HomeMy WebLinkAboutC-3521 - General Plan Update Economic and Fiscal Analysis, Studies and Plan Support Services - PSASUBJECT:
Hearing Date:
Agenda Item No.:
Staff Person:
REPORT TO THE MAYOR AND CITY COUNCIL
April 09, 2002
George A. Berger, AICP
(949) 644 -3207
APR 0 0 2002
General Plan Update Fiscal & Economic Studies: I „r-
Authorization of Examination of Sales and Use Tax Records.
SUMMARY: In conjunction with the approved contract with ADE, Inc. for the
fiscal and economic studies for the General Plan Update, staff
recommends approval of a resolution authorizing the examination by
ADE of sales and use tax records, per Section 7056 of the California
Revenue and Taxation Code.
SUGGESTED ACTION: Approve Resolution authorizing examination by ADE of
sales and use tax records for use in preparation of fiscal and
economic studies related to the update of the City's General
Plan.
Discussion
At the March 12`x, 2002 meeting, the Council approved a Professional Services Agreement with
Applied Development Economics, Inc. (ADE) to undertake the fiscal and economic studies related
to the update of the City's General Plan. As part of the research required by these studies, the
consultant has requested access to various sales and use tax data, which —per Section 7056 of the
California Revenue and Taxation Code —is deemed confidential and may only be released with
prior City Council authorization.
Specifically, ADE has requested access to detailed sales tax records by State Board of Equalization
(SBE) code, with major businesses listed, for the city as a whole and the sub -areas defined in the
standard MRC (MBIA) reports. Additionally, the consultant has requested access to Transient
Occupancy Tax (TOT) records, in order to research the economic impact of vacation rental
property, and hotel/motel use. Revenue Manager Everroad will be working with the consultant and
other staff to coordinate this aspect of the project.
There are currently two firms (Municipal Revenue Advisors and MBIA MuniServices Company)
that provide ongoing audit services to the City, and they are authorized by resolution to access
the confidential records. Staff recommends approval of the attached resolution authorizing the
CITY OF NE %ORT BEACH
A
COMMUNITY AND ECONOMIC
DEVELOPMENT
u1
PLANNING DEPARTMENT
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(949) 644 -3200; FAX (949) 644 -3229
SUBJECT:
Hearing Date:
Agenda Item No.:
Staff Person:
REPORT TO THE MAYOR AND CITY COUNCIL
April 09, 2002
George A. Berger, AICP
(949) 644 -3207
APR 0 0 2002
General Plan Update Fiscal & Economic Studies: I „r-
Authorization of Examination of Sales and Use Tax Records.
SUMMARY: In conjunction with the approved contract with ADE, Inc. for the
fiscal and economic studies for the General Plan Update, staff
recommends approval of a resolution authorizing the examination by
ADE of sales and use tax records, per Section 7056 of the California
Revenue and Taxation Code.
SUGGESTED ACTION: Approve Resolution authorizing examination by ADE of
sales and use tax records for use in preparation of fiscal and
economic studies related to the update of the City's General
Plan.
Discussion
At the March 12`x, 2002 meeting, the Council approved a Professional Services Agreement with
Applied Development Economics, Inc. (ADE) to undertake the fiscal and economic studies related
to the update of the City's General Plan. As part of the research required by these studies, the
consultant has requested access to various sales and use tax data, which —per Section 7056 of the
California Revenue and Taxation Code —is deemed confidential and may only be released with
prior City Council authorization.
Specifically, ADE has requested access to detailed sales tax records by State Board of Equalization
(SBE) code, with major businesses listed, for the city as a whole and the sub -areas defined in the
standard MRC (MBIA) reports. Additionally, the consultant has requested access to Transient
Occupancy Tax (TOT) records, in order to research the economic impact of vacation rental
property, and hotel/motel use. Revenue Manager Everroad will be working with the consultant and
other staff to coordinate this aspect of the project.
There are currently two firms (Municipal Revenue Advisors and MBIA MuniServices Company)
that provide ongoing audit services to the City, and they are authorized by resolution to access
the confidential records. Staff recommends approval of the attached resolution authorizing the
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examination by ADE of sales and use tax records, per Section 7056 of the California Revenue and
Taxation Code.
Submitted by:
Prepared by:
SHARON L WOOD
GEORGE A. BERGER, AICP
Assistant City Manager
Senior Planner
Attachment: ResolutionNo.2002-
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RESOLUTION NO.2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH AUTHORIZING EXAMINATION OF SALES AND USE TAX
RECORDS.
WHEREAS, pursuant to Ordinance _, the City of Newport Beach entered into a
contract with the State Board of Equalization to perform all functions incident to the
administration and collection of local sales and use taxes; and
WHEREAS, the City Council of the City of Newport Beach deems it desirable and
necessary for authorized representatives of the City to examine confidential sales and use
tax records of the State Board of Equalization pertaining to sales and use taxes collected
by the Board for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth
certain requirements and conditions for the disclosure of Board records, and establishes
criminal penalties for the unlawful disclosure of information contained in, or derived
from, the sales and use tax records of the Board.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH HEREBY RESOLVES AS FOLLOWS:
Section 1. That the City Manager, or other officer or employee of the City designated
in writing by the City Manager to the State Board of Equalization (hereafter referred to as
Board), is hereby appointed to represent the City with authority to examine sales and use
tax records of the Board pertaining to sales and use taxes collected for the City by the
Board pursuant to the contract between the City and the Board. The information obtained
by examination of Board records shall be used only for purposes related to the collection
of City sales and use Taxes by the Board pursuant to that contract.
Resolution No. 02-
Examination of Sales and Use Tax Records
13
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Section 2.. That the firm of Applied Development Economics (ADE), Inc. is hereby
appointed to represent the City with authority to examine those sales and use tax records
of the Board, for purposes related to the following governmental functions of the City:
(a) Preparation of a retail leakage analysis for the City General Plan Update; and
(b) Preparation of a fiscal impact model for use in the City's General Plan Update.
The information obtained by examination of Board records shall be used only for those
governmental functions of the City listed above.
Section 1 That ADE, Inc. is hereby designated to examine the sales and use tax
records of the Board pertaining to sales and use taxes colleted for the City by the Board.
The person or entity designated by this section meets all of the following conditions:
(a) has an existing contract with the City to examine those sales and use tax records;
(b) is required by that contract to disclose information contained in, or derived from,
those sales and use tax records only to the officer or employee authorized under Section 1
or 2 of this resolution to examine the information;
(c) is prohibited by that contract from performing consulting services for a seller
during the term of that contract; and
(d) is prohibited by that contract from retaining the information contained in, or
derived from those sales and use tax records, after that contract is expired.
The information obtained by examination of Board records shall be only used for
purposes relating to the collection of City sales and use taxes by the Board pursuant to the
Resolution No. 02 -_
Examination of Sales and Use Tax Records
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contract between the City and the Board and for purposes relating to the governmental
functions of the City listed in Section 2 of this resolution.
This resolution shall take effect immediately upon adoption. Passed and adopted by the
City Council of the City of Newport Beach at a regular meeting held on the day
of 2002.
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ATTEST:
CITY CLERK
Resolution No. 2002 -
Examination of Sales and Use Tax Records
Resolution No. 02-
Examination of Sales and Use Tax Records
I
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RESOLUTION NO. 2002- 28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH AUTHORIZING EXAMINATION OF SALES AND USE TAX
RECORDS.
WHEREAS, pursuant to Ordinance No. 1514, the City of Newport Beach entered into a
contract with the State Board of Equalization to perform all functions incident to the
administration and collection of local sales and use taxes; and
WHEREAS, the City Council of the City of Newport Beach deems it desirable and
necessary for authorized representatives of the City to examine confidential sales and use
tax records of the State Board of Equalization pertaining to sales and use taxes collected
by the Board for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth
certain requirements and conditions for the disclosure of Board records, and establishes
criminal penalties for the unlawful disclosure of information contained in, or derived
from, the sales and use tax records of the Board.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH HEREBY RESOLVES AS FOLLOWS:
Section 1. That the City Manager, or other officer or employee of the City designated
in writing by the City Manager to the State Board of Equalization (hereafter referred to as
Board), is hereby appointed to represent the City with authority to examine sales and use
tax records of the Board pertaining to sales and use taxes collected for the City by the
Board pursuant to the contract between the City and the Board. The information obtained
by examination of Board records shall be used only for purposes related to the collection
of City sales and use Taxes by the Board pursuant to that contract.
•
Section 2. That the firm of Applied Development Economics (ADE), Inc. is hereby
appointed to represent the City with authority to examine those sales and use tax records
of the Board, for purposes related to the following governmental functions of the City:
(a) Preparation of a retail leakage analysis for the City General Plan Update; and
(b) Preparation of a fiscal impact model for use in the City's General Plan Update.
The information obtained by examination of Board records shall be used only for those
governmental functions of the City listed above.
Section 3. That ADE, Inc. is hereby designated to examine the sales and use tax
records of the Board pertaining to sales and use taxes colleted for the City by the Board.
The person or entity designated by this section meets all of the following conditions:
(a) has an existing contract with the City to examine those sales and use tax records;
(b) is required by that contract to disclose information contained in, or derived from,
those sales and use tax records only to the officer or employee authorized under Section 1
or 2 of this resolution to examine the information;
(c) is prohibited by that contract from performing consulting services for a seller
during the term of that contract; and
(d) is prohibited by that contract from retaining the information contained in, or
derived from those sales and use tax records, after that contract is expired.
