HomeMy WebLinkAboutC-1419 - Consultant service for General Plan - Economic & Housing Market Analysis AgreementCITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd,
Area Code 714
673 -2110
DATE February 17, 1972
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 1419
Description of Contract Economic and Fusing Market Analysis Agremeent
Authorized by Resolution No.
Effective date of Contract
Contract with
Pmount of Contract
7577 , adopted on December 13, 1971
February 16, 1972
Development Research Associates
731 South Flower
Los Angeles, CA 90017
See attached "Standard Fee Schedule"
city Cle 1k
q.:
"ebruary 17, 1972
Development Research Associates
731 South Flower
Las Angeles, CA 90017
Enclosed is a duly executed copy of an economic and
housing market analysis aunt between you and
the City of Newport Reach. The original has bean
retained for our files. Said agreement was authorized
by the City Council on December 13, 1971 by the adop-
7ion of Resolution No. 7577.
7aura Lagios
City Clerk
I& Swk
enc.
City Attorney
Community Development Department (Carl Neuhausen)
Finance Department
,:;rw, .
..... .......................
ORIGINAL
AGREEMENT FOR
ECONOMIC AND HOUSING MARKET ANALYSIS C 14 * 9
THIS AGREEMENT, made and entered into on the 16 12!� day
of 19720 by and between the CITY OF NEWPORT
BEACH, a municipal corporation (hereinafter referred to as CITY) and
DEVELOPMENT RESEARCH ASSOCIATES, a Delaware Corporation (hereinafter
referred to as CONSULTANT):
W I T N
E S S
E T
H:
WHEREAS,
CITY
has
determined that the public interest
requires a comprehensive, long -range economic and housing market
analysis upon which to base the City's General Plan; and
WHEREAS, CITY has determined the public interest requires
the land use, housing, community facilities, and redevelopment
elements (among others) of the General Plan be firmly based on
sound economic, financial, and marketing principles; and
WHEREAS, CONSULTANT is qualified to undertake and
complete such an analysis and is willing to undertake the same;
NOW, THEREFORE, the CITY and CONSULTANT in consideration
of the mutual covenants and agreements hereinafter contained, do
hereby agree, each with the other, as follows:
I. OBJECTIVES
The objectives of the study shall hereinafter be
described as five principal areas of research concentration,
including:
1. A detailed inventory of all pertinent population,
land use, employment and retail sales data to provide adequate
information and insights to the local and regional economic
environment of Newport Beach.
2. The assembly and analysis of all pertinent data
collected under the inventory, and the projection of probable and
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possible future economic trends and conditions for Newport Beach
and its market area. Item 2 shall include the development of a
cost /revenue system to be utilized in testing and analyzing alterna-
tive development policies and general plan proposals in subsequent
phases of the study.
3. The formulation of alternative development
policies, and the testing and analysis of these policies in
response to present and future economic demands and potential
cost /revenues to the Newport Beach community.
4. The selection and adoption of specific develop-
ment policies by the Planning Commission, City Council, and gen-
eral public, to serve as a guide in developing alternative general
plan proposals.
5. The formulation, testing and analysis of
alternative general plan proposals in response to present and future
economic demands, potential costs and revenues, and specific
development policies.
II. SCOPE OF STUD
The work to be done by CONSULTANT in this study
is set out in Exhibit "A ", attached hereto and by this reference
made a part hereof.
III. PERFORMANCE
CONSULTANT agrees to commence work on the project
within ten (10) days following the execution of this Agreement,
and to diligently continue the same to completion in accordance
with the following schedule:
Time of
Scope of Study Completion
Phase I Inventory of Economic Base
Information April 1, 1972
(Cost /revenue and housing inventories to be
completed by June 1, 1972.)
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Phase II
Phase III
Phase IV
Phase V
Scope of Study - Cont.
Assembly and Analysis of
Economic Base Information;
and Forecasts
0
Time of
Completion - Cont.
June 1, 1972
(Development of cost /revenue system and housing
data analysis and projections to be completed by
August 1, 1972.)
Formulation, Testing and
Analysis of Alternative
Development Policies
October 1, 1972
(Testing and analysis of specific growth policies
to be completed by September 1, 1972.)
