Loading...
HomeMy WebLinkAboutAGENDA REPORT 1995 0419 CC REG ITEM 11I ITEM . 2/S MOORPARK, CALCI^^"' City Council Meel:n 996ACof ` - 1 q 1996- ACTION: TION: z1.L . .• AGENDA REPORT , -�i CITY OF MOORPARK /31f //./,1 '' 4 /4 TO: The Honorable City Council �/ ��``'.24..1 FROM: Jaime Aguilera, Director of Community Developments Deborah S. Traffenstedt, Senior Planner 1 DATE: April 17, 1995 (CC Meeting of 4-19-95) SUBJECT: CONSIDER APPROVAL OF AN ADDENDUM TO THE AGREEMENT BETWEEN THE CITY AND BOLLINGER DEVELOPMENT CORPORATION FOR PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT AND PROVISION OF RELATED SERVICES FOR THE BOLLINGER DEVELOPMENT PROJECT (MOORPARK COUNTRY CLUB ESTATES) AND APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY AND RALPH ANDERSEN & ASSOCIATES FOR PREPARATION OF A FISCAL IMPACT AND FINANCIAL FEASIBILITY ANALYSIS BACKGROUND At the joint City Council/Planning Commission workshop on January 25, 1995, for the Bollinger Development Project, the City Council reaffirmed that the applicant would be required to fund the cost for the City to hire a consultant to conduct a fiscal impact and financial feasibility analysis . Staff was directed to schedule an item for City Council discussion and action pertaining to the scope of the analysis . DISCUSSION Subsequent to the January workshop, staff has attempted to work cooperatively with Mr. Bollinger to gain concurrence regarding the scope of work and the selected consultant for the fiscal impact and financial feasibility analysis. Staff requested that Ralph Andersen & Associates reconsider their original proposal for the fiscal impact and financial feasibility analysis for the Bollinger Development Project, given that they had subsequently been awarded the contract to prepare a fiscal impact analysis for the Specific Plan No. 8 project. The development of the fiscal impact model has involved a considerable amount of land use and budget data collection, and staff's intent in soliciting a revised proposal from Ralph Andersen & Associates for the Bollinger Development Project was to achieve a cost and time savings . The total cost of $11,240 for Ralph Andersen & Associates to complete the fiscal impact and financial feasibility analysis is less than the total cost for any of the other proposals received. A41N-�l'7 The Honorable City Council April 17, 1995 Page 2 As identified in the attached proposal from Ralph Andersen & Associates, their work effort would include review, assessment, and updating, as necessary, of existing golf course feasibility information (submitted by Bollinger Development Corporation and available from other agencies) . In addition they would respond to various questions raised by the City Council and staff, including the following: What specific infrastructure improvements should be covered by the Mello Roos District versus by City Municipal Bond? What is the status of the existing loans on the property? How do existing liens relate to the bonds? Are the applicant's assumptions regarding number of rounds of golf and revenue potential reasonable? What is the current regional demand for new golf courses? Are municipal courses currently being planned or developed sufficient to meet this demand? Would there be unmet demand in five years? Are two golf courses more economically viable than a single course? Would bond repayment from golf course revenue be more secure with a single municipal course and no adjacent semi-private course? What is the probability of default for the bond issues? What are the possible sources for failure (e.g. , not enough revenue) ? What is the potential liability of the City? Can the golf courses be constructed independent of the proposed residential component of the project? What is the impact, if any on City, if the golf courses are constructed in advance of any homes? Also, what is impact if homes are constructed and the golf course(s) are not completed? Are the Developer's assumptions regarding residential lot value reasonable? Are there any recommendations that could be provided to assist the City in preparing a development agreement with the applicant that would clarify what both parties will obtain from the City's decision to approve the Project, including bond issuance? For example, what is the timing for the bond issuance; when does the Developer transfer ownership of the municipal course to the City; what are the construction obligations of the Developer for the municipal course; who The Honorable City Council April 17, 1995 Page 3 will manage the municipal course; should the City allow the Developer to manage the municipal course; what should be the term of any management contract; what are recommended golf course lease terms, when will all infrastructure improvements, that are required for golf course operation, be completed; and should the Developer be required to pay off the Mello Roos obligation at the time of sale of a home? It is staff's opinion that Ralph Andersen & Associates is the most appropriate consultant to assist the City with this fiscal impact and financial feasibility analysis. Ralph Andersen & Associates and their sub-consultants possess the necessary qualifications, and both a time and cost savings can be realized, because they propose to primarily use the same project team that is currently preparing the fiscal impact study for the Specific Plan No. 8 project. One additional sub-consultant has been proposed, Sutro & Company, to provide expertise in the area of public financing feasibility. Attached to