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HomeMy WebLinkAboutRosenow Spevacek Group, Inc-2010-20 (a) FIRST AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT Rosenow Spevacek Group, Inc. THIS FIRST AMENDMENT TO THE AGREEMENT is made and entered into this 8th day of March, 2011 by and between the City of Grand Terrace Redevelopment Agency, a public entity, hereinafter referred to as "CRA" and Rosenow Spevacek Group, Inc., hereinafter referred to as"Consultant." WITNESSETH: WHEREAS, on July 1, 2010, CRA and Consultant entered into an agreement ("Agreement") whereby Consultant agreed to prepare redevelopment project documents consisting of 1) analyzing and monitoring remittances of Tax increment revenue from the Auditor Controller of the County of San Bernardino and other agencies, as necessary, to prepare 2) annual statement of indebtedness, 3) annual pass through report, 4) computation of annual pass through payments, 5) Completion of Agency's annual report to the State Controller, Department of Housing and Community Development and the CRA Board for a not to exceed price of$13,750.00; and WHEREAS, Consultant and CRA desire to increase the total compensation by an additional $20,000.00 in order to perform the analysis necessary to prepare and deliver an independent fiscal consultant's report, for the purpose of establishing capacity of a potential tax increment bond issue for the City of Grand Terrace Redevelopment Project Areas; and WHEREAS, the total amount of the contract is not to exceed $33,750.00. NOW,THEREFORE,City and Consultant agree as follows: 1. Compensation. Compensation/Payment total fee is hereby amended and shall be$33,750.00. 2. Scope of Work. The Agreement is amended to perform the analysis necessary to prepare and deliver an independent fiscal consultant's report, as detailed in Attachment A, attached hereto. 3. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of Rosenow Spevacek Group, Inc. each represent and warrant that they have the legal power, right and actual authority to bind Rosenow Spavecek Group, Inc. to the terms and conditions hereof and thereof. 4. Terms and Conditions. All other terms and conditions of the Agreement between the parties hereto dated July 1, 2010, not amended hereby shall remain in full force and effect. Page 1 of 3 IN WITNESS WHEREOF, the CRA and Consultant have caused this Agreement to be duly executed on the day and year first above written. CONSULTANT CITY OF GRAND TERRACE, Rosenow Spevacek Group, Inc. Redevelopment Agency, a public entity By `=- g"1 By /f Betsy POI. Ad s Executive Director APPROVED AS TO FORM ATTEST: By Ct(:.°%✓I-G(!�7/'Leci^ Ca omey City Clerk Long-Term Financial Sustainability Model for General Fund April 12,2011 Page Number 3 Attachment A SECOND AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT Rosenow Spevacek Group,Inc. THIS SECOND AMENDMENT TO THE AGREEMENT is made and entered into this 12h day of April, 2011 by and between the City of Grand Terrace Redevelopment Agency, a public entity, hereinafter referred to as "CRA" and Rosenow Spevacek Group, Inc., hereinafter referred to as"Consultant." WITNESSETH: WHEREAS, on July 1, 2010, CRA and Consultant entered into an agreement ("Agreement") whereby Consultant agreed to prepare redevelopment project documents consisting of 1) analyzing and monitoring remittances of Tax increment revenue from the Auditor Controller of the County of San Bernardino and other agencies, as necessary, to prepare 2) annual statement of indebtedness, 3) annual pass through report, 4) computation of annual pass through payments, 5) Completion of Agency's annual report to the State Controller, Department of Housing and Community Development and the CRA Board for a not to exceed price of$13,750.00; and WHEREAS, on March 8, 2011 the CRA and Consultant and CRA entered into a first amendment to the Agreement to perform the analysis necessary to prepare and deliver an independent fiscal consultant's report, for the purpose of establishing capacity of a potential tax increment bond issue for the City of Grand Terrace Redevelopment Project Areas for a not to exceed price of$20,000.00;and WHEREAS, the CRA and Consultant desire to increase the total compensation by an additional $25,000.00 in order to prepare a long-term financial sustainability model for the General Fund, including cash flows from the current year through build out(20 years), for use in addressing local fiscal challenges and the State's threat to eliminate redevelopment agencies; and WHEREAS,the total amount of the contract is not to exceed$58,750.00. NOW,THEREFORE,City and Consultant agree as follows: 1. Compensation. Compensation/Payment total fee is hereby amended and shall be $58,750.00. 