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HomeMy WebLinkAboutAGENDA REPORT 2022 0202 CCSA REG ITEM 09CCITY OF MOORPARK, 
CALIFORNIA City Council Meeting of February 2, 2022 ACTION Approved Staff Recommendation, Including Adoption of Resolution No. 2022- 4069. (Roll Call Vote: Unanimous). BY B. Garza. C.Consider Agreement with ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study for $101,555 and Resolution Amending the Fiscal Year 2021/22 Budget. Staff Recommendation: 1) Approve Agreement with ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study, and authorize the City Manager to execute the Agreement, subject to final language approval of the City Manager; and 2) Adopt Resolution No. 2022-4069 amending the Fiscal Year 2021/22 budget to fully fund the Agreement. (ROLL CALL VOTE REQUIRED) (Staff: Carlene Saxton, Community Development Director) Item: 9.C. Item: 9.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Carlene Saxton, Community Development Director DATE: 02/02/2022 Regular Meeting SUBJECT: Consider Agreement with ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study for $101,555 and Resolution Amending the Fiscal Year 2021/22 Budget SUMMARY Staff recommends that the City Council approve an Agreement (Attachment 1) with ClearSource Financial Consulting (ClearSource) for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study (Fee Study) in the amount of $101,555 as well as a resolution allocating the necessary additional funding from CDD Administration (1000- 160-00000-59010) for the project. BACKGROUND In 2019, the City contracted Management Partners, Incorporated (MP/Management Partners) to prepare an audit of the Community Development Department, to review the entitlement process, analyze current practices, and recommend a framework of development policies, regulations, and procedures. The resulting report, “Community Development Organizational Audit” (Attachment 2), which was presented to the City Council on January 15, 2020, recommended various improvements to streamline, modernize, and advance the development review process. The MP “Draft Implementation Action Plan” (Attachment 2, Exhibit A) summarizes the recommendations, outlines implementation steps, prioritizes steps and identifies the responsible department or staff person implementing the procedure. Within the last two years, staff has implemented or initiated the overwhelming majority of these recommendations. The following extracted recommendations (Table 1) support the requested action in this report: 222 Honorable City Council 02/02/2022 Regular Meeting Page 2 Table 1: Management Partners – Draft Implementation Action Plan Rec No. Recommendation Implementation Steps Priority 1 Person Responsible2 Implemented 3 Conduct a nexus study to determine the infrastructure and improvements required to serve new development and analyze their costs in relation to new development projects. •Assign team members responsibility for nexus study •Apportion costs for new infrastructure and improvements to new development, based on project impact and need •Review results with City Manager and Community Development Director 2 Public Works Director Pending 4 Adopt impact fees based on the nexus study. •Collect and review sample/peer impact fee structures •Establish impact fees based on the results of the nexus study •Communicate new fees to staff 2 Public Works Director Pending 24 Expand consulting services to include additional on-call economic and planning casework assistance, as well as services to analyze building permit fees and development impact fees. •Determine which additional services the department will use consultants for (i.e., analyzing fees, on-call project processing) •Prepare and circulate a request for qualifications •Select the appropriate consultants and finalize contracts 2 Community Development Director Pending 31 Determine whether building fees are to be calculated on the basis of project valuation or the estimated time for completing each task. •Obtain advice from a building permit fee consultant about the revenue implications of the alternatives •Provide a briefing for the City Manager •Determine whether the City will use project valuation or actual costs for calculating building fees 2 Community Development Director Pending On February 3, 2021, the City Council adopted Resolution No. 2021-3989, approving a unified schedule of fees and service charges, and provided direction to staff to initiate a comprehensive study of the City’s fees and service charges. DISCUSSION Since incorporation, the City Council has adopted numerous resolutions establishing and updating various fees and service charges. These cover such items as permits, park and facility rentals, business registrations, and even photocopies. In general, fees and service charges are calculated so that the City can recover the costs of providing a municipal 1 Priority 1: Important to accomplish without delay and/or easy to accomplish. Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete. Priority 3: Least urgent to complete and/or may take longer to set-up or to execute. 2 To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared. 223 Honorable City Council 02/02/2022 Regular Meeting Page 3 service. The City has not recently conducted a comprehensive review of all of its fees and charges, instead occasionally adopting them piecemeal. As a result, the City currently has fees for obsolete services (for example, the City no longer needs a charge for printing/mailing City Council agendas because they are distributed for free via e-mail) and does not have fees for various items (such as a citywide traffic impact fee), but rather collects fees based on Areas of Contribution. To purge unneeded fees, calibrate current fees to ensure they do not undercharge or overcharge the costs to provide associated municipal services, and to develop new fees, staff as directed by City Council, released a Request for Proposals (RFP) to select a firm to establish a contract for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study in November 2021. In February 2021, the City Council directed staff to prepare a RFP for a fee study consultant, with an optional line item to update the City’s Cost Allocation Plan. City’s Cost Allocation Plan calculates the distribution of general governmental and support service costs of an organization across its various municipal operations. For example, the City’s Human Resources Division provides general support to all City staff across all operations, and the Cost Allocation Plan would distribute the General Fund costs of the Human Resources operations to the General Fund, Public Works Funds, Community Development Funds, etc. Since February 2021, staff has considered the necessity of having a Cost Allocation Plan as part of the comprehensive fee study and recommends conducting all three components (Cost Allocation Plan, Impact Fee Study, and Developer Fee Study) at the same time to ensure a coordinated and fully transparent fee setting process. This perspective was further confirmed through the proposal and interview process conducted to select the top consultant. In addition, by including all three components simultaneously the City benefits from cost savings due to overlapping research and work efforts. On November 30, 2021, staff received six RFP’s from qualified firms for the fee services listed above. The proposals were reviewed by staff and were ranked on the following criteria: • Understanding of Scope of Works & Quality of Proposal - Understanding of problem is addressed - Proposal meets requirements listed in RFP • Past Performance (Experience and References) - Demonstrated skills and credentials - Experience with similar projects - Fee Study and Plan final report sample or detailed description - Feedback from references • Project Work Plan (Approach to Scope of Work Implementation) - Timelines and proposed schedule - Approach for accomplishing tasks in scope of work/Work plan - Ability to meet current and projected service requirements over term of agreement - Proposed Fee 224 Honorable City Council 02/02/2022 Regular Meeting Page 4 On December 6, 2021, staff met to review the proposals and selected three firms to continue in the selection process. The three firms that were selected are as follows: •Willdan •NBS •ClearSource On December 22, 2021, staff interviewed the three selected firms. Each firm was instructed to prepare a presentation based on the information provide in the RFP and to address the following three questions: •It is the City’s desire have this process be as seamless as possible, please indicate the expectations for City staff in the overall project. •Please indicated your firms experience and tact for political sensitivities in the process including interactions with the Building Industry Association (BIA). •The City is currently undertaking a General Plan Update and comprehensive Zoning Ordinance update to provide a more streamline process. Please indicate how the Cost Allocation, Impact Fee Study and Developer Fee Study will integrate. The interviews were ranked based on how they addressed the questions above and the quality of their presentation in general. FISCAL IMPACT The cost for Cost Allocation Plan, Impact Fee Study, and Developer Fee Study is $101,555. A budget amendment is needed in order to fully fund the Cost Allocation Plan, Impact Fee Study, and Developer Fee Study. The funds available in the Consulting Impact Fee Study (2200-161-00000-51000) total $60,000.00. A budget amendment of $41,555 from CDD Administration (1000-160-00000-59010) is needed to fully fund the project. COUNCIL GOAL COMPLIANCE This action supports City Council Goal 3, Objective 3.9 “Identify revenue enhancement strategies” and Objective 3.10 “Identify cost savings and fee schedules that recover costs for City services”. In addition, this action implements recommendations identified in the December 2019 “Community Development Organizational Audit” prepared by MP. The report was presented to the City Council on January 15, 2020, and made a variety of recommendations to address the development and entitlement process at the City of Moorpark, as shown in Table 1. The proposed fee study would implement the suggested recommendations noted in the MP report. 225 Honorable City Council 02/02/2022 Regular Meeting Page 5 STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Approve Agreement with ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study, and authorize the City Manager to execute the Agreement, subject to final language approval of the City Manager; and 2. Adopt Resolution No. 2022-____ amending the Fiscal Year 2021/22 budget to fully fund the Agreement. Attachment 1: Agreement with ClearSource Financial Consulting Attachment 2: Community Development Organizational Audit by Management Partners Exhibit A: Draft Implementation Action Plan Attachment 3: Draft Resolution No. 2022-____ 226 ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND CLEARSOURCE FINANCIAL CONSULTING FOR COST ALLOCATION PLAN, IMPACT FEE STUDY, AND DEVELOPER FEE STUDY SERVICES THIS AGREEMENT, made and effective as of this _____ day of February, 2022, between the City of Moorpark, a municipal corporation (“City”) and ClearSource Financial Consulting, a corporation (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: WHEREAS, City has the need for cost allocation plan (Plan), impact fee study (Impact Study), and developer fee study (Developer Study) services; and WHEREAS, Consultant specializes in providing such services and has the proper work experience, certifications, and background to carry out the duties involved; and WHEREAS, Consultant has submitted to City a Proposal dated November 23, 2021, which is attached hereto as Exhibit C. NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties hereto agree as follows: 1. TERM The term of this Agreement shall be from the date of execution to completion of the work identified in the Scope of Services and in conformance with Exhibit C, unless this Agreement is terminated or suspended pursuant to this Agreement. 2. SCOPE OF SERVICES City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide cost allocation plan, impact fee study, and developer fee study services, as set forth in Exhibit C. In the event there is a conflict between the provisions of Exhibit C and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibit C. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit C. Compensation for the services to be performed by Consultant shall be in accordance with Exhibit D. Compensation shall not exceed the rates or total contract value of one hundred and one thousand five hundred fifty-five dollars ($101,555) as stated in Exhibit D, without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement. 227 ClearSource Financial Consulting Page 2 of 15 3.PERFORMANCE Consultant shall at all times faithfully, competently and to the best of their ability, experience, standard of care, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4.MANAGEMENT The individual directly responsible for Consultant’s overall performance of the Agreement provisions herein above set forth and to serve as principal liaison between City and Consultant shall be Terry Madsen, and no other individual may be substituted without the prior written approval of the City Manager. The City’s contact person in charge of administration of this Agreement, and to serve as principal liaison between Consultant and City, shall be the City Manager or the City Manager’s designee. 5.PAYMENT Taxpayer ID or Social Security numbers must be provided by Consultant on an IRS W-9 form before payments may be made by City to Consultant. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C, based upon actual time spent on the above tasks. This amount shall not exceed one hundred and one thousand five hundred fifty-five dollars ($101,555) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services and compensation are authorized, in advance, in a written amendment to this Agreement executed by both parties. The City Manager, if authorized by City Council, may approve additional work not to exceed ten percent (10%) of the amount of the Agreement. Consultant shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. Any expense or reimbursable cost appearing on any invoice shall be accompanied by a receipt or other documentation subject to approval of the City Manager or the City Manager’s designee. If the City disputes any of Consultant’s fees or expenses, City shall give written notice to Consultant within thirty (30) days of receipt of any disputed fees set forth on the invoice. 228 ClearSource Financial Consulting Page 3 of 15 6. TERMINATION OR SUSPENSION WITHOUT CAUSE The City may at any time, for any reason, with or without cause, suspend, or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement. The Consultant may terminate this Agreement only by providing City with written notice no less than thirty (30) days in advance of such termination. In the event this Agreement is terminated or suspended pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination or suspension, provided that the work performed is of value to the City. Upon termination or suspension of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to this Agreement. 7. DEFAULT OF CONSULTANT The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate or suspend this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default. If the City Manager or his/her designee determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have thirty (30) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 8. LIQUIDATED DAMAGES There are no liquidated damages under this Agreement. 9. OWNERSHIP OF DOCUMENTS Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate 229 ClearSource Financial Consulting Page 4 of 15 records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or the City’s designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Notification of audit shall be provided at least thirty (30) days before any such audit is conducted. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension without cause of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 10. INDEMNIFICATION AND HOLD HARMLESS Indemnity for professional liability: When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including reasonable legal counsels’ fees and costs to the extent same are caused by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Indemnity for other than professional liability: Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City, and any and all of its officials, employees, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, including reasonable legal counsels’ fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, pertain to, or are in any way attributable to, the performance of this Agreement by Consultant or by any individual or agency for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section from each and every subcontractor, or any other person or entity involved by, for, with, or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from 230 ClearSource Financial Consulting Page 5 of 15 others as required here, Consultant agrees to be fully responsible according to the terms of this Section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns, or heirs of Consultant and shall survive the termination of this Agreement or this Section. City does not and shall not waive any rights that it may have against Consultant by reason of this Section, because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions shall apply regardless of whether or not said insurance policies are determined to be applicable to any losses, liabilities, damages, costs, and expenses described in this Section. 11. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit A attached hereto and incorporated herein by this reference as though set forth in full. 12. INDEPENDENT CONSULTANT Consultant is and shall at all times remain as to the City a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers or employees, or agents of the City except as set forth in this Agreement. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 13. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of local, state, and federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations, including but not limited to the Americans with Disabilities Act and Occupational Safety and Health Administration laws and regulations. The Consultant shall comply with and sign Exhibit B, the Scope of Work Requirement for Professional Services Agreements Compliance with California 231 ClearSource Financial Consulting Page 6 of 15 Government Code Section 7550, when applicable. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Should the Scope of Services include work that is considered a public work to which prevailing wages apply, the public work project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). Consultant agrees to comply with and be bound by all applicable terms, rules and regulations described in (a) Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the DIR implementing such statutes, as though set forth in full herein, including any applicable amendments made thereto during the term of this Agreement. For every subcontractor who will perform work on this project, Consultant shall be responsible for subcontractor’s compliance with (a) and (b), and Consultant shall take all necessary actions to ensure subcontractor’s compliance. Labor Code Section 1725.5 requires all contractors and subcontractors to annually register with the DIR before bidding or performing on any public work contract. 14.ANTI DISCRIMINATION Neither the Consultant, nor any subconsultant under the Consultant, shall discriminate in employment of persons upon the work because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status; or any other basis protected by applicable federal, state, or local law, except as provided in Section 12940 of the Government Code. Consultant shall have responsibility for compliance with this Section. 15.UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City will receive compensation, directly or indirectly from Consultant, or any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 16.NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement. 232 ClearSource Financial Consulting Page 7 of 15 17. CONFLICT OF INTEREST Consultant covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, they shall employ no person having such interest as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly, with the developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, now or within the past one (1) year, and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any contract with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, while under contract with the City and for a one (1) year time period following termination of this Agreement. 18. NOTICE Any notice to be given pursuant to this Agreement shall be in writing, and all such notices and any other document to be delivered shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: To: City Manager City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 To: Terry Madsen ClearSource Financial Consulting 7960 B Soquel Drive, Suite 363 Aptos, CA 95003 Either party may, from time to time, by written notice to the other, designate a different address or contact person, which shall be substituted for the one above specified. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the third (3rd) day after deposit in the United States mail. 19. CHANGE IN NAME Should a change be contemplated in the name or nature of the Consultant's legal entity, the Consultant shall first notify the City in order that proper steps may be taken to have the change reflected in the Agreement documents. 233 ClearSource Financial Consulting Page 8 of 15 20. ASSIGNMENT Consultant shall not assign this Agreement or any of the rights, duties, or obligations hereunder. It is understood and acknowledged by the parties that Consultant is uniquely qualified to perform the services provided for in this Agreement. 21. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services in this Agreement. 22. VENUE AND GOVERNING LAW This Agreement is made, entered into, and executed in Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement or other action of the terms, conditions, or covenants referred to herein shall be filed in the applicable court in Ventura County, California. The City and Consultant understand and agree that the laws of the state of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. 23. COST RECOVERY In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including attorneys’ fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 24. ENTIRE AGREEMENT This Agreement and the Exhibits attached hereto contain the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material. 25. CAPTIONS OR HEADINGS The captions and headings of the various Articles, Paragraphs, and Exhibits of this Agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles, Paragraphs, and Exhibits hereof. 234 ClearSource Financial Consulting Page 9 of 15 26. AMENDMENTS Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by both parties to this Agreement. 27. PRECEDENCE In the event of conflict, the requirements of the City’s Request for Proposal, if any, and this Agreement shall take precedence over those contained in the Consultant’s Proposal. 28. INTERPRETATION OF AGREEMENT Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 29. WAIVER No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding unless executed in writing by the party making the waiver. 30. AUTHORITY TO EXECUTE The person or persons executing this Agreement on behalf of the Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF MOORPARK CLEARSOURCE FINANCIAL CONSULTING __________________________________ __________________________________ Troy Brown, City Manager Terry Madsen, President Attest: __________________________________ Ky Spangler, City Clerk 235 ClearSource Financial Consulting Page 10 of 15 Exhibit A INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet requirements set forth here, Consultant agrees to amend, supplement, or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to the City in excess of the limits and coverage required in this Agreement and which is applicable to a given loss, will be available to the City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office (ISO) “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability for each such person. Workers’ Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in 236 ClearSource Financial Consulting Page 11 of 15 addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to the City for injury to employees of Consultant, subconsultants, or others involved in the Work. The scope of coverage provided is subject to approval by the City following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $2,000,000 aggregate. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of A- or better and a minimum financial size of VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and the City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds the City, its officials, employees, and agents, using standard ISO endorsement CG 2010 and CG 2037 with edition acceptable to the City. Consultant also agrees to require all contractors and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right to subrogation prior to a loss. Consultant agrees to waive subrogation rights against the City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operation limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include limiting endorsement of any kind that has not been first submitted to the City and approved in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification, and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect the City’s protection without the City’s prior written consent. 