96RDA NO. 3 12-2-96 DATE: DECEMBER 2, 1996 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT STAFF APPROVAL OF CONTRACT WITH KATZ-HOLLIS SUMMARY: This'action'will ~thori~e stafft° exeCUte a c°n~ct.with Katz Hollis toprepare the . . redevelopment plan for the creation of a redevelopment project area for Marine Corps Air Station, Tustin, and will appr°Priate an additional $28,350 more than was appropriated in the FY 1996-9 7 Redevelopment Agency budget, to pay for the Contract fee RECOMMENDATION Staff recommends that the Redevelopment Agency: 1. Authorize the execution of the attached contract with Katz Hollis for professional services to prepare a redevelopment plan and create a redevelopment project area for MCAS, Tustin; and 2. Appropriate an additional $28,350 more than has been appropriated in the 1996-97 Redevelopment Agency budget. FISCAL IMPACT The 1996-97 Redevelopment Agency budget appropriated $43,800 for professional services for this project. An additional $28,350 is required for the contract, which is a total of $72,150. BACKGROUND/DISCUSSION In May, 1994, the Redevelopment Agency approved a contract with Katz Hollis for the preparation of a redevelopment plan and creation of a redevelopment project area for Marine Corps Ak Station, Tustin. Work began under that contract, but was stopped by the staff when the adoption of the Reuse Plan and Specific Plan was delayed due to changes in the federal reuse planning regulations and other intervening issues, such as the negotiations with the Coast Guard. The original contract was for only a William A. Huston December 2, 1996 Page 2 one year period and lapsed in 1995. Because of this, as well as numerous changes in state law and the new relationship between the City of Tustin and the City °flrvine relating to the creation of the redevelopment project area requires a new contract be approved by the Agency. Among the changes which now require a new contract and additional work are: · The adoption of Assembly Bill 1290 by the State, radically changing the Community Redevelopment Law. The adoption by the State of Senate Bill 1861, the special legislation for MCAS, Tustin, modifying for Tustin some of the general requirements of state redevelopment law, such as the definition of blight, the compliance with the General Plan and the deferral of the requirement to set-aside 20% of the tax increment for Iow-to-moderate income housing. The execution of a cooperative agreement between the City of Tdstin and the City of Ir vine, authorizing the Tustin Redevelopment Agency to act as the redevelopment authority for the City oflrvine in matters involving the City oflrvine portion of the base. This contract, which is attached, provides for the required research and preparation of all documents, including a redevelopment plan, by Katz Hollis. Katz Hollis will also assist in analyzing the financial aspects of the redevelopment plan and the Agency in working with the other affected taxing agencies. The adoption of a redevelopment plan and creation of a project area is a well defined, highly legalistic procedure, requiring several months of document preparation, review and hearings before the Planning Commission, the Redevelopment Agency and the City Council. Staff anticipates the final redevelopment plan will be presented to a joint meeting of the City Council and Redevelopment Agency in early Fall, 1997. The original contract with Katz Hollis was for $67,400. At the time work was stopped, the Agency had spent $23,600. Some of the previous work remains applicable. However, because of the adoption of AB1290, SB 1861 and the incorporation ofthe City oflrvine into the process, much ofthe previous work needs to be redone. Katz Hollis will also do the work which was never done under the previous contract because it lapsed. In addition, this contract provides for Katz Hollis to undertake more extensive financial analysis than the previous contract required, as well as preparing and processing documents as they pertain to the City of Irvine. The proposed contract fee is $72,150. The 1996-97 Redevelopment Budget has already appropriated the unspent $43,800 from the previous contract for the preparation of the redevelopment plan. Therefore, an additional $28,350 needs to be allocated to pay for the cost of this contract. William A. Huston December 2, 1996 Page 3 Ch{i~ine Shingleton Assistant City Manager Katz Hollis is prepared to begin work immediately upon approval of this contract. Manager CONSULTANT SERVICES AGREEMENT This Agreement for Contract Services (herein "Agreement"), is made and entered into by and between the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and p61itic, ("Agency"), and KATZ HOLLIS, ("Consultant"). WHEREAS, Consultant is qualified, to provide the necessary services and has agreed to provide such services; and WHEREAS, Consultant has submitted to Agency a proposal, dated October 21, 1996, a copy of which is attached hereto as Exhibit "A", and is by this reference incorporated herein as though set forth in full hereat (the "Proposal"). NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, Agency agrees to employ and does hereby employ Consultant and Consultant agrees to provide consulting services as follows: !. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the Proposal attached hereto as Exhibit "A." Consultant warrants that all services will be performed' in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry. In the event of any inconsistency' between the terms of such Proposal and the text of this Agreement, 'the text of this Agreement and Exhibits B, C, and D shall govern. 1.2 Compliance with Law. Ail ~ervices rendered hereunder shall be provided in accordance with all Federal, State of California laws, and the ordinances, resolutions, statues, rules, and regulations of the City of Tustin and the Tustin Community Redevelopment Agency. 