this report are two draft agreements (Attachments 1 and 2) . The first is the draft Addendum Agreement between the City and Bollinger Development Corporation and the second is the draft Professional Services Agreement between the City and Ralph Andersen & Associates . The Proposal from Ralph Andersen & Associates for the fiscal impact and financial feasibility analysis work is included as Exhibit "A" to the Professional Services Agreement. The objectives and work tasks that are listed in the Proposal, address the issues and concerns raised at the joint City Council/Planning Commission workshop. Staff's intent is to have the fiscal impact and financial feasibility analysis completed and available for public review prior to the scheduling of any public hearing for the project. The current proposal from Ralph Andersen & Associates includes the cost for a representative from that firm to make a presentation of their fiscal study findings to both staff and the City Council. The final work product identified in the Proposal (assistance regarding the key elements of a development agreement with the project proponent and the City) would be done at the time that the applicant submits a development agreement or similar contract for City consideration. RECOMMENDATION 1. Authorize the City Manager to approve an Addendum to the Agreement between the City of Moorpark and Bollinger Development Corporation for Preparation of an Environmental Impact Report and Provision of Related Services for the Bollinger Development Project, subject to final language approval by the City Attorney G44 n ,a, C- 0 Vie, arc' /e The Honorable City Council April 17, 1995 Page 4 2 . Authorize the City Manager to approve a Professional Services Agreement between the City of Moorpark and Ralph Andersen & Associates for Preparation of a Fiscal Impact and Financial Feasibility Analysis for the Bollinger Development Project, subject to final language approval by the City Attorney. Attachments: 1. Draft Addendum Agreement between City and Bollinger Development Corporation 2 . Draft Professional Services Agreement between City and Ralph Andersen & Associates (includes their Proposal as Exhibit "A" ) 106 41e �-�, - � ADDENDUM TO AGREEMENT BETWEEN THE CITY OF MOORPARK AND BOLLINGER DEVELOPMENT CORPORATION FOR PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT AND PROVISION OF RELATED SERVICES FOR THE BOLLINGER DEVELOPMENT PROJECT THIS ADDENDUM, made and entered into this day of , 19_, by and between the City of Moorpark ( "City" ) , a Municipal Corporation, located in the County of Ventura, State of California, and Bollinger Development Corporation ( "Bollinger" ) , a California Corporation, which Addendum is entered into with reference to the following recitals. RECITALS WHEREAS, on November 2, 1994, Bollinger entered into an Agreement with the City for Preparation of an Environmental Impact Report and Provision of Related Services for the Bollinger Development Project (hereinafter referred to as "the Agreement" ) , requiring Bollinger to be responsible for payment of all costs associated with preparation of an environmental impact report and provision of related services for the Bollinger Development Project; and WHEREAS, a revision to the Agreement, is now required to reflect the intent of both Bollinger and the City to have the City hire Ralph Andersen & Associates, the fiscal impact and financial feasibility analysis consultant; NOW, THEREFORE, in consideration of the above recitals, the parties agree as follows: Article XIII, COSTS OF RALPH ANDERSEN & ASSOCIATES AGREEMENT, is hereby added to read as follows: XIII . COSTS OF RALPH ANDERSEN & ASSOCIATES AGREEMENT Bollinger shall pay City for all necessary and proper costs incurred by City for the hiring of Ralph Andersen & Associates to provide a fiscal impact and financial feasibility analysis for the Bollinger Development Project; provided, however, that such costs shall not exceed $12,926 .00, without the prior written agreement of Bollinger and the City of the changes in the scope of work which result in the increase of said cost. The $12,926 . 00 total cost is based upon the Ralph Andersen & Associates ' fixed cost of $11,240. 00, plus the City's fifteen percent ( 15%) administrative charge of $1,686 .00 . Upon joint execution of the Addendum to Agreement between the City of Moorpark and Bollinger Development Corporation for Preparation of an Environmental Impact Report and Provision of Related Services for the Bollinger Development Project, Bollinger shall pay to the City a total of $12,926 . 00, which shall be deposited into a project trust fund account, and used for payment of the work tasks outlined in the Ralph Andersen & Associates Professional Services Agreement, which is attached hereto and incorporated herein as Exhibit "2 " . IN WITNESS WHEREOF, the parties have caused this Addendum Agreement to be executed the day and year first above written. CITY OF MOORPARK: BOLLINGER DEVELOPMENT CORPORATION California Corporation BY BY Steven Kueny Paul Bollinger City Manager President ATTEST: BY Lillian E. Hare City Clerk Attachment: Exhibit "2 " - Professional Services Agreement between the City of Moorpark and Ralph Andersen & Associates for Preparation of a Fiscal Impact and Financial Feasibility Analysis for the Bollinger Development Project 2 PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF MOORPARK AND RALPH ANDERSEN & ASSOCIATES FOR PREPARATION OF A FISCAL IMPACT AND FINANCIAL FEASIBILITY ANALYSIS FOR THE