237 ClearSource Financial Consulting Page 12 of 15 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to city at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled or reduced at any time and no replacement coverage is provided, the City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other Agreement and to pay the premium. Any premium so paid by the City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at the City’s option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to the City of any cancellation or reduction of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation or reduction of coverage imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this Agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to the City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the Work who is brought onto or involved in the Work by Consultant, provide the same minimum insurance required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Work will be submitted to the City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer, or other entity or person in any way involved in the performance of Work contemplated by this Agreement to self-insure its obligations to the City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self- insured retention must be declared to the City. At that time, the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to the City. 238 ClearSource Financial Consulting Page 13 of 15 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with an insurance requirement in no way imposes any additional obligations to the City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually for five years after the Agreement is canceled or terminated. Termination of this obligation is not effective until the City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to the City within five days of the expiration of coverage. 17. The provisions of any Workers’ Compensation or similar act will not limit the obligations of Consultant under this Agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to the City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all- inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts or impairs the provisions of this section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the Work reserves the right to charge the City or Consultant for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to the City. It is not the intent of the City to reimburse any third party for the cost of complying with 239 ClearSource Financial Consulting Page 14 of 15 these requirements. There shall be no recourse against the City for payment of premiums or other amounts with respect thereto. 22.Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this Agreement. The City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve the City. 240 ClearSource Financial Consulting Page 15 of 15 Exhibit B CITY OF MOORPARK Scope of Work Requirement for Professional Services Agreements Compliance with California Government Code Section 7550 Consultant shall sign and include this page in any document or written reports prepared by Consultant for the City of Moorpark (City) to which California Government Code Section 7550 (Government Code § 7550) applies. Government Code §7550 reads: “(a) Any document or written report prepared for or under the direction of a state or local agency, that is prepared in whole or in part by nonemployees of the agency, shall contain the numbers and dollar amounts of all contracts and subcontracts relating to the preparation of the document or written report; if the total cost for the work performed by nonemployees of the agency exceeds five thousand dollars ($5,000). The contract and subcontract numbers and dollar amounts shall be contained in a separate section of the document or written report. (b) When multiple documents or written reports are the subject or product of the contract, the disclosure section may also contain a statement indicating that the total contract amount represents compensation for multiple documents or written reports.” For all Professional Services Agreement with a total dollar value in excess of $5,000, a signed and completed copy of this form must be attached to all documents or completed reports submitted to the City pursuant to the Scope of Work. Does the dollar value of this Professional Services Agreement exceed $5,000?  Yes  No If yes, then the following information must be provided in compliance with Government Code § 7550: 1. Dollar amount of Agreement/Contract: $ 101,555.00 2. Dollar amount of Subcontract: $ ____________ 3. Does the total contract amount represent compensation for multiple documents or written reports?  Yes  No I have read the foregoing Code section and will comply with Government Code §7550. ClearSource Financial Consulting __________________________________ ______________________ Terry Madsen, President Date 241 Exhibit C Formatted: Centered The City of Moorpark (City) is engaging ClearSource Financial Consulting (Consultant) to perform a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study. (ClearSource will engage a subconsultant, Harris & Associates, for certain elements of the project.) Extracted from the ClearSource-Harris proposal is the following description of the services to be provided by the Consultant to complete the project. PROJECT UNDERSTANDING Overall Project Elements The City of Moorpark is initiating a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study. This type of project is focused on the ethic of “the costs to serve” from different, yet intertwined, perspectives:  What are the costs of central services within the municipal organization, and how do those costs relate to the array of direct services provided to the community? What are the cost recovery opportunities for these administrative, management, and support services of the agency? (This is accomplished through a Cost Allocation Plan.)  What are the projected costs of ensuring public infrastructure is available and operating at necessary levels of service as the community grows and changes? What development impact fees are justified to target cost recovery of these capital investments from the development generating increased demands for public service? (This is accomplished through an Impact Fee Study.)  What are the costs of development regulation services provided to the community, which currently have or may be eligible for a user or regulatory fee? What are the cost recovery targets or policies of the City as to the amounts that should be paid for those who request or cause these services? What is the impact to the source funds – typically the General Fund – of changes to user/regulatory fees? (This is accomplished through a Developer Fee Study.) City Project Objectives The City of Moorpark has outlined the following objectives for each element of study: COST ALLOCATION PLAN  Ensure the City is accurately accounting for the true cost of providing various services by departments through the use of a well-documented and defensible plan.  Ensure the City has a valid basis for calculating and administering comprehensive overhead rates which are used for internal budgetary transfers and expenditures in addition to billable rates for federal and state grants, user fees, cost recovery, and reimbursements from other government agencies. IMPACT FEE AND DEVELOPER FEE STUDIES  Develop defensible fee justifications and nexus report that complies with Proposition 218. Formatted: Different first page header 242 C-2 City Services for Study USER FEES It is expected that the direct, fee-related services under review in this element will focus on services eligible for user fee methodology, as well as identification during this study of any relevant additions for services performed without a fee or for under-quantified or ineffectively structured fees. The City is limiting this analysis to services related to development and construction for which a user or regulatory fee is or can be imposed can be included as desired. This can encompass activities managed by the Department that may include generally:  Regulatory activities, such as review and inspection of land development, construction/building, and improvements to infrastructure, and other areas of code review, compliance, and enforcement  Permitting, such as special events and use of public facilities, infrastructure, and services  Facility rentals and use of public spaces  Program participation  Operations and services of individual benefit/request or in response to individual action  Licensing, billing, records management, and administrative service  Hourly rates for direct-billing City staff time Revenue streams generally excluded from this type of methodology due to differing authority, implementation and analytical methodologies, and approval procedures would include: utility rates and other property-related fees subject to Proposition 218 proceedings, assessments, in-lieu fees, fees intended and codified more as “taxes,” punitive fines/penalties, and general taxes. From the City’s existing Schedule of Fees and Charges Effective March 17, 2021, our team expects the following broad categories of fees to fall under review in the Developer Fee Study:  Planning – Counter Services  Planning – Development Services  Public Works – Engineering Services  Public Works – Counter Services  Building & Safety  Vector Control/Animal Control Services  Police Services DEVELOPMENT IMPACT FEES The City of Moorpark has an adopted Development Impact Fee (DIF) program. According to the City’s latest Annual report, the City imposes fees for: 243 C-3  Traffic Systems Management  Citywide Traffic Mitigation  Crossing Guard  Library Facilities  Open Space Maintenance  Tree & Landscaping  Art in Public Places  Park Improvement and Recreation Facilities  Los Angeles Avenue Area of Contribution  Tierra Rejada Road/Spring Road Area of Contribution  Casey Road/Gabbert Road Area of Contribution  Fremont Storm Drain AOC  Walnut Canyon Traffic Noise Attenuation  Police Facilities  Parking In-lieu  Truck Impact Fee The City desires to complete an analysis of the City’s needs and establish a new development impact fee program. CENTRAL SUPPORT SERVICES While cost recovery for the above listed direct services are the focus of the two fee studies, a Cost Allocation Plan focuses on potential cost recovery for the “indirect” services of the municipal organization. Indirect services represent City budget units commonly found in the General Fund that might include:  Legislative and general governmental activities  Organization-wide management and administration  Central services outside of internal service funds WORK PLANS BY STUDY ELEMENT Cost Allocation Plan ClearSource presents the following work plan to complete the Cost Allocation Plan envisioned by the City of Moorpark. 244 C-4 TASK 1 | STUDY ORIENTATION To commence the study on solid ground, ClearSource will generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre-established dates, and data collection and development procedures. Subtasks include:  Facilitate project kick-off event(s)  Assess prevailing cost allocation models, methods, and applications. Particular attention will be paid to annual procedures, internal opinions and impacts, and balance of workload with the requirements of the City’s uses for overhead, including internal transfers/reimbursements and external agency reimbursement.  Review readily available budgetary documents to gain a working knowledge of City structure and accounting practices. Determine a plan for generating current indirect cost allocations for the host of uses identified by the City. This will likely include development of a new Excel-based model in alignment with current needs but may include modification of existing tools if City personnel prefer to sustain existing tools. ClearSource will remain flexible. TASK 2 | FINANCIAL AND ORGANIZATIONAL INPUTS ClearSource will develop the necessary foundation for subsequent quantitative analysis. Particular focus will be generating necessary data and documentation of inputs and assumptions as required by the application of plan outcomes. (For example, an OMB 2 CFR Part 225 compliant plan requires a specific inventory of information that may not be as essential if applications are entirely internal to the City.) Subtasks include:  Access organizational and line-item detail to support costs, allocation factors, workload metrics, and accounting structure in the cost allocation model.  Acquire and parse statistics that may be useful as bases for distributing costs and where necessary, develop and document alternate data sets to serve as distribution methods.  Conduct targeted engagement with representatives from support services departments if useful to influence data accessibility and relevance in the cost allocation plan, such as work order records, inventories, and other volumetric or organizational tools. TASK 3 | COST ALLOCATION MODEL ClearSource will generate the quantitative model in Microsoft Excel to allocate indirect costs Citywide. The model will be built to accommodate change in the organization: the ability to add or remove direct and indirect costs and to adapt to a range of activities, from simple to complex. Structure and detail of the final model will be dependent upon the ultimate application of its results, as a plan submitted for cognizant agency approval in compliance with OMB 2 CFR Part 225 and/or the State Controller’s Office for Cost Claiming will require aspects unnecessary in applications where cost recovery is expected to be entirely internal to the agency. The model is expected to identify: 245 C-5  Citywide fund and accounting structure and fiscal year data for allocation outcomes  Allocable indirect service centers  Allocation bases and related distribution factors for indirect service centers  Direct service centers  Primary and secondary allocations  Resulting annual cost allocations  Resulting indirect service rates  Resulting interfund transfers The model will provide for future in-house updates utilizing annual inflators or revision of underlying assumptions for personnel costs, contracted service inflation, etc. where allowed and recommended as feasible/reasonable. ClearSource will also generate a comparison of outcomes under the updated Cost Allocation Plan to prior year outcomes, including explanation for substantive differences. TASK 4 | REPORTING AND DELIVERABLE TOOLS ClearSource will provide the formal documentation encompassing the work and outcomes of the study, as well as deliver the tools developed throughout the study for the City’s ownership and future use, including preparation or inclusion of:  A narrative description of the study, describing key data and assumptions, and impacts.  Tables and charts to explain findings  The complete quantitative analysis as the justification for updated indirect cost allocations and associated rates and transfers. For a cost allocation plan in compliance with OMB 2 CFR Part 225, the report/quantitative analysis will include:  Description of each allocated central service  Identification of the units rendering services and the units receiving services  Items of expense included in the allocated cost of service  Method used to distribute the cost of service to benefitted units  Schedule showing the allocation of each service to the specific benefitting units  Organizational chart Upon review and feedback from the City staff, consultants will revise the draft report and accompanying outcomes to incorporate direction received. The final report will be issued for the City’s implementation and as a data source for incorporation in the Cost of Services Study. Reports will be issued in PDF for 246 C-6 digital distribution and any necessary printing by the City beyond the requested bound (3) and unbound copies delivered by consultants. Upon issuance of the final report, ClearSource will deliver editable versions of all models, documentation, and associated work papers to the City for future use. Models will be delivered in Microsoft Excel and PDF. Documentation will be delivered in Microsoft Word and PowerPoint and in PDF. Additional work papers developed will be delivered in the format in which they were created and in PDF. Consultants will provide training to City staff on the development and future in-house update of the delivered electronic tools and various reports. TASK 5 | ENGAGEMENT ClearSource will facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers:  At least two interim review points to engage with designated City personnel managing cost allocation practices  At City management discretion, an event with the City Council to present the draft report and receive feedback and direction on cost allocation proposals that would impact the City’s budgetary and financial practices. Consultants will prepare materials for these sessions, present the plan (or elements relevant), and respond to inquiries. Consultants will be available to City staff in the future to advise on the cost allocation plan. Impact Fee Study Harris & Associates presents the following work plan to complete the Impact Fee Study envisioned by the City of Moorpark. TASK 1 | KICK-OFF MEETING Harris will attend a kick-off meeting with City staff to review the objectives of the analysis, to agree on methodology, to exchange information, to set the schedule for all tasks, and to determine further information needed from City staff. Harris will work with City staff to refine the scope, purpose, uses, and goals of the City and for the project. TASK 2 | RESEARCH AND FEE STRUCTURE Harris will participate in calls with individual members of City staff to gain an understanding of the purpose and use of the fees and any concerns staff have with the current fee program. It is anticipated that up to eight (8) calls will be required. Harris will review the existing fee studies and background documentation including the existing fee studies, ordinances and resolutions, any master plans, the City’s general plan, and any other available studies that identify the City’s goals and required infrastructure needs. The goal of this task is to better 247 C-7 understand the needs and goals of the City for each impact fee category and to gather the information that will serve as the basis for the fees. Once all documentation has been reviewed, Harris will meet with staff to discuss the validity of the current fees and any fee categories that the City may wish to pursue developing as part of the update. We will discuss any missing information and how the supporting documentation can be developed. Harris will recommend any changes to the current fee structure to facilitate better collection and administration of the program. Harris will also discuss AB602 and whether the City wishes to collect fees based on house size in accordance with the new bill, or continue collecting on a per unit basis. If new categories of fees are identified or documentation to support the fees is not available, a scope amendment may be necessary. TASK 3 | DRAFT DEVELOPMENT IMPACT FEES Harris will gather the City’s growth projections and will gather other assumptions such as persons per household, existing city population and employment, and future population and employment. Harris will work with City staff to understand the facilities and supporting infrastructure (i.e. equipment and vehicles) needed to serve future development. We will develop the project lists and cost estimates utilizing the City’s existing plans, discussions with City staff, and level of service analysis. Where future facilities may not be able to be determined, such as with parks or public safety facilities, a level of service analysis can be completed that sets funding at levels that maintain the City’s existing level of service (i.e., acres of parks or square feet of Fire Stations). When the land use assumptions and the identification of the needed facilities are completed, Harris will determine the methodology to allocate the infrastructure costs in each fee category to the various land uses based on the additional residents and employees that these new developments generate. Based on this information gathered, Harris will calculate the recommended fee for each land use type in compliance with the requirements of Section 66000 of the Government Code. An administrative fee will also be calculated to fund impact fee studies, annual administration, City staff administration, and reporting requirements Harris will prepare a comparison of the development impact fees from surrounding jurisdictions. Up to six jurisdictions will be included and will be based on input from the City as to which cities are to be included. The comparison will include fees for single family residential, multi-family residential, commercial, and industrial development to current and proposed fees in the City. Harris will prepare the draft fees and fee comparison for review with the City. TASK 4 | DRAFT DEVELOPMENT IMPACT FEE STUDY Once all parties agree on the fees, Harris will prepare the Nexus Study. The Nexus Study will be prepared in an organized fashion with an executive summary and will contain all required legal and technical documentation including additional information required under AB602. The study will include all background information, the methodology used to determine the fees, all supporting information, calculations that demonstrate the legal nexus between the recommended fees and the impact created by new development, the relationship between the fee’s use and the type of project on which the fee would be imposed, the purpose of the fee, how the fees would be used, and a description of the 248 C-8 relationship between the need for any additional facilities and the type of development project on which the fee would be imposed. In addition, the report will discuss annual fee update procedures, credit and reimbursement policies and will outline the required administrative procedures including online reporting requirements required under SB1483. We will also incorporate the legal methodology for calculating fees for accessory dwelling units. Harris will meet with the City to discuss the report and incorporate one set of consolidated comments to create final draft report. TASK 5 | STAKEHOLDER MEETINGS Harris will prepare and lead a meeting with BIA, development community and other stakeholders. Obtaining the development community’s support is best achieved when their input is included in the fee analysis. Harris will discuss any recommendations that come out of this meeting with the City and incorporate relevant feedback into the study. Harris will prepare and make presentations on the methodology, findings, and implications of the proposed impact fees at City Council and/or planning commission meetings to facilitate the understanding of the impact fee analysis. The presentations will be prepared in a clear and concise manner. Harris will answer any questions and document any concerns or requested changes. Two presentations are assumed. Harris will assist the City with the preparation of the staff report and resolution for City Council adoption. An automatic inflation factor will be included in the resolution. It is assumed that the City will notice all meetings and provide a legal review of the documents. Revisions to the report will be completed based on input received from the City Council and the final report provided to the City. TASK 6 | FINAL REPORT Once the report is adopted, Harris will provide three (3) bound paper copies, and an electronic pdf, excel fee schedule model that can be updated. Developer Fee Study ClearSource presents the following work plan to complete the Developer Fee Study envisioned by the City of Moorpark. TASK 1 | STUDY ORIENTATION To commence the study on solid ground, ClearSource will generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre-established dates, and data collection and development procedures. Most significantly, this task includes a major upfront effort to examine prevailing fees for known issues and to discuss initial and potential modifications to structures and practices. Subtasks include:  Facilitate project kick-off event(s)  Assess prevailing fees and methods to understand effectiveness of current structures, including perceived cost recovery, perceived equity, alignment of fee categories with the manner in which 249 C-9 work is performed, perceived competitiveness in the region, and feasibility or accuracy of billing within current capabilities  Draft initial user/regulatory fee structures, where remodeling is predicted, to direct down-stream data development steps 250 C-10 TASK 2 | FINANCIAL AND LABOR TIME INPUTS Consultants will develop the necessary foundation for subsequent quantitative analysis, focusing this initial work to prepare the body of data that will inform every downstream element of the fee study. To develop financial inputs, consultants will gather and/or prepare and model financial data, including:  Current and historical fee revenues,  Personnel and contractor costs and organization,  Adopted line-item expenditures,  Forecasted periodic outlays, and  Allocated indirect/overhead costs via new or existing plan. To develop and test labor time inputs, based on prevailing and future business processes, consultants will gather and develop expressions of time several ways:  Utilize any existing labor time-tracking data,  Conduct interviews to estimate a distribution of annual time across core functions of service,  Develop service time questionnaires linked to remodeled fee structures to estimate average or a range of service times for fee-related services,  Apply industry experience to populate under-developed or unavailable time estimates, particularly from prospective changes in workflow resulting from the project,  Analyze any existing data sets that inform workload/activity/use levels and project profiles for fee- related services, and  Reconcile annual time, service time estimates, and service volumes to test reasonableness of critical assumptions. TASK 3 | LABOR TIME VALUATION ClearSource will develop fully burdened hourly labor rates in each department/division participating directly in the provision of services associated with a fee under review. Rates will be built to encompass labor costs, non-labor operating costs, departmental and/or divisional administration, central services/general City administration, and periodic investments. Rates will be expressed by function of direct and indirect service within each department/division, where applicable and to enable cost recovery considerations for certain fee categories. Rates may be expressed as composite for the department/division, for the position class, and/or by individual position. TASK 4 | FEE DESIGN ClearSource will apply the outcomes from Tasks 1 and 2 – an assessment of existing fees and interaction with City staff to understanding current practices and work flow – to ensure cost of service analysis aligns with the fee structures recommended from that work, which may include elements of prevailing fees, recommendations based on prevailing business processes, system capabilities, and relevant market 251 C-11 or industry practices applicable to City work flow. Consultants will prepare a working model of a master fee schedule. TASK 5 | COST OF SERVICE ANALYSIS ClearSource will prepare a cost of service model to join fully burdened hourly labor rates, time estimates associated with current work flow and business processes, and existing or any redesigned fee structures, in order to calculate the full unit cost of service associated with each fee category and layers within them. The full cost of service informs the maximum fee amount allowed under California framework for establishing user/regulatory fees by City Council action. The full cost of service at the fee-based activity level or the programmatic level is composed of:  Direct labor and non-labor costs,  Indirect labor and non-labor costs,  Periodic outlays or investments of direct or indirect benefit,  Departmental overhead, and  Citywide overhead. Analysis will include modeling of activities with under-developed or no fee imposed but where one is warranted and practical to improve the City’s cost recovery from private benefit activities. TASK 6 | COST RECOVERY AND IMPACT ANALYSIS Consultants will recommend cost recovery targets for fee-based services or work with City staff in developing cost recovery policy to inform final fee amounts, particularly where full cost recovery is deemed undesirable. Development of cost recovery policy and practices will optimize the City’s array of funding sources considering public/private benefits, market sensitivity, compliance and behavior modification, and fiscal constraints. Consultants will develop a master fee schedule for the City, useful in presenting proposals, as well as communicating fee descriptions, fee amounts, and charge bases to other City departments, who may have responsibility for maintaining Citywide schedules of fees. As desired, the master fee schedule developed can also include a tool for subsequent annual inflationary adjustments to the established fee structures. Final proposed fee amounts will be applied in the master fee schedule alongside information useful in communicating fees to the public. To the extent existing data systems enable it, revenue estimates based on historical or projected performance will be attempted. Finally, comparison to prior fees will be completed in targeted service categories to assist in explaining impacts of changes. Consultants will prepare a comparison of fees to other municipalities in targeted service categories as needed, likely by creating profiles for an array of “typical” uses in addition to one-for-one comparisons. Consultants will review associated fee practices, including waivers, deposit amounts, fee/deposit collection practices, and economic incentive practices. 