The information obtained by examination of Board records shall be only used for
purposes relating to the collection of City sales and use taxes by the Board pursuant to the
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contract between the City and the Board and for purposes relating to the governmental
functions of the City listed in Section 2 of this resolution.
This resolution shall take effect immediately upon adoption. Passed and adopted by the
City Council of the City of Newport Beach at a regular meeting held on the 9`h day of
April 2002.
MAYOR /
ATTEST:
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2002 -28 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the 9th
day of April, 2002, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 10th day of April, 2002.
(Seal)
G6zliz'm z /��-
City Clerk
Newport Beach, California
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C-1
ATTACHMENT
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT, entered into this JA day of March, 2002, by and between
CITY OF NEWPORT BEACH, a Municipal Corporation (hereinafter referred to as "City "), and
APPLIED DEVELOPMENT ECONOMICS (ADE) whose address is 2029 University Avenue,
Berkeley, CA 94704, (hereinafter referred to as "Consultant'), is made with reference to the
following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the
laws of the State of California with the power to carry on its business as it is
now being conducted under the statutes of the State of California and the
Charter of City.
B. City desires to engage Consultant to provide project management and staff
services upon the terms and conditions contained in this Agreement.
C. The principal member of Consultant is, for purpose of this Project, Doug
Svensson.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
contract with Consultant under the terms of conditions provided in this
Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as
follows:
1. TERM
The term of this Agreement shall commence on the 1th day of March, 2002, and shall
terminate on the 161"th day of WVAIWIIZ, 2M2, unless terminated earlier as set forth herein.
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2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the duties set forth in the scope of services,
attached hereto as Exhibit "A" attached hereto along with a List of Key Personnel and
incorporated herein by reference.
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3. COMPENSATION TO CONSULTANT
City shall pay Consultant for the services in accordance with the provisions of this
Section and the Schedule of Fees and Billing Rates, attached hereto as Exhibit "A,"
incorporated herein by reference. No rate changes shall be made during the term of this
Agreement without prior written approval of City. Consultant's compensation for all work
performed in accordance with this Agreement, including compensation for approved
subconsultants, shall not exceed the total not -to- exceed contract price of one hundred fifteen
thousand, two hundred and forty dollars ($115,240), excluding optional tasks. Optional tasks
are identified in the Project Budget section of the Scope of Work, attached to this Agreement.
3.1 Consultant shall maintain accounting records of its billings which includes the
name of the employee, type of work performed, times and dates of all work which is billed on
an hourly basis and all approved incidental expenses including reproductions, computer
printing, postage and mileage.
3.2 Consultant shall submit monthly invoices to City payable by City within thirty
(30) days of receipt of invoice subject to the approval of City.
3.3 Consultant shall not receive any compensation for extra work without prior
written authorization of City. Any authorized compensation shall be paid in accordance with
Exhibit "A ".
3.4 City shall reimburse Consultant only for those costs or expenses that have been
specifically approved in this Agreement, or specifically approved in advance by City. Such
cost shall be limited and shall include nothing more than the following costs incurred by
Consultant. Normal reimbursable expenses may include: travel and auto rental expenses;
lodging and meals; long distance telephone charges; copy and printing charges; postage and
delivery charges; and data purchases, and are outlined in the Scope of Services and
Schedule of Fees.
3.5 Notwithstanding any other paragraph or provision of this Agreement, beginning
on the effective date of this Agreement, City may withhold payment of ten percent (10 %) of
each approved payment as approved retention until all services under this Agreement have
been substantially completed.
4. STANDARD OF CARE
4.1 All of the services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical personnel
required to perform the services required by this Agreement, and that it will perform all
services in a manner commensurate with the community professional standards. Qualified
and experienced personnel who are neither employed by City nor have any contractual
relationship with City shall perform all services. Consultant represents and warrants to City
that it has or shall obtain all licenses, permits, qualifications and approvals required of its
profession. Consultant further represents and warrants that it shall keep in effect all such
licenses, permits and other approvals during the term of this Agreement.
4.2 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to
approve or disapprove Consultant's work promptly, or delay or faulty performance by City,
contractors, or governmental agencies, or any other delays beyond Consultant's control or
without Consultant's fault.
5. INDEPENDENT PARTIES
City retains Consultant on an independent contractor basis and Consultant is not an
employee of City. The manner and means of conducting the work are under the control of
Consultant, except to the extent they are limited by statute, rule or regulation and the
expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute
Consultant or any of Consultant's employees or agents, to be the agents or employees of
City. Consultant shall have the responsibility for and control over the details in means of
performing the work provided that Consultant is compliance with the terms of this Agreement.
Anything in this Agreement which may appear to give City the right to direct Consultant as to
the details of the performance of the services or to exercise a measure of control over
Consultant shall mean that Consultant shall follow the desires of City only with respect to the
results of the services.
6. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated Project
Administrator, any other agencies that may have jurisdiction or interest in the work to be
performed, and any other consultants assigned to projects related to the update of the City's
General Plan. City agrees to cooperate with the Consultant on the Project.
7. PROJECT MANAGER
Consultant shall assign the Project to a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable times
during the Project term. Consultant has designated Doug Svensson as its Project Manager.
Consultant shall not bill any personnel to the Project other than those personnel identified in
Exhibit "A ", whether or not considered to be key personnel, without City's prior written
approval by name and specific hourly billing rate. Consultant shall not remove or reassign
any personnel designated in this Section or assign any new or replacement person to the
Project without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to removal or assignment of non -key personnel.
Consultant, at the sole discretion of City, shall remove from the Project any of its
personnel assigned to the performance of services upon written request of City. Consultant
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warrants that it will continuously furnish the necessary personnel to complete the Project on a
timely basis as contemplated by this Agreement.
8. TIME OF PERFORMANCE
Time is of the essence in the performance of the services under this Agreement and
Consultant shall perform the services in accordance with Exhibit "A." The failure by
Consultant to strictly adhere to the schedule, may result in termination of this Agreement by
City, and the assessment of damages against Consultant for delay. Notwithstanding the
foregoing, Consultant shall not be responsible for delays that are due to causes beyond
Consultant's reasonable control. However, in the case of any such delay in the services to
be provided for the Project, each party hereby agrees to provide notice to the other party so
that all delays can be addressed.
8.1 Consultant shall submit all requests for extensions of time for performance in
writing to the Project Administrator not later than ten (10) calendar days after the start of the
condition that purportedly causes a delay, and not later than the date upon which
performance is due. The Project Administrator shall review all such requests and may grant
reasonable time extensions for unforeseeable delays, which are beyond Consultant's control.
8.2 For all time periods not specifically set forth herein, Consultant shall respond in
the most expedient and appropriate manner under the circumstances, by either telephone,
electronic mail, fax, hand delivery or mail.
9. CITY POLICY
Consultant will discuss and review all matters relating to policy and project direction
with the Project Administrator in advance of all critical decision points in order to ensure that
the Project proceeds in a manner consistent with City goals and policies.
10. CONFORMANCE TO APPLICABLE REQUIREMENT
All work prepared by Consultant shall conform to applicable city, county, state and
federal law, regulations and permit requirements and be subject to approval of the Project
Administrator and City.
11. PROGRESS
Consultant and City are responsible for keeping the respective Project Administrators
and /or their duly authorized designee informed on a regular basis regarding the status and
progress of the work, activities performed and planned, and any meetings that have been
scheduled or are desired.
12. HOLD HARMLESS
Consultant shall indemnify, defend, save and hold harmless City, its City Council,
boards and commissions, officers and employees from and against any and all loss,
damages, liability, claims, allegations of liability, suits, costs and expenses for damages of
any nature whatsoever, including, but not limited to, bodily injury, death, personal injury,
property damages, or any other claims arising from any and all acts or omissions of
Consultant, its employees, agents or subcontractors in the performance of services or work
conducted or performed pursuant to this Agreement. This indemnity shall apply even in the
event of negligence of City, or its employees, or other contractors, excepting only the sole
negligence or willful misconduct of City, its officers or employees, and shall include attorneys'
fees and all other costs incurred in defending any such claim. Nothing in this indemnity shall
be construed as authorizing, any award of attorneys' fees in any action on or to enforce the
terms of this Agreement.
13. INSURANCE
Without limiting consultant's indemnification of City, and prior to commencement of
work, Consultant shall obtain and provide and maintain at its own expense during the term of
this Agreement policy or policies of liability insurance of the type and amounts described
below and satisfactory to City. Certification of all required policies shall be signed by a person
authorized by that insurer to bind coverage on its behalf and must be filed with City prior to
exercising any right or performing any work pursuant to this Agreement. Except workers
compensation, all insurance policies shall add City, its elected officials, officers, agents,
representatives and employees as additional insured for all liability arising from Consultant's
services as described herein.
All insurance policies shall be issued by an insurance company currently authorized by
the Insurance Commissioner to transact business of insurance in the State of California, with
an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or
larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise
approved by the City Risk Manager.
A. Worker's compensation insurance covering all employees and principals of
Consultant, per the laws of the State of California.
B. Commercial general liability insurance covering third party liability risks,
including without limitation, contractual liability, in a minimum amount of $1
million combined single limit per occurrence for bodily injury, personal injury and
property damage. If commercial general liability insurance or other form with a
general aggregate is used, either the general aggregate shall apply separately
to this Project, or the general aggregate limit shall be twice the occurrence limit.