BOLLINGER DEVELOPMENT PROJECT THIS AGREEMENT, made and entered into this day of , 199 by and between the City of Moorpark, a municipal corporation located in the County of Ventura, State of California, hereinafter referred to as "CITY" , and Ralph Andersen & Associates, a California Corporation. WITNESSETH Whereas, City has the need for professional fiscal impact and financial feasibility analysis services for the Bollinger Development Project, hereinafter referred to as the "PROJECT" ; and Whereas, City desires to contract for such services with a private consultant in anticipation that said private consultant can provide such services in a manner acceptable to the City; and Whereas, Ralph Andersen & Associates is experienced in providing such services and is able to provide personnel with the proper experience, certifications and background to carry out the duties involved; and Whereas, Ralph Andersen & Associates has submitted to City a proposal for a fiscal impact and financial feasibility analysis of the Project, which is attached hereto as Exhibit "A" and hereinafter referred to as the "PROPOSAL" ; and Whereas, City, wishes to retain Ralph Andersen & Associates for the performance of the services identified in the Proposal; and Whereas, the City intends to enter into an Agreement with the Bollinger Development Corporation, hereinafter referred to as "APPLICANT" , requiring the Applicant to pay to City all costs incurred by City in strict accordance with the Ralph Andersen & Associates Agreement and Proposal; NOW, THEREFORE, in consideration of the mutual covenants, benefits and premises herein stated, the parties hereto agree as follows: I. PROPOSAL City does hereby retain Ralph Andersen & Associates in a , contractual capacity to prepare a fiscal impact and financial feasibility analysis as set forth in the Proposal, which is attached hereto and by this reference incorporated herein. Where 1 said Proposal is modified by this Agreement, or in the event there is a conflict between the provisions of said Proposal and this Agreement, the language contained in this Agreement shall take precedence. II. COMPENSATION The fees in full compensation to Ralph Andersen & Associates for the services rendered shall be as set forth in the Proposal, for an amount not to exceed $11,240 .00, without the prior agreement of the City of Moorpark and Ralph Andersen & Associates of the changes in the scope of work for the fiscal impact and financial feasibility analysis for the Project, which result in the increase of said cost. Payment by the City to Ralph Andersen & Associates shall be in accordance with the provisions of Article V, Paragraph I, of this Agreement. III. TERMINATION OR SUSPENSION This Agreement may be terminated or suspended with or without cause by City at any time with no less than ten ( 10) working days written notice of such termination or suspension. This Agreement may be terminated by Ralph Andersen & Associates only by providing City with written notice no less than thirty (30) days in advance of such termination. In the event of such termination, Ralph Andersen & Associates shall be compensated for such services up to the date of termination or suspension. Such compensation for work in progress shall be prorated as to the percentage of progress completed at the date of termination or suspension. IV. TERM OF AGREEMENT The term of this Agreement shall be the time period required to complete all of the work tasks identified in the Proposal, and for a one-year period following completion of all such tasks, unless prior to completion of all said work tasks, this Agreement is terminated pursuant to Article III herein. V. GENERAL CONDITIONS A. Ralph Andersen & Associates agrees not to provide fiscal impact and financial feasibility analysis or related services for any other public agency or private development project located within the City limits or its Area of Interest, without the prior written consent of the City, during the term of this Agreement. 2 B. Ralph Andersen & Associates agrees not to provide fiscal impact and financial feasibility analysis or related services for Bollinger Development Corporation, and any affiliated company, partnership, or corporation, and for any individual, partnership or corporation that has a financial interest in the Project or Project area, without the prior written consent of the City, during the term of this Agreement. C. City shall not be called upon to assume any liability for the direct payment of any salary, wage or other compensation to any person employed by Ralph Andersen & Associates performing services hereunder for City. D. Ralph Andersen & Associates is and shall at all times remain as to the City a wholly independent contractor. Neither the City nor any of its officers, employees, servants or agents shall have control over the conduct of Ralph Andersen & Associates or of Ralph Andersen & Associates 's officers, employees or agents, except as herein set forth. Ralph Andersen & Associates shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of the City. E. Ralph Andersen & Associates shall hold harmless, indemnify and defend the city and its officers, employees, servants and agents and independent contractors who serve in the role of City Manager, Deputy City Manager, Director of Community Development, City Engineer, or City Attorney from any claim, demand, damage, liability, loss, cost or expense, for any damage whatsoever, including but not limited to death or injury to any person and injury to any property, resulting from, or in any way connected with the performance of this Agreement by Ralph Andersen & Associates or the City, except such damage as is caused by the sole negligence of the City. The City does not, and shall not, waive any rights that it may have against Ralph Andersen & Associates by reason of Paragraph E hereof, because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless or whether or not said insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense described in Paragraph E hereof. 