252 C-12 Where needed, consultants will provide recommendations and industry information regarding relevant fee policies and practices which may impact cost recovery, including the use of waivers, any billing and deposit management procedures, and collections. TASK 7 | REPORTING AND DELIVERABLE TOOLS ClearSource will prepare the administrative record for pursuing implementation of revised fees. This focuses on the draft and final reports of cost of service findings, including assumptions, critical data, and discussion of expected impacts. Analytical detail will be included, as well as executive summary and infographics useful in public presentation and legislative processes. Consultants will deliver the analytical models used to develop fees in Microsoft Excel format for future update and management, including the working master fee schedule and its publishable version. For reporting and the delivery of all tools, subtasks include:  Deliver formal documentation and tools for the City’s ownership and future use in editable formats (e.g., Microsoft Office suite) and publishable format (PDF)  Draft and final draft report iterations  Presentation/summary materials for communicating proposals  Assistance with staff report and public hearing noticing  Document the statutory and legal framework and annual and five-year reporting requirements  Discuss best practices to ensure better collection of the fees  Final report, including all background information, methodology, supporting justification, calculations, and administrative processes  Delivery of technical models and work papers  Training event for City staff in annual updates and analytical use of delivered models TASK 8 | REVIEW AND ENGAGEMENT ClearSource will facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers with the goal of successful approval, implementation, and ongoing maintenance of study proposals. Subtasks include:  Departmental interaction – to develop data and provide interim reviews points by lead service areas.  City leadership interaction – to receive direction on proposals and outcomes prior to pursuit of approval.  City Council engagement – to present the final draft report and receive direction.  City Council / public hearing – to adopt the proposed fees contained in the final report.  Stakeholder outreach – as needed to facilitate successful implementation of proposals. 253 C-13 PROJECT SCHEDULE Timeline by Tasks / Milestones The ClearSource-Harris team anticipates the following timeline for delivery of final draft reports for each element of this project:  Cost Allocation Plan: 90 Days  Impact Fee Study: 150 Days  Developer Fee Study: 120 Days Upon delivery of the draft reports in each study element, the City may schedule City Council engagements to review recommendations, consultants may issue final reports, and public hearings may be scheduled following the City’s preferred timing and legislative or community priorities. Total estimated project timing and calendar is illustrated in Figure 1. 254 C-14 FIGURE 1 | PROJECT TIMELINE BY STUDY ELEMENT AND MAJOR TASK / MILESTONE 255 December 2019 City of Moorpark, California Community Development Organizational Audit Comprehensive Executive Summary ATATTACHMENT 2 256 1730 MADISON ROAD • CINCINNATI, OH 45206 • 513 861 5400 • FAX 513 861 3480 MANAGEMENTPARTNERS.COM 2107 NORTH FIRST STREET, SUITE 470 • SAN JOSE, CALIFORNIA 95131 • 408 437 5400 • FAX 408 453 6191 3152 RED HILL AVENUE, SUITE 210 • COSTA MESA, CALIFORNIA 92626 • 949 222 1082 • FAX 408 453 6191 December 11, 2019 Mr. Troy Brown City Manager City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 Dear Mr. Brown: Management Partners is pleased to transmit this Comprehensive Executive Summary containing the results of our organizational audit of the Community Development Department and Moorpark’s development review process. We conducted this assessment after reviewing a wide variety of documents and data, interviewing several City staff and reaching out to key stakeholders who are experienced customers of Moorpark’s development process. Our team spent considerable time onsite to understand the department and development process, and to observe operations firsthand. During our time onsite we collaborated with City staff to develop a framework for a revised development process. This revised process is illustrated in the process map attachments to this report. Our report identifies 34 recommendations designed to improve department operations, increase efficiency, and guide changes in the development process. The recommendations also address the need for updating the General Plan and Zoning Ordinance/Map. Additionally, we found that improving various business systems is necessary to improve staffs’ effectiveness and to ensure the department’s work is transparent to stakeholders and the general public. Thank you for the opportunity to assist you and the City of Moorpark. Sincerely, Gerald E. Newfarmer President and CEO 257 Comprehensive Executive Summary Table of Contents Management Partners 2 Table of Contents Overview....................... .............................................................................................................................. 2 Stakeholder and Staff Comments .......................................................................................................... 5 Themes from Stakeholder Outreach .............................................................................................. 5 Themes from Staff Interviews ........................................................................................................ 7 Context for Development ........................................................................................................................ 9 Moorpark’s Use of Residential Planned Development Permits ................................................ 9 General Plan, Zoning Status and Use of Development Agreements ...................................... 10 Development Impact Fees and Exactions ................................................................................... 11 Organization Structure and Workload ............................................................................................... 13 Organization Structure is Typical of Similar Cities ................................................................... 13 Workload ......................................................................................................................................... 14 Development Review Process .............................................................................................................. 17 Process Mapping ............................................................................................................................ 17 Improving the Development Process .......................................................................................... 18 Business Technologies ........................................................................................................................... 22 EnerGov ........................................................................................................................................... 22 Electronic Plan Review .................................................................................................................. 22 Transition to Paperless System ..................................................................................................... 23 Enterprise Resource Planning Software ...................................................................................... 23 City Website and Handouts .......................................................................................................... 24 Management System........... ................................................................................................................... 26 Cycle and Task Times .................................................................................................................... 26 Measuring Performance ................................................................................................................ 28 Standardized Conditions .............................................................................................................. 29 Staff Engagement and Training .................................................................................................... 30 Use of On-Call Consultants .......................................................................................................... 32 Analytic Capacity ........................................................................................................................... 34 Fees, Cost Recovery and Cost Center Management .................................................................. 35 258 Comprehensive Executive Summary Table of Contents Management Partners 3 Pre-Application Reviews and Fees ............................................................................................ 35 Cost Recovery ........................................................................................................................... 36 Basis for Calculating Building Fees .......................................................................................... 37 Implement Surcharges to Recover Business System Costs ....................................................... 38 Workplace Environment ........................................................................................................................ 39 Conclusion.................... ............................................................................................................................ 42 Attachment A – List of Recommendations ......................................................................................... 43 Attachment B – Draft Process Maps for Major Discretionary Projects ......................................... 45 Attachment C – Draft Process Maps for CEQA Review .................................................................. 46 259 Comprehensive Executive Summary Table of Contents Management Partners 4 Tables Table 1. Planning Permitting Workload ............................................................................................. 14 Figures Figure 1. Stakeholder Ratings ................................................................................................................. 6 Figure 2. Organization Structure of the Community Development Department................... .... 13 260 Comprehensive Executive Summary Overview Management Partners 2 Overview Management Partners was engaged by the City of Moorpark to conduct an organizational audit of the Community Development Department and development review process. This section contains a brief overview of the project, including the City’s reasons for initiating the study. Background. In becoming a city in 1983, Moorpark inherited a substantial number of entitlements for major development projects that were previously approved by the County of Ventura. Early leaders found themselves having to manage around projects they did not approve and applying an ad hoc system to address issues such as design quality, offsite infrastructure, community amenities and related matters that typically set apart cities from counties.  Ad hoc development review. Moorpark’s ad hoc approach to development review worked for some time; however, the City has outgrown it because it does not provide a clear process and a reasonable level of predictability for the development industry, large and small businesses seeking to locate in Moorpark, and individuals wanting to upgrade their residential sites. The City’s past practices have also led to a highly siloed organization that reviews development piecemeal rather than on the basis of comprehensive land use policies and regulations such as a General Plan and Zoning Ordinance.  Identifying infrastructure requirements. Another challenge with the current practices is that the City does not have an effective system of identifying infrastructure and related fees for new development projects. This means that the infrastructure requirements for new development must be analyzed piecemeal rather than on the basis of comprehensive land use policies and regulations. While the City currently imposes Development Impact Fees (DIFs) on certain new projects, this is also done on a piecemeal basis due to the lack of comprehensive land use policies and a nexus-based analysis of infrastructure needs. This makes managing infrastructure 261 Comprehensive Executive Summary Overview Management Partners 3 requirements and fees, as well as the actual improvements, more difficult for the City. The current practices also make it difficult for developers to understand the scope and cost of the infrastructure requirements before deciding whether to pursue a project.  Delay and uncertainty. The unfortunate by-products of the current ad- hoc review of development projects and infrastructure requirements are delay and uncertainty for customers and staff. Goals of the study. Given its concerns about these issues, the City identified several goals for Management Partners’ assessment, as follows. a) Analyze the current practices and recommend a framework of development policies, regulations and procedures; b) Create a team-oriented organization focused on outcomes that serve the community and stakeholders and provide professional growth for staff; c) Establish a clear development process that is easier to understand, and improves predictability for stakeholders; d) Identify business systems and new technology to improve effectiveness and efficiency and make information easier to obtain and understand; e) Establish a clear management system that focuses on outcomes, implements effective internal controls, and allows staff to do their best work; f) Improve the cost center system by making it more transparent and easier to administer; g) Establish a proactive approach to infrastructure and development- related improvements through a nexus analysis of future needs and the adoption of comprehensive development impact fees; and h) Create a spirit of partnership with the community and stakeholders through better communication and greater transparency. Recommendations. The 34 recommendations identified in this comprehensive executive summary, when taken as a whole, will position the City to meet each of the eight goals and apply best practices going forward. Attachment A provides a summary of all recommendations. Project approach. Management Partners used a variety of techniques to inform our assessment. These included reviewing documents, conducting 262 Comprehensive Executive Summary Overview Management Partners 4 interviews with key stakeholders and City staff, observing activity at the front counter, analyzing the methods used to process development projects, reviewing application forms, analyzing workload volumes, and creating proposed process maps. We examined areas of responsibilities, overlaps and interconnections related to staff review of entitlement/permit applications, California Environmental Quality Act (CEQA) review and reviewing compliance with conditions of approval. Organization of the Document. In addition to this Overview Section, the remainder of this document is organized as follows:  Stakeholder and Staff Comments  Context for Development  Organization Structure and Workload  Development Review Process  Business Technologies  Management System  Workplace Environment  Conclusion 263 Comprehensive Executive Summary Stakeholder and Staff Comments Management Partners 5 Stakeholder and Staff Comments This section contains a summary of comments from development stakeholders and comments from City staff. During the period May through July 2019, our team conducted interviews with staff members and several stakeholders to learn their perspectives on operations that are working well and those that could be improved. We received useful data and information, good advice about resource documents, as well as candid comments about impediments to productivity and problems in the work environment. Themes from Stakeholder Outreach Management Partners interviewed several stakeholders with broad development experience with residential, commercial and industrial projects in Moorpark. City staff assisted by identifying prospective stakeholders, and Management Partners was solely responsible for the confidential interviews, with no participation by City staff. Stakeholders were asked to share comments about what is working well and what changes they would recommend, as well as to rate the City’s performance on a variety of factors. This technique helped us to gauge the seriousness of the issues and concerns customers have. The categories and ratings are illustrated in Figure 1. A rating of 1 indicates poor service while a rating of 10 means excellent service. Summary of comments. Stakeholders felt that the best aspects of the department’s service were the helpfulness and accessibility of staff, although there was a wide range of opinions. Stakeholders more consistently said that complexity of the development process and getting quality information about it are problematic. We would note that stakeholders understood the department was working hard under new leadership to implement improvements; therefore, their ratings are retrospective comments on operational policies and processes that have been in place for many years. 264 Comprehensive Executive Summary Stakeholder and Staff Comments Management Partners 6 Figure 1. Stakeholder Ratings Consistent themes emerged from the stakeholder interviews regarding the development review process, as noted below. • Building and Safety plan check and inspection services are highly regarded. • It was difficult to get a meeting scheduled to resolve high-stakes technical matters. That is changing for the better under the current administration. • Previously it took too long for City staff to follow up on important matters and staff did not convey a sense of urgency. Stakeholders said that the current administration is sensitive to this issue and appears to be committed to addressing it. • The status of entitlement and condition compliance sub-processes were difficult for customers to understand. The ambiguity made it harder to explain the status to investors and property owners. However, the current administration is implementing a permit tracking system to address this and other challenges. • No one on staff exhibited ownership or overall responsibility for the management of the process. • The development review process was not predictable and “11th hour” surprises for applicants had become the norm. • The civil engineering review of projects has relied too heavily on the judgment and technical acumen of a single contractor to the City. 1 2 3 4 5 6 7 8 9 10 Ease of understanding Moorpark's development review process Quality of information about the process Helpfulness of staff Accessibility of staff Time it takes for staff review and comments Consistency of staff's comments and code corrections Overall experience with Moorpark's process 265 Comprehensive Executive Summary Stakeholder and Staff Comments Management Partners 7 • There is a perception that some of the City’s contractors slow up the technical review of projects when there are disagreements about plans and drawings. • Customers believe that the engineering contractor’s time and costs are not well managed, which is important because those costs are passed on to customers. • Reconciling developer deposits for entitlement/permit processing and condition compliance can take several months to a year or more because the City is missing (or has inaccurate) details. • Customers are given no direction or assistance from staff when their projects require them to deal with other departments or outside agencies. Management Partners has found that, in conducting many development process studies, it is common for differences and misunderstandings to arise between staff and the development community. However, these conflicts can be unsettling, and they can affect the customer/staff relationship. More important, the conflicts can affect an organization’s ability to improve and move forward. An annual meeting with local leaders of the development community would be one way to provide an open opportunity to customers to work collaboratively with staff to address thorny issues, policy and regulatory goals and professional roles. This could help to clear the air and improve understanding on both sides. Conduct annual meetings with local Recommendation 1. development community leaders to obtain feedback about the development review process and identify steps for continued improvement. Themes from Staff Interviews A consistent theme from the staff interviews was a desire for change to a more traditional development review process based on best practices. A comment we heard that was reflective of many staff comments was “What’s taking so long? Show us the way – we are ready.” Themes arising from the staff interviews included: • There is good team spirit despite challenges of the past, and there are areas within the department (and City organization) where communication is effective. 266 Comprehensive Executive Summary Stakeholder and Staff Comments Management Partners 8 • The Building Division and its processes are viewed by staff as working relatively well, with a high level of service (e.g., plan check and inspection turnaround timeframes). • Technology in the department has been inadequate and there have been significant delays implementing new business systems such as EnerGov. IT support is inadequate for staff to do their jobs efficiently. Some examples included “the City website is unfriendly”, “wireless internet in City Hall does not work well”, and “tasks such as ordering a new keyboard are too complicated”. • Moorpark is a small community where people know one another; relationships are easy to develop but also problems are easily magnified. • The Community Development Department was characterized by some staff as having been “in a rut.” • The development process is perceived as arcane. An example noted by several staff was the City’s reliance on development agreements for so many projects which adds complexity, reduces predictability for applicants and delays the overall development process. • There is a high degree of dissatisfaction (and some finger pointing among staff) about the cost center system of collecting developer deposits and charging staffs’ time against project accounts. • Staff members have not had adequate training and what they have had has lacked focus. • The prospect of change in the organization has been met with a little resistance. Such resistance is common in the change process, in Management Partners’ experience, and it will require commitment and follow to help those who may not embrace change easily. • Some silos exist which can hinder the ability of the organization to work efficiently between departments. This is a common challenge for cities, in Management Partners’ experience. 267 Comprehensive Executive Summary Context for Development Management Partners 9 Context for Development This section summarizes the historical context for the development processes in effect today, where the City is with its General Plan and zoning status, and development impact fees. Moorpark’s Use of Residential Planned Development Permits In 1983, the development pattern for Moorpark’s 12.8 square miles was thought of in “thirds.”  One-third of the City had already been built out for a population of approximately 8,000 residents,  Another one-third was covered by county-approved and vested subdivisions yet to be developed, and  The remaining one-third was left for future consideration. The middle one-third (approved, undeveloped subdivisions) was the focus of attention during the first year of incorporation. City leaders wanted higher quality development (site layout, design and building materials) than had been approved by the county. Community members wanted visually appealing streetscapes and landscaped medians and, in some cases, reduced density of development. To achieve these objectives, the City invited developers to either renegotiate and modify the Residential Planned Development (RPD) permits that accompanied the vested subdivisions or start over under Moorpark’s undefined standards and process which were to take effect at the one-year anniversary. 