1.3 Familiarity with Scope of Services. By executing this Contract, Consultant warrants that Consu!taht (a) has thoroughly investigated and considered the work to be performed, (b) has generally acquainted itself with the site of the work and conditions there existing and (c) has carefully considered the means and methods for performance (d) fully understands the facilities, difficulties, restrictions attending performance of the work under this Agreement. Should the Consultant discover any latent or previously unknown condition materially differing from those inherent in the work or as represented by the Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with any work except at Consultant's risk until written instructions are received from the Contract Officer. 1.4 Care of WOrk. The Consultant shall adopt reasonable methods during the life of the Agreement to prevent loss or damage to materials, papers and other components thereof to minimize losses of damages and shall be responsible for all such damages until acceptance .of work by Agency, except such losses or damages as may be caused by Agency's own negligence. 1.5 Additional Services. In accordance with the terms and conditions of this Agreement, the Consultant shall perform services in addition to those specified in the ScoPe of Services when directed to do so in writing by the Contract Officer, provided that Consultant shall not be required to perfOrm any additional services without additional, reasonable compensation. Any additional compensation not exceeding ten percent (10%) of the original contract sum may be. approved in writing by the Contract Officer. Any greater increase must be approved by the City Manager. Other applicable provisions for additional services are found in Section 2.3 and 2.4. 1.6 Special Requirements. Additional terms and conditions of this Agreement which are made a part hereof are set forth in Exhibits "B", "C", and "D" and are incorporated herein by this reference. In the event of a conflict between the provisions of Exhibits "B" "C" "D , and " and any other provision of this Agreement, including Exhibit A, the provision of Exhibits "B" "C" and "D" shall govern. ' 2. COMPENSATION 2.1 For the services rendered pursuant to this Agreement, the Consultant shall be compensated in accordance with Exhibit C (attached). 2.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall, no later than the first (lst) working day of such month, submit to the Agency in a form approved by Agency, an invoice for services rendered prior to the date of the invoice. Agency will pay Consultant for all expenses stated thereon which are approved by -2- Agency pursuant to this Agreement no later than the last working day of said month. 2.3 Changes. In the event of any change or changes in the scope of work requested by Agency, the parties hereto shall execute an addendum 'to this Agreement, setting forth with particularity all terms of the Addendum, including but not limited to any additional compensation to Consultant. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Ail services rendered pursuant to this Agreement shall be performed Within a.ny time periods prescribed in any Schedule of Performance attached hereto marked Exhibit "D". Extension of any time period specified in the Exhibit "D" 'must be approved in writing by the Contract Officer. ~ ......... fo~ ........... ~ ........ to this ~ ....... .... ~ be cxt~~ ~ ..... . of any delays duc to unforcs~~ .... =e causes beyond the control anc~ ......... u~ant, including, bu~ ~ot ~~ct~ to,' ...... acts of ~d or of a li~ ~ ..... ~= ~ pt~b ~ ~ ~ ...... =, acts of scvcrc wca~ if ~ o ..... ~~ ~~ ,.,~~ ~ ~ 0 f ............... en~ of such ~~ .... ~; ......... 0 f f .... who ............... of any ...... sary delay, ..................... for ~~~ ~ · 9~~ of ~ ~ .... ~ 'delay -h~ and if in ~ ~~ ~ , ~ ....... such delay is justific~, ......... tact ~~, ..... final and .... ~ ' ....... szve ~n thc ~artics to t~is ~ . 3.4 Te~. Unless earlier terminated in accordance with Section 7.7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from date hereof. 4. COORDINATION OF WORK 4.1 Representative of Consultant. The following Representative of the Consultant is hereby designated as being the Representative of Consultant authorized to act in its behalf with 3 respect to the work specified herein and make all decisions in connection therewith: Larry Arceneaux It is expressly understood thaE the experience, knowledge, capability and reputation of the foregoing Representative is a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing Representative s~atl be responsible 'during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing Representative may not be changed by Consultant without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be the Assistant Executi.ve Director of Agency unless otherwise designated in writing by the Executive Director of Agency. It shall be the Consultant's responsibility to keep the Contract Officer fully informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Independent Contractor. Neither the Agency nor a~y of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of Agency and shall remain at all times as to Agency a wholly independent contractor with only sUch obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 5. INSURANCE AND INDEMNIFICATION 5.1 Insuramce. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's performance under this Agreement. Consultant shall also carry workers' compensation insurance in accordance with California workers' compensatidn laws Such insurance shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to Agency of any proposed cancellation. The Agency's certificate evidencing the foregoing and designating Agency as an additional named insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. The procuring of such insurance and the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify the Agency, its officers, and employees. The amoun~ of insurance required hereunder shall include comprehensive general liability, personal injury ahd automobile liability with limits of at least One Million Dollars ($1,000,000) combined single limit per occurrence and professional liability coverage with limits of at least Five Hundred Thousand Dollars ($500,000). Coverage shall be provided by Admitted insurers with an A.M. Best's Key Rating of at least A VII. If Consultant provides cl'aims made professional liability insurance, Consultant shall also agree in wilting either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within five years of the completion of Consultant's services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least five years after completion of Consultant's services under this Agreement. The Consultant shall also be required periodically to provide evidence to Agency of the purchase of the required tail insurance or continuation of the professional liability policy. 