C. Commercial auto liability and property insurance covering any owned and
rented vehicles of Consultant in a minimum amount of $1 million combined
single limit per accident for bodily injury and property damage.
D. Professional errors and omissions insurance that covers the services to be
performed in connection with this Agreement in the minimum amount of One
Million dollars ($1,000,000).
Said policy or policies shall be endorsed to state that either party shall not cancel
coverage except after thirty (30) days' prior notice has been given in writing to City.
Consultant shall give City prompt and timely notice of claim made or suit instituted arising out
of Consultant's operation hereunder. Consultant shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own judgment may be
necessary for its proper protection and prosecution of the work.
Consultant agrees that, in the event of loss due to any of the perils for which it has
agreed to provide comprehensive general and automotive liability insurance, Consultant shall
look solely to its insurance for recovery. Consultant hereby grants to City, on behalf of any
insurer providing comprehensive general and automotive liability insurance to either
Consultant or City with respect to the services of Consultant herein, a waiver of any right of
subrogation that any such insurer of said Consultant may acquire against City by virtue of the
payment of any loss under such insurance.
14. PROHIBITION AGAINST TRANSFERS
Consultant shall not assign, sublease, hypothecate or transfer this Agreement or any
for the services to be performed under this Agreement, directly or indirectly, by operation of
law or otherwise without prior written consent of City. Any attempt to do so without consent
of City shall be null and void.
The sale, assignment, transfer or other disposition of any of the issued and
outstanding capital stock of Consultant, or of the interest of any general partner or joint
venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or
syndicate or cotenancy, which shall result in changing the control of Consultant, shall be
construed as an assignment of this Agreement. Control means fifty percent (50 %) or more of
the voting power, or twenty -five percent (25 %) or more of the assets of the corporation,
partnership or joint venture.
15. OWNERSHIP OF DOCUMENTS
Each and every report, draft, work product, map, record and other document
reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection
with this Agreement shall be the exclusive property of City.
Documents, including drawings and specifications, prepared by Consultant pursuant to
this Agreement are not intended or represented to be suitable for reuse by City or others on
any other project. Any use of completed documents for other projects and any use of
incomplete documents without specific written authorization from Consultant will be at City's
sole risk and without liability to Consultant. Further, any and all liability arising out of changes
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made to Consultant's deliverables under this Agreement by City or persons other than
Consultant is waived against Consultant and City assumes full responsibility for such
changes unless City has given Consultant prior notice and has received from Consultant
written consent for such changes.
Consultant shall, at such time and in such form as City may require, furnish reports
concerning the status of services required under this Agreement.
16. CONFIDENTIALITY
The information, which results from the services in this Agreement, is to be kept
confidential unless City authorizes the release of information.
Specifically with regard to any sales and use tax records that may be furnished to Consultant
by the City, Consultant is required to disclose information contained in, or derived from, those
sales and use tax records only to the officer or employee authorized by the City to examine
the information. Consultant is prohibited from performing consulting services for a seller
during the term of this contract. Consultant is prohibited from retaining information contained
in, or derived from those sales and use tax records, after this contract has expired.
17. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of his responsibilities under this
Agreement, City agrees to provide the following:
A. Access to, and upon request of Consultant, one copy of all existing record
information on file at City. Consultant shall be entitled to rely upon the accuracy
of data information provided by City or others without independent review or
evaluation. City will provide all such materials in a timely manner so as not to
cause delays in Consultant's work schedule.
B. Copying and other services through City's outside reproduction company or in-
house print facility for each of the required submittals. Consultant will be
required to coordinate the required submittals with City's project manager for
determination whether to utilize a reproduction company or in -house printing.
All other reproduction will be the responsibility of Consultant and as defined
above.
18. ADMINISTRATION
This Agreement will be administered by the Planning Department. George Berger
shall be considered the Project Administrator and shall have the authority act for City under
this Agreement. The Project Administrator or his /her authorized representative shall
represent City in all matters pertaining to the services to be rendered pursuant to this
Agreement.
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19. RECORDS
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Consultant shall keep records and invoices in connection with the work to be
performed under this Agreement. Consultant shall maintain complete and accurate records
with respect to the costs incurred under this Agreement. All such records shall be clearly
identifiable. Consultant shall allow a representative of City to examine, audit and make
transcripts or copies of such records during normal business hours. Consultant shall allow
inspection of all work, data, documents, proceedings and activities related to the Agreement
for a period of three (3) years from the date of final payment under this Agreement.
20. WITHHOLDINGS
City may withhold payment of any disputed sums until satisfaction of the dispute with
respect to such payment. Such withholding shall not be deemed to constitute a failure to pay
according to the terms of this Agreement. Consultant shall not discontinue work as a result of
such withholding. Consultant shall have an immediate right to appeal to the City Manager or
his designee with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of seven percent (7 %) per annum from the date of
withholding of any amounts found to have been improperly withheld.
21. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than would have resulted if
there were not errors or omissions in the work accomplished by Consultant, the additional
expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's
rights under any other sections of this Agreement.
22. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other consultants in connection with the Project.
23. CONFLICTS OF INTEREST
A. The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such
persons to disclose financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making decisions that will foreseeably
financially affect such interest.
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B. If subject to the Act, Consultant shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for termination of
this Agreement by City. Consultant shall indemnify and hold harmless City for
any and all claims for damages resulting from Consultant's violation of this
Section.
24. SUBCONSULTANT AND ASSIGNMENT
Except as specifically authorized under this Agreement, the services included in this
Agreement shall not be assigned, transferred, contracted or subcontracted without prior
written approval of City.
25. NOTICES
All notices, demands, requests or approvals to be given under this Agreement shall be
given in writing and conclusively shall be deemed served when delivered personally or on the
third business day after the deposit thereof in the United States mail, postage prepaid, first
class mail, addressed as hereinafter provided.
All notices, demands, requests or approvals from Consultant to City shall be
addressed to City at:
City of Newport Beach
Planning Department
3300 Newport Boulevard
P. O. Box 1768
Newport Beach, CA, 92658 -8915
(949) 644 -3200
(949) 644 -3229 fax
All notices, demands, requests or approvals from City to Consultant shall be addressed
to Consultant at:
Applied Development Economics (ADE)
Attention: Mr. Doug Svensson
2029 University Avenue
Berkeley, CA 94704
(510) 548 -5912
(510) 548 -6123 fax
26. TERMINATION
In the event either part hereto fails or refuses to perform any of the provisions hereof
at the time and in the manner required hereunder, that party shall be deemed in default in the
performance of this Agreement. If such default is not cured within a period of two (2) days, or
if more than two (2) days are reasonably required to cure the default and the defaulting party
fails to give adequate assurance of due performance within two (2) days after receipt of
written notice of default, specifying the nature of such default and the steps necessary to cure
such default, the nondefaulting party may terminate the Agreement forthwith by giving to the
defaulting party written notice thereof.
26.1 City shall have the option, at its sole discretion and without cause, of
terminating this Agreement by giving seven (7) days' prior written notice to Consultant as
provided herein. Upon termination of this Agreement, City shall pay to the Consultant that
portion of compensation specified in this Agreement that is earned and unpaid prior to the
effective date of termination.
27. COMPLIANCES
Consultant shall comply with all laws, state or federal and all ordinances, rules and
regulations enacted or issued by City.
28. WAIVER
A waiver by either parry of any breach, of any term, covenant or condition contained
herein shall not be deemed to be a waiver of any subsequent breach of the same or any
other term, covenant or condition contained herein, whether of the same or a different
character.
29. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the Parties hereto, and all preliminary negotiations and
agreements of whatsoever kind or nature are merged herein. No verbal agreement or
implied covenant shall be held to vary the provisions herein. Any modification of this
Agreement will be effective only by written execution signed by both City and Consultant.
30. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents his judgment
as a design professional and is supplied for the general guidance of City. Since Consultant
has no control over the cost of labor and material, or over competitive bidding or market
conditions, Consultant does not guarantee the accuracy of such opinions as compared to
contractor bids or actual cost to City.
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31. PATENT INDEMNITY
0
The Consultant shall indemnify City, its agents, officers, representatives and
employees against liability, including costs, for infringement of any United States' letters
patent, trademark, or copyright infringement, including costs, contained in Consultant's
drawings and specifications provided under this Agreement.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED S TO FORM:
By:
Robin Clauson
Assistant City Attorney
for the City of Newport Beach
ATTEST:
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
Homer L. Bluda
City Manager
for the City of Newport Beach
TANT
I/I /per,,, o.z
V V �Vf,l- 17) . �`'FORN \I�
By: By: ,.._
LaVonne Harkless Doug lens n
City Clerk Applie Dev
loo Economics
Attachments: Exhibit A: Scope of Services, Project Schedule, Schedule of Fees, List of Key Personnel and Billing Rates
0
EXHIBIT A
APPLIED DEVELOPMENT ECONOMICS
NEWPORT BEACH ECONOMIC ANALYSIS
SCOPE OF WORK
INTRODUCTION
The economic development strategic plan process will provide informative input to the general plan
update and will also create an action plan for ongoing development of the city's economy. One of
the most important purposes of the economic analysis for the general plan will be to identify realistic
market opportunities for economic development. The economic analysis will provide options for
future business development for public discussion and possible inclusion in the proposed land use
element. The analysis will help identify whether the current land use plan for the City provides for
the right kinds of economic development in the right places and whether the inventory of zoned
land for various kinds of commercial, office and visitor- serving development should be changed to
better reflect the likely market opportunities in the years to come. The economic analysis will also
evaluate the fiscal impact of various potential land use decisions and help the general plan process to
determine the best mix of residential and commercial uses in order to generate sufficient public
revenues to support city services in the future.