268 Comprehensive Executive Summary Context for Development Management Partners 10 Developers were concerned with starting over, so almost every RPD project was renegotiated with the City. This experience framed future expectations, especially related to negotiating for exactions and public benefits in development agreements as they relate to community benefit exactions that would not be subject to the Mitigation Fee Act.1 General Plan, Zoning Status and Use of Development Agreements The General Plan and zoning ordinance need to be updated, and the use of development agreements limited to only those projects that truly warrant such an extraordinary entitlement.  The Moorpark General Plan is today more of a series of resolutions than a comprehensive vision of the community’s future. Moreover, the Land Use Element and Circulation Element are 27 years old; the Open Space and Conservation and Recreation Element are 33 years old; and the Noise Element is 21 years old. Fortunately, the Housing Element is only about five years old; however, it will require updating in 2021 pursuant to state law.  The Zoning Ordinance is largely the same as was inherited from Ventura County at the City’s incorporation, with several mandated provisions tacked on. Additionally, the Zoning Ordinance includes a few requirements that were adopted by the City of Moorpark (e.g., lighting regulations, hillside management, revised sign regulations, accessory dwelling units, newspaper racks and telecommunication transmitters and receivers). 1 Development agreements are a type of land use approval or permit that give cities latitude to advance their land use policies. A development agreement also gives cities more flexibility in considering conditions and requirements, including how public benefits associated with the project may make the project more desirable and worth approving. In exchange for this latitude, flexibility and the public benefits, a developer is typically granted more assurance that, once approved, their project can be built. A development agreement is a contract; therefore, it requires consent of both city and developer. However, because it is a contract, it allows a city to negotiate the terms of the agreement including the exactions and public benefits provided by the developer. 269 Comprehensive Executive Summary Context for Development Management Partners 11  Today, almost all medium- to large-sized development projects in Moorpark require a General Plan Amendment and/or a Zoning Ordinance amendment. The City encourages a developer seeking such modifications to negotiate a development agreement. While a development agreement requires consent by both parties, the City controls the process and timing. Moreover, for projects of this nature, there is no set process with benchmark timelines, other than legally required public notices, the requirements of the California Environmental Quality Act (CEQA), and procedures for public hearings and appeals. Development agreements are powerful tools in the land use approval process in California. However, our experience is that most cities use them for unique projects and situations and not as the norm, which is what has happened in Moorpark. This is one of the reasons for Moorpark’s unpredictable development process and inability to review projects efficiently. On one hand, Moorpark’s planning and development framework has given the City broad discretion regarding the timing and decisions for major development projects. On the other hand, the framework is regarded by customers as unpredictable, or as a stakeholder commented, “You can’t see the goal posts, let alone the 50-yard line.” The current process favors negotiation over a set, predictable process based on established community standards and requirements set in policy that developers can see and understand. Making the development process more predictable and timely for customers and more efficient for staff will require City leaders to adopt a more traditional framework for guiding and regulating land use. This would start with updating the General Plan to ensure it expresses the City Council’s vision and goals for Moorpark. The Zoning Ordinance (and perhaps the Zoning Map) should then be updated so that they serve to implement the goals and objectives of the General Plan. Conduct a comprehensive Recommendation 2. update to the General Plan and Zoning Ordinance/Map. Development Impact Fees and Exactions Once the General Plan and Zoning Ordinance are updated, it will be important to identify the types of infrastructure improvements that will be necessary to support the development envisioned in the policy documents. This involves preparing plans for future infrastructure and improvements and determining what they will cost. 270 Comprehensive Executive Summary Context for Development Management Partners 12 Through a nexus study, the costs for the new infrastructure and improvements would be apportioned to new development based on project impact and need. These steps will obviate the need for reliance on development agreements to ensure infrastructure and improvements are incorporated into new development projects. Conduct a nexus study to Recommendation 3. determine the infrastructure and improvements required to serve new development and analyze their costs in relation to new development projects. Once a nexus study is completed, City leaders should establish a system of impact fees. Adopt impact fees based on Recommendation 4. the nexus study. 271 Comprehensive Executive Summary Organization Structure and Workload Management Partners 13 Organization Structure and Workload This section provides Management Partners’ observations about organization structure and workload. Overall, we believe the way in which the department is structured and staffed is appropriate for the workload, except for the need for analytic capacity on staff. We address that in recommendation 26 below. Organization Structure is Typical of Similar Cities The Community Development Department has three divisions, which is typical of departments in similar cities. Figure 2. Organization Structure of the Community Development Department The structure and classification system and the positions are typical of community development departments in similar cities.  The department is comprised of nine full-time-equivalent (FTE) positions, which at first appears relatively small but seems appropriate given that the building function is provided through Community Development Director (10 FTE) Planning and Code Compliance (5 FTE) Building and Safety (1 FTE) Administration (3 FTE) Functions Administration Budget City Council liaison Housing Functions California Environmental Quality Act Code enforcement Development review Planning Commission liaison Public counter Functions Building inspection (contract) Permitting Plan check (contract) Public counter 272 Comprehensive Executive Summary Organization Structure and Workload Management Partners 14 contract with the consulting firm of Charles Abbott Associates, which provides their own staffing.  Code compliance staffing is limited but the services are provided internally under the auspices of the Planning Division.  There is one FTE code compliance technician II position.  The span of control is adequate as well. Historically, staffing levels in the department appear to have been kept relatively lean. Further, we understand the City has only rarely engaged planning consultants to keep up with workload demand. However, the current workload appears to be somewhat light compared with other planning and development agencies, and staffing appears to be adequate for workload. Workload Management Partners reviewed the case volume by permit types for three fiscal years ending in FY 2018-19. Table 1 provides the volume of permits processed during this period. These data show a general decline, but we hesitate to call this a trend because it is based on a limited time period. Processing these permits is a large part of the Community Development Department’s work. However, a similar workload is anticipated during the current fiscal year budget as in FY 2018-19. Table 1. Planning Permitting Workload Permit Type Number of Permits Processed FY 2016-17 FY 2017-18 FY 2018-19 Accessory Dwelling Units 5 8 2 Administrative Permits 14 8 6 Appeals 0 0 0 Certificates of Compliance 2 0 1 Commercial Planned Development 0 1 0 Conditional Use Permits 2 3 2 Film Permits 4 6 2 General Plan Amendments 0 1 0 General Plan Amendments Formal Initiation 0 1 0 Historic Preservation Certificates 1 0 0 Home Occupation Permits 69 61 36 273 Comprehensive Executive Summary Organization Structure and Workload Management Partners 15 Permit Type Number of Permits Processed FY 2016-17 FY 2017-18 FY 2018-19 Industrial Planned Development 2 0 0 Lot Line Adjustments 1 0 0 Open House Sign Permits 74 65 43 Permit Adjustments 7 3 1 Parcel Maps 2 1 1 Pre-Applications 2 1 1 Residential Planned Development 0 1 0 Sign Permits 33 18 7 Temporary Use Permits 26 27 9 Variances 0 0 0 Zone Changes 0 1 0 Zoning Clearances 518 383 81 Zoning Ordinance Amendments 5 4 1 Source: Moorpark Community Development Department There are 15 mid- to large-scale residential projects currently under entitlement/permit review, along with three industrial projects planned. The 108-room Fairfield Hotel is also under construction and inspections for condition compliance are underway. The Building and Safety Division’s workload for FY 2017-18 totaled 1,257 permits with a total project valuation of $54.3 million. By comparison, workload for FY 2018-19 decreased to 863 permits with a valuation of $9.6 million. A special meeting of the City Council was conducted on May 29, 2019 to introduce the City Manager’s proposed budget for FY 2019-20. A summary of anticipated near-term development projects was provided and is reproduced below for context about the trends and scale of work being conducted by staff members throughout the City organization and, in particular, the planning, civil engineering, affordable housing and landscape sections of the Community Development, Public Works and Parks and Recreation departments. On the development side, the City Council can anticipate a number of residential development projects to come before you during FY 2019/20 that will add new residents, new infrastructure to support residents, as well as increased sales and property tax revenue. These projects include a proposed 69-unit townhome project on Los 274 Comprehensive Executive Summary Organization Structure and Workload Management Partners 16 Angeles Avenue (Green Island Villa/Grand Moorpark) and another 60-unit townhome project on Everett Street (Chiu). Due to the relatively low number of residential units these projects may bring, the proposed budget does not propose the addition of new service levels; conversely no services are proposed to be reduced. 275 Comprehensive Executive Summary Development Review Process Management Partners 17 Development Review Process This section outlines Management Partners’ analysis of Moorpark’s development process. Also included are an analysis and recommendations for best practices that will help the department to enhance services and improve outcomes. Process Mapping To fully understand each step in the City’s development process, Management Partners prepared process maps. Our work began with a day-long process mapping session with 12 staff members in May 2019. Our goals in facilitating this session were twofold.  Identify the current process steps. Documenting the existing process is important because it helps to form the baseline to identify gaps, redundancies and other problems in the current system, and to illustrate changes needed for improving efficiency. The process mapping exercise was useful in clearly showing that the City does not have a uniform, identifiable process that could be documented in process maps. The system in Moorpark, can best be described as “ad hoc” where each project is processed independently, and the steps, sequence and requirements can change from one project to another. This non-uniform approach defeats the objectives of predictability, clear and efficient timeframes, and the ability for staff to provide clear guidance for applicants. Our attempt at mapping the current process enabled us to understand what we had heard from stakeholders and staff in our interviews.  Identify tangible ways to improve predictability and timeliness of the development review process. These outcomes require an efficient workflow, multiple ways for customers to access relevant data and information, clear communication and feedback from staff, and better overall customer service. 276 Comprehensive Executive Summary Development Review Process Management Partners 18 Management Partners was able to focus on this second objective of process mapping. Staff members were eager to challenge the status quo, question existing methods, and discuss the various forms, notices and the timing of the process. The discussions with staff also included a review of the pre-application, development review and condition compliance sub-processes.2 Our review of the development process in Moorpark resulted in two sets of process maps, one set for major discretionary development projects and the other for CEQA review. Improving the Development Process Management Partners has several recommendations regarding improving the development process below. Uniform development process needed. Management Partners observed activity at the public front counter, heard suggestions from staff, and reviewed application forms to understand how staff process applications currently. We also examined areas of responsibilities, overlaps and interconnections related to staffs’ review of entitlement/permit applications, CEQA review and reviewing compliance with conditions of approval. The process maps we created will serve as a foundation for establishing a clear and uniform development review process. The department should review the process maps annually to keep them current by making refinements, as necessary. We suggest this review be conducted as part of an annual omnibus process outlined below and addressed in Recommendation 9. Establish a uniform Recommendation 5. development review process, using the process maps as a foundation. 2 As mentioned previously, most large development projects in Moorpark have been processed with development agreements, each having a unique set of conditions and requirements. In contrast, the conditions and requirements in most cities tend to be more standardized and, therefore, easier to understand and predict for applicants and easier to enforce for staff. 277 Comprehensive Executive Summary Development Review Process Management Partners 19 Establish project manager. Each customer needs a single point of contact that can help him/her understand and navigate through the process in a straightforward and timely manner. Customers we interviewed voiced the complaint that they were often referred to other departments or outside agencies, and when that happened, they were confused and lost time. A better approach is for each applicant to have a staff member designated as project manager. The project manager would be a sort of “air traffic controller,” owning the flight path and trajectory for the project. Planning staff should serve as project managers, with accountability built into their job classifications and annual performance reviews. One simple but effective way to standardize a workflow is to develop checklists identifying key process steps and requirements. Checklists are a tangible way to train staff and to serve as handouts to guide customers. The checklists should be reviewed each year to ensure they are current with policy changes, State law modifications, and process improvements made by the City. Establish the role of project Recommendation 6. manager for each project that includes a discretionary application. Prepare comprehensive Recommendation 7. internal checklists by project type for staff members and applicants. This should also involve an annual review of the checklists which could be done as a part of the omnibus review process by the Development Review Committee. Communicate the steps of Recommendation 8. the development review process, standards and deposits/fees in a Development Review Handbook that is provided to customers. Conduct annual policy updates. The California Legislature periodically enacts new regulations that affect land use policies, as well as imposing new procedural requirements and practices. Instituting an annual practice of reviewing Moorpark’s development policies, codes and procedural changes along with implementing changes imposed by the State would ensure that all elements of the City’s development policies tie together. 278 Comprehensive Executive Summary Development Review Process Management Partners 20 Doing this at a set time each year will give policymakers and the community a comprehensive picture of major issues. As an example, the City of Encinitas conducts a comprehensive overview of its community development function each spring, side-by-side with the state-required Annual General Plan Report. The timing of this session gives Council members an opportunity to prioritize and budget what staff work is to be conducted on policy, code, process and fee matters as well as timing of such work. Establish an annual Recommendation 9. omnibus process for adopting and updating land use policies, regulatory code standards, programs, and administrative processes, including the procedures for managing the cost center program. Expand role of Development Review Committee (DRC). An effective development review process requires regular communication and coordination between staff from various disciplines involved in a complex series of tasks. Moorpark has a staff-level Development Review Committee (DRC) whose role it is to inform the City Council, Planning Commission and City Manager about the technical merits of development projects that require discretionary review. This role could be expanded to include an interdepartmental staff review of pre-submittal, condition and mitigation measure setting, and condition compliance phases of development review. As the DRC’s role is expanded, it will also be important to ensure clarity about the project manager’s duties in relation to the DRC. Our process maps indicate what we view as an appropriate role for the DRC. In addition to reviewing individual development projects, we believe the DRC should lead the annual omnibus process for reviewing and reporting to the City Council on updates to legislation, policy, procedures, programs and related matters. As a practical matter, this process will be overseen by the Community Development Director, who should also have the authority to delegate certain tasks to other departments. Expand the role of the Recommendation 10. Development Review Committee to cover the pre-submittal, condition and mitigation measure setting, and condition compliance 279 Comprehensive Executive Summary Development Review Process Management Partners 21 phases of development review, and oversee the annual omnibus review process. Another concern we heard during the process mapping session is that not all pertinent staff members are part of the Development Review Committee, nor are they involved early enough in the technical reviews. DRC membership should be expanded to include staff who can provide a review of integrated waste management, stormwater and affordable housing. Expand membership of the Recommendation 11. Development Review Committee to include coverage of integrated waste management, stormwater and affordable housing. After the department implements this new development process, and works with it for some time, it would be appropriate to examine the process further and identify additional ways to improve it. 280 Comprehensive Executive Summary Business Technologies Management Partners 22 Business Technologies This section summarizes our recommendations regarding technology, intended to increase efficiency of the development process. EnerGov The City purchased the EnerGov land management system and its web- based portal to help streamline reviews and allow staff and customers to access the status of development projects and plan review comments. Expectations for a quick and smooth implementation of this system were dashed after the contractor substituted personnel responsible for system roll-out, the City was late in delivering process information, and the implementation budget was depleted. Now back on track under the guidance of the City Manager’s Office, staff plan for the EnerGov system to be operational by late 2019. One of the outstanding matters is to ensure the process steps and workflow contained in the EnerGov system are consistent with the steps and workflow in the City’s revised development review process. Complete the configuration, Recommendation 12. beta-testing and roll-out of the EnerGov system. In so doing, provide licenses for staff, conduct staff training, publicly announce a launch date, and provide a user-friendly guide on the City’s website for access to and use of the system. Embed the process steps Recommendation 13. and workflow identified in the process maps within the EnerGov system. Electronic Plan Review Staff expressed interest in implementing other business systems that would allow customers to use electronic tools such as Blue Beam or Adobe Pro to submit applications and plans electronically. Most of these tools provide for two-way electronic forwarding of technical drawings 281 Comprehensive Executive Summary Business Technologies Management Partners 23 and reports, red-line mark-ups on plan sets, as well as the electronic archival of such, at a considerable savings of paperwork, time, cost and space. Management Partners’ experience and working with many public agencies has convinced us that use of these technologies in local government is a “when” not “if” proposition. Procure and integrate an Recommendation 14. electronic application submittal, distribution and plan review business system. Transition to Paperless System Many large and small cities throughout California are currently engaged or have recently completed transitions to a paperless development review process. Examples are Encinitas, Carlsbad, Newport Beach, Roseville, and Folsom. Paperless systems cannot be implemented overnight. They require a deliberate and programmed transition for both staff members and customers. To be successful, the transition needs to break long established behaviors of working with paper in exchange for the efficiencies from electronic tracking, communication and archiving. Implementation of the EnerGov system must first be completed, as would the transition to an electronic plan review system. We also see the move to a paperless system for development review as a “when” not “if” proposition. Implementing a paperless system would require staff training, the validation of electronic signatures, the provision of electronic kiosks for customers, as well as integration with outside agencies. Examples are Caltrans, Ventura County Fire Protection District, Ventura County Watershed Protection District and Wastewater District. Develop a timeline for Recommendation 15. future transition to a paperless development review system. Enterprise Resource Planning Software The City Manager’s Office is overseeing an enterprise resource planning (ERP) project, which will integrate multiple business functions such as planning, finance, human resources and procurement through technology. The use of an ERP system has become common in local governments for business efficiency and as a way to innovate, given limited staffing resources that are typical among smaller cities. Plan for continued Recommendation 16. investment in system upgrades and ERP 282 Comprehensive Executive Summary Business Technologies Management Partners 24 integration of business systems. Particular attention needs to be provided to the integration of the EnerGov system with the Geographic Information System and digital application submittal and plan review software. City Website and Handouts A variety of guides, application forms and checklists are available on the City’s website and at the public front counter. The various resolutions that comprise the General Plan and the Zoning Code are also posted online. However, the City’s website needs updating. Searching for a routine question, such as the process for securing a sign permit, requires multiple steps rather than the industry standard of “1-2-Click.” It was noted by a staff member that it is easier to obtain a copy of the Zoning Clearance form by using the Google search engine instead of the City’s website. Another interviewee remarked, “Redesign it so we don’t have to flip through several pages to figure out the City’s submittal requirements.” Changes that should be considered include replacing the department’s webpages with application guides and checklists by type of project, readily available to the user on the website. The guides and checklists should cover items such as: • Zoning requirements; • Lot split/subdivision requirements; • Sign permit requirements; • Process steps; • Fees (including a fee calculator); • Staff contacts; • Method to track an application, such as an applicant’s use of the EnerGov system; and • Other helpful resources. The Development Review Handbook, which was previously recommended (Recommendation 8), should also include these additional materials. Further, implementing these changes would require assigning responsibility to a staff position to update the website and handout materials on a semi-annual schedule. This would ensure that customers have the most current information on processes, requirements and public access points to data, information, public notices and project status. 283 Comprehensive Executive Summary Business Technologies Management Partners 25 Update the website to focus on Recommendation 17. providing application guides and other electronic information, such as the Development Review Handbook. 