5.2 Indemnification. The Consultant shall defend, indemnify and hold.harmless the Agency, its officers and employees, from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person or persons, for damage to property, including property owned by Agency, and for errors and omissions committed by Consultant, its officers, employees and agents, arising out of or related to ConSultant,s performance under this Agreement, except for such loss as may be caused by Agency's own negligence or that of its officers or employees. 5 6. RECORDS ~D REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 Ownership of Documents. Ail drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of this Agreement shall be the property of Agency and shall be' delivered to Agency upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency'of its full rights or ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. 6.4 Release of Documents. All' drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7. ENFORCEMENT OF-AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to' validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in 'the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2- Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring -6- party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long ns the injuring party cures any default within ninety (90) days after service of the notice, or if the cure of the default is commenced within thirty (30) days after service of said · notice and is cured within a reasonable time after commencement; provided that if the default is an immediate danger to the health, safety and general welfare, the Agency may take immediate action under Section .7.5 of this Agreement. Compliance with the provisions of this Section shall be a condition precedent to any legal action, and such compliance shall not be a waiver of any party's right to take legal action'in the event that the dispute is not cured. 7.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of Agency shall be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.4 Rights and Remedies are Cumulative. Except' with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.5 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment or any other remedy consistent with the purposes of this Agreement. ........... ~ for an}' delay ~ p~for ....... c of ~ Agreement would ~ ex ....... ly 'difficu~ ~ ~ or ~ ..... ~ to .... ~ ..... cai ~~~ ~ thc ~cnt o~ a breach of ~ ~ ....... ~ n~ultant -~ ....... ~ ......... t, ......... its sureties shall bc li~Ic ~ .... s shall F~y to ~ .... ~ .... sum of ~ ............. ~ ..... ~ch wo~-q ~ of ........ ~ day delay ~ ~ .... ~ ....... of any sc~ ' ..... ~ ~ VICO h ...... ~ -7- any monies ~, ~== on accouPt of services performed by.. 7.7 Termination Prior to Expiration of Term. The Agency reserves .the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant, except that where termination is due to the f~ult of the Consultant and constitutes an immediate danger to health, safety and general welfare, the period of notice .shall be such shorter time as may be appropriate. Upon receipt of the notice of termination, Consultant shall immediately cease all' services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter. 7.8 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, Agency may take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the co~ensation herein stipulated, provided that the Agency shall use reasonable efforts to mitigate damages, and Agency may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed to Agency. · 7.9 Attorneys Fees. If either party commences an action against the other party arising out of or in connection with this Agreement or it subject matter, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8. AGENCY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 8.1 Non-Liability of Agency Officers and Employees. No officer or employee of Agency shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the Agency or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination or. segregation in the performance of or in 8 connection with this Agreement regarding any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry. Consultant shall take affirmative action to insure that applicants and employees are treated without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9. MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To Agency- TUSTIN COMMUNITY -REDEVELOPMENT AGENCY 300 Centennial Way Tustin, CA 92680 Attention: Assistant Executive Director (Contract Officer) To Consultant- Katz Hollis 865 South Figueroa Street Suite 1300 Los Anegles, CA 90017-2543 Attn- Larry Arceneaux 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and cannot be amended or modified except by written agreement. '9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect -9- any of ti~e remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties hereunder. 9.5 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 so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITh~SS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated- APPROVED AS TO FORM' is Jeffre City Attorn "Agency" Tustin Community Redevelopment Agency, a public body, corporate and politic By- Christine Shingleton Assistant Executive Director "Consultant" Katz Hollis By: Name Printed RZ: kd\ CO~,'SULTS \ kG mmcas2, con Title -10- E%H ! B ! T PROPOSAL and SCOPE OF SERVICES Attached hereto are- 1) 2) C'onsultant's Proposal; Scope of Work and Budget -11- Ka -zllollis PROPOSAL TO PROVIDE REDEVELOPMENT PLAN ADOPTION SERVICES to the TUSTIN REDEVELOPMENT AGENCY Submiued October 21, 1996 Katz Hollis 865 South Figueroa, Suite 1300 Los Angeles, California 90017 Phone: (21_~) 629-3065 Fax: (213) 623-9105 Ka zltollis TABLE OF CONTENTS Statement of Understanding ............................. Approach ........................ Scope of Ser~'ices 1. Document Preparation Services .................................................................................................... 2. Coordination Services .................................................................................................................. 2 · 6 Schedule of Performance .................................................................................................................... 7 Proposed Compensation ............................ 1. Fixed Fee Compensation and Payment Schedule ........................................................................ 2. Time and ~{aterial Compensation ................................................................................................ 7 3. Total Compensation ........................................... 7 Kalzltollis 1. STA'FEi'~IENT OF UNI)Ei~,STANI)ING The City of Tustin has completed a substantial planning effort in preparation for tile conversion of the Tustin Marine Corps Air Station (Base) from military to civilian uses. The planning effort included the preparation ora Base Reuse Plan as well as obtaining special base closure legislation that is related to the inclusion of the military, base in a redevelopment project. The Tustin Redevelopment Agency (Agency) is now prepared to proceed with the adoption of the Marine Corps Air StatiOn as a redevelopment project and desires technical assistance with the adoption. The Base is located in two municipalities - Tustin and Irvine. The proposed project area includes both sections of the Base and an additional 52 acres outside of the Base that is located within Tustin. It is our understanding that the Cities of Tustin and Irvine have agreed to proceed with the project adoption and that the Tustin Redevelopment Agency will be the lead agencY responsible for the adoption. The special circumstances of this adoption effort will require .the application of both the special base closure legislation and the Community Redevelopment. Law as amended by AB 1290 (CRL). Pursuant to the respective legislative requirements, it will be necessao, to prepare separate blight and financial analyses of the area within the Base and the 52 acres outside of the Base. In addition, there is a possibility that the Irvine section of the Base may not remain in the project area and Agency staff desires a separated analysis of that section to minimize the impact on the adoption process in the event that the Irvine section is subsequently deleted. H. APPROACH Katz Hollis' plan adoption sen, ices focus on three major areas of a successful adoption. include: These services Services relating to achieving full compliance with the CRL requirements. These include scheduling, monitoring, and coordination of activities; preparation of required documents; and assistance and advice on policies and procedures. Services relating to the public participation process. These includes assistance and coordination of citizen participation, and coordination, assistance, and agency representation at public meetings and hearings. Services that involve or reflect financial expertise, including technical knowledge and expertise in tax increment financing and assistance in consultations with taxing entities potentially impacted by the redevelopment project. Katz Hollis is full.,,' prepared to provide, these sen, ices to tile Agency pursuant to the Tustin special base closure legislation and where applicable, the Community Redevelopment Law as amended by AB 1290 (such as statutory pass-through agreements with affected taxing agencies). As discussed at our meeting on September 4, 1996, Katz Hoilis will prepare tile Preliminary Report using special legislation blight criteria for the largest portion of the Base in Tustin, and for tile Irvine portion of the Base. The blight analysis will be segregated so that if it is decided that the In, ine properties should not be included in the redevelopment pro. iect, they could be deleted without bringing int~o question the eligibility of 11)21 thc remainder of tile Base or the financial feasibility of tile Tustin portion of the Base ils a stand alone project area. The 52 acres outside of the Base will be evaluated using standard CRL blight criteria. The financial feasibility analysis will also address the feasibility of the 52 acres separately. The financial feasibility analysis mentioned above will be all' nexv data prepared by Katz Itollis. At one time it was Agency staff's desire to rely primarily on an economic analysis previously prepared by another consultant. Subsequent discussions regarding the adequacy of that economic analysis for plan adoption purposes resulted in an agreement that Katz Hollis would prepare an independent financial analysis that specifically addresses the requirements of the project adoption process. IH. SCOPE OF SERVICES Kat_z Hollis proposes to provide plan adoption sen, ices in two distinct categories: 1) services related to the preparation of plan adoption documents (Document Preparation Services); and 2) services related to advising and assisting Agency staff in processing documents and coordinating the plan adoption process (Project Coordination Services). As previously mentioned, it is our understanding that while this adoption includes property within both the Cities of Tustin and Irvine, the Agency is responsible for the plan adoption. As such this proposal assumes all coordination, direction, and requests or changes to documents ancL/or scope of services will only be provided or authorized by Agency staff. Any necessary coordination benveen Tustin and Irvine will be handled by Agency staff. The proposed services budgets assume the preparation of one draft and one final document that will be applicable to both entities and the project coordination budget assumes only Tustin meeting attendance and coordination as needed. 