Selection and Adoption of
Specific Development
Policies
December 1, 1972
(By Staff, Council and Commission)
Formulation, Testing and
Analysis of Alternative
General Plan Proposals March 1, 1973
It is understood that should delays occur in the
availability of data beyond the control of CONSULTANT, this data
being essential to the completion of a particular phase, the
CONSULTANT will not be held in default of performance of the above
schedule.
CONSULTANT agrees to provide twenty five (25) copies
of each said memorandum report and twenty five (25) copies of a
final report in accordance with Exhibit "A" Scope of Study.
Production costs for these reports, based on CONSULTANTS standard
format, are included in the total compensation to be paid to
CONSULTANT under this Agreement.
CONSULTANT further agrees to provide oral presenta-
tions on said reports to CITY's Planning Commission and City Council
at such times and in such numbers as CITY's representative deems
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appropriate. Said oral presentations shall not exceed a total of
ten (10) in number. CITY agrees to notify CONSULTANT of the time
and place of said oral presentations at least ten (10) days prior
to the date on which the presentations are to take place.
Additional oral presentations by CONSULTANT, if
deemed necessary by CITY's representative, shall be mutually agreed
upon in writing and compensated accordingly under the terms provided
for under Section VIII of this Agreement.
Beyond these oral public presentations, CONSULTANT
will meet regularly every two to three weeks, or more often as
needs dictate, with authorized representatives of the Community
Development Department staff in order to facilitate coordination
and to dutifully carry out the study to completion.
IV. BILLING AND PAYMENT
For furnishing the services specified under Exhibit
"A" of this Agreement, CITY agrees to pay CONSULTANT the sum of
Thirty -Five Thousand Dollars ($35,000.00). Partial payments for
work performed under this Agreement shall be made on a calendar
month basis and at monthly intervals during the progress of the
work. Each partial payment shall be made within 30 days after
presentation to the City of a statement setting forth in detail
the work performed and all costs incurred by CONSULTANT, for the
period covered by each said statement, up to and including the total
sum of Twenty -Five Thousand Dollars ($25,000.00). The balance of
Ten Thousand Dollars ($10,000.00) shall be paid in two equal parts
of Five Thousand Dollars ($5,000.00) each to CONSULTANT, once upon
the completion of Phase II of this Agreement and the remainder
within thirty (30) days after the acceptance by City of the final
report.
The total amount of Thirty -Five Thousand Dollars
($35,000.00) shall include all costs incurred by CONSULTANT for
salary and out -of- pocket costs for travel and miscellaneous
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expenses necessary to perform the Scope of Services specified
under Exhibit "A" of this Agreement.
Any specific additional assignments, salary expenses,
authorized travel and appearances not provided for in the Scope of
Services set forth under Exhibit "A" must be approved in writing
by CITY and by CONSULTANT; payment for said approved and designated
additional work and reimbursable expenses shall be made on a calendar
month basis and at monthly intervals, on the basis of the Standard
Fee Schedule dated January 18, 1972, marked Exhibit "B" and attached
hereto and by reference made a part hereof, and each payment shall
be made within 30 days after presentation to CITY of a statement
setting forth in detail the additional work performed and all
costs incurred by CONSULTANT, together with supporting vouchers,
for the period covered by each said statement.
V. DESIGNATION OF AUTHORIZED REPRESENTATIVES
CONSULTANT hereby agrees, upon the signing of this
Agreement, to furnish the CITY in writing the name of an individual
who will be authorized to act in person or through his designee
for CONSULTANT in all matters pertaining to the study. Such
individual shall be approved by the CITY's Community Development
Director.
CITY agrees, upon signing of this Agreement, to
furnish CONSULTANT the name of an individual who, as the CITY's
Project Representative, will be authorized to act in person or
through his designee as representative for the CITY in all matters
pertaining to this study.
It is understood and agreed by said parties that the
authorized representatives may be changed, provided either party
to this Agreement so desiring the change give at least five (5)
days' prior notice in writing to the other, naming its new
authorized representative, and that CONSULTANT's said representa-
tive shall be acceptable to the CITY.