284 Comprehensive Executive Summary Management System Management Partners 26 Management System Managing a community development department well requires a variety of technical skills, an ability to provide clear direction to staff and a commitment to being accessible and providing good service to customers. Tools in the form of systems, policies, timeframes, procedures, performance measures, analytic capacity, and other checks and balances are also needed for effective management. We call these collective tools the management system. This section focuses on the various components of the department’s management system. Cycle and Task Times The State’s Permit Streamlining Act provides benchmark standards for processing of development projects. However, discretionary projects involving a legislative decision (such as General Plan Amendments, Zoning Code/Map modifications, and development agreements) are exempt from these timeframes. Many projects in Moorpark, including virtually every large project, involve one or more of these legislative actions. It may appear that having no time standards is an advantage to the City because staff and policymaker review of projects is not constrained by deadlines. However, lack of time standards can lead to unhappy customers, dysfunctional systems, and inefficient work. The lack of established time standards, or cycle times, contributes to staffs’ inability to advise customers about what to expect and how long things will take. Improving Moorpark’s development process will require setting timeframes and managing the work within them. Cycle times and task times. Implementing and managing timeframes in a development process also requires differentiating between cycle and task times. This is important because the development process in most cities is iterative, starting when a customer submits an application and set of plans. Staff then review what was submitted, preparing and sending 285 Comprehensive Executive Summary Management System Management Partners 27 comments to the customer explaining the changes to the project that are necessary. A new cycle begins again when the customer revises plans and resubmits them for further review. Obviously, limiting the number of cycles of review is critical from a time management standpoint. Our experience is that cities should aim to complete the development process after two cycles of review. This is impeded in Moorpark by several factors, as follows: • Imprecise or unclear General Plan or Zoning Code policy that leads customers to submit projects that are not in compliance. • Lack of information that helps customers understand the review process and a city’s requirements. • Inaccessible (or a lack of) staff to answer questions promptly. • Lack of or unclear policies and procedures that leave staff uncertain about how to advise customers. (A related problem is inconsistent implementation of policies and procedures by different staff members or for different projects.) • Lack of onboarding or training for staff about the entire development process. • Unclear applications and submittal requirements that do not provide a comprehensive list of what is necessary when projects are submitted. • Lack of communication with customers (website, informational materials, public counter, telephone) about which city department is responsible for what review task. • Ineffective internal coordination of the reviews by various departments (e.g., where one or more departments do not conduct a thorough review which results in a customer getting “last- minute” or piecemeal comments). Limiting the number of review cycles is a key step in improving the development process. Another key step is to clearly identify and tightly manage task times. Of course, by task we refer to one of the numerous discrete steps in each review cycle. Examples of tasks might include: • Circulating plans to the various reviewing departments after the project has been submitted; • Reviewing the development plans; • Consulting with external agencies (e.g., school district, Caltrans); • Conducting an environmental review pursuant to CEQA; • Determining whether significant off-site improvements will be necessary; or 286 Comprehensive Executive Summary Management System Management Partners 28 •Reviewing the type of construction to identify major building code problems. Need to set realistic timeframes. Managing tasks requires setting realistic timeframes for each staff member to complete their portion of the review and ensuring all staff members are conducting their reviews concurrently. The project manager discussed earlier in this report is the key to keeping a project on schedule because their role is to analyze, communicate and coordinate with City staff and the customer. The following are other timeframes that should be established. •Completeness task time. The Permit Streamlining Act requires determinations on application completeness be made within 30 days of application submittal. •Tenant improvement cycle time. Establish a cycle time for review of office/commercial tenant improvements of 20 calendar days. •Discretionary project cycle time. Establish cycle times for review of all other discretionary development projects within 45 calendar days of the application completeness determination. •CEQA cycle/task time. The CEQA process should run concurrently with discretionary project review but recognizing that CEQA review involves separate statutory timeframes for public review and comment. Establish cycle and task Recommendation 18. times for the entitlement review of development projects. Track timeframes and share results with staff on a monthly basis. Measuring Performance The EnerGov platform is capable of producing data that will allow the department to prepare management reports that measure cycle times and other metrics by project type (e.g., residential tract development, commercial or industrial development, infill or revitalization of highway corridor centers, etc.), by permit type (e.g., Use Permit, Tentative Tract Map, etc.), by geographic area of the city, as well as by staff position or department. The system can also provide workload data for purposes of strategic planning, budgeting, and deploying staff resources. Using EnerGov data to measure performance will require programming and formatting of standardized reports. Some land management systems require these standardized reports to be created through third-party 287 Comprehensive Executive Summary Management System Management Partners 29 software such as SAP’s Crystal Reports software. Department leaders should confer with the City’s IT staff and the EnerGov vendor to clarify how this standardized reporting will be accomplished. Department leaders will need to identify the types of metrics and reports it needs to allow a continual assessment of the development review process and department operations. Examples of typical metrics are shown below. • Percent of DRC reviews completed within the timeframe goal; • Average number of days required to complete DRC reviews; • Number of projects submitted with discretionary applications; • Average number of review cycles conducted for: a. discretionary projects, and b. plan check; • Average number of days from discretionary application submittal to action by the Planning Commission and City Council; • Total number of plan check submittals; • Average number of plan check resubmittals; • Average number of days required to complete plan check reviews; • Number of building permits issued; • Number of building inspections performed; • Percent of building inspections performed within timeframe goal; • Number of customers served: o By telephone, and o At public counter; • Number of code enforcement cases filed; • Average number of days for inspection after code enforcement cases are filed; and • Average number of days to resolve and close code enforcement cases. Establish a system of Recommendation 19. performance reports and metrics to analyze the development process and Community Development Department operations. Standardized Conditions All discretionary entitlements in Moorpark include a 47-page list of standard conditions of approval. Standard conditions and checklists are effective because they ensure that important requirements or steps are not overlooked, and they help to ensure consistency from one project to another. 288 Comprehensive Executive Summary Management System Management Partners 30 However, many of the standard conditions in Moorpark may not be applicable or scaled properly to their respective projects. Nonetheless, they are required pursuant to City of Moorpark Resolution 2009-2799. Several of the conditions in the City’s list recite regulatory requirements already built into the development review process through state and local laws, making them unnecessary. Further, we understand these standard conditions can be confusing and costly for stakeholders. Worse, the conditions could constitute an overreach when misapplied to mid-sized projects, and this could be a “deal killer.” A best practice is to have a scalable list of standard conditions of approval that staff can choose from which are relevant to the development project at hand. Edit the standard conditions Recommendation 20. to remove redundant requirements that appear in state or local laws. Amend Resolution 2009-Recommendation 21. 2799 to clarify that standard conditions of approval are to be applied and scaled commensurate with each development project. Staff Engagement and Training It is evident that Moorpark has quality, committed employees at every level of the organization who are supportive of and even eager to begin using new approaches to improve the development process and the department. It is also clear the department has effective leadership. Engaging staff in implementing changes, and in their professional development, will be important to the success of improved development processes. The Community Development Department’s prior focus has been on project review rather a broader approach that emphasizes timeliness, clarity, predictability and customer service. The narrower project review approach led to lack of coordination and a perception by customers of 289 Comprehensive Executive Summary Management System Management Partners 31 little sense of urgency.3 Management Partners notes that the only process that had some structure in Moorpark was related to CEQA, and that was due to State mandates. A “start-to-finish” type of project management was not evident. Under the new processes recommended in this report, staff at all levels of the department will need to participate in the workflow and ownership of their assigned development projects. Key ingredients will include the following:  Expanding staff roles to include anticipating pinch-points in the process, greater problem-solving with one another and the customer, and actively working to keep forward momentum for projects at each step of the development review process.  Enhancing an understanding of the customer’s perspective that each project is important and urgent to that customer.  Moving from working on parts of a project to managing for project outcomes.  Obtaining new skills in analytical methods and strategic approaches to workflow management, as well as skillful use of the business systems that can assist the staff team.  Conducting annual performance reviews that are focused on professional development, establishing goals for the coming year, clarifying expectations, and identifying what will be most helpful for each staff person’s success. With regards to performance evaluations, we learned that they have been inconsistent or even overlooked within the department in the past. This is not particularly unusual in organizations, but it is a missed opportunity. The timing for the annual performance evaluations can be set in a variety of ways, such as based on the employee’s anniversary date, or all evaluations conducted at the same time once a year. The latter timing can be useful as a way to clearly incorporate the department’s goals and 3 Urgency implies a priority, where something is important enough to warrant swift, persistent and earnest action. However, it is not the same thing as emergency, which is characterized by a need for immediate, drop-what-you-are-doing action. 290 Comprehensive Executive Summary Management System Management Partners 32 expectations into individual performance goals and evaluations so that there is meaningful feedback to each employee in a way that reflects on the progress of the entire team and its goals for the coming year. Regardless of the schedule, the important thing is for the department to provide a structured, annual performance evaluation for each staff member. Additionally, staff members should be provided regular, specific feedback to support their success, along with training, coaching and support. Conduct annual evaluations Recommendation 22. for each member of the department. Goals established in performance evaluations should identify specific ways for each team member to advance the department’s efforts to improve the development process and customer service. Provide customer service Recommendation 23. training that emphasizes workflow management. The annual performance review is key to setting expectations for behavioral norms, particularly as the department’s culture transitions to become more team-oriented and outcome-focused. Use of On-Call Consultants Many cities use on-call contractors to assist with specialized tasks or to assist during periods of peak workloads. The Community Development Department has started doing this in two important ways. 1. The department has established on-call contracts with two environmental firms to prepare CEQA reports for the City. Developer- prepared environmental documents are no longer accepted for processing, which was an important step by the City. Having on- call contracts reduces the time required for the CEQA review. 2. The department has established an on-call contract with an estate advisory firm to perform economic and related analysis as a part of reviewing projects where development agreements are proposed. Again, having this firm under contract allows the department to be nimbler in responding to development proposals. On-call contracts are sound practices because a department this size (in fact, even much larger departments) would seldom have among their staff the special expertise these firms offer. Using these experts ensures 291 Comprehensive Executive Summary Management System Management Partners 33 quality analysis and representation for the City of Moorpark. Additionally, the cost of this expert assistance can be recovered through fees, reimbursement agreements, and similar arrangements. Other steps can be taken. Additional measures could also be considered, such as the following.  Hiring consultants to assist with updating building permit and development impact fees would also ensure a high-quality analysis and that the costs and impacts on the community are being properly addressed.  Engaging on-call contract with a planning firm(s) that provides project-processing help is another good approach for addressing periods of peak workload, rather than incurring the cost of hiring staff for the peak, which is not affordable for most cities. Having consultants on call allows the department to use the resources when workload warrants it. The cost of these on-call services can also be recovered from the applicants who benefit from the service. Expand consulting services Recommendation 24. to include additional on-call economic and planning casework assistance, as well as services to analyze building permit fees and development impact fees. The City of Moorpark uses an engineering consultant to provide various civil engineering services including participating in the development review process. Unfortunately, the management of these services was roundly criticized by stakeholders. The criticism centered on lax oversight by the City’s consultant, particularly in the areas of cycle times and cost containment. Management Partners is not able to advise whether stakeholders’ perceptions regarding the contract engineering services are valid because such an assessment is beyond our scope of work. However, it is clear these matters are considered problematic by the stakeholders we interviewed. Other complaints from stakeholders are that the engineering function is not managed effectively and that there is a lack of responsiveness to customers. These concerns warrant further review by City staff. 292 Comprehensive Executive Summary Management System Management Partners 34 Conduct a focused Recommendation 25. assessment of the civil engineering program, including on-call engineering services. Analytic Capacity The system changes needed to improve the development process, and the technology being implemented now or planned, will require additional analytical capacity in the department. Additionally, the accounting functions required within Community Development need additional capacity. The lack of a position to provide this capacity means that the director and managers are responsible for the various analytic tasks, and time available for customer issues, complicated development projects and overall management is strained. Among the tasks needing attention are the following:  Collecting and analyzing data, and tracking performance;  Preparing the budget;  Managing the cost center system;  Ensuring proper accounting of various developer funds;  Coordinating the department’s efforts with other departments, especially the Finance Department;  Problem solving issues from customers or staff, such as those about deposits; and,  Assisting with implementing improvements to the development process. Problems with accounting and monitoring. We understand that requests of an administrative or financial nature usually take a backseat to other important work in the department. For example, an accounting inquiry from a customer (or staff member) about a deposit account can take quite some time to answer. We heard of instances where this took as long as one year. A related problem pertains to the commingling of developer funds used for improvements required by conditions of approval or mitigation measures. The cost center system was assigned to the Finance Department at some point in the past. This is understandable at first blush since the cost center system is an accounting function. However, after examining it further we think this may have been misguided. While Finance staff are typically skilled at accounting and monitoring financial records, doing so for the Community Development Department is particularly complicated because of the numerous projects, complex 293 Comprehensive Executive Summary Management System Management Partners 35 timeframes, infrastructure requirements, conditions of approval and several other variables. These factors complicate the accounting tasks. Further, the Community Development Department is responsible for two types of accounts: development processing deposit accounts and impact fee or condition of approval funds used for various improvements or requirements. Each project may have one account of the first type and another account of the second type. It would be difficult for Finance staff to spend the required time learning and monitoring all the requirements and project variables in addition to their regular work. Our experience is that effective community development departments often have a dedicated analyst position to help meet these needs yet maintain thorough accounting records consistent with finance guidelines. The department does not have an effective system for managing the types of analytical, administrative and accounting challenges discussed above. We believe a central problem is that there is no one single person responsible for this work. Creating an analyst role in the department would address this matter. Create an analyst position in Recommendation 26. the Community Development Department. Fees, Cost Recovery and Cost Center Management We understand there is a plan to conduct a study of administrative processing fees in the near future. We have found wide variability in development review fee schedules throughout California, both by region and by purpose, such as incentivizing developers to seek pre-submittal review of projects. While the City’s fee consultant will provide analysis and specific recommendations, we offer some best practices and broad recommendations below. Pre-Application Reviews and Fees The department’s website identifies two types of pre-submittal reviews. “Pre-Submittal Review” is focused on discussing City requirements before plans are prepared. It appears this process is free. “Pre- Application” is a process where applicants can meet with and obtain feedback from various City representatives. The fee for Pre-Application is $1,400. Both processes are scheduled by appointment. Early review of projects is good for customers and City staff because it establishes clear communication at the beginning of the development 294 Comprehensive Executive Summary Management System Management Partners 36 review process. It also discourages ill-conceived concepts from being submitted and then languishing in the review process. Making this process easy, fast and cheap is in everyone’s interest. However, having two similar processes is confusing and unnecessary. Combining them into a single process would simplify things for customers and staff. Of course, the department could continue offering other informal consultations on request. Some cities provide pre-application reviews on a regular schedule. The advantage is a standardized process, timeframes and stakeholder/staff expectations. It also helps address the problem of departments coming to a pre-application meeting unprepared. Combine the two pre-Recommendation 27. application reviews into a single process and determine whether they will be conducted on request or on a regular schedule. Establish a nominal (or no) Recommendation 28. fee for pre-application review. Cost Recovery The cost of most of the work of the department is recoverable through processing fees (e.g., fees for building permits, conditional use permits, variances, zone changes, general plan amendments, and subdivisions). However, it is common that cities are not able to recover certain types of expenses because they cannot be attributed to new development. The key is to build an understandable fee schedule that encourages efficient service delivery and fee transparency. Establishing a cost recovery policy is a recommended first step. The principle of cost recovery is that the individuals or businesses who receive a benefit from a city in the form of entitlements should bear the cost of providing those services. When development review fees do not recover a city’s costs, the result is that the cost burden is shifted elsewhere, typically to the General Fund. The result of artificially low development review fees is that other taxpayers subsidize new development. City Council policy. Cost recovery begins with a City Council policy that establishes the intent to recover the City’s full cost of providing services to development applicants, and whether some (or no) project types should be subsidized. For example, some cities subsidize permit costs for 295 Comprehensive Executive Summary Management System Management Partners 37 project types they want to attract, such as affordable housing, because they deem them important for the community’s general welfare. Develop and recommend an Recommendation 29. appropriate cost recovery policy to the City Council. Recovering external costs incurred by the City. Moorpark has a complex system for reviewing project compliance with conditions of approval, mitigation measures, infrastructure requirements, and subdivision agreements. Some but not all costs for this work can be recovered through projects’ cost center accounts. However, the City needs to ensure that other costs, like consultant-related civil engineering costs and staff preparation of Subdivision Improvement Agreements, are also recovered. Cities can also incur other external costs for processing development projects. Examples of these include costs for consultants to prepare environmental documents, prepare third-party economic analysis, or provide other technical or legal assistance. Some cities enter into reimbursement agreements with applicants to recover these costs. Another approach is to wait until the City receives a proposal from the consultant and then require the applicant to deposit the entire amount with the City in advance. Whichever option Moorpark chooses, a clear and well-documented reimbursement process will be useful when projects involve additional costs. Prepare a policy and Recommendation 30. procedure related to reimbursement of all external City costs. Basis for Calculating Building Fees Moorpark, like most cities in California, has a series of building fees to cover the cost of plan check, issuing permits and obtaining an inspection. Cities typically use one of two basic approaches for calculating these fees. • Project valuation, or • Analysis of time/motion. Project valuation is an approach that sets fees based on the cost to build the project. To ensure uniformity, cities typically use project valuation data published by a well-accepted authority such as the International Code Council (ICC). 296 Comprehensive Executive Summary Management System Management Partners 38 The second approach is what Moorpark is using now. It is a more detailed analysis of the actual work involved in issuing a permit, performing a plan check, or conducting an inspection. This method then multiplies the average hours required for the task by the fully burdened rate of the employees performing the tasks. Moorpark’s other entitlement fees are rooted in this time/motion method because a developer pays for the time staff spend to process their project. The project valuation method is a simpler approach, and is widely used, but can be less defensible because the relationship between a project’s cost and the task performed by the staff member(s) is not linear. In contrast, a time/motion method is more complex to set up but can be more accurate because it studies the actual work performed and determines the fee on this basis. As previously recommended, the City should seek the advice of a well- qualified building permit fee consultant. Determine whether Recommendation 31. building fees are to be calculated on the basis of project valuation or the estimated time for completing each task. Implement Surcharges to Recover Business System Costs Cities incur substantial costs to procure, manage, license and update business systems and policies such as land management systems (e.g., EnerGov), geographic information systems, general plans, and zoning ordinances. Other miscellaneous business systems also include recording, imaging and archival services related to maintaining public records. Since these systems and policies exist to guide and support new development, a significant portion of their costs can be recovered through application and permitting fees. A common way of recovering these costs is to establish surcharges on each permit, approval or entitlement the City issues. In this way, the City will recapture the costs incrementally over time and have sufficient funding to offset large cost outlays to update these systems in the future. Of course, these surcharge funds must be segregated for accounting purposes to ensure they are spent for the intended purposes. Establish a system of Recommendation 32. surcharges on permits, approvals and entitlements to recover costs of business systems and policy documents. 