2. Scope of Work. The Agreement is amended to include preparation of a long-term financial sustainability model for the General Fund, as detailed in Attachment B, attached hereto. 3. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of Rosenow Spevacek Group, Inc. each represent and warrant that they have the legal power, right and actual authority to bind Rosenow Spavecek Group, Inc. to the terms and conditions hereof and thereof. Long-Term Financial Sustainability Model for General Fund April 12,2011 Page Number 4 4. Terms and Conditions. All other terms and conditions of the Agreement between the parties hereto dated July 1, 2010,not amended hereby shall remain in full force and effect. IN WITNESS WHEREOF, the CRA and Consultant have caused this Agreement to be duly executed on the day and year first above written. CONSULTANT CITY OF GRAND TERRACE, Rosenow Spevacek Group, Inc. Redevelopment Agency, a public entity By BY,A6- . d de,A,� Betsy A s Executive Director APPROVED AS TO FORM A 1 l EST: By .PiY1yI�4- . City Attorney City Clerk ©PriRSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. T 714 541 4585 309 WEST 4TH STREET F 714 5411175 SANTA ANA,CALIFORNIA E INFOaWEBRSG.COM 92 7 01-4 5 02 WEBRSG.COM Via Electronic Mail April 7, 2011 Betsy M.Adams, City Manager CITY OF GRAND TERRACE 22795 Barton Road Grand Terrace, CA 92323-5295 PROPOSAL FOR FISCAL CONSULTING SERVICES CITY GENERAL FUND FINANCIAL SUSTAINABILITY MODEL Dear Ms.Adams: Rosenow Spevacek Group, Inc. is pleased to present this proposal to prepare a long-term financial sustainability model for the City of Grand Terrace General Fund. The goal of the model is to develop the foundation for policy and service-level analysis of the primary operational fund of the City. This analysis has been precipitated by a combination ongoing local fiscal challenges and the States threat to abort redevelopment agencies fourteen years before the Redevelopment Agency is able to complete revitalization and economic development projects. Immediately, the forecast would provide staff and the City Council with information on the short and long term implications of the current budgetary environment. Going forward, this can be used as a management tool in conjunction with annual budget, General Plan and economic strategic planning on a regular basis. Created in Excel format. RSG would design the tool in order to allow for all of these potential applications. This letter presents our work program, experience, consulting team and fee proposal to undertake the assignment. WORK PROGRAM RSG envisions a multi-layered Excel model that would be created to compute and present projected General Fund cash flows for a 20 year period, including monthly cash flows for 2011-12, annual cash flows for the next 4 years, an a year 10, 15,and 20 cash flow. Because it provides essential services and a non-enterprise fund, the analysis is limited to the General Fund at this time, although other funds may be studied similarly in the future. We expect to review and refine the details of this forecast with staff at a face-to-face kickoff meeting, but we envision the following structure to the model: PEDEVELOPYEaT PLANNING PEAL cSmrC LCCNONOS TTRANT PEAL ED TATE ACOGHITIOM U My Lxxmdie DocuenulGrard Tenace ForeastNu ECONOMIC DEVELOPMENT GOVERNMENT SERV CES Ms. Betsy M.Adams, City Manager CITY OF GRAND TERRACE April 7, 2011 Page 2 / Priority-B;sed /Summa / Department and Revenue Detail Historic Trends, Baseline, Growth Model and Other Assumptions :. Baseline Data/Assumptions Working with the City Finance Director, Auditor, and financial statements. RSG will develop a recent history of the General Fund by revenue source and department, broken down as follows: Revenues Department Expenditures Property Taxes City Council Real Property Transfer Tax City Manager Property Tax VLF Swap City Clerk Prop 1A Finance Franchise Fees City Attorney Business License Fees Building&Safety Other Fees Public Works Sales&Use Taxes Community Events Sales Tax In Lieu Rental Inspection Program Motor Vehicle In Lieu Enforcement Programs Intergovernmental Grants Non-Departmental Charges for Services Facilities Maintenance Building Fees&Permits' Community Development-Planning Planning Fees&Permits' Information Systems Recreation Fees Law Enforcement Child Care Fees Child Care Services Park Fees Park Maintenance Fines&Forfeitures NPDES Use of Money& Property Storm Drain Maintenance Miscellaneous Revenues Committees/Commissions Transfers In Senior Citizens Program Emergency Operations Center Cost Allocation ' May project based on percentage off-setting expenditures rather than specific amount. RSG would need to consult with appropriate staff and recent fee study if available. Ms. Betsy M.Adams,City Manager CITY OF GRAND TERRACE April 7, 2011 Page 3 In addition to collecting