1. Document Preparation Sen'ices Katz Hollis will prepare the major and minor documents described below. All documents will be prepared in one preliminary draft and, following reviev,: and comment by Agency staff and legal counsel, in final draft forms. Katz Hollis will be responsible for the preparation of all documents listed below except where otherwise noted. .. Schedule of Actions' A 15-20 page chronological listing of each step involved in the plan adoption process. For each step (action) the responsible entity(ies) and the document(s) involved, as well as the scheduled action date, are identified. The schedule is structured and sequenced as necessary to comply with all CRL and CEQA requirements (as applicable to this adoption), to achieve the targeted adoption date, and to accommodate insofar as possible the regular meeting dates of the involved City entities, including the city council, redevelopment agency, and planning commission. In addition, a one-page Summary Schedule is prepared to' facilitate easy schedule monitoring during the adoption process. Prelimina~, Pla~L- A generally brief (5-7 pages) document adopted by the planning commission to 1) establish precise boundaries of the project area; and 2) serve as the basic framework for preparation of the more detailed project redevelopmen, t plan. This document is required an'd defined by Sections 33322 through 33326 of the CRL. This proposal assumes that City/Agency staff or another consultant of Agency selection will prepare the legal description and map as required by tile CRL and pursuant to the State Board of Equalization's guidelines for preparation of such materials. KatzH{ llis d. Taxing Official and.~A ffected__Taxing_~~ Notices -The plan adoption process requires that certain taxing officials as well as the v, overning bodies of affected taxing agencies (those governmental entities who derive property tax revenues from property located within tile project area) be identified and properly notified of the redevelopment agency's intention to prepare a redevelopment plan. Later, copies of the proposed plan and the preliminary report on the plan must be transmitted to these entities. During the adoption process the'agency must consult with these entities concerning the proposed redevelopment plan. When the public hearing on the proposed redevelopment plan is schedUled they are notified, and after the adoption is complete, they are again notified. Based on a careful analysis of property tax records and other available sources, Katz Hollis will prepare a listing of the name and mailing address of each affected taxing agency that must be noticed. In addition, a draft is provided for each separate notice, together with written mailing instructions. Owner Participation and Preference Rule,,:, - A 5-8 page set of rules to be adopted by the redevelopment agency pursuant to Sections 33339 and 33345 of the CRL to: I) provide for participation in the redevelopment of the project area by the owners of property within the project area; and 2) extend reasonable preference to persons engaged in business in the project area to reenter in business within the redeveloped area if they otherwise meet the requirements prescribed by the redevelopment plan. Resolutions, Notices, Adoption Ordinancc - Numerous resolutions are required to be adopted by the redevelopment agency, city council, and planning commission during the adoption process. These serve as physical evidence that all legal bases have been touched, that proper procedure has been followed. Certain adoption actions involve public meetings or hearings which must be properly noticed both by mail and by publication. The adoption ordinance must make certain required findings, including blight, which must be supported by evidence in the record. All these documents will be drafted to reflect appropriate legal requirements as well as the unique circumstances of the project. Redevelopment Plan - Primarily a legal document rather than an actual plan, the redevelopment plan is a 25-30 page document which describes project'boundaries; contains a statement of the goals and objectives of the project; outlines the redevelopment agency's powers and authorities in implementing the plan; establishes permitted land uses and rehabilitation and/or general development requirements; identifies public utilities, facilities and improvements to be provided by the agency which are necessary or of benefit to the project; sets time limits on plan duration, establishment of d.ebt, repayment of debt and acquisition of property by eminent domain; sets a limit on the' amount of bonded debt; and addresses other provisions as may be needed or desired. Preliminary Report - The preliminary report is, in effect, an early version of the key components of the redevelopment agency's later report to city council on the proposed redevelopment plan. The preliminary report is, along with the proposed plan, transmitted bv the redevelopment agency'to each affected taxing agency as one of the initial actions in th~ adoption process. These documents provide preliminary information which the affected taxing agencies may use to determine the various ramifications of the proposed redevelopment plan. After transmittal of the preliminary report to the taxing agencies, the redevelopment agency should begin, or atlempt to begin, separate consultations with each taxing agency on the project, as required by Section 33328 of the CRL. As defined by Section 33344.5 of the CRL, a preliminary report on a full plan adoption must contain the following six components: · The reasons for the selection of tile project area. KalzHollis · .'