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VI. COOPERATION
All departments of the CITY will assist CONSULTANT
in the performance of this study, and CONSULTANT agrees to provide
general guidance and direction to CITY staff personnel that are
to assist CONSULTANT in the collection of data and the preparation
of said reports. CITY shall provide letters of introduction of
CONSULTANT to such other persons, firms, or governmental entities
as necessary to assist CONSULTANT in obtaining required data.
The use of CITY records and personnel by CONSULTANT
shall be coordinated through the CITY's representative.
VII. OWNERSHIP OF REPORTS AND DATA
All reports, exhibits, data, and other work or
materials prepared in compliance with this Agreement shall be and
remain the property of the CITY, to be used by CITY as may be
required.
VIII. CHANGES IN WORK
CITY may, at any time, by written request of the
CITY's Project Representative, make any minor changes in the
services to be provided hereunder at an additional cost not to
exceed One Thousand Five Hundred Dollars ($1,500.00). If such
changes cause any increase in the cost of doing the work under this
Agreement or in the time required for its performance, an adjust-
ment as mutually agreed upon will be made by CONSULTANT and the
CITY, and the Agreement shall be modified in writing accordingly.
Any claim for adjustment under this article must be made in
writing to the CITY's Project Representative within fifteen (15)
days from the date the change is requested.
IX. TERMINATION
This agreement is subject to termination by the CITY
at any time upon serving written notice to CONSULTANT, and the
CITY shall thereafter be liable to CONSULTANT only for fees and
costs accrued to the date of receipt by CONSULTANT of such notice.
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X. NOTICES
All notices to CONSULTANT under this Agreement shall
be deemed valid and effective upon deposit in the United States
Mail, postage prepaid, by certified and /or registered mail, addressed
to DEVELOPMENT RESEARCH ASSOCIATES at 731 South Flower, Los Angeles,
California 90017.
All notices to the CITY under this Agreement shall
be deemed valid and effective when personally served upon the
Director of Community Development or upon deposit in the United
States Mail, postage prepaid, by certified and /or registered mail,
addressed to the Director of Community Development, City Hall,
3300 Newport Boulevard, Newport Beach, California 92660.
XI. GENERAL PROVISIONS
In this Agreement, whenever the context so requires,
the masculine gender includes the feminine and /or neuter and the
singular includes the plural.
The titles of paragraphs herein are used for con-
venience only and shall not add to or detract from or otherwise
govern the interpretation of the form or substance of any said
paragraphs.
This Agreement represents the complete understanding
between the parties with respect to matters set forth herein. No
amendment or modification of this Agreement shall be valid unless
evidenced in writing and signed by the parties hereto.
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IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed on the date first written above.
Dated: FEB 16 1972
APPROV D AS TO FORM:
~ty' t orney
Dated:
CITY OF NEWPORT BEACH, a municipal
corporation
By: L. .
Mayor
ATTEST:
CE',CL i F-a--
ty 'Clerk
CITY
DEVELOPMENT RESEARCH ASSOCIATES,
a Delaware Corporation
By: A�
ice- res1 ent
x'15 retary
` CONSULTANT
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EXHIBIT "A"
SCOPE OF STUDY
CITY OF NEWPORT BEACH
ECONOMIC AND HOUSING MARKET ANALYSIS
The study shall consist of five principal hp a_ses:
1. An inventory of detailed economic and housing data.
2. The assembly and analysis of economic and housing
data; forecasts, and development of cost /revenue
system.
3. The formulation, testing and analysis of alternative
development policies.
4. The selection and recommendation of specific develop-
ment policies.
5. The formulation, testing and analysis of alternative
general plan proposals.
Phase I. Inventory of Economic Base Information
Activities in this initial phase shall consist of those data
inventory and survey efforts required to develop an on -going data
information system for the community and an adequate data base by
which to analyze probable future trends and conditions for develop-
ing alternative policies and plan proposals in subsequent phases
of the general plan program.