It is vital for the city's economy to perform well on a variety of levels: it should provide an economic
base with suitable job opportunities for the range of skills and experience of the local workforce; it
should provide the goods and services needed by city residents, local businesses and visitors; it
should provide business opportunities for local entrepreneurs; and, it should generate sufficient tax
revenues to sustain the services and public amenities needed and desired by the residents of the
community. In order to provide these benefits, the economic base must be well diversified and well
connected to the regional and global economy.
The proposed scope of work for the economic development strategic plan addresses each of these
areas of interest. It will include a fiscal impact analysis and model, a market analysis of economic
base business sectors, market studies of retail and visitor- serving business opportunities, and an
action plan with strategies and initiatives to promote long -term economic progress for the
community.
The fiscal analysis will provide an assessment of how both residential and non - residential land uses
generate public revenues and affect the cost of city services. With the use of the interactive fiscal
model, the city can determine the best overall general plan land use mix in terms of meeting city
needs for services. The city can also evaluate specific development projects regarding their potential
fiscal impacts.
APPLIED DEVELOPMENT ECONOMICS
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The economic opportunities analysis will evaluate the local and regional economic base and explore
opportunities to improve the kinds of jobs available in the city and also the level of public revenue
generated by non - retail businesses in the city. The economic base is comprised of businesses whose
primary markets are outside of Newport Beach. These businesses create local wealth by selling
goods and services in regional and global markets. While this is a critical economic function, it is
important the economic base be compatible with the character of the community as well as meeting
the business and employment needs of local entrepreneurs and workers. In Newport Beach, office -
based businesses constitute most of the economic base, but there may be opportunities for light
industry that would also be suitable and beneficial to the community. The analysis will determine the
market opportunities for a wide range of business types and also seek to identify those business
types that can measurably increase the sales tax revenues through business -to- business transactions.
Visitor - serving businesses are also part of the economic base, because they attract spending from
outside visitors and support jobs for local workers. These kinds of businesses, primarily lodging,
attractions and a variety of retail businesses, are typically high public revenue generators through the
sales tax and the transient occupancy tax on hotel revenues. The strategic plan will include an
analysis of how these business opportunities can be enhanced.
The retail sector is primarily local serving, although there is certainly the opportunity to capture
regional sales with substantial sales tax benefit. The economic strategic plan will include a market
analysis of each major commercial district in the city to determine how local businesses can better
capture local and regional consumer spending.
Finally the strategic plan will include an action plan to guide business leaders and city staff in
developing long -term opportunities for economic advancement in the community. This will include
land use planning initiatives in the proposed general plan land use element and supporting
circulation and public services policies. It will include strategies for encouraging the kinds of
business growth that maximize city revenues and are compatible with the community vision, and it
will include actions to promote coordination and collaboration with the many regional economic
development organizations and resources in the county and in the Southern California region.
The specific tasks for each component of the economic analysis are outlined below.
1. FISCAL IMPACT MODEL AND REVENUE ANALYSIS
1.1 Construct fiscal impact model based on existing city budget data, available land use
data, and interviews with City staff.
1.2 Prepare analysis of existing relationships between land uses and city budget costs and
revenues. Provide memo describing the data and assumptions used in the model and
the results of the analysis to city staff and general plan consultant.
APPLIED DEVELOPMENT ECONOMICS
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1.3 Prepare analysis of up to three general plan land use scenarios in coordination with
the general plan consultant. Prepare memo of results.
1.4 Prepare user manual and provide staff training for further use of the fiscal impact
model.
2. ECONOMIC OPPORTUNITY ANALYSIS
2.1 Prepare analysis of regional economic trends, including a forecast of Orange County
economic indicators and identification of regional business clusters currently or
potentially represented in Newport Beach, to provide context for identification of
business attraction, development and retention opportunities.
2.2 Prepare a market analysis of industrial and office -based business types with potential
for development or expansion in Newport Beach, based on requisite locational
factors and the ability and interest of the community to support specific business
types. The methodology for this task will include not only analysis of quantitative
economic data but also interviews and possibly surveys of existing businesses and
business leaders in the city and the county to gain first hand insight into the market
conditions experienced by local businesses.
2.3 Prepare an analysis of business types that typically generate high business -to- business
or distribution -based taxable sales and identify those specific business types that
could find suitable locations in Newport Beach. Identify opportunities for the City to
transition its business mix within its existing or planned built space to generate a
higher yield sales tax base.
2.4 Prepare a projection of potential non - retail employment growth and building space
demand in the city reflecting the recommended business development targets and
the city's market strength identified in the analysis.
2.5 Prepare a report describing the analysis, conclusions and recommendations for this
task.
2. RETAIL COMMERCIAL MARKET AND VISITOR- SERVING ANALYSIS
3.1 ADE will review existing regional retail market analyses and consult with the City to
determine the primary focus of the commercial market analysis. Of particular interest
for the General Plan and Local Coastal Plan Update are the existing and planned
commercial areas within the coastal zone. The scope of work and budget for this
APPLIED DEVELOPMENT ECONOMICS
0
9
task contemplates the coastal zone as the primary focus of the retail commercial
analysis, supplemented by a brief overview of citywide sales characteristics.
3.2 As an initial optional step, the City and ADE may agree that a survey of households
in specific neighborhoods or districts in the City may need to be completed in order
to analyze retail sales leakage for existing or planned commercial centers. A survey
would be indicated if the available data on taxable sales for certain commercial
districts is not adequate to determine the balance of supply and demand and whether
the land inventory is well matched with future needs for commercial development.
Upon final determination of the market areas within the city to be included in the analysis,
the steps for the retail land demand analysis will include the following:
3.3 In the primary market areas under analyses, conduct interviews with selected retail
businesses in the community to detemmne perceived market share and customer
shopping preferences.
3.4 Prepare an inventory and analysis of retail commercial shopping opportunities both
within Newport Beach and in surrounding communities that affect the demand for
future commercial development in selected areas of Newport Beach, particularly the
coastal zone areas.
3.5 Prepare an analysis of retail sales leakage from the household population within the
market area.
3.6 Estimate the extent to which retail spending by workers employed in Newport Beach
are captured in the selected market areas.
3.7 Estimate spending captured in the market area from visitors to the City, including
both residents of surrounding communities and tourists to the City. Estimate the
economic impact of visitor serving businesses and events in the City from available
data collected by the City and other data sources.
3.8 Prepare an analysis of existing and projected future retail and visitor serving business
development and expansion oppomntities in the market area. For retail businesses,
recommendations for business development will be based on the sales
leakage /capture analysis of the commercial district. The analysis will also address the
potential for additional kinds of visitor - serving businesses including lodging and
entertainment facilities based on regional market indicators for these types of
businesses.
APPLIED DEVELOPMENT ECONOMICS
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3.9 Estimate the land and building space demand reflected in new business opportunities
in the coastal zone commercial areas and any other commercial market areas in the
city included in the analysis. The analysis will determine the appropriate inventory of
land to support existing and future commercial market opportunities. In cases where
the existing land supply exceeds projected future needs, ADE will recommend which
sites could best support the commercial needs of the community and which sites
would be best rezoned to other uses.
3.10 Prepare a report describing the retail /visitor - serving business development
recommendations and projected growth in these business sectors.
4. ECONOMIC DEVELOPMENT STRATEGY AND ECONOMIC DEVELOPMENT COMMITTEE
PROCESS
4.1 Based on the market studies and discussions with the General Plan Advisory
Committee and the City's Economic Development Committee (EDC), prepare
recommendations for citywide and area - specific economic development goals and
business development targets.
4.2 Upon approval by the advisory committees of a set of economic goals and targets,
prepare a draft strategic plan outlining recommended implementation strategies to
achieve the expressed goals. The strategies should address areas of highest concern
and capability of the city and may include land use planning and regulation, business
expansion and retention, economic development marketing activities, workforce
development and local and regional organizational coordination, among others.
4.3 Upon concurrence by the EDC on the draft strategic plan, prepare an action plan for
inclusion in the strategic plan to provide concrete guidance to city staff and business
leaders on activities designed to implement the strategic plan. The action plan will
recommend and provide benchmarks for indicators to measure success of the
strategies and a time frame for implementation of the recommended programs and
activities.
4.4 Prepare final Economic Development Strategic Plan based on city staff and
committee comments.
5. GENERAL PLAN ADVISORY COMMITTEE, PLANNING COMMISSION AND CITY COUNCIL
5.1 Present fiscal impact model and general plan scenarios analysis to the General Plan
Advisory Committee.
APPLIED DEVELOPMENT ECONOMICS
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5.2 Present the findings and recommendations of the economic opportunities analysis
and the retail /visitor - serving market analyses to the General Plan Advisory
Committee.
5.3 Present recommendations for economic goals and targets as a basis for developing
the Economic Strategic Plan to the General Plan Advisory Committee.
5.4 Review the general plan economic analysis with the Planning Commission at two (2)
meetings at appropriate stages in the process as determined by the City.
5.5 Attend two (2) City Council meetings to present the economic studies for the
General Plan.