\ description of tile physical and cconoJnic conditions existing ill the project area. [The so-called "blight" report, will describe project conditions ill lerms of the bligh! criteria contained in the special 'Fustin base closure legislation and for the 52 acres tile City of Tustin located outside of the base in terms of the CRL blight criteria.] in · A description of the project area which is sufficiently detailed for a determination as to whether the project area is predominantly urbanized. · A preliminary assessment of the proposed method, of financing the redevelopment of the project area, including an assessment of economic feasibility with reasons for including tax increment financing provisions in the proposed redevelopment plan. The Katz Hollis analysis of plan adoption feasibility would provide for an assessment of the plausibility of such a finding by designing, in conjunction xvith Agency staff, a program to be carried out in the proposed Project Area. Based on such an assessment, and staff's indication of the development anticipated or desired, the redevelopment program would be defined and costs for the various c, omponents determined. Revenues and other resources to be generated by the program s implementation would be estimated. The costs and resources are then analyzed in the form' of a cash ilO,,,,' that characterizes the implementation of the illustrative program. Through this analysis the community can asses the feasibility of its potential redevelopment program not only from the standpoint of satisfying the requirements of the CRL, but also in the context of the "real world" possibilities for its successful realization. The components of the analysis include program definition, cost identification, revenue and resource estimates, cash flow analysis, determination of redevelopment plan limits, and finally, financial feasibility. · A description of the specific project or projects to be pursued by the redevelopment agency in the project area. [The purpose of this component is to explain xvhat the agency intends to do within the project area - what implementation activities such as land acquisition and disposition, demolition, relocation, and rehabilitation it will use. and what public facilities and improvements it intends to provide]. · A description of how the project or 'projects to be pursued by the redevelopment agency will improve or alleviate the blight conditions described in the blight report. Report to Cit3, C~ - When it submits a proposed redevelopfi~ent plan to the city council, the redevelopment agency must also submit a 12-part report on the proposed plan. The purpose of this report is to provide the information, documentation, and evidence required by Community Redevelopment Law Section 33352 to assist the ciD, council in its consideratioh of the proposed plan and in making the various determinations it must make in connection with the adoption of the proposed plan. Certain paris of the report are the responsibility of entities other than the redevelopment agency. Section 33352, however, requires the agency to . aggregate such documents as integral parts of its report. Following is a listing of the 12 parts of a report to city council, along with an identification of the entities responsible for their preparation. All of Parts I. II, and IV are composed of components from the preliminary report prepared earlier in the process. Ka zHollis III IV VI VII VIII IX XI XII Title Thc reasons for selection of thc project are. a; a description of thc specific pro. ccts proposed by thc redcv¢lopmenl agency; and a description of how such projcct~ will improve or alleviate the blight identified in thc blight report. A description of, and map showing, the physical and economic conditions existing in the project area [blight report]. An implementation plan that describes the specific goals and objectives of the agency, specific projects proposed by the agencD,, including a program of actions and expenditures proposed to be made in the first five ye. ars of the plan, and a description of hog' these projects will improve or ~lleviate the blight conditions described in Part II; and an explanation why the elimination of blight and the redevelopment of the project area cannot reasonably be expected to be accomplished by private enterprise acting alone or bv the council's use of redevelopment financing alternatives other than tax increment financing. -The proposed method of financing the project in sufficient detail so that the ciD' council may determine the economic feasibility of the plan. A method or plan of relocation. An analysis of the prelimina.D.- plan adopted by the planning commission for the project are. a. The report and recommendations of the planning commission on the proposed redevelopment plan. [NOTE: The report will reference the special legislation exception of this requirement.] A summary of the agenc),'s public information meetings, etc.. The report required by Section 21151 of Public Resources Code (Environmemtal Impact Report). [NOTE: The report will reference the special legislation exception of this requirement] The report of the count), fiscal officer on project area base year taxable values and other dam required by Section 33328 of the Community Redevelopment Lan'. If the project area contains Ion, or moderate income housing, a neighborhood impact report which describes the impact of the project upon the project residents and the surrounding areas in terms of relocation, traffic circulation, environmental qualit),, availabilit), of community facilities and services, effect in school population and quality of education, property assessments and taxes, and information on the displacement and relocation of low and moderate income persons and families. An analysis of the count), fiscal officer's report; and a summary of the redevelopmevt agency's consultations, or attempts to consult, With the affected taxing agencies required by Section 33328 of Communit), Redevelopment Law, including the agency's response to an), writlen concerns or objections of the taxin~ agencies with the proposed project; and any mitigation measures which ~e agency has proposed or adopted. Responsible Entity Rcdcvclopmcm Agency Redevelopment Agency Redevelopment Agency Redevelopment Agency Redevelopment Agency Redevelopment Agency . . Planning Commission Redevelopment Agency Redevelopment Agency Count), Fiscal .Officer Redevelopment Agency Redevelopment Agency Katzltolli$ 2. l'rojcct Coordination Services The following is a description of the Project Coordination SeA, ices that will be provided on an as-needed basis. ao b. do e. k. ~ - Continuous monitoring of the adoption process as compared to actions and dates identified in the schedule of actions