Data output to be developed by staff under Phase I shall include:
1. An inventory of existing Newport Beach resident
population characteristics, including:
a. number of residents
b. per capita incomes (source - DRA)
c. resident occupations
d. age distribution
e. educational levels
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2. An inventory of all existing land uses within the City
of Newport Beach, including_
a. type and amount,
b. location
c. size (building floor area, number of rooms,
and seating capacities)
d. vacancy /occupancy rates (hotel /motel uses)
e. density (residential uses)
f. building conditions
g. full and part -time employees
3. An inventory of all existing surface water uses and
harbor facilities in Newport Beach (including the
present number of boat moorings, slips, etc.)
4. An inventory of current housing characteristics within
Newport Beach, including:
a. location and type of unit
b. size of unit (number of bedrooms)
c. condition and /or age of unit
d. ownership characteristics
e. price /rental range
f. vacancy /occupancy level
g. length of tenure
h. persons per household
i. resident characteristics
5. A sampling survey of current market land values for
specific growth areas within the City, under the
guidance of Development Research Associates.
6. An inventory of existing costs and existing revenues
for public facilities and services for the City of
Newport Beach and all governmental agencies and districts
operating within the City of Newport Beach.
7. The collection of existing zoning, subdivision and
building codes and ordinances of the City of Newport
Beach.
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8. The collection of existing short and long -range
development plans of Costa Mesa, Huntington Beach,
Laguna Beach, Santa Ana, Irvine and Orange County.
9. The identification of major commercial and industrial
developments either approved or under construction,
including approved planned district communities, and
an indication of any proposed developments for large
vacant sections in and near the community.
All of the above data, except Items 4. and 6.,will be collected
by staff and submitted to Development Research Associates by
April 1, 1972. Item 4. will be submitted as soon as the 1970
census figures for these categories are received by staff. Item
6. will be submitted to Development Research Associates by June 1,
1972.
Data output to be developed by consultant under Phase I shall
include:
I. An inventory of existing and projected population
characteristics for Orange County and surrounding
communities (Costa Mesa, Huntington Beach, Santa Ana,
Irvine, and Laguna Beach) including:
a. number of residents
b. per capita incomes (by zip code area)
c. occupational patterns
d. age distribution
e. educational levels
2. An inventory of major existing and projected land uses
within Orange County and the Newport Beach market
area, including the number of establishments, the
floor area and gross acreage for each of the following
categories:
Retail
52 Building materials and hardware
53 Department stores and variety stores
54 Groceries, bakeries and other food stores
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55 Motor vehicles, boats, related accessories
and gas stations
56 Apparel and accessories
57 Furniture and appliances
58 Eating and drinking places
59 Miscellaneous retail trade - drugs, liquor,
books, etc.
Service
61 Banks, savings and loans, insurance and
real estate, etc.
62 Personal services - laundry, beauty shops, etc.
63 Business services - advertising, printing,
janitorial, etc. (Do not include 637 -
warehousing or 654 - research)
64 Repair services - auto, appliance, etc.
65 Professional services - doctors, attorneys,
architects, etc.
66 Contract construction - building contractors,
etc.
Entertainment - Recreation
72 Movies, theatre and other public assembly
commercial entertainment
73 Amusement parks
74 Golf courses and marinas (boat rentals,
sport fishing and small boat launching)
Transportation
44 Marine craft transportation -
(slips, boat yards, boat servicing and repair)
Industrial
2000 & 3000 Manufacturing
654 Research
637 & 51 Distribution- Warehousing and Wholesaling
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6. An inventory of current and projected housing trends
and characteristics for Orange County and the Newport
Beach market area, including:
a. character of existing housing supply
o number and type of units
o condition of units
o price /rental range
o distribution
o vacancy /occupancy levels
b. character of existing housing demands
o number of households
o size of households
o household incomes
o allocation of income for housing
o housing preferences (type,.size,
design, own /rent, etc.)
c. existing housing obstacles and constraints
o supply /demand levels
o legal constraints
o socio- economic constraints
o market - financing constraints
Phase II. Assembly, Analysis and forecasts and Cost /Revenue
System Development
Activities in this second phase shall involve the assembly, in-
tegration and analysis of data collected in the course of Phase I
of the study, and the forecasts of future economic conditions and
development activity based on (1) maximum economic market potentials
and, (2) existing zoning. Projections shall be made to the years
1975, 1980 and 1990.