data on these operational revenues and expenditures, RSG would also review General Fund liabilities and assets with the Finance Director(as well as the Auditor if necessary) for the purposes of understanding existing available cash balances, cash reserves, and the disposition of any other assets and liabilities. A separate worksheet detailing the breakdown of liabilities and assets would be prepared for the study and incorporated into our forecast. Growth and other assumptions would be compiled by RSG, in consultation with Agency staff and review of applicable data. Growth may occur in the form of new development, as well as increased utilization of City services as a result of population changes, commercial activity, inflation, and other factors. Where feasible, RSG would identify historic trends in recent years on each growth factor and take into consideration possible changes in these growth factors going forward in consultation with the Community Development Director, Finance Director, and City Manager. Department and Revenue Detail Department data will be compiled by line-item detail and categorized into four areas: 1) salaries & benefits, 2) services, 3) supplies, and, as applicable, 4) capital outlay. Each department worksheet will include data on the number of personnel positions for each year. An illustration of the department page is presented below: SAMPLE GENERAL FUND DEPARTMENT FORECAST ZYIa aLitl 3011410 201111 2011-11 201113 2011.14 201.15 2015-10 raw raw MOS ny awcw QPENCITUREO LET@ a I a L - 3a 1e5° $$m0 r vem $ sw/00 I 2.24100 Swann&Benefits 33S% Vtm S .M 219.050 zM IXO 2�04 sample 121000 120.10 1W000 • a00 WOW 120.10 120.10 121000 12101 sample 2Epoa 75 MOOD 7000 75000 ISm 75.01 J 75.10 sample a 75 wi9 M`OT x,40 4fm 45.a0 sample 90.OD Y.OD i.RO * O L,Otl AIXO 30 X0 36,ptl 90,WJ Services —* sae —a 1 51,030 WSW 5S ow Y,WJ se aos YKO 55mge $bp 91,mJ b,1m S000 5OZ saws p10 1503 150 s,tll aSw sane ZIW ;am 2.100 2101 2N] 3tl] 61N xM 2.41 Stipples 5I.%y yS 921 5t VY 51,490 EI W3 Shaw 51K0 sampe 54110 50000 MOW R® 5.0.110 50.10 `n WO 50.003 sample WO 500 SL 500 Sw WO WO sample 1.q N2 1, 0 1.Nw 1.40 1H0 I,€0 14 I400 W. Capital0241y �W° - _ swats . • n1_ - 4, . _ sample - POSITIONS t➢ 20 SO 20 3.0 20 2.0 LO 20 rnyManie, 1.0 20 SO 1.0 EEea wepnmm 1.0 10 10 TO 10 10 70 10 I .� city Manager Ms. Betsy M.Adams, City Manager CITY OF GRAND TERRACE April 7, 2011 Page 4 We certainly welcome comments or modifications to the sample worksheet from staff prior to the commencement of the assignment. Revenues would be similarly presented. We anticipate that the model will forecast approximately 20 years into the future based on the assumptions described earlier. Summary Presentation Once the detailed worksheets are prepared, RSG would then develop a variety of summaries consolidating this data into additional spreadsheets and graphs of the following data sets: 1) Cash Balance/Cash Reserve Analysis by Year 2) Net Revenue/Shortfall by Period (monthly for first year, annually for next four years, and every 5 years through year 20) 3) Expenditure by Priority: a. Tier 1: Legally-mandated costs due to statutes or liability b. Tier 2: Strategically essential but discretionary costs c. Tier 3: Non-essential discretionary costs With regard to the latter, it is expected that the first cut of the summary will segregate costs into the first and third category, and then RSG would meet with management staff and possibly the City Council to segregate costs between the "strategically essential" and "non-essentiar categories. This segregation would be based on several factors — likely starting with the City's own municipal ranked priorities. It is expected that this analysis would evolve as discussions with staff and the elected officials unfold. Meetings Exclusive of on-site meetings to collect data, RSG staff would attend between two and three meetings associated with the development and presentation of this model. Schedule RSG anticipates that a draft of our model may take approximately 30 days to complete, contingent on the availability of staff and data necessary for the work. We would keep staff apprised of our work, including regular phone and email communication with key management staff as desired by the City. EXPERIENCE RSG conducts a wide-range of strategic planning services for municipal agencies throughout California. For over 30 years, RSG has been a leading consultant and advisor to local government agencies, developing fiscal models for incorporation and annexation projects, fiscal impact assessment for new development and planning applications, and reorganization of services. Four case studies of our experience and references are cited below: General Fund Cash Flow Analysis Since 1988, RSG has participated in the preparation