PROJECT BUDGET
The above scope of work shall be completed for a not -to- exceed price of $115,240, excluding
optional tasks. The optional tasks identified in the scope of work include household surveys of
commercial market areas within the City such as the coastal zone commercial districts and others
that may be identified in consultation with the City. The staffing levels of effort, individual billing
rates and total dollar costs for each task are outlined in the table on the following page. The optional
household surveys are listed at the bottom of the table and would cost $6,650 per market area.
Additional work items not included in the scope of work, or attendance at or presentations to
additional advisory committee meetings, would be billed at the rates shown in the table plus
expenses with the prior approval of the city. While the scope of work does include time devoted to
meetings with city staff, the general plan consultants, and business and community leaders as needed
to complete the technical studies for the general plan update, additional meetings and presentations
before official bodies of the City including the GP Advisory Committee, the EDC, the Planning
Commission and the City Council would be billed at the rate of $1,000 per meeting, including all
labor and expenses.
ADE would request a monthly billing process for time and materials consumed each month against
the total contract amount.
APPLIED DEVELOPMENT ECONOMICS
0
PROJECT SCHEDULE
9
The entire study process is anticipated to take approximately and year and a half, including
development of a draft economic strategic plan. The actual meting schedules for the advisory
committees and the strategic plan development process will be dependent on the overall General
Plan update process. In addition, the completion of some of the technical tasks, such as the fiscal
analysis of general plan growth alternatives, may be dependent on the schedule of the General Plan
consultant and the public involvement process for the General Plan update. Aside from these
considerations, the GPAC presentations are scheduled to coincide with the completion of the fiscal
analysis, the economic opportunities /retail analysis, and the development of draft strategic goals,
respectively. The Economic Development Committee would be presented with the draft goals and a
draft strategic plan.
ADE SCHEDULE - 2002
Tasks April May June July August Sept. Oct. Nov. Dec.
Fiscal Model Development
Economic Opportunities
Retail Commercial Market Analysis
X
Economic Goals and Objectives
X
EDC Meetings
X
GP Advisory Committee Meetings
X X
ADE SCHEDULE - 2003
Tasks Jan. Feb. Mar. Apr. May June July Aug. Sept.
Fiscal Analysis of Alternatives
Economic Strategy
EDC Meetings
X
GP Advisory Committee
X
APPLIED DEVELOPMENT ECONOMICS PAGE 7
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11
LIST OF KEY PERSONNEL
NAME
Doug Svensson, AICP
Tapan Monroe, Ph.D.
Stephen Wahlstrom
Peter Cheng
Tony Daysog
Jamie Hurley
Administrative Personnel
POSITION
Managing Principal
Chief Economist/
Senior Vice President
Managing Principal
Senior Associate
Associate
Associate
•
HOURLY RATE
$125
$175
$125
$90
$70
$70
$45
AWL C
CITY OF NART BEACH
�aEWPOR m COMMUNITY AND ECONOMIC Hearing Date: March 12, 2002
DEVELOPMENT
PLANNING DEPARTMENT Agenda Item No.: S15
a 3300 NEWPORT BOULEVARD Staff Person: George A. Berger, AICP
NEWPORT BEACH, CA 92658
(949) 644 -3207
(949) 6443200; FAX (949) 644 -3229
REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: General Plan Update Fiscal & Economic Studies:
Authorization to proceed and Approval of Professional Services
Agreement.
SUMMARY:
MAR 12 2002
The General Plan Update Committee and staff recommend approval
of a contract with Applied Development Economics (ADE) for
professional services associated with fiscal and economic studies
necessary to support the General Plan update and economic strategic
planning process. Staff also recommends Council approval of
professional services fees in order that the project may proceed.
SUGGESTED ACTION: Approve Agreement for Professional Services with ADE for
economic and fiscal analysis, studies and plan support
services in the amount of $115,240; and approve a
reproducibles budget not to exceed $500; for a grand total
recommended budget of $115,740.
Discussion
The proposal for fiscal and economic studies in support of the City's update of its General Plan
stems from City Council, General Plan Update Committee (GPUC) and Economic Development
Committee recognition that the planning process cannot accurately predict potential future
scenarios without a true sense of their financial costs and benefits. Following requests for
qualifications and proposals circulated regionally during the summer of 2001, and after an
extensive review of the scope of services to determine the most suitable course of action fitting the
City's unique economic position in the region, the EDC and General Plan Update Committee
(GPUC) have recommended the firm of Applied Development Economics (ADE) to provide a final
negotiated proposal for submittal to the City Council.
In brief, the consulting firm selected was asked to provide a scope of services that: analyzes the
City's present economic and fiscal situation; predicts opportunities in a number of specific areas
and for certain economic scenarios; participates directly in the General Plan update process; and
assists the City with subsequent economic strategies. In more detail, the GPUC requested that the
consultants provide the following initial products in Phase 1:
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1. Fiscal Impact Model and Analysis: The model, including written methodology and
description, must be interactive, capable of determining the projected impacts on a
citywide basis of land use alternatives developed by the General Plan update consultant,
and should have utility for use in the City's fiscal analysis of future individual
development projects;
2. Economic Profile: An economic profile of the City, and assessment of the local
economy including visitor - serving uses and activities, regional and local - serving retail
development, and office- and manufacturing -based businesses;
3. Citywide Market Feasibility: An analysis of city-wide market feasibility within the
following categories: for retail, industrial, visitor - serving (including but not limited to
hotel development), and office development;
4. Sub -area Market Feasibility: An analysis of market feasibility of office, commercial
and industrial sub -areas including: the Airport Area, Balboa Island, Balboa Peninsula,
Corona del Mar, Mariner's Mile, Newport Shores, Newport Coast, Old Newport
Boulevard and West Newport industrial area;
5. Revenue Generation Analysis: An assessment of the City's future revenue growth
potential, which should analyze and suggest opportunities to increase revenue potential,
and give particular consideration to revenue enhancement without major land
development; sustainability of economic performance, and opportunities for increasing
business -to- business sales and resulting tax revenues;
6. General Plan Update Participation: Participation of the consultant is required in the
General Plan update process. Consultant should be available to present the results of
the above analysis, as well as the methodology of the Fiscal Impact Model, in order to
provide insight to the participants in the City's Community Visioning exercises as well
as the General Plan update consultant and advisory committee.
A second phase of the process should be the development of a comprehensive economic
strategy, to be used as part of the general plan update process and in the future. This
strategy should, at a minimum, consider: the City's position in the regional economy; the
identification of business development targets to strengthen both the quality of jobs
available in the City and its revenue base; and input from the community during visioning
process.
ADE has provided a Scope of Services that meets this requested scope within the context of a
comprehensive planning discussion. Staff believes that the firm's experience in support of similar
General Plan updates makes them well qualified to undertake the project Newport Beach has
requested.
The total cost for the proposed scope of services is slated to be $105,940, with estimated
reimbursable expenses of $9,300, for a grand total project cost of $115,240. Staff also recommends
a reproducibles budget be set aside not to exceed $500 to address the standard cost of copying and
other services through City's reproduction company for each of the required submittals, as noted
in the Professional Services Agreement, Section 17(B). Therefore, the total amount recommended
for the project is $115,740. There is an optional work item outlined in the "Project Budget" section
of the Scope of Services, a household retail survey. Staff does not at this time think this item %will
be needed, but it could be included if needed at a later date.
0
The General Plan Update Committee reviewed this scope of services at its meeting of March 6, and
recommended that City Council approve it.
Submitted by: Prepared by:
SHARON Z. WOOD GEORGE A. BERGER, AICP
Assistant City Manager Senior Planner
Attachments: Anachment I — Professional Services Agreement and Exhibits
Exhibit A: Scope of Services, Project Schedule, Schedule of Fees, List of Key
Personnel and Billing Rates
0
0
ATTACHMENT
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT, entered into this day of March, 2002, by and between
CITY OF NEWPORT BEACH, a Municipal Corporation (hereinafter referred to as "City "), and
APPLIED DEVELOPMENT ECONOMICS (ADE) whose address is 2029 University Avenue,
Berkeley, CA 94704, (hereinafter referred to as "Consultant'), is made with reference to the
following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the
laws of the State of California with the power to carry on its business as it is
now being conducted under the statutes of the State of California and the
Charter of City.
B. City desires to engage Consultant to provide project management and staff
services upon the terms and conditions contained in this Agreement.
C. The principal member of Consultant is, for purpose of this Project, Doug
Svensson.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
contract with Consultant under the terms of conditions provided in this
Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as
follows:
1. TERM
The term of this Agreement shall commence on the _th day of March, 2002, and shall
terminate on the _th day of 2002, unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the duties set forth in the scope of services,
attached hereto as Exhibit "A" attached hereto along with a List of Key Personnel and
incorporated herein by reference.
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3. COMPENSATION TO CONSULTANT
City shall pay Consultant for the services in accordance with the provisions of this
Section and the Schedule of Fees and Billing Rates, attached hereto as Exhibit "A,"
incorporated herein by reference. No rate changes shall be made during the term of this
Agreement without prior written approval of City. Consultant's compensation for all work
performed in accordance with this Agreement, including compensation for approved
subconsultants, shall not exceed the total not -to- exceed contract price of one hundred fifteen
thousand, two hundred and forty dollars ($115,240), excluding optional tasks. Optional tasks
are identified in the Project Budget section of the Scope of Work, attached to this Agreement.