In addition to the above activities, Phase II shall include the
development of a cost /revenue system, including specific cost/
revenue factors attributable to various land uses, to be utilized
I
in the testing and analysis of alternative development policies
and general plan proposals.
The responsibility for performing each of the activities under
Phase II of the study, shall be primarily that of Development
Research Associates.
Information to be presented by consultant in this phase will
constitute:
1. A memorandum report including a complete data inventory
of all items previously collected under Phase I by
staff and consultant (which data inventory may be
treated as a separate appendix or City file document);
a statement of the City's current economic position or
structure with respect to planning considerations, and
possible future economic position in relation to:
a. its market potential independent of existing
zoning and
b. the market potential in relation to existing
zoning constraints.
(This report shall be completed and submitted to
the City by June 1, 1972.)
Analysis and projections to be developed by consultant
and included in the above report shall include:
A. An evaluation.and forecast of potential population,
income, and employment characteristics for Newport
Beach (both city -wide and by designated growth
area) .
B. An evaluation and forecast of all major categories
of land use for each designated growth area
including those categories previously listed under
Phase I, item 2.
C. An analysis and forecast of potential commercial
retail sales and service activity, projecting
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gross floor area and gross acreage demands for
each designated growth area and each commercial
category previously listed under Phase I, item 2.
D. An analysis and forecast of potential commercial/
office space characteristics and demands and the
supportable gross floor area and gross acreage
for such uses for each designated growth area.
E. An analysis and forecast of the potential hotel/
motel demand to be supported by business visitors
and tourists in Newport Beach and adjacent areas.
F. An evaluation and forecast of potential demands
for marine - related uses, including a discussion of
possible considerations for sustaining such uses
within the City of Newport Beach. Particular
reference shall be made to marine service /repair
yards, marine gasoline stations, marine launching
docks and small craft marinas and boat slips, in
Newport Harbor, Upper Newport Bay, and West
Newport Harbor.
G. An analysis and forecast of future industrial
uses and the demand for industrially zoned land in
Newport Beach for each designated growth area and each
industrial category as previously listed under Phase I,
item 2.
H. An analysis and forecast of potential land uses
for those areas likely to be recycled or converted
to more intensive use under both market and zoning
assumptions. In particular, these analyses shall
concentrate on the unimproved lands and tidelands
within the vicinity of Upper Newport Bay, West
Newport, and the Orange County Airport, and the
older areas of the City such as Central Balboa,
Central Newport, Lido Peninsula, West Newport, Old
Newport, Mariner's Mile, Balboa Island and Corona
del Mar.
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2. A second memorandum report, including:
A. An evaluation of the current stock of housing
in Newport Beach and the forecast of future
housing characteristics by number and type, size,
price /rental range, vacancy /occupancy, and
distribution.
B. An evaluation and forecast of the projected
number and character of households in relation
to future population and employment growth,
household incomes, and housing choices.
C. An evaluation of current and potential housing
needs and constraints (social, economic,
political, legal, etc.) and the availability
of future housing within Newport Beach to
satisfy such needs.
(This report to be completed and submitted to the
City by August 1, 1972.)
3. A third memorandum report, including the cost /revenue
data collected primarily by staff and the cost/
revenue factors for various land uses developed by
Development Research Associates and reviewed and
concurred upon by staff for testing alternative
policies and general plan proposals. (This report
to be completed and submitted to the City by August 1,
1972.)
Phase III. The Formulation, Testing and Analysis of Alternative
Development Policies
In this phase of study, the City .staff will be responsible for
generating alternative development policies, in response to the
economic information and findings provided under Phase II. Develop-
ment Research Associates will participate in the testing and analysis
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of these policies with City staff, providing insights and information
as to the probable and possible implications of alternative policies
from an economic viewpoint and from the viewpoint of potential cost/
revenues. (Development Research Associates shall submit a memorandum
report to the City summarizing its inputs on alternative growth
policies by September 1, 1972 and a memorandum report covering its
inputs on other alternative policies by October 1, 1972.)