prepared as a minor document prior to starting the process; assisting agency staff and legal counsel to keep on schedule and to adjust scheduled action dates when necessary or desired; and preparing periodic updates of the schedule of actions. Affected Taxing Agency Consultations - Assisting with consUltationS with affected taxing agencies, including attendance at meetings and preparation of special analyses, if necessary. ~ReponfFransmittal Preparatiom - Advising and coordinating City/Agency staff in the preparation of transmittals and staff reports accompanying adoption documents submitted to the Agency, City Council, or Planning Commission. Document Reviex,`_' - CoordinatinWreviewing plan adoption related documents prepared by City/Agency staff, other consultants, or others. _Public Meeting Artendanc~ - Attending, for presentation or information resource purposes, public meetings and hearings that may include: City Council, Planning Commission, and community forums. . Fiscal Analysis - Providing fiscaL/financial analysis services beyond the levels required in preparing the project redevelopment plan, the preliminary report, and the report to city council. Examples include: development funding analyses, bond feasibility analyses, detailed cash flow projections, and assistance in preparing mandated reports such as Community Redevelopment Lax,,, Section 33433 reports on disposition of property acquired with tax mcrement revenues. CommuniLy Participation_- Assisting in establishment of plans and programs for informing and involving the community and project area residents and businesses in the plan adoption process. This ma3, include planning and coordinating public meetings and public hearings. .. Notice Mailing and Publication - Advising and coordinating City/Agency staff in the placement of required legal notices for publication, the preparation of mailing lists, the mailing or distribution of notices, and the preparation of affidavits of mailing and/or delivery. Document Re-Drafts - Preparing more than one preliminary draft of documents~ prepared under Document Preparation Services or redrafting documents after a final draft has been approved by Agency staffand/or legal counsel. Public Hearing - Planning and coordinating staff and consultant presentations at the joint Cit'3, Council/Redevelopment Agency public hearing on adoption, of the proposed plan, and preparing written responses to wriuen objections to adopting the plan received from affected taxing agencies and property owners prior to, or at thejoint public hearing. Other Advice and Assistance_, - Providing other advice aud assistance regarding plan adoption activities as may be necessary or desi~:ed. Ka zHollis IV. SCIIEDULE OF PERFOILMANCE A detailed schedule of actions will be prepared which will establish action dates for ali adoption activities and documents. Documents will be prepared and delivered in accord with the action dates contained in the Agency approved schedule of actions. The target date for completion of all adoption activities will be May - June 1997. Achievement of this schedule will involve and is partially dependent upon the actions of entities other than Katz Hollis, which will be identified in the detailed schedule of actions. The fee schedule set forth in this proposal contemplates completion of all services no later than July 1997. V. PROPOSED COMPENSATION The provision of Katz HoIlis services shall be compensated on the basis of a series of fixed fees per identified · document for Document Preparation Services, and on a time and materials basis for the provision of Project Coordination Services. Fixed fees assume the preparation of one draft and one final of each document, to be billed on a percentage completion basis. Requested revisions will be billed on a time and materials basis. 1. Fixed Fee Compensation and Payment Schedule Schedule of Actions Preliminary Redevelopment Plan Taxing Official / Affected Taxing Agency Notices Owner Participation, Rules and Preference Resolutions,. Notices and Adoption Ordinance Redevelopment Plan $ 2,500 1,450 950 900 4,200 3,150 Preliminary Report (all parts) ~Council 20,50.0 11,000 Total $44,650 2. Time and Materials Compensation Project Coordination Services shall be Provided upon Agency request, on a time and material baSis, with an estimated budget of $24,000. This estimate is provided for budgeting purposes a. nd services will be provided as requested, subject to the contract budget limit. As these services shall be provided only upon Agency request, the estimated budget shall be subject to amendment if insufficient. Services shall be provided in accordance with the following fee schedule, which shall remain effective thrOugh July 1997, at which time a new schedule ma3, be negotiated. President/Senior Vice President $160 per hour Vice Presidents $1'50 per hour Senior Associates $130 per hour Associates $110 per hour Senior Analysts $ 90 per hour Analysts $ 70 per hour Research Analysts $ 60. per hour Secretarial/Administrative $ 45 per hour The Agency shall compensate Katz Hollis for out-of-pocket expenses incurred in connection with services performed hereunder at an amount equal to ii0 percent of cost. Reimbursable exISenses will include not only RatzHoJlis those items addressing the requirements of the laxv, but may include items meeting other needs of thc Agency. Reimbursable expenses may include, but are not limited to: authorized travel, mileage, photography, graphics, reproduction, overnight mail or messenger services, miscellaneous. The estimated budget is $3,500, and assumes 10 copies of the preliminary drafts and 25 copies of the final loan of the following documents: Owner Participation and Preference Rules, Redevelopment Plan, and Preliminary Report. The expenses budget also assumes 10 copies of the preliminary draft and 15 copies of the Report to City Council. Il-tis estimate is provided for budgeting purposes and expenses will be incurred as necessary, subject to the contract budget limit. In the event that additional needs arise per the request of Agency staff, this budget will be subject to amendment if insufficient 3. Total Compensation