3.1 Consultant shall maintain accounting records of its billings which includes the
name of the employee, type of work performed, times and dates of all work which is billed on
an hourly basis and all approved incidental expenses including reproductions, computer
printing, postage and mileage.
3.2 Consultant shall submit monthly invoices to City payable by City within thirty
(30) days of receipt of invoice subject to the approval of City.
3.3 Consultant shall not receive any compensation for extra work without prior
written authorization of City. Any authorized compensation shall be paid in accordance with
Exhibit "A ".
3.4 City shall reimburse Consultant only for those costs or expenses that have been
specifically approved in this Agreement, or specifically approved in advance by City. Such
cost shall be limited and shall include nothing more than the following costs incurred by
Consultant. Normal reimbursable expenses may include: travel and auto rental expenses;
lodging and meals; long distance telephone charges; copy and printing charges; postage and
delivery charges; and data purchases, and are outlined in the Scope of Services and
Schedule of Fees.
3.5 Notwithstanding any other paragraph or provision of this Agreement, beginning
on the effective date of this Agreement, City may withhold payment of ten percent (10 %) of
each approved payment as approved retention until all services under this Agreement have
been substantially completed.
4. STANDARD OF CARE
4.1 All of the services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical personnel
required to perform the services required by this Agreement, and that it will perform all
services in a manner commensurate with the community professional standards. Qualified
and experienced personnel who are neither employed by City nor have any contractual
relationship with City shall perform all services. Consultant represents and warrants to City
that it has or shall obtain all licenses, permits, qualifications and approvals required of its
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profession. Consultant further represents and warrants that it shall keep in effect all such
licenses, permits and other approvals during the term of this Agreement. -
4.2 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to
approve or disapprove Consultant's work promptly, or delay or faulty performance by City,
contractors, or governmental agencies, or any other delays beyond Consultant's control or
without Consultant's fault.
5. INDEPENDENT PARTIES
City retains Consultant on an independent contractor basis and Consultant is not an
employee of City. The manner and means of conducting the work are under the control of
Consultant, except to the extent they are limited by statute, rule or regulation and the
expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute
Consultant or any of Consultant's employees or agents, to be the agents or employees of
City. Consultant shall have the responsibility for and control over the details in means of
performing the work provided that Consultant is compliance with the terms of this Agreement.
Anything in this Agreement which may appear to give City the right to direct Consultant as to
the details of the performance of the services or to exercise a measure of control over
Consultant shall mean that Consultant shall follow the desires of City only with respect to the
results of the services.
6. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated Project
Administrator, any other agencies that may have jurisdiction or interest in the work to be
performed, and any other consultants assigned to projects related to the update of the City's
General Plan. City agrees to cooperate with the Consultant on the Project.
7. PROJECT MANAGER
Consultant shall assign the Project to a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable times
during the Project term. Consultant has designated Doug Svensson as its Project Manager.
Consultant shall not bill any personnel to the Project other than those personnel identified in
Exhibit "A ", whether or not considered to be key personnel, without City's prior written
approval by name and specific hourly billing rate. Consultant shall not remove or reassign
any personnel designated in this Section or assign any new or replacement person to the
Project without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to removal or assignment of non -key personnel.
Consultant, at the sole discretion of City, shall remove from the Project any of its
personnel assigned to the performance of services upon written request of City. Consultant
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warrants that it will continuously furnish the necessary personnel to complete the Project on a
timely basis as contemplated by this Agreement.
8. TIME OF PERFORMANCE
Time is of the essence in the performance of the services under this Agreement and
Consultant shall perform the services in accordance with Exhibit "A." The failure by
Consultant to strictly adhere to the schedule, may result in termination of this Agreement by
City, and the assessment of damages against Consultant for delay. Notwithstanding the
foregoing, Consultant shall not be responsible for delays that are due to causes beyond
Consultant's reasonable control. However, in the case of any such delay in the services to
be provided for the Project, each party hereby agrees to provide notice to the other party so
that all delays can be addressed.
8.1 Consultant shall submit all requests for extensions of time for performance in
writing to the Project Administrator not later than ten (10) calendar days after the start of the
condition that purportedly causes a delay, and not later than the date upon which
performance is due. The Project Administrator shall review all such requests and may grant
reasonable time extensions for unforeseeable delays, which are beyond Consultant's control.
8.2 For all time periods not specifically set forth herein, Consultant shall respond in
the most expedient and appropriate manner under the circumstances, by either telephone,
electronic mail, fax, hand delivery or mail.
9. CITY POLICY
Consultant will discuss and review all matters relating to policy and project direction
with the Project Administrator in advance of all critical decision points in order to ensure that
the Project proceeds in a manner consistent with City goals and policies.
10. CONFORMANCE TO APPLICABLE REQUIREMENT
All work prepared by Consultant shall conform to applicable city, county, state and
federal law, regulations and permit requirements and be subject to approval of the Project
Administrator and City.
11. PROGRESS
Consultant and City are responsible for keeping the respective Project Administrators
and /or their duly authorized designee informed on a regular basis regarding the status and
progress of the work, activities performed and planned, and any meetings that have been
scheduled or are desired.
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12. HOLD HARMLESS
Consultant shall indemnify, defend, save and hold harmless City, its City Council,
boards and commissions, officers and employees from and against any and all loss,
damages, liability, claims, allegations of liability, suits, costs and expenses for damages of
any nature whatsoever, including, but not limited to, bodily injury, death, personal injury,
property damages, or any other claims arising from any and all acts or omissions of
Consultant, its employees, agents or subcontractors in the performance of services or work
conducted or performed pursuant to this Agreement. This indemnity shall apply even in the
event of negligence of City, or its employees, or other contractors, excepting only the sole
negligence or willful misconduct of City, its officers or employees, and shall include attorneys'
fees and all other costs incurred in defending any such claim. Nothing in this indemnity shall
be construed as authorizing, any award of attorneys' fees in any action on or to enforce the
terms of this Agreement.
13. INSURANCE
Without limiting consultant's indemnification of City, and prior to commencement of
work, Consultant shall obtain and provide and maintain at its own expense during the term of
this Agreement policy or policies of liability insurance of the type and amounts described
below and satisfactory to City. Certification of all required policies shall be signed by a person
authorized by that insurer to bind coverage on its behalf and must be filed with City prior to
exercising any right or performing any work pursuant to this Agreement. Except workers
compensation, all insurance policies shall add City, its elected officials, officers, agents,
representatives and employees as additional insured for all liability arising from Consultant's
services as described herein.
All insurance policies shall be issued by an insurance company currently authorized by
the Insurance Commissioner to transact business of insurance in the State of California, with
an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or
larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise
approved by the City Risk Manager.
A. Worker's compensation insurance covering all employees and principals of
Consultant, per the laws of the State of California.
B. Commercial general liability insurance covering third party liability risks,
including without limitation, contractual liability, in a minimum amount of $1
million combined single limit per occurrence for bodily injury, personal injury and
property damage. If commercial general liability insurance or other form with a
general aggregate is used, either the general aggregate shall apply separately
to this Project, or the general aggregate limit shall be twice the occurrence limit.
C. Commercial auto liability and property insurance covering any owned and
rented vehicles of Consultant in a minimum amount of $1 million combined
single limit per accident for bodily injury and property damage.
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D. Professional errors and omissions insurance that covers the services to be
performed in connection with this Agreement in the minimum amount of One
Million dollars ($1,000,000).
Said policy or policies shall be endorsed to state that either party shall not cancel
coverage except after thirty (30) days' prior notice has been given in writing to City.
Consultant shall give City prompt and timely notice of claim made or suit instituted arising out
of Consultant's operation hereunder. Consultant shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own judgment may be
necessary for its proper protection and prosecution of the work.
Consultant agrees that, in the event of loss due to any of the perils for which it has
agreed to provide comprehensive general and automotive liability insurance, Consultant shall
look solely to its insurance for recovery. Consultant hereby grants to City, on behalf of any
insurer providing comprehensive general and automotive liability insurance to either
Consultant or City with respect to the services of Consultant herein, a waiver of any right of
subrogation that any such insurer of said Consultant may acquire against City by virtue of the
payment of any loss under such insurance.
14. PROHIBITION AGAINST TRANSFERS
Consultant shall not assign, sublease, hypothecate or transfer this Agreement or any
for the services to be performed under this Agreement, directly or indirectly, by operation of
law or otherwise without prior written consent of City. Any attempt to do so without consent
of City shall be null and void.
The sale, assignment, transfer or other disposition of any of the issued and
outstanding capital stock of Consultant, or of the interest of any general partner or joint
venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or
syndicate or cotenancy, which shall result in changing the control of Consultant, shall be
construed as an assignment of this Agreement. Control means fifty percent (50 %) or more of
the voting power, or twenty -five percent (25 %) or more of the assets of the corporation,
partnership or joint venture.
15. OWNERSHIP OF DOCUMENTS
Each and every report, draft, work product, map, record and other document
reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection
with this Agreement shall be the exclusive property of City.
Documents, including drawings and specifications, prepared by Consultant pursuant to
this Agreement are not intended or represented to be suitable for reuse by City or others on
any other project. Any use of completed documents for other projects and any use of
incomplete documents without specific written authorization from Consultant will be at City's
sole risk and without liability to Consultant. Further, any and all liability arising out of changes
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made to Consultant's deliverables under this Agreement by City or persons other than
Consultant is waived against Consultant and City assumes full responsibility for such
changes unless City has given Consultant prior notice and has received from Consultant
written consent for such changes.