297 Comprehensive Executive Summary Workplace Environment Management Partners 39 Workplace Environment The most prominent face of Moorpark City Hall is the small, 10-foot wide public counter in the portable, dimly lit building that houses the Community Development Department and portions of the Public Works and Parks and Recreation departments. This is the public’s only access to City Hall because other departments and offices are located behind locked gates. There are a number of issues related to the current physical space, including:  The facilities are small and uncomfortable in terms of reviewing large plan sets with customers and doing the other work of the Community Development Department;  The public queueing space is inadequate for the volume of users during peak times in the morning;  Public restrooms are located three buildings away and down a hill;  The portable building is accessed by a steep ramp from the parking lot that may not meet the standards of the Building and Safety Division it houses; and,  Noise attenuation is a problem. By comparison, the internal operating departments, Administration, Human Resources, Finance, IT, City Clerk and the City Manager’s Office are housed in a well-lit, air conditioned and nicely furnished modern office building next door. This building, however, is inaccessible to the public, despite the fact that it provides 40-feet of front counter space, substantial queueing space and restrooms adjacent to the unused front counters. Moreover, all City Hall walk-in customers are directed to the Community Development front counter. All telephone calls are also directed to the Community Development Department, and specifically to an administrative assistant who is seated next to the public counter. During lunch and breaks, other administrative staff in the portable building 298 Comprehensive Executive Summary Workplace Environment Management Partners 40 provide backup relief for the primary staff who handle these tasks. When asked about this situation, staff members explain it as a vestige of frugal times to avoid layoffs. This workplace environment is not conducive to a contemporary business model that provides comfortable, business-like facilities for customers and staff and multiple, direct points of public access to services at City Hall. Since our assessment was focused on the Community Development Department and the development review process, we will focus on how the inadequate facilities impact customers and staff in terms of providing a business-friendly environment. In fact, most cities strive to create “one- stop” centers for permitting with facilities and amenities designed around the customer. These factors should be considered as Moorpark weighs its facility needs in the future. Conduct a facility needs Recommendation 33. assessment to determine options for relocating development review functions to City Hall, or remodeling facilities to provide a modern and workable office environment. New counter schedule needed. The Development Services front counter is open to customers on Monday through Friday from 8:00 a.m. to 5:00 p.m. for a total of 45 hours per week. The schedule does not provide downtime to process paperwork or enable staff to accomplish other assigned tasks. Moreover, the schedule does not afford attendance by all staff at department-wide meetings and/or job-specific trainings, unless closure of the public counter is authorized by the City Manager. Many cities establish public counter hours that recognize the need for mobilization and demobilization time in the morning and late afternoon. Although large organizations may find coverage from other departments or divisions for staff meetings, training and other important administrative functions, this is often not possible in smaller organizations. Our experience is that the early morning hours are typically the most valuable to contractors and others seeking permits so opening the public counter at 8:00 a.m. could work so long as it closes early in the afternoon for demobilization. For instance, closing the counter at 4:00 p.m. would provide staff time to close out files, finish recordkeeping tasks and other functions so they can start the next morning focused on that day’s work. 299 Comprehensive Executive Summary Workplace Environment Management Partners 41 Develop a counter schedule Recommendation 34. that provides time for mobilization and demobilization each day, as well as time for meetings, training and other important administrative functions. 300 Comprehensive Executive Summary Conclusion Management Partners 42 Conclusion The City of Moorpark is in a transitional period of change that includes efforts to improve the City’s development review process and to ensure the Community Development Department’s structure, staffing and operations are optimized for the future. The City has an opportunity to move from its current ad hoc development review and land use system to one that is grounded in policies that allow for predictability, consistency, timeliness and clarity for development applicants. The current approach to development makes providing information to customers difficult if not impossible. Technology investments are underway, and more are planned, and more system improvements will be needed to create an efficient development process review system. Practices over the years have resulted in staff members having a narrow scope of responsibilities, which complicates their ability to assist customers effectively and impedes having a well- integrated and coordinated development system across the organization. It also works against professional development, which is critical in maintaining top talent and keeping staff well trained. Improving the development process will require establishing a comprehensive framework of land use policies and regulations by updating the General Plan and Zoning Ordinance/Map. With these policies and regulations in place, the process maps prepared by Management Partners will serve as a foundation for establishing a clear and predictable development process. Implementing the recommendations in this report will take time and budgetary resources. City leaders, along with the enthusiasm and dedication of staff, can establish a high-functioning development process that customers appreciate, staff feel part of, and the community benefits from. 301 Comprehensive Executive Summary Conclusion Management Partners 43 Attachment A – List of Recommendations Conduct annual meetings with local development community leaders Recommendation 1. to obtain feedback about the development review process and identify steps for continued improvement. Conduct a comprehensive update to the General Plan and Zoning Recommendation 2. Ordinance/Map. Conduct a nexus study to determine the infrastructure and Recommendation 3. improvements required to serve new development and analyze their costs in relation to new development projects. Adopt impact fees based on the nexus study. Recommendation 4. Establish a uniform development review process, using the process Recommendation 5. maps as a foundation. Establish the role of project manager for each project that includes a Recommendation 6. discretionary application. Prepare comprehensive internal checklists by project type for staff Recommendation 7. members and applicants. Communicate the steps of the development review process, standards Recommendation 8. and deposits/fees in a Development Review Handbook that is provided to customers. Establish an annual omnibus process for adopting and updating land Recommendation 9. use policies, regulatory code standards, programs, and administrative processes, including the procedures for managing the cost center program. Expand the role of the Development Review Committee to cover the Recommendation 10. pre-submittal, condition and mitigation measure setting, and condition compliance phases of development review, and oversee the annual omnibus review process. Expand membership of the Development Review Committee to Recommendation 11. include coverage of integrated waste management, stormwater and affordable housing. Complete the configuration, beta-testing and roll-out of the EnerGov Recommendation 12. system. Embed the process steps and workflow identified in the process maps Recommendation 13. within the EnerGov system. Procure and integrate an electronic application submittal, distribution Recommendation 14. and plan review business system. Develop a timeline for future transition to a paperless development Recommendation 15. review system. Plan for continued investment in system upgrades and ERP integration Recommendation 16. of business systems. 302 Comprehensive Executive Summary Conclusion Management Partners 44 Update the website to focus on providing application guides and other Recommendation 17. electronic information, such as the Development Review Handbook. Establish cycle and task times for the entitlement review of Recommendation 18. development projects. Track timeframes and share results with staff on a monthly basis. Establish a system of performance reports and metrics to analyze the Recommendation 19. development process and Community Development Department operations. Edit the standard conditions to remove redundant requirements that Recommendation 20. appear in state or local laws. Amend Resolution 2009-2799 to clarify that standard conditions of Recommendation 21. approval are to be applied and scaled commensurate with each development project. Conduct annual evaluations for each member of the department. Recommendation 22. Provide customer service training that emphasizes workflow Recommendation 23. management. Expand consulting services to include additional on-call economic and Recommendation 24. planning casework assistance, as well as services to analyze building permit fees and development impact fees. Conduct a focused assessment of the civil engineering program, Recommendation 25. including on-call engineering services. Create an analyst position in the Community Development Recommendation 26. Department. Combine the two pre-application reviews into a single process and Recommendation 27. determine whether they will be conducted on request or on a regular schedule. Establish a nominal (or no) fee for pre-application review. Recommendation 28. Develop and recommend an appropriate cost recovery policy to the Recommendation 29. City Council. Prepare a policy and procedure related to reimbursement of all Recommendation 30. external City costs. Determine whether building fees are to be calculated on the basis of Recommendation 31. project valuation or the estimated time for completing each task. Establish a system of surcharges on permits, approvals and Recommendation 32. entitlements to recover costs of business systems and policy documents. Conduct a facility needs assessment to determine options for Recommendation 33. relocating development review functions to City Hall, or remodeling facilities to provide a modern and workable office environment. Develop a counter schedule that provides time for mobilization and Recommendation 34. demobilization each day, as well as time for meetings, training and other important administrative functions. 303 Comprehensive Executive Summary Conclusion Management Partners 45 Attachment B – Draft Process Maps for Major Discretionary Projects 304 Comprehensive Executive Summary Conclusion Management Partners 46 Attachment C – Draft Process Maps for CEQA Review 305 Moorpark Community Development Department Draft Implementation Action Plan October 2019 ATTACHMENT 2, EXHIBIT A 306 Making the Most of the Draft Implementation Action Plan Management Partners has developed this draft Implementation Action Plan to assist the Moorpark Community Development Department with the phasing and scheduling of 34 recommendations. The work involved in implementing the recommendations must be integrated into the other work of the departments and divisions tasked with their completion, along with appropriate assignments of responsibility and with identification of specific planned completion dates. The draft Action Plan begins that process with guidance about a recommended priority assignment. Priority 1 recommendations are those that we believe are the most important to accomplish without delay or are easy to accomplish. Priority 2 have less importance in the near term or have an added element of complication to complete or require a significant amount of resources (perhaps internal and external) to assist with completion. Priority 3 are the least urgent to complete, either because they require action by a third party over which the City has no direct control, or due to complexity, or their relative importance to department goals. We suggest that you use this document to prepare a final Action Plan for the City of Moorpark. In doing so, the management team will need to identify specific target dates for completing implementation. Additionally, you may want to modify the described activities for implementing an individual recommendation based on internal knowledge of what will be required for completion, or to adjust the assignment of responsibility based on pending or future workload or other considerations. Prudent implementation of most recommendations requires “circling back” after the work of completing strategies has begun and fine-tuning the results based on experience. The step to do that is not spelled out for each recommendation in this document on the assumption that it would be part of your normal management system. To turn this draft into the Action Plan you can use to manage implementation, replace the column entitled “Priority” with the dates for planned completion. A target date can be specific (e.g., September 1) or by month or quarter (e.g., 3Q 2020), as appropriate to the individual action. Management Partners remains available to consult with you in this process in whatever way we can be helpful. All of the work to implement the recommendations is in addition to the normal work of involved city staff. Management Partners can provide extra capacity to expedite completion of many of the recommendations. Please do not hesitate to contact Jay Trevino at 714-926-1515 if we can be of assistance. Jay can be reached by email at jtrevino@managementpartners.com. The discipline of successful project planning is basic to successful execution of the work ahead. We hope that you find the d raft Action Plan useful in that regard. 307 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 1 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 1 Conduct annual meetings with local development community leaders to obtain feedback about the development review process and identify steps for continued improvement. • Identify staff and community leaders who will be invited to attend the meetings • Determine and publicize meeting date and location • Notify stakeholders of purpose and objectives for these meetings • Appoint responsibility for meeting agenda and note- taking/distribution • Set a schedule for meetings to occur annually 1 Community Development Director 2 Conduct a comprehensive update to the General Plan and Zoning Ordinance/Map. • Update the General Plan to ensure it supports Council’s vision and goals • Update the Zoning Ordinance and maps to ensure they serve to implement the goals and objectives of the General Plan • Review updates with City Manager • Communicate updates to staff • Set up a process to provide regular briefings for development community 2 Community Development Director This is a high priority but will take significant time and resources to complete. 3 Conduct a nexus study to determine the infrastructure and improvements required to serve new development and analyze their costs in relation to new development projects. • Assign team members responsibility for nexus study • Apportion costs for new infrastructure and improvements to new development, based on project impact and need • Review results with City Manager and Community Development Director 2 Public Works Director This is a high priority but will take significant time and resources to complete. 4 Adopt impact fees based on the nexus study. • Collect and review sample/peer impact fee structures • Establish impact fees based on the results of the nexus study • Communicate new fees to staff 2 Public Works Director This is the culmination of work resulting from Recommendation 3 above. 1 Priority 1: Important to accomplish without delay and/or easy to accomplish. Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete. Priority 3: Least urgent to complete and/or may take longer to set-up or to execute. 2 To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared. 308 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 2 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 5 Establish a uniform development review process, using the process maps as a foundation. • Review the process maps developed as part of the development process review project • Establish a clear and uniform development review process • Communicate expectations for the review process to staff • Set a schedule to review the process maps annually, to keep them current and make changes, as needed 2 Community Development Director Review of process maps should coincide with Recommendation 9. 6 Establish the role of project manager for each project that includes a discretionary application. • Determine which planning staff will take on the role of project manager • Communicate new roles and responsibilities to affected staff • Market the new project manager system to the development community 1 Community Development Director 7 Prepare comprehensive internal checklists by project type for staff members and applicants. • Collect and review sample/peer checklists • Develop a checklist that identifies all key process steps and requirements • Train staff on using checklists as a project management tool • Offer checklists to customers, to serve as a project guide • Set a schedule to review the checklists annually 3 Planning Manager Though a high priority, this will require completion of Recommendation 2 first. Also, review of checklists should coincide with Recommendation 9. 8 Communicate the steps of the development review process, standards and deposits/fees in a Development Review Handbook that is provided to customers. • Draft a Development Review Handbook • Review with Community Development Director and City Manager • Finalize handbook • Distribute handbook to all staff for review • Upload handbook to the department’s website and make hard copies available to customers at the permit center 2 Planning Manager 309 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 3 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 9 Establish an annual omnibus process for adopting and updating land use policies, regulatory code standards, programs, and administrative processes, including the procedures for managing the cost center program. • Establish a set time each year to conduct the annual review and updates • Provide briefing for the City Manager • Communicate the purpose and objectives of the annual comprehensive review to staff 1 Community Development Director This process will be useful now but become even more meaningful once Recommendation 2 is completed. 10 Expand the role of the Development Review Committee to cover the pre- submittal, condition and mitigation measure setting, and condition compliance phases of development review, and oversee the annual omnibus review process. • Determine what additional responsibilities the Development Review Committee will take on (i.e., more phases of development review, annual omnibus process) and prepare draft Charter describing the responsibilities of the Committee • Clarify the project manager’s roles and responsibilities • Clarify change of duties and reporting relationships of other affected positions • Communicate new roles to department staff 1 Planning Manager 11 Expand membership of the Development Review Committee to include coverage of integrated waste management, stormwater and affordable housing. • Establish an interdepartmental team to serve on the Development Review Committee • Communicate goals and expectations for the committee 1 City Manager 12 Complete the configuration, beta- testing and roll-out of the EnerGov system. • Finish the configuration and implementation of the new software • Provide software licenses to staff • Conduct EnerGov training to staff • Develop and distribute a user guide 1 Assistant to the City Manager This should be a collaboration with the Community Development and Public Works Departments. 13 Embed the process steps and workflow identified in the process maps within the EnerGov system. • Ensure the process steps and workflow that is input into EnerGov is consistent with the City’s new development review process • Provide training for affected staff 1 Assistant to the City Manager This should be a collaboration with the Community Development and Public Works Departments. 310 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 4 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 14 Procure and integrate an electronic application submittal, distribution and plan review business system. • Research electronic plan review software options and other organizations that have implemented such systems (in California that might include the cities of Auburn, Encinitas, Hayward, Visalia, Roseville, and Santa Barbara County; Albany, Oregon; and in Texas, the cities of Plano and Sugarland) • Review options and costs with the City Manager • Select and procure the technology • Prepare user guides for staff and customers • Hold a training session for staff and customers • Implement new electronic plan review • Market these improvements to the development community 3 Community Development Director Though the Community Development Director should be responsible, this is likely to require approvals by the City Manager and City Council. 15 Develop a timeline for future transition to a paperless development review system. • Create a master timeline that estimates completion of the EnerGov system, electronic plan review, and then the implementation of a paperless development review system • Include action items such as validation of electronic signatures, staff training, electronic kiosks, and integration with outside agencies • Review options and costs with the City Manager 3 Community Development Director 16 Plan for continued investment in system upgrades and ERP integration of business systems. • Develop integration plan for EnerGov, GIS and related business systems 3 Assistant to the City Manager 17 Update the website to focus on providing application guides and other electronic information, such as the Development Review Handbook. • Assign responsibility for updating the website and hand-out materials on a semi-annual schedule • Review change of duties with affected positions • Organize the department’s website with application guides and checklists by type of project • Upload the Development Review Handbook and other electronic materials to provide easy access to customers 2 Planning Manager This will require coordination with IT staff. 311 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 5 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 18 Establish cycle and task times for the entitlement review of development projects. • Review sample/peer cycle and task times • Agree upon and document cycle and task times • Provide a briefing for the City Manager • Implement mechanism for monitoring activity • Establish a procedure to track times and review with staff on a monthly basis 3 Community Development Director Though a high priority, this will require completion of Recommendation 2 first. 19 Establish a system of performance reports and metrics to analyze the development process and Community Development Department operations. • Based on best practices, determine which performance measures will be tracked (i.e., workload, efficiency, and effectiveness measures) • Review the list of performance measures with the City Manager • Set up mechanisms/systems to track and report performance measures • Set a schedule to review and analyze measures on a regular basis 1 Community Development Director The metrics tracked today will change over time as Recommendation 2 is completed and related process improvements are implemented. 