of a variety of tax increment projections for the Agency's two Client: City of La Ouinta project areas. Recent assignments have included preparation Tom Genovese, City Manager of build out analyses of the City General Fund and 760.777.7000 Redevelopment Agency revenues, wherein RSG analyzed the fiscal implications of full build out under the City's General Plan. RSG has also participated in $400 million in bond issues for the Agency over the past 12 years, and is an integral member of the Agency's Cash Flow Management Team, which is responsible for intermediate and long-range Ms. Betsy M.Adams, City Manager CITY OF GRAND TERRACE April 7, 2011 Page 5 strategic financial planning. Oakhurst Incorporation RSG was hired to conduct a 10 year financial forecast of Comprehensive Fiscal Analysis operating funds upon the incorporation of the Town of Oakhurst in Madera County. The comprehensive fiscal Client: Madera IAFCO analysis considered the revenue and expenditures associated Dave Herb, Executive Officer with the Town's general fund, road fund, and nearly a dozen 559.675.7821 additional enterprise funds that would be needed in the community. One additional challenge during the process was the evolution of state subventions to local jurisdictions that undermined the feasibility of incorporation. The report included the financial implications of the incorporation on the County as well as the potential City; including additional analysis three alternatives by adjusting the proposed boundaries. Compensation and Police In July 2008, RSG prepared two studies for the City of Holtville Department Deficiency Studies (Imperial County). The first study focused on a compensation study for specific employment classifications at the City, Client: City of Holtville wherein RSG surveyed over a half dozen comparable Laura Fischer, City Manager communities to obtain peer-level compensation and benefit 760.356.4574 information. This resulted in RSG and the City Manager collaborating in recommendations for job descriptions, title, and reclassifications for a more efficient organizations model. The second study involved preparation of the City's in-house police department, to ascertain areas of operational deficiency, needed capital improvements, and recommendations for how to finance these costs. Prompted by concerns over cost and public (including officer) safety, the City weighed the costs and potential tax increases that would be needed, and ultimately determined that it may not be able to sustain an independent police department and began to explore options for outsourcing public safety services. East Truckee River Canyon In July 2010, RSG submitted to the City of Sparks an analysis Annexation Fiscal Analysis of the potential fiscal impacts associated with the annexation and subsequent development of 3,100 acres of territory in Client: City of Sparks(NV) unincorporated Washoe County. The analysis was triggered Jim Rundle, Senior Planner by interest from some property owners to annex into the City, 775.353.7827 which would result in some extraordinary infrastructure and service challenges due to its location relative to the rest of the City limits. Many of the proposed land uses were very conceptual and not yet approved by the City, which resulted in further challenges to performing the study. Ultimately, RSG worked with City staff to establish ranges of land use intensities within certain categories and performed an analysis based on each of those ranges for the purposes of establishing land use policy and managing resource needs to the area. After evaluation of the policy and fiscal implications, the City Council determined that it was in the best interest of the City to de-annex portions of this area and remove the canyon corridor from the sphere of influence in February 2011. Ms. Betsy M.Adams,City Manager CITY OF GRAND TERRACE April 7,2011 Page 6 CONSULTING TEAM Jim Simon, Principal, would manage this engagement and be responsible for all presentations and work products. Assisting Mr. Simon would be Nitta Mosesman, Senior Associate and Project Manager and Alexa Smittle,Associate. Resumes of the consultant team are not included in this proposal, but are available for your perusal at our website www.webrsc.com. FEE PROPOSAL RSG is proposing to charge a fixed fee of$25,000 to complete this study, inclusive of three meetings and the necessary research and analysis. At the conclusion of our work, RSG would provide staff with five (5) bound hard copies of our final report, as well as an Excel model for staff use. Thank you for the opportunity to assist the City develop this important financial management tool. We are available to answer any questions you may have. Sincerely, ROSENOW SPEVACEK GROUP, INC. 94:4114 , Jim Simon Principal