Phase IV. The Selection and Recommendation of Specific Development
Policies
Under Phase IV, the City staff and public officials shall have full
responsibility for selecting specific policies from various alterna-
tives developed under Phase III of the study. These specific
policies shall serve as the basis for developing general plan alterna-
tives within the following phase of study, Development Research
Associates shall remain on call throughout Phase IV for consultation
as necessary, but shall not exceed 10% of their total fee in personnel
time or expenses under this contract, unless agreed upon mutually in
writing by City and Consultant.
Phase V. The Formulation, Testing and Analysis of Alternative
General Plan Proposals
In this phase of the study, City staff will be responsible for
generating alternative development plan concepts, in response to
economic potentials and specific development policies provided in
the previous tasks. Development Research Associates will participate
with City staff in the preparation of the alternative general plan
proposals, analyzing and testing the various alternative general
plan proposals and indicating the probable economic implications,
including cost /revenue considerations, of each alternative proposal.
(Development Research Associates shall submit a final report covering
the analysis of the alternative general plan proposals, and all
findings and recommendations from the previous phases of work by
March 1, 1973.)
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Items which shall be covered by the consultant in the analysis and
testing of each plan or plan concept shall include:
1. An evaluation of various alternative general plan pro-
posals and the economic implications of the projected
amount, distribution, and character of future land
uses.
2. An appraisal of the various alternative general plan
proposals in relation to potential economic demands
and an estimate of future public costs and revenues
associated with each general plan alternative.
3. Findings and recommendations pertinent to the most
economically desirable series of proposals.
EXHIBIT "B"
CITY OF NEWPORT BEACH
ECONOMIC AND HOUSING MARKET ANALYSIS
DEVELOPMENT RESEARCH ASSOCIATES
STANDARD FEE SCHEDULE
PERSONNEL
Chairman and President . . . . . .
Executive Vice President . . . . .
Senior Vice President . . . . . .
Vice President . . . . . . . . . .
Senior Associate . . . . . . . . .
Accnriafo
Librarian . . . . . . . . . . . .
Technical Specialist . . . . . . .
Research Analyst . . . . . . . . .
Research Assistant . . . . . . . .
Technical Editor . . . . . . . . .
HOURLY RATE
. . . . $60.00
$37.50 -
$50.00
$35.00 -
$40.00
$32.50 -
$37.50
$30.00
- $35.00
$22.50 -
$32.50
. . . . $25.00
$20.00
- $40.00
$17.50 -
$22.50
$15.00
- $17.50
. . . . $12.50
Clients are billed on a monthly basis for the personnel time
expended in the preceding period, plus costs of travel and
subsistence, reproduction, long distance telephone calls,
and other related out -of- pocket expenses.
Dated: January 18, 1972
"
L E, �, I � 1971
By the CITY COUNCIL
CITY OF t0FWPF,`,` PBACH
A TM,
or "V:,? mp
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1, = f OF AMPORT
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31h= AWD XW9L0PXM
= com-cmcs wxTs Tm
7W-i* Vw ii 'I )lag
- - A C. - that lt would be
desirable to
.,f-,vqjop
the ',-ranaral Pj,ar th.rouqh -,,
-'Qnq*rvng1?
-7 AM
1IMS'n-9
marIce'
aaaVrs-Lu. that !;11,1
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plea will al 1-ag
1witic.--take "Ind vuch -,?m apalysis, C?Tla 118s of rorad pexxomi�
such ecorvamic convultant ac-,Vicaz for Cia c.tyj ana
1IMRSIZ. t1w City :'criincil to wploy 1-4.-Valcr a,v'.
W)-171 '77MWC4121 B-3; 7T i;r-v the City of
Citv w. '-t-.wrt Peach t�`u . ".4avaiopuent Research Associates ij hev,.,.,
53 PC,, Tlt, wv1 lc, cons-14, for the plarpose of umarta,
ev.-.ommilc of ?-.kw Plan deacribcj," A.'
SZ' 17 th:t !%ayor an,* Cl. v
j Clark -,1ve
tW exsimte an wNLwetm tlae Cit"',
ec
consultant sa'e,-vicaa in r m-A to at avC
T-c the '!it!,, Ntto 4 ► ey a3 Lc� >bnl.
.u4 to scope of gez.-wicez aav�l
ncy.
this 13t.ml daY of !XxqvU4'�qr 1 11171 .
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P.
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12/.LS`/71