Consultant shall, at such time and in such form as City may require, furnish reports
concerning the status of services required under this Agreement.
16. CONFIDENTIALITY
The information, which results from the services in this Agreement, is to be kept
confidential unless City authorizes the release of information.
17. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of his responsibilities under this
Agreement, City agrees to provide the following:
A. Access to, and upon request of Consultant, one copy of all existing record
information on file at City. Consultant shall be entitled to rely upon the accuracy
of data information provided by City or others without independent review or
evaluation. City will provide all such materials in a timely manner so as not to
cause delays in Consultant's work schedule.
B. Copying and other services through City's outside reproduction company or in-
house print facility for each of the required submittals. Consultant will be
required to coordinate the required submittals with City's project manager for
determination whether to utilize a reproduction company or in -house printing.
All other reproduction will be the responsibility of Consultant and as defined
above.
18. ADMINISTRATION
This Agreement will be administered by the Planning Department. George Berger
shall be considered the Project Administrator and shall have the authority act for City under
this Agreement. The Project Administrator or his /her authorized representative shall
represent City in all matters pertaining to the services to be rendered pursuant to this
Agreement.
19. RECORDS
Consultant shall keep records and invoices in connection with the work to be
performed under this Agreement. Consultant shall maintain complete and accurate records
with respect to the costs incurred under this Agreement. All such records shall be clearly
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identifiable. Consultant shall allow a representative of City to examine, audit and make
transcripts or copies of such records during normal business hours. Consultant shall allow
inspection of all work, data, documents, proceedings and activities related to the Agreement
for a period of three (3) years from the date of final payment under this Agreement.
20. WITHHOLDINGS
City may withhold payment of any disputed sums until satisfaction of the dispute with
respect to such payment. Such withholding shall not be deemed to constitute a failure to pay
according to the terms of this Agreement. Consultant shall not discontinue work as a result of
such withholding. Consultant shall have an immediate right to appeal to the City Manager or
his designee with respect to such disputed sums. Consultant shall be entitled to receive
interest on any withheld sums at the rate of seven percent (7 %) per annum from the date of
withholding of any amounts found to have been improperly withheld.
21. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than would have resulted if
there were not errors or omissions in the work accomplished by Consultant, the additional
expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's
rights under any other sections of this Agreement.
22. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other consultants in connection with the Project.
23. CONFLICTS OF INTEREST
A. The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such
persons to disclose financial interest that may foreseeably be materially
affected by the work performed under this Agreement, and (2) prohibits such
persons from making, or participating in making decisions that will foreseeably
financially affect such interest.
B. If subject to the Act, Consultant shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for termination of
this Agreement by City. Consultant shall indemnify and hold harmless City for
any and all claims for damages resulting from Consultant's violation of this
Section.
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24. SUBCONSULTANT AND ASSIGNMENT
Except as specifically authorized under this Agreement, the services included in this
Agreement shall not be assigned, transferred, contracted or subcontracted without prior
written approval of City.
25. NOTICES
All notices, demands, requests or approvals to be given under this Agreement shall be
given in writing and conclusively shall be deemed served when delivered personally or on the
third business day after the deposit thereof in the United States mail, postage prepaid, first
class mail, addressed as hereinafter provided.
All notices, demands, requests or approvals from Consultant to City shall be
addressed to City at:
City of Newport Beach
Planning Department
3300 Newport Boulevard
P. O. Box 1768
Newport Beach, CA, 92658 -8915
(949) 644 -3200
(949) 644 -3229 fax
All notices, demands, requests or approvals from City to Consultant shall be addressed
to Consultant at:
Applied Development Economics (ADE)
Attention: Mr. Doug Svensson
2029 University Avenue
Berkeley, CA 94704
(510) 548 -5912
(510) 548 -6123 fax
26. TERMINATION
In the event either part hereto fails or refuses to perform any of the provisions hereof
at the time and in the manner required hereunder, that party shall be deemed in default in the
performance of this Agreement. If such default is not cured within a period of two (2) days, or
if more than two (2) days are reasonably required to cure the default and the defaulting party
fails to give adequate assurance of due performance within two (2) days after receipt of
written notice of default, specifying the nature of such default and the steps necessary to cure
such default, the nondefaulting party may terminate the Agreement forthwith by giving to the
defaulting party written notice thereof.
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26.1 City shall have the option, at its sole discretion and without cause, of
terminating this Agreement by giving seven (7) days' prior written notice to Consultant as
provided herein. Upon termination of this Agreement, City shall pay to the Consultant that
portion of compensation specified in this Agreement that is earned and unpaid prior to the
effective date of termination.
27. COMPLIANCES
Consultant shall comply with all laws, state or federal and all ordinances, rules and
regulations enacted or issued by City.
28. WAIVER
A waiver by either party of any breach, of any term, covenant or condition contained
herein shall not be deemed to be a waiver of any subsequent breach of the same or any
other term, covenant or condition contained herein, whether of the same or a different
character.
29. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the Parties hereto, and all preliminary negotiations and
agreements of whatsoever kind or nature are merged herein. No verbal agreement or
implied covenant shall be held to vary the provisions herein. Any modification of this
Agreement will be effective only by written execution signed by both City and Consultant.
30. OPINION OF COST
Any opinion of the construction cost prepared by Consultant represents his judgment
as a design professional and is supplied for the general guidance of City. Since Consultant
has no control over the cost of labor and material, or over competitive bidding or market
conditions, Consultant does not guarantee the accuracy of such opinions as compared to
contractor bids or actual cost to City.
31. PATENT INDEMNITY
The Consultant shall indemnify City, its agents, officers, representatives and
employees against liability, including costs, for infringement of any United States' letters
patent, trademark, or copyright infringement, including costs, contained in Consultant's
drawings and specifications provided under this Agreement.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
By:
Robin Clauson
Assistant City Attorney
for the City of Newport Beach
ATTEST:
CITY OF NEWPORT BEACH
A Municipal Corporation
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Homer L. Bludau
City Manager
for the City of Newport Beach
CONSULTANT
By: By:
LaVonne Harkless Doug Svensson
City Clerk Applied Development Economics
Attachments: Exhibit A: Scope of Services, Project Schedule, Schedule of Fees, List of Key Personnel and Billing Rates
EXHIBIT A
APPLIED DEVELOPMENT ECONOMICS
NEWPORT BEACH ECONOMIC ANALYSIS
SCOPE OF WORK
INTRODUCTION
The economic development strategic plan process will provide informative input to the general plan
update and will also create an action plan for ongoing development of the city's economy. One of
the most important purposes of the economic analysis for the general plan will be to identify realistic
market opportunities for economic development. The economic analysis will provide options for
future business development for public discussion and possible inclusion in the proposed land use
element. The analysis will help identify whether the current land use plan for the City provides for
the right kinds of economic development in the right places and whether the inventory of zoned
land for various kinds of commercial, office and visitor- serving development should be changed to
better reflect the likely market opportunities in the years to come. The economic analysis will also
evaluate the fiscal impact of various potential land use decisions and help the general plan process to
determine the best mix of residential and commercial uses in order to generate sufficient public
revenues to support city services in the future.
It is vital for the city's economy to perform well on a variety of levels: it should provide an economic
base with suitable job opportunities for the range of skills and experience of the local workforce; it
should provide the goods and services needed by city residents, local businesses and visitors; it
should provide business opportunities for local entrepreneurs; and, it should generate sufficient tax
revenues to sustain the services and public amenities needed and desired by the residents of the
community. In order to provide these benefits, the economic base must be well diversified and well
connected to the regional and global economy.
The proposed scope of work for the economic development strategic plan addresses each of these
areas of interest. It will include a fiscal impact analysis and model, a market analysis of economic
base business sectors, market studies of retail and visitor- serving business opportunities, and an
action plan with strategies and initiatives to promote long -term economic progress for the
community.
The fiscal analysis will provide an assessment of how both residential and non - residential land uses
generate public revenues and affect the cost of city services. With the use of the interactive fiscal
model, the city can determine the best overall general plan land use mix in terms of meeting city
needs for services. The city can also evaluate specific development projects regarding their potential
fiscal impacts.
APPLIED DEVELOPMENT ECONOMICS
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The economic opportunities analysis will evaluate the local and regional economic base and explore
opportunities to improve the kinds of jobs available in the city and also the level of public revenue
generated by .non- retail businesses in the city. The economic base is comprised of businesses whose
primary markets are outside of Newport Beach. These businesses create local wealth by selling
goods and services in regional and global markets. While this is a critical economic function, it is
important the economic base be compatible with the character of the community as well as meeting
the business and employment needs of local entrepreneurs and workers. In Newport Beach, office -
based businesses constitute most of the economic base, but there may be opportunities for light
industry that would also be suitable and beneficial to the community. The analysis will determine the
market opportunities for a wide range of business types and also seek to identify those business
types that can measurably increase the sales tax revenues through business -to- business transactions.
Visitor - serving businesses are also part of the economic base, because they attract spending from
outside visitors and support jobs for local workers. These kinds of businesses, primarily lodging,
attractions and a variety of retail businesses, are typically high public revenue generators through the
sales tax and the transient occupancy tax on hotel revenues. The strategic plan will include an
analysis of how these business opportunities can be enhanced.
The retail sector is primarily local serving, although there is certainly the opportunity to capture
regional sales with substantial sales tax benefit. The economic strategic plan will include a market
analysis of each major commercial district in the city to determine how local businesses can better
capture local and regional consumer spending.