Total compensation under this proposal is as follows: Document Preparation Services Project Coordination Services $44,650 24,000 Total Proposed Compensation $72,150 EXHIBIT "B" SPECIAL REQUIREMENTS . . . . · · . . o The "Force Majeure" provisions described' in Section 3.'3 are hereby waived. The "Liquidated Damages" provisions described in Section 7.6 are hereby waived. The Consultant shall obtain a city of Tustin Business License. There shall be no fee charged by the City for the business license.' Consultant shall present to Agency certificates of insurance and endorsement forms verifying that the Consultant has the insurance as required by this Agreement. Said forms shall be reviewed and approved by the office of the City Attorney of the City of Tustin. A Certificate of Insurance Form is attached. If the Contract Officer determines that a product deliverable is unacceptable, either before or after a draft or final draft is issued, because it did not conform to the specifications set forth in the Agreement, the Consultant shall submit a revised report or product at Consultants' expense. Progress reports shall be submitted by Consultant when requested by the Contract Officer. Ail progress reports must be signed by the Consultant. Consultant shall remove and replace project personnel or subconsultants assigned to project personnel or subconsultants assigned to project who do not perform assigned duties in a manner satisfactory to the Contract Officer.. Consultant shall be required to meet with Contract Officer of the Redevelopment Agency to the extent necessary or desirable to discuss progress on the Scope of Work at contract Officer's direction. The Consultant shall not release to the public or press any information regarding the specifics of the services under this Agreement without prior authorization of the Contract Officer. Ail such inquiries made of the Consultant shall be immediately referred to the Contract Officer. -12- 10. The Scope of Services described in Exhibit A shall be modified to include the provisions of SB 1861, as enacted into law, and the provisions of the Cooperative Agreement between the City of Tustin and the City of Irvine for the redevelopment of MCAS, Tustin. -13- EXHIBIT "C" SCHEDULE OF COMPENSATION o o Compensation shall be for the actual work performed by Consultant and may not exceed an original contract -sum of $72,150. Payments will be made monthly based on services provided as shown in Exhibit A. Ail requests for payment shall be based on identified tasks in the Scope of Work. The Consultant shall indicate on all monthly invoices the tasks being billed against, the percentage of that task' completed, the original budget amount for that task and the amount billed to date. ' The Agency shall retain 10% of the invoice for each task to ensure satisfactory completion of the contract. Upon satisfactory completion of all tasks and obligations under this contract, Consultant will be paid all retained payments. Ail costs are included in the total' contract sum of $72,150. No additional costs, without aUthorization of the Contract officer, shall be invoiced. Any special costs for service necessary to complete the Scope of Work as shown in Exhibit A shall be included in the maximum contract price for document preparation, as shown in Exhibit A. Additional services and approved change orders shall be compensated only to the extent the Contract Officer authorized such additional services, change orders and appropriate costs. -13- EXHIBIT "D" SCHEDULE OF PERFORMANCE o The schedule of performance for the scope of services outlined in Exhibit A shall be established in accordance with .Section IV of Exhibit A. The "start date" for this schedule of performance is agreed to be the date this Agreement is executed by Agency. -15- CITY OF TUSTI~ AND TUSTIN COMMUNITY REDEVELO'-'",ENT AGENCY CERTIFICATE OF If' ~LANCE AND DESIGNATION OF NAMEI DITIONAL INSURED NO MODIFICATIONS OR ADDITIONS MAY BE MADE TO THIS FORM TO: CITY OF TUSTIN and PROJECT: TUSTIN COMMUNITY REDEVELOPMENT AGENCY P.O. Box 3539 Tustin, CA 92681-3539 COMPANIES NAME AND ADDRESS OF INSURED CONTRACTOR: Company Letter A: _ Company Letter B: Company Letter C: NAME AND ADDRESS OF INSURANCE AGENCY: Company Letter D: Company Letter E: Company Letter F: This is to certify that the policies of insurance listed below have been issued to the insured name above, are in force at this time, that the City of TuslJn and the Tustin Community Redevelopment Agency are named additional insureds thereon as respects claims adsing in connection with the hereinabove-named Project and that such insurance shall be primary with respect to any other insurance in force procured by either the City of Tustin or the Tustin Community Redevelopment Agency. Co. Policy Policy Ltr. Type of Insurance Policy Number Effective Date Expiration Date All Limits In Thousands GENERAL LIABILITY General Aggregate $ [ ] Commercial . General Liability Prods. Comp/Ops Agg. $ [ ] Occurrence Basis [ ] Owner's 8, Contractors' Pers. & Advg. Injury $ Protective Each Occurrence $ [ ] Broad Form Prop. Damage [ ] Explosion, Collapse, Fire Damage Underground Hazards (Any One Fire) $ Medical Expense (Any One Person) $ AUTOMOBILE LIABILITY CSL $ [ ] Any Auto [ ] All Owned Autos Bodily Injury [ ] Scheduled Autos (Per Person) $ [ ] Hired Autos .. [ ] Non-Owned Autos -'Bodily Injury [ ] Garage Liability (Per Occurrence) $ Property $ EXCESS LIABILITY EACH OCCURRENCE AGGREGATE [ ] Umbrella Form $ $ [ ] Other than Umbrella Form WORKERS' COMPENSATION STATUTORY AND EMPLOYER'S LIABILITY $ Each Accident $ Disease-Policy Limit $ Disease-Each Employee OTHER Description of Operations/LocationsNehicles/SpecJal Items: ~ ~',."',rl'H~'.l +1-~...~+ ~ ,~,,..-,;,,^,. a waiver of subrogation is hereby to the City of Tustin and the Tustin Community Redevelopment Agency as pertains to the terms )f all Workers Compensation insurance. The Issuing company will give thirty (30) days written notice to the City of Tustin and the Tustin .;ommunity Redevelopment Agency prior to modification or cancellation. }ATEISSUED: Authorized Representative of the above-named insurance company(ies)