20 Edit the standard conditions to remove redundant requirements that appear in state or local laws. • Make edits to the standard conditions of approval list to remove redundancies • Review edits with department head • Distribute revised standard conditions to staff and customers 1 Planning Manager 21 Amend Resolution 2009-2799 to clarify that standard conditions of approval are to be applied and scaled commensurate with each development project. • Confer with the City Attorney and revise the resolution • Provide briefing for the City Manager • Distribute revised resolution to staff and provide direction about implementation • Market the improvements to the development community 1 Community Development Director 22 Conduct annual evaluations for each member of the department. • Train managers and lead supervisory personnel on consistent and effective methods of evaluating performance and empower them to recognize good performance and take action in response to poor performance, when appropriate 1 Community Development Director 312 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 6 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments • Establish performance goals for individual employees • Determine annual schedule for performance evaluations 23 Provide customer service training that emphasizes workflow management. • Develop customer service training materials that include departmental behavioral norms and performance goals • Communicate purpose and objectives of the training to department staff • Hold training sessions 1 Planning Manager 24 Expand consulting services to include additional on-call economic and planning casework assistance, as well as services to analyze building permit fees and development impact fees. • Determine which additional services the department will use consultants for (i.e., analyzing fees, on-call project processing) • Prepare and circulate a request for qualifications • Select the appropriate consultants and finalize contracts 2 Community Development Director 25 Conduct a focused assessment of the civil engineering program, including on-call engineering services. • Develop a list of the critical tasks required of the civil engineering program • Conduct a confidential internal survey of key staff members to determine strengths and weaknesses of current operations • Establish key performance goals for the civil engineering program and implement methods to measure success • Monitor program area for a reasonable timeframe to determine whether further changes are necessary 1 City Manager 26 Create an analyst position in the Community Development Department. • Gain budget approval for the new position • Develop a job description in consultation with Human Resources • Advertise position • Review and interview top applicants • Offer position and finalize paperwork 1 Community Development Director 313 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 7 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 27 Combine the two pre-application reviews into a single process and determine whether they will be conducted on request or on a regular schedule. • Combine the two reviews into a single process • Document the new process in a process map • Determine whether the reviews will be conducted by request or on a regular basis • Review streamlined process with department staff 1 Planning Manager 28 Establish a nominal (or no) fee for pre-application review. • Determine whether pre-application reviews will have no fee, or a nominal fee • Modify the fee schedule accordingly 1 Community Development Director 29 Develop and recommend an appropriate cost recovery policy to the City Council. • Review sample/peer cost recovery policies • Based on best practices, establish a cost recovery policy that will recover most of the department’s work, encourages efficient service delivery, and is transparent • Provide briefing for the City Manager • Recommend the policy to Council 2 Community Development Director 30 Prepare a policy and procedure related to reimbursement of all external City costs. • Determine which approach the City will take regarding external cost reimbursements from developers • Create a concise document that outlines the City’s reimbursement policy and process 2 Community Development Director 31 Determine whether building fees are to be calculated on the basis of project valuation or the estimated time for completing each task. • Obtain advice from a building permit fee consultant about the revenue implications of the alternatives • Provide a briefing for the City Manager • Determine whether the City will use project valuation or actual costs for calculating building fees 2 Community Development Director 32 Establish a system of surcharges on permits, approvals and entitlements to recover costs of business systems and policy documents. • Propose a surcharge fee on permits, approvals, and entitlements to recapture business systems costs • Gain Council approval • Edit the fee schedule to include the surcharge fees • Communicate new surcharge fee to staff and customers 2 Community Development Director 314 Moorpark Community Development Department Draft Implementation Action Plan Management Partners 8 Rec No. Recommendation Implementation Steps Priority1 Person Responsible2 Comments 33 Conduct a facility needs assessment to determine options for relocating development review functions to City Hall, or remodeling facilities to provide a modern and workable office environment. •Consider whether public counter staff and functions could be relocated to City Hall, or if the current facility could be remodeled •Assess which options would be most conducive for assisting customers in a comfortable, professional environment •Determine the feasibility of providing a “one-stop” center for customers •Provide a briefing for the City Manager 2 Community Development Director This will require collaboration with directors from the other departments whose staff or operations could be affected. 34 Develop a counter schedule that provides time for mobilization and demobilization each day, as well as time for meetings, training and other important administrative functions. •Evaluate options for counter hours that maintain focus on customers but provide balance for common administrative functions •Provide a briefing for the City Manager •Publicize the new front counter schedule 1 Community Development Director 315 RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2021/22 BUDGET BY APPROPRIATING $41,555 FROM CDD ADMINISTRATION (1000-160-00000-59010) FOR A COST ALLOCATION PLAN, IMPACT FEE STUDY, AND DEVELOPER FEE STUDY WHEREAS, on June 16, 2021, the City Council adopted the Operating and Capital Improvement Budget for Fiscal Year 2021/22; and WHEREAS, a staff report has been presented to the City Council recommending award of an agreement to ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study and Developer Fee Study and requesting a budget amendment in the amount of $41,555 from the CDD Administration (1000-160-00000-59010) to fully fund the agreement; and WHEREAS, Exhibit “A”, attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount of $41,555 from CDD Administration (1000-160-00000-59010), as more particularly described in Exhibit “A”, attached hereto, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 2nd day of February, 2022. _____________________________ Janice S. Parvin, Mayor ATTEST: ___________________________________ Ky Spangler, City Clerk Exhibit A – Budget Amendment ATTACHMENT 3 316 Resolution No. 2022-_____ Page 2 FUND BALANCE ALLOCATION: Fund-Account Number Amount 1000-160-00000-59010 731,335.00$ CONSULTANT IMPACT FEE STUDY 2200-161-00000-51000 60,000.00$ Total 791,335.00$ TRANSFER ALLOCATION Account Number Current Budget Revision Amended Budget 1000-160-00000-59010 731,335.00$ (41,555.00)$ 689,780.00$ 2200-161-00000-51000 60,000.00$ 41,555.00$ 101,555.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 791,335.00$ -$ 791,335.00$ EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2200-161-00000-51000 60,000.00$ 41,555.00$ 101,555.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 60,000.00$ 41,555.00$ 101,555.00$ EXHIBIT A BUDGET AMENDMENT FOR COST ALLOCATION PLAN, IMPACT FEE STUDY AND DEVELOPER FEE STUDY Fund Title FY 2021/22 CDD ADMINISTRATION 317 MOORPARK CITY COUNCIL SUPPLEMENTAL AGENDA REPORT TO: Honorable City Council FROM: Carlene Saxton, Community Development Director DATE: 02/02/2022 Regular Meeting SUBJECT: Consider Agreement with ClearSource Financial Consulting for a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study for $101,555 and Resolution Amending the Fiscal Year 2021/22 Budget CORRECTION TO REPORT ATTACHMENT Subsequent to the preparation and publication Agenda Packet, it was identified that the most recent Exhibit to the draft agreement, Exhibit C, was not incorporated into the staff report attachment. A corrected copy of the draft agreement and associated exhibits is attached. Attachment: Professional Services Agreement with ClearSource Financial Consulting Item: 9.C. SUPPLEMENTAL PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND CLEARSOURCE FINANCIAL CONSULTING FOR COST ALLOCATION PLAN, IMPACT FEE STUDY, AND DEVELOPER FEE STUDY SERVICES THIS AGREEMENT, made and effective as of this _____ day of January, 2022, between the City of Moorpark, a municipal corporation (“City”) and ClearSource Financial Consulting, a corporation (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: WHEREAS, City has the need for cost allocation plan (Plan), impact fee study (Impact Study), and developer fee study (Developer Study) services; and WHEREAS, Consultant specializes in providing such services and has the proper work experience, certifications, and background to carry out the duties involved; and WHEREAS, Consultant has submitted to City a Proposal dated January 25, 2022, which is attached hereto as Exhibit C. NOW, THEREFORE, in consideration of the mutual covenants, benefits , and premises herein stated, the parties hereto agree as follows: 1.TERM The term of this Agreement shall be from the date of execution to completion of the work identified in the Scope of Services and in conformance with Exhibit C, unless this Agreement is terminated or suspended pursuant to this Agreement. 2.SCOPE OF SERVICES City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide cost allocation plan, impact fee study, and developer fee study services, as set forth in Exhibit C. In the event there is a conflict between the provisions of Exhibit C and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibit C. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit C. Compensation for the services to be performed by Consultant shall be in accordance with Exhibit C. Compensation shall not exceed the rates or total contract value of one hundred one thousand five hundred fifty-five dollars ($101,555) as stated in Exhibit C, without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement. ClearSource Financial Consulting Page 2 of 15 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of their ability, experience, standard of care, and talent, perfo rm all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. MANAGEMENT The individual directly responsible for Consultant’s overall performance of the Agreement provisions herein above set forth and to serve as principal liaison between City and Consultant shall be Terry Madsen, and no other individual may be substituted without the prior written approval of the City Manager. The City’s contact person in charge of administration of this Agreement, and to serve as principal liaison between Consultant and City, shall be the City Manager or the City Manager’s designee. 5. PAYMENT Taxpayer ID or Social Security numbers must be provided by Consultant on an IRS W-9 form before payments may be made by City to Consultant. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C, based upon actual time spent on the above tasks. This amount shall not exceed one hundred one thousand five hundred fifty-five dollars ($101,555) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services and compensation are authorized, in advance, in a written amendment to this Agreement executed by both parties. The City Manager, if authorized by City Council, may approve additional work not to exceed ten percent (10%) of the amount of the Agreement. Consultant shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non -disputed fees. Any expense or reimbursable cost appearing on any invoice shall be accompanied by a receipt or other documentation subject to approval of the City Manager or the City Manager’s designee . If the City disputes any of Consultant’s fees or expenses, City shall give written notice to Consultant within thirty (30) days of receipt of any disputed fees set forth on the invoice. ClearSource Financial Consulting Page 3 of 15 6. TERMINATION OR SUSPENSION WITHOUT CAUSE The City may at any time, for any reason, with or without cause, suspend , or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement. The Consultant may terminate this Agreement only by providing City with written notice no less than thirty (30) days in advance of such termination. In the event this Agreement is terminated or suspended pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination or suspension, provided that the work performed is of value to the City. Upon termination or suspension of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to this Agreement. 7. DEFAULT OF CONSULTANT The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consulta nt for any work performed after the date of default and can terminate or suspend this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default. If the City Manager or his/her designee determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have thirty (30) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 8. LIQUIDATED DAMAGES There are no liquidated damages under this Agreement. 9. OWNERSHIP OF DOCUMENTS Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate ClearSource Financial Consulting Page 4 of 15 records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or the City’s designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; an d shall allow inspection of all work, data, documents, proceedings, and activi ties related to this Agreement. Notification of audit shall be provided at least thirty (30) days before any such audit is conducted. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension without cause of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permi ssion of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compi ling, transferring, and printing computer files. 10. INDEMNIFICATION AND HOLD HARMLESS Indemnity for professional liability: When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including reasonable legal counsels’ fees and costs to the extent same are caused by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the per formance of professional services under this Agreement. Indemnity for other than professional liability: Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City, and any and all of its officials, employees, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, including reasonable legal counsels’ fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, pertain to, or are in any way attributable to, the performance of this Agreement by Consultant or by any individual or agency for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section from each and every subcontractor, or any other person or entity involved by, for, with, or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from ClearSource Financial Consulting Page 5 of 15 others as required here, Consultant agrees to be fully responsible according to the terms of this Section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns, or heirs of Consultant and shall survive the termination of this Agreement or this Section. City does not and shall not waive any rights that it may have against Consultant by reason of this Section, because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions shall apply regardless of whether or not said insurance policies are determined to be applicable to any losses, liabilities, damages, costs , and expenses described in this Section. 11. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit A attached hereto and incorporated herein by this reference as though set forth in full. 12. INDEPENDENT CONSULTANT Consultant is and shall at all times remain as to the City a wholly independent Contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers or employees, or agents of the City except as set forth in this Agreement. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 13. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of local, state, and federal laws and regulations which in any manner affect those employed by it o r in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations, including but not limited to the Americans with Disabilities Act and Occupational Safety and Health Administration laws and regulations. The Consultant shall comply with and sign Exhibit B, the Scope of Work Requirement for Professional Services Agreements Compliance with California ClearSource Financial Consulting Page 6 of 15 Government Code Section 7550, when applicable. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Should the Scope of Services include work that is considered a public work to which prevailing wages apply, the public work project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). Consultant agrees to comply with and be bound by all applicable terms, rules and regulations described in (a) Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the DIR implementing such statutes, as though set forth in full herein, including any applicable amendments made thereto during the term of this Agreement. For every subcontractor who will perform work on this project, Consultant shall be responsible for subcontractor’s compliance with (a) and (b), and Consultant shall take all necessary actions to ensure subcontractor’s compliance. Labor Code Section 1725.5 requires all contractors and subcontractors to annually register with the DIR before bidding or performing on any public work contract. 14. ANTI DISCRIMINATION Neither the Consultant, nor any subconsultant under the Consultant, shall discriminate in employment of persons upon the work because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status; or any other basis protected by applicable federal, state, or local law, except as provided in Section 12940 of the Government Code. Consultant shall have responsibility for compliance with this Section. 15. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City will receive compensation, directly or indirectly from Consultant, or any o fficer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 16. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Services during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement. ClearSource Financial Consulting Page 7 of 15 17. CONFLICT OF INTEREST Consultant covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, they shall employ no person having such interest as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly, with the developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, now or within the past one (1) year, and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any contract with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or processing an entitlement application for property in the City or its Area of Interest, while under contract with the City and for a one (1) year time period following termination of this Agreement. 18. NOTICE Any notice to be given pursuant to this Agreement shall be in writing, and all such notices and any other document to be delivered shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: To: City Manager City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 To: Terry Madsen ClearSource Financial Consulting 7960 B Soquel Drive, Suite 363 Aptos, CA 95003 Either party may, from time to time, by written notice to the other, designate a different address or contact person, which shall be substituted for the one above specified. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the third (3rd) day after deposit in the United States mail. 19. CHANGE IN NAME Should a change be contemplated in the name or nature of the Consultant's legal entity, the Consultant shall first notify the City in order that proper steps may be taken to have the change reflected in the Agreement documents. 20. ASSIGNMENT ClearSource Financial Consulting Page 8 of 15 Consultant shall not assign this Agreement or any of the rights, duties , or obligations hereunder. It is understood and acknowledged by the parties that Consultant is uniquely qualified to perform the services provided for in this Agreement. 21. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services in this Agreement. 22. VENUE AND GOVERNING LAW This Agreement is made, entered into, and executed in Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement or other action of the terms, conditions, or covenants referred to herein shall be filed in the applicable court in Ventura County, California. The City and Consultant understand and agree that the laws of the state of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. 23. COST RECOVERY In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including attorneys’ fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 24. ENTIRE AGREEMENT This Agreement and the Exhibits attached hereto contain the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material. 25. CAPTIONS OR HEADINGS The captions and headings of the various Articles, Paragraphs, and Exhibits of this Agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles, Paragraphs, and Exhibits here of. ClearSource Financial Consulting Page 10 of 15 Exhibit A INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet requirements set forth here, Consultant agrees to amend, supplement , or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to the City in excess of the limits and coverage required in this Agreement and which is applicable to a given loss, will be available to the City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office (ISO) “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of pers onal auto liability for each such person. Workers’ Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Coverage shall be provided on a “pay on behalf” basis, with defense costs payabl e in ClearSource Financial Consulting Page 11 of 15 addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actua l payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to the City for injury to employees of Consultant, subconsultants, or others involved in the Work. The scope of coverage provided is subject to approval by the City following receipt of proof o f insurance as required herein. Limits are subject to review but in no event less than $2,000,000 aggregate. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of A - or better and a minimum financial size of VII. General conditions pertaining to provision of ins urance coverage by Consultant. Consultant and the City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds the City, its officials, employees, and agents, using standard ISO endorsement CG 2010 and CG 2037 with edition acceptable to the City. Consultant also agrees to require all contractors and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shal l prohibit Consultant, or Consultant’s employees, or agents, from waiving the right to subrogation prior to a loss. Consultant agrees to waive subrogation rights against the City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to th e full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operation limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include limiting endorsement of any kind that has not been first submitted to the City and approved in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification, and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect the City’s protection without the City’s prior written consent. ClearSource Financial Consulting Page 12 of 15 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to city at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled or reduced at any time and no replacement coverage is provided, the City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other Agreement and to pay the premium. Any premium so paid by the City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at the City’s option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to the City of any cancellation or reduction of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation or reduction of coverage imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this Agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to the City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the Work who is brought onto or involved in the Work by Consultant, provide the same minimum insurance required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Work will be submitted to the City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer, or other entity or person in any way involved in the performance of Work contemplated by this Agreement to self-insure its obligations to the City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self- insured retention must be declared to the City. At that time, the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to the City. ClearSource Financial Consulting Page 13 of 15 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with an insurance requirement in no way imposes any additional obligations to the City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually for five years after the Agreement is canceled or terminated. Termination of this obligation is not effective until the City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to the City within five days of the expiration of coverage. 17. The provisions of any Workers’ Compensation or similar act will not limit the obligations of Consultant under this Agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to the City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all - inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts or impairs the provisions of this section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the Work reserves the right to charge the City or Consultant for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to the City. It is not the intent of the City to reimburse any third party for the cost of comp lying with ClearSource Financial Consulting Page 14 of 15 these requirements. There shall be no recourse against the City for payment of premiums or other amounts with respect thereto. 