Finally the strategic plan will include an action plan to guide business leaders and city staff in
developing long -term opportunities for economic advancement in the community. This will include
land use planning initiatives in the proposed general plan land use element and supporting
circulation and public services policies. It will include strategies for encouraging the kinds of
business growth that maximize city revenues and are compatible with the community vision, and it
will include actions to promote coordination and collaboration with the many regional economic
development organizations and resources in the county and in the Southern California region.
The specific tasks for each component of the economic analysis are outlined below.
1. FISCAL IMPACT MODEL AND REVENUE ANALYSIS
1.1 Construct fiscal impact model based on existing city budget data, available land use
data, and interviews with City staff.
1.2 Prepare analysis of existing relationships between land uses and city budget costs and
revenues. Provide memo describing the data and assumptions used in the model and
the results of the analysis to city staff and general plan consultant.
APPLIED DEVELOPMENT ECONOMICS
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1.3 Prepare analysis of up to three general plan land use scenarios in coordination with
the general plan consultant. Prepare memo of results.
1.4 Prepare user manual and provide staff training for further use of the fiscal impact
model.
2. ECONOMIC OPPORTUNITY ANALYSIS
2.1 Prepare analysis of regional economic trends, including a forecast of Orange County
economic indicators and identification of regional business clusters currently or
potentially represented in Newport Beach, to provide context for identification of
business attraction, development and retention opportunities.
2.2 Prepare a market analysis of industrial and office -based business types with potential
for development or expansion in Newport Beach, based on requisite locational
factors and the ability and interest of the community to support specific business
types. The methodology for this task will include not only analysis of quantitative
economic data but also interviews and possibly surveys of existing businesses and
business leaders in the city and the county to gain first hand insight into the market
conditions experienced by local businesses.
2.3 Prepare an analysis of business types that typically generate high business -to- business
or distribution -based taxable sales and identify those specific business types that
could find suitable locations in Newport Beach. Identify opportunities for the City to
transition its business mix within its existing or planned built space to generate a
higher yield sales tax base.
2.4 Prepare a projection of potential non -retail employment growth and building space
demand in the city reflecting the recommended business development targets and
the city's market strength identified in the analysis.
2.5 Prepare a report describing the analysis, conclusions and recommendations for this
task.
2. RETAIL COMMERCIAL MARKET AND VISITOR-SERVING ANALYSIS
3.1 ADE will review existing regional retail market analyses and consult with the City to
determine the primary focus of the commercial market analysis. Of particular interest
for the General Plan and Local Coastal Plan Update are the existing and planned
commercial areas within the coastal zone. The scope of work and budget for this
APPLIED DEVELOPMENT ECONOMICS
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task contemplates the coastal zone as the primary focus of the retail commercial
analysis, supplemented by a brief overview of citywide sales characteristics.
3.2 As an initial optional step, the City and ADE may agree that a survey of households
in specific neighborhoods or districts in the City may need to be completed in order
to analyze retail sales leakage for existing or planned commercial centers. A survey
would be indicated if the available data on taxable sales for certain commercial
districts is not adequate to determine the balance of supply and demand and whether
the land inventory is well matched with future needs for commercial development.
Upon final determination of the market areas within the city to be included in the analysis,
the steps for the retail land demand analysis will include the following:
3.3 In the primary market areas under analyses, conduct interviews with selected retail
businesses in the community to determine perceived market share and customer
shopping preferences.
3.4 Prepare an inventory and analysis of retail commercial shopping opportunities both
within Newport Beach and in surrounding communities that affect the demand for
future commercial development in selected areas of Newport Beach, particularly the
coastal zone areas.
3.5 Prepare an analysis of retail sales leakage from the household population within the
market area.
3.6 Estimate the extent to which retail spending by workers employed in Newport Beach
are captured in the selected market areas.
3.7 Estimate spending captured in the market area from visitors to the City, including
both residents of surrounding communities and tourists to the City. Estimate the
economic impact of visitor serving businesses and events in the City from available
data collected by the City and other data sources.
3.8 Prepare an analysis of existing and projected future retail and visitor serving business
development and expansion opportunities in the market area. For retail businesses,
recommendations for business development will be based on the sales
leakage /capture analysis of the commercial district. The analysis will also address the
potential for additional kinds of visitor- serving businesses including lodging and
entertainment facilities based on regional market indicators for these types of
businesses.
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3.9 Estimate the land and building space demand reflected in new business opportunities
in the coastal zone commercial areas and any other commercial market areas in the
city included in the analysis. The analysis will determine the appropriate inventory of
land to support existing and future commercial market opportunities. In cases where
the existing land supply exceeds projected future needs, ADE will recommend which
sites could best support the commercial needs of the community and which sites
would be best rezoned to other uses.
3.10 Prepare a report describing the retail /visitor - serving business development
recommendations and projected growth in these business sectors.
4. ECONOMIC DEVELOPMENT STRATEGY AND ECONOMIC DEVELOPMENT COMMITTEE
PROCESS
4.1 Based on the market studies and discussions with the General Plan Advisory
Committee and the City's Economic Development Committee (EDC), prepare
recommendations for citywide and area- specific economic development goals and
business development targets.
4.2 Upon approval by the advisory committees of a set of economic goals and targets,
prepare a draft strategic plan outlining recommended implementation strategies to
achieve the expressed goals. The strategies should address areas of highest concern
and capability of the city and may include land use planning and regulation, business
expansion and retention, economic development marketing activities, workforce
development and local and regional organizational coordination, among others.
4.3 Upon concurrence by the EDC on the draft strategic plan, prepare an action plan for
inclusion in the strategic plan to provide concrete guidance to city staff and business
leaders on activities designed to implement the strategic plan. The action plan will
recommend and provide benchmarks for indicators to measure success of the
strategies and a time frame for implementation of the recommended programs and
activities.
4.4 Prepare final Economic Development Strategic Plan based on city staff and
committee comments.
5. GENERAL PLAN ADVISORY COMMITTEE, PLANNING COMMISSION AND CITY COUNCIL
5.1 Present fiscal impact model and general plan scenarios analysis to the General Plan
Advisory Committee.
APPLIED DEVELOPMENT ECONOMICS
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5.2 Present the findings and recommendations of the economic opportunities analysis
and the retail/visitor- serving market analyses to the General Plan Advisory
Committee.
5.3 Present recommendations for economic goals and targets as a basis for developing
the Economic Strategic Plan to the General Plan Advisory Committee.
5.4 Review the general plan economic analysis with the Planning Commission at two (2)
meetings at appropriate stages in the process as determined by the City.
5.5 Attend two (2) City Council meetings to present the economic studies for the
General Plan.
PROJECT BUDGET
The above scope of work shall be completed for a not -to- exceed price of $115,240, excluding
optional tasks. The optional tasks identified in the scope of work include household surveys of
commercial market areas within the City such as the coastal zone commercial districts and others
that may be identified in consultation with the City. The staffing levels of effort, individual billing
rates and total dollar costs for each task are outlined in the table on the following page. The optional
household surveys are listed at the bottom of the table and would cost $6,650 per market area.
Additional work items not included in the scope of work, or attendance at or presentations to
additional advisory committee meetings, would be billed at the rates shown in the table plus
expenses with the prior approval of the city. While the scope of work does include time devoted to
meetings with city staff, the general plan consultants, and business and community leaders as needed
to complete the technical studies for the general plan update, additional meetings and presentations
before official bodies of the City including the GP Advisory Committee, the EDC, the Planning
Commission and the City Council would be billed at the rate of $1,000 per meeting, including all
labor and expenses.
ADE would request a monthly billing process for time and materials consumed each month against
the total contract amount.
APPLIED DEVELOPMENT ECONOMICS
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PROJECT SCHEDULE
The entire study process is anticipated to take approximately and year and a half, including
development of a draft economic strategic plan. The actual meting schedules for the advisory
committees and the strategic plan development process will be dependent on the overall General
Plan update process. In addition, the completion of some of the technical tasks, such as the fiscal
analysis of general plan growth alternatives, may be dependent on the schedule of the General Plan
consultant and the public involvement process for the General Plan update. Aside from these
considerations, the GPAC presentations are scheduled to coincide with the completion of the fiscal
analysis, the economic opportunities /retail analysis, and the development of draft strategic goals,
respectively. The Economic Development Committee would be presented with the draft goals and a
draft strategic plan.
ADE SCHEDULE - 2002
Tasks April May June July August Sept. Oct. Nov. Dec.
Fiscal Model Development
Economic Opportunities
Retail Commercial Market Analysis
X
Economic Goals and Objectives
X
EDC Meetings
X
GP Advisory Committee Meetings
X X
ADE SCHEDULE - 2003
Tasks Jan. Feb. Mar. Apr. May June July Aug. Sept.
Fiscal Analysis of Alternatives
Economic Strategy
EDC Meetings
X
GP Advisory Committee
X
APPLIED DEVELOPMENT ECONOMICS PAGE
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2
0
LIST OF KEY PERSONNEL
NAME
POSITION
Doug Svensson, AICP
Managing Principal
Tapan Monroe, Ph.D.
Chief Economist/
Senior Vice President
Stephen Wahlstrom
Managing Principal
Peter Cheng
Senior Associate
Tony Daysog
Associate
Jamie Hurley
Associate
Administrative Personnel
0
HOURLY RATE
$125
$175
$125
$90
$70
$70
$45
,u