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this Agreement. The City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve the City. C-1 The City of Moorpark (City) is engaging ClearSource Financial Consulting (Consultant) to perform a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study. (ClearSource will engage a subconsultant, Harris & Associates, for certain elements of the project.) Extracted from the ClearSource-Harris proposal is the following description of the services to be provided by the Consultant to complete the project. PROJECT UNDERSTANDING Overall Project Elements The City of Moorpark is initiating a Cost Allocation Plan, Impact Fee Study, and Developer Fee Study. This type of project is focused on the ethic of “the costs to serve” from different, yet intertwined, perspectives: What are the costs of central services within the municipal organization, and how do those costs relate to the array of direct services provided to the community? What are the cost recovery opportunities for these administrative, management, and support services of the agency? (This is accomplished through a Cost Allocation Plan.) What are the projected costs of ensuring public infrastructure is available and operating at necessary levels of service as the community grows and changes? What development impact fees are justified to target cost recovery of these capital investments from the development generating increased demands for public service? (This is accomplished through an Impact Fee Study.) What are the costs of development regulation services provided to the community, which currently have or may be eligible for a user or regulatory fee? What are the cost recovery targets or policies of the City as to the amounts that should be paid for those who request or cause these services? What is the impact to the source funds – typically the General Fund – of changes to user/regulatory fees? (This is accomplished through a Developer Fee Study.) City Project Objectives The City of Moorpark has outlined the following objectives for each element of study: COST ALLOCATION PLAN Ensure the City is accurately accounting for the true cost of providing various services by departments through the use of a well-documented and defensible plan. Ensure the City has a valid basis for calculating and administering comprehensive overhead rates which are used for internal budgetary transfers and expenditures in addition to billable rates for federal and state grants, user fees, cost recovery, and reimbursements from other government agencies. IMPACT FEE AND DEVELOPER FEE STUDIES Develop defensible fee justifications and nexus report that complies with Proposition 218. EXHIBIT C C-2 City Services for Study USER FEES It is expected that the direct, fee-related services under review in this element will focus on services eligible for user fee methodology, as well as identification during this study of any relevant additions for services performed without a fee or for under-quantified or ineffectively structured fees. The City is limiting this analysis to services related to development and construction for which a user or regulatory fee is or can be imposed can be included as desired. This can encompass activities managed by the Department that may include generally:  Regulatory activities, such as review and inspection of land development, construction/building, and improvements to infrastructure, and other areas of code review, compliance, and enforcement  Permitting, such as special events and use of public facilities, infrastructure, and services  Facility rentals and use of public spaces  Program participation  Operations and services of individual benefit/request or in response to individual action  Licensing, billing, records management, and administrative service  Hourly rates for direct-billing City staff time Revenue streams generally excluded from this type of methodology due to differing authority, implementation and analytical methodologies, and approval procedures would include: utility rates and other property-related fees subject to Proposition 218 proceedings, assessments, in-lieu fees, fees intended and codified more as “taxes,” punitive fines/penalties, and general taxes. From the City’s existing Schedule of Fees and Charges Effective March 17, 2021, our team expects the following broad categories of fees to fall under review in the Developer Fee Study:  Planning – Counter Services  Planning – Development Services  Public Works – Engineering Services  Public Works – Counter Services  Building & Safety  Vector Control/Animal Control Services  Police Services DEVELOPMENT IMPACT FEES The City of Moorpark has an adopted Development Impact Fee (DIF) program. According to the City’s latest Annual report, the City imposes fees for: C-3  Traffic Systems Management  Citywide Traffic Mitigation  Crossing Guard  Library Facilities  Open Space Maintenance  Tree & Landscaping  Art in Public Places  Park Improvement and Recreation Facilities  Los Angeles Avenue Area of Contribution  Tierra Rejada Road/Spring Road Area of Contribution  Casey Road/Gabbert Road Area of Contribution  Fremont Storm Drain AOC  Walnut Canyon Traffic Noise Attenuation  Police Facilities The City desires to complete an analysis of the City’s needs and establish a new development impact fee program. In addition to those existing fees, the City also wishes to:  Update the City’s Parking In-lieu fees for the downtown area  Establish Truck Impact Fees for LA Avenue CENTRAL SUPPORT SERVICES While cost recovery for the above listed direct services are the focus of the two fee studies, a Cost Allocation Plan focuses on potential cost recovery for the “indirect” services of the municipal organization. Indirect services represent City budget units commonly found in the General Fund that might include:  Legislative and general governmental activities  Organization-wide management and administration  Central services outside of internal service funds EXHIBIT 1 |REVISED PRICING DETAIL BY STUDY TASK/MILESTONE FOR THE COST ALLOCATION PLAN, IMPACT FEE STUDY, AND DEVELOPER FEE STUDY C-4 C-5 WORK PLANS BY STUDY ELEMENT Cost Allocation Plan ClearSource presents the following work plan to complete the Cost Allocation Plan envisioned by the City of Moorpark. TASK 1 | STUDY ORIENTATION To commence the study on solid ground, ClearSource will generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre-established dates, and data collection and development procedures. Subtasks include: Facilitate project kick-off event(s) Assess prevailing cost allocation models, methods, and applications. Particular attention will be paid to annual procedures, internal opinions and impacts, and balance of workload with the requirements of the City’s uses for overhead, including internal transfers/reimbursements and external agency reimbursement. Review readily available budgetary documents to gain a working knowledge of City structure and accounting practices. Determine a plan for generating current indirect cost allocations for the host of uses identified by the City. This will likely include development of a new Excel-based model in alignment with current needs but may include modification of existing tools if City personnel prefer to sustain existing tools. ClearSource will remain flexible. TASK 2 | FINANCIAL AND ORGANIZATIONAL INPUTS ClearSource will develop the necessary foundation for subsequent quantitative analysis. Particular focus will be generating necessary data and documentation of inputs and assumptions as required by the application of plan outcomes. (For example, an OMB 2 CFR Part 225 compliant plan requires a specific inventory of information that may not be as essential if applications are entirely internal to the City.) Subtasks include: Access organizational and line-item detail to support costs, allocation factors, workload metrics, and accounting structure in the cost allocation model. Acquire and parse statistics that may be useful as bases for distributing costs and where necessary, develop and document alternate data sets to serve as distribution methods. Conduct targeted engagement with representatives from support services departments if useful to influence data accessibility and relevance in the cost allocation plan, such as work order records, inventories, and other volumetric or organizational tools. TASK 3 | COST ALLOCATION MODEL C-6 ClearSource will generate the quantitative model in Microsoft Excel to allocate indirect costs Citywide. The model will be built to accommodate change in the organization: the ability to add or remove direct and indirect costs and to adapt to a range of activities, from simple to complex. Structure and detail of the final model will be dependent upon the ultimate application of its results, as a plan submitted for cognizant agency approval in compliance with OMB 2 CFR Part 225 and/or the State Controller’s Office for Cost Claiming will require aspects unnecessary in applications where cost recovery is expected to be entirely internal to the agency. The model is expected to identify:  Citywide fund and accounting structure and fiscal year data for allocation outcomes  Allocable indirect service centers  Allocation bases and related distribution factors for indirect service centers  Direct service centers  Primary and secondary allocations  Resulting annual cost allocations  Resulting indirect service rates  Resulting interfund transfers The model will provide for future in-house updates utilizing annual inflators or revision of underlying assumptions for personnel costs, contracted service inflation, etc. where allowed and recommended as feasible/reasonable. ClearSource will also generate a comparison of outcomes under the updated Cost Allocation Plan to prior year outcomes, including explanation for substantive differences. TASK 4 | REPORTING AND DELIVERABLE TOOLS ClearSource will provide the formal documentation encompassing the work and outcomes of the study, as well as deliver the tools developed throughout the study for the City’s ownership and future use, including preparation or inclusion of:  A narrative description of the study, describing key data and assumptions, and impacts.  Tables and charts to explain findings  The complete quantitative analysis as the justification for updated indirect cost allocations and associated rates and transfers. For a cost allocation plan in compliance with OMB 2 CFR Part 225, the report/quantitative analysis will include:  Description of each allocated central service  Identification of the units rendering services and the units receiving services  Items of expense included in the allocated cost of service C-7  Method used to distribute the cost of service to benefitted units  Schedule showing the allocation of each service to the specific benefitting units  Organizational chart Upon review and feedback from the City staff, consultants will revise the draft report and accompanying outcomes to incorporate direction received. The final report will be issued for the City’s implementation and as a data source for incorporation in the Cost of Services Study. Reports will be issued in PDF for digital distribution and any necessary printing by the City beyond the requested bound (3) and unbound copies delivered by consultants. Upon issuance of the final report, ClearSource will deliver editable versions of all models, documentation, and associated work papers to the City for future use. Models will be delivered in Microsoft Excel and PDF. Documentation will be delivered in Microsoft Word and PowerPoint and in PDF. Additional work papers developed will be delivered in the format in which they were created and in PDF. Consultants will provide training to City staff on the development and future in-house update of the delivered electronic tools and various reports. TASK 5 | ENGAGEMENT ClearSource will facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers:  At least two interim review points to engage with designated City personnel managing cost allocation practices  At City management discretion, an event with the City Council to present the draft report and receive feedback and direction on cost allocation proposals that would impact the City’s budgetary and financial practices. Consultants will prepare materials for these sessions, present the plan (or elements relevant), and respond to inquiries. Consultants will be available to City staff in the future to advise on the cost allocation plan. Impact Fee Study Harris & Associates presents the following work plan to complete the Impact Fee Study envisioned by the City of Moorpark. TASK 1 | KICK-OFF MEETING Harris will attend a kick-off meeting with City staff to review the objectives of the analysis, to agree on methodology, to exchange information, to set the schedule for all tasks, and to determine further information needed from City staff. Harris will work with City staff to refine the scope, purpose, uses, and goals of the City and for the project. TASK 2 | RESEARCH AND FEE STRUCTURE C-8 Harris will participate in calls with individual members of City staff to gain an understanding of the purpose and use of the fees and any concerns staff have with the current fee program. It is anticipated that up to eight (8) calls will be required. Harris will review the existing fee studies and background documentation including the existing fee studies, ordinances and resolutions, any master plans, the City’s general plan, and any other available studies that identify the City’s goals and required infrastructure needs. The goal of this task is to better understand the needs and goals of the City for each impact fee category and to gather the information that will serve as the basis for the fees. Once all documentation has been reviewed, Harris will meet with staff to discuss the validity of the current fees and any fee categories that the City may wish to pursue developing as part of the update. We will discuss any missing information and how the supporting documentation can be developed. Harris will recommend any changes to the current fee structure to facilitate better collection and administration of the program. Harris will also discuss AB602 and whether the City wishes to collect fees based on house size in accordance with the new bill, or continue collecting on a per unit basis. If new categories of fees are identified or documentation to support the fees is not available, a scope amendment may be necessary. TASK 3 | DRAFT DEVELOPMENT IMPACT FEES Harris will gather the City’s growth projections and will gather other assumptions such as persons per household, existing city population and employment, and future population and employment. Harris will work with City staff to understand the facilities and supporting infrastructure (i.e. equipment and vehicles) needed to serve future development. We will develop the project lists and cost estimates utilizing the City’s existing plans, discussions with City staff, and level of service analysis. Where future facilities may not be able to be determined, such as with parks or public safety facilities, a level of service analysis can be completed that sets funding at levels that maintain the City’s existing level of service (i.e., acres of parks or square feet of Fire Stations). When the land use assumptions and the identification of the needed facilities are completed, Harris will determine the methodology to allocate the infrastructure costs in each fee category to the various land uses based on the additional residents and employees that these new developments generate. Based on this information gathered, Harris will calculate the recommended fee for each land use type in compliance with the requirements of Section 66000 of the Government Code. An administrative fee will also be calculated to fund impact fee studies, annual administration, City staff administration, and reporting requirements Harris will prepare a comparison of the development impact fees from surrounding jurisdictions. Up to six jurisdictions will be included and will be based on input from the City as to which cities are to be included. The comparison will include fees for single family residential, multi-family residential, commercial, and industrial development to current and proposed fees in the City. Harris will prepare the draft fees and fee comparison for review with the City. TASK 4 | DRAFT DEVELOPMENT IMPACT FEE STUDY C-9 Once all parties agree on the fees, Harris will prepare the Nexus Study. The Nexus Study will be prepared in an organized fashion with an executive summary and will contain all required legal and technical documentation including additional information required under AB602. The study will include all background information, the methodology used to determine the fees, all supporting information, calculations that demonstrate the legal nexus between the recommended fees and the impact created by new development, the relationship between the fee’s use and the type of project on which the fee would be imposed, the purpose of the fee, how the fees would be used, and a description of the relationship between the need for any additional facilities and the type of development project on which the fee would be imposed. In addition, the report will discuss annual fee update procedures, credit and reimbursement policies and will outline the required administrative procedures including online reporting requirements required under SB1483. We will also incorporate the legal methodology for calculating fees for accessory dwelling units. Harris will meet with the City to discuss the report and incorporate one set of consolidated comments to create final draft report. TASK 5 | STAKEHOLDER MEETINGS Harris will prepare and lead a meeting with BIA, development community and other stakeholders. Obtaining the development community’s support is best achieved when their input is included in the fee analysis. Harris will discuss any recommendations that come out of this meeting with the City and incorporate relevant feedback into the study. Harris will prepare and make presentations on the methodology, findings, and implications of the proposed impact fees at City Council and/or planning commission meetings to facilitate the understanding of the impact fee analysis. The presentations will be prepared in a clear and concise manner. Harris will answer any questions and document any concerns or requested changes. Two presentations are assumed. Harris will assist the City with the preparation of the staff report and resolution for City Council adoption. An automatic inflation factor will be included in the resolution. It is assumed that the City will notice all meetings and provide a legal review of the documents. Revisions to the report will be completed based on input received from the City Council and the final report provided to the City. TASK 6 | FINAL REPORT Once the report is adopted, Harris will provide three (3) bound paper copies, and an electronic pdf, excel fee schedule model that can be updated. Developer Fee Study ClearSource presents the following work plan to complete the Developer Fee Study envisioned by the City of Moorpark. TASK 1 | STUDY ORIENTATION To commence the study on solid ground, ClearSource will generate common understanding of objectives, known issues that must be addressed by study end, participant roles, expected procedural requirements, schedule and pre-established dates, and data collection and development procedures. C-10 Most significantly, this task includes a major upfront effort to examine prevailing fees for known issues and to discuss initial and potential modifications to structures and practices. Subtasks include:  Facilitate project kick-off event(s)  Assess prevailing fees and methods to understand effectiveness of current structures, including perceived cost recovery, perceived equity, alignment of fee categories with the manner in which work is performed, perceived competitiveness in the region, and feasibility or accuracy of billing within current capabilities  Draft initial user/regulatory fee structures, where remodeling is predicted, to direct down-stream data development steps TASK 2 | FINANCIAL AND LABOR TIME INPUTS Consultants will develop the necessary foundation for subsequent quantitative analysis, focusing this initial work to prepare the body of data that will inform every downstream element of the fee study. To develop financial inputs, consultants will gather and/or prepare and model financial data, including:  Current and historical fee revenues,  Personnel and contractor costs and organization,  Adopted line-item expenditures,  Forecasted periodic outlays, and  Allocated indirect/overhead costs via new or existing plan. To develop and test labor time inputs, based on prevailing and future business processes, consultants will gather and develop expressions of time several ways:  Utilize any existing labor time-tracking data,  Conduct interviews to estimate a distribution of annual time across core functions of service,  Develop service time questionnaires linked to remodeled fee structures to estimate average or a range of service times for fee-related services,  Apply industry experience to populate under-developed or unavailable time estimates, particularly from prospective changes in workflow resulting from the project,  Analyze any existing data sets that inform workload/activity/use levels and project profiles for fee- related services, and  Reconcile annual time, service time estimates, and service volumes to test reasonableness of critical assumptions. TASK 3 | LABOR TIME VALUATION ClearSource will develop fully burdened hourly labor rates in each department/division participating directly in the provision of services associated with a fee under review. Rates will be built to encompass labor costs, non-labor operating costs, departmental and/or divisional administration, central C-11 services/general City administration, and periodic investments. Rates will be expressed by function of direct and indirect service within each department/division, where applicable and to enable cost recovery considerations for certain fee categories. Rates may be expressed as composite for the department/division, for the position class, and/or by individual position. C-12 TASK 4 | FEE DESIGN ClearSource will apply the outcomes from Tasks 1 and 2 – an assessment of existing fees and interaction with City staff to understanding current practices and work flow – to ensure cost of service analysis aligns with the fee structures recommended from that work, which may include elements of prevailing fees, recommendations based on prevailing business processes, system capabilities, and relevant market or industry practices applicable to City work flow. Consultants will prepare a working model of a master fee schedule. TASK 5 | COST OF SERVICE ANALYSIS ClearSource will prepare a cost of service model to join fully burdened hourly labor rates, time estimates associated with current work flow and business processes, and existing or any redesigned fee structures, in order to calculate the full unit cost of service associated with each fee category and layers within them. The full cost of service informs the maximum fee amount allowed under California framework for establishing user/regulatory fees by City Council action. The full cost of service at the fee-based activity level or the programmatic level is composed of:  Direct labor and non-labor costs,  Indirect labor and non-labor costs,  Periodic outlays or investments of direct or indirect benefit,  Departmental overhead, and  Citywide overhead. Analysis will include modeling of activities with under-developed or no fee imposed but where one is warranted and practical to improve the City’s cost recovery from private benefit activities. TASK 6 | COST RECOVERY AND IMPACT ANALYSIS Consultants will recommend cost recovery targets for fee-based services or work with City staff in developing cost recovery policy to inform final fee amounts, particularly where full cost recovery is deemed undesirable. Development of cost recovery policy and practices will optimize the City’s array of funding sources considering public/private benefits, market sensitivity, compliance and behavior modification, and fiscal constraints. Consultants will develop a master fee schedule for the City, useful in presenting proposals, as well as communicating fee descriptions, fee amounts, and charge bases to other City departments, who may have responsibility for maintaining Citywide schedules of fees. As desired, the master fee schedule developed can also include a tool for subsequent annual inflationary adjustments to the established fee structures. Final proposed fee amounts will be applied in the master fee schedule alongside information useful in communicating fees to the public. To the extent existing data systems enable it, revenue estimates C-13 based on historical or projected performance will be attempted. Finally, comparison to prior fees will be completed in targeted service categories to assist in explaining impacts of changes. Consultants will prepare a comparison of fees to other municipalities in targeted service categories as needed, likely by creating profiles for an array of “typical” uses in addition to one-for-one comparisons. Consultants will review associated fee practices, including waivers, deposit amounts, fee/deposit collection practices, and economic incentive practices. Where needed, consultants will provide recommendations and industry information regarding relevant fee policies and practices which may impact cost recovery, including the use of waivers, any billing and deposit management procedures, and collections. TASK 7 | REPORTING AND DELIVERABLE TOOLS ClearSource will prepare the administrative record for pursuing implementation of revised fees. This focuses on the draft and final reports of cost of service findings, including assumptions, critical data, and discussion of expected impacts. Analytical detail will be included, as well as executive summary and infographics useful in public presentation and legislative processes. Consultants will deliver the analytical models used to develop fees in Microsoft Excel format for future update and management, including the working master fee schedule and its publishable version. For reporting and the delivery of all tools, subtasks include:  Deliver formal documentation and tools for the City’s ownership and future use in editable formats (e.g., Microsoft Office suite) and publishable format (PDF)  Draft and final draft report iterations  Presentation/summary materials for communicating proposals  Assistance with staff report and public hearing noticing  Document the statutory and legal framework and annual and five-year reporting requirements  Discuss best practices to ensure better collection of the fees  Final report, including all background information, methodology, supporting justification, calculations, and administrative processes  Delivery of technical models and work papers  Training event for City staff in annual updates and analytical use of delivered models TASK 8 | REVIEW AND ENGAGEMENT ClearSource will facilitate a meaningful level of interaction between consultants, City personnel, and City Councilmembers with the goal of successful approval, implementation, and ongoing maintenance of study proposals. Subtasks include:  Departmental interaction – to develop data and provide interim reviews points by lead service areas. C-14  City leadership interaction – to receive direction on proposals and outcomes prior to pursuit of approval.  City Council engagement – to present the final draft report and receive direction.  City Council / public hearing – to adopt the proposed fees contained in the final report.  Stakeholder outreach – as needed to facilitate successful implementation of proposals. PROJECT SCHEDULE Timeline by Tasks / Milestones The ClearSource-Harris team anticipates the following timeline for delivery of final draft reports for each element of this project:  Cost Allocation Plan: 90 Days  Impact Fee Study: 150 Days  Developer Fee Study: 120 Days Upon delivery of the draft reports in each study element, the City may schedule City Council engagements to review recommendations, consultants may issue final reports, and public hearings may be scheduled following the City’s preferred timing and legislative or community priorities. Total estimated project timing and calendar is illustrated in Figure 1. C-15 FIGURE 1 | PROJECT TIMELINE BY STUDY ELEMENT AND MAJOR TASK / MILESTONE