3 F. Ralph Andersen & Associates shall secure from a good and responsible company or companies doing insurance business in the State of California, pay for, and maintain in full force and effect for the duration of this Agreement the policies of insurance required by this paragraph and shall furnish to the City Clerk of the city certificates of said insurance on or before the commencement of the term of this Agreement. Notwithstanding any inconsistent statement in any of said policies or any subsequent endorsement attached thereto, the protection offered by the policies shall: 1. Name the City and its officers, employees, servants and agents and independent contractors serving in the role of City Manager, Deputy City Manger, Director of Community Development, City Engineer, or City Attorney, as additional insured with Ralph Andersen & Associates . 2 . Bear an endorsement or have attached a rider whereby it is provided that, in the event of cancellation or amendment of such policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. Ralph Andersen & Associates shall give city thirty (30) days written notice prior to the expiration of such policy. 3 . Be written on an occurrence basis . G. Consistent with the provisions of Paragraph F, Ralph Andersen & Associates shall provide general public liability including automobile liability and property damage insurance in an amount not less than One Million dollars ($1,000,000.00) per occurrence and annual aggregate. H. Consistent with the provisions of Paragraph F, Ralph Andersen & Associates shall provide workers ' compensation insurance as required by the California Labor Code. If any class of employees engaged by Ralph Andersen & Associates in work under this Agreement is not protected by the workers' compensation law, Ralph Andersen & Associates shall provide adequate insurance for the protection of such employees to the satisfaction of the City. 4 I . Ralph Andersen & Associates shall not assign this Agreement, or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that Ralph Andersen & Associates is uniquely qualified to perform the services provided for in this Agreement. J. Payment to Ralph Andersen & Associates shall be made by City within thirty (30) days of receipt of a monthly invoice, with the exception of any invoice which is contested or questioned and returned by City with written explanation within thirty (30) days of receipt of invoice. Ralph Andersen & Associates shall provide to City a written response to any invoice contested or questioned, and further, upon request of City, shall provide City with any and all documents related to any invoice. K. 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 Avenue Moorpark, CA 93021 To: Joseph Hinsberg Ralph Andersen & Associates 1446 Ethan Way, Suite 101 Sacramento, CA 95825 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 second (2nd) day after deposit in the United States mail. L. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Ralph Andersen & Associates or by any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between the City and Ralph Andersen & Associates. 5 M. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. N. 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. 0. 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. P. 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 reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. Q. Cases involving a dispute between the City and Ralph Andersen & Associates may be decided by an arbitrator if both sides agree in writing, with costs proportional to the judgment of the arbitrator. R. 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. S. The captions and headings of the various Articles and Paragraphs of this Agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles and Paragraphs hereof. 6 VI. RESPONSIBLE INDIVIDUAL The individual directly responsible for Ralph Andersen & Associates overall performance of the Agreement provisions herein above set forth and to serve as principal liaison between City and Ralph Andersen & Associates shall be Joseph Hinsberg. Upon mutual written agreement of the parties, other individuals may be substituted in the above capacity. The City's contact person in charge of administration of the Ralph Andersen & Associates Agreement, and to serve as principal liaison between Ralph Andersen & Associates and City, shall be the Director of Community Development. VII. IMPLEMENTATION The City shall provide Ralph Andersen & Associates with written notice in advance of the date at which these services are to be implemented if different than the date of the Agreement. CITY OF MOORPARK: RALPH ANDERSEN & ASSOCIATES: By: By: Steven Kueny Joseph P. Hinsberg, Vice President City Manager ATTEST: By: Lillian E. Hare, City Clerk Attachment: Exhibit "A" - Proposal Letter dated March 23, 1995 7 03/23/95 08:52 '$`916 929 2075 RALPH ANDERSON S V1002/004 Ralph Andersen & Associates March 23, 1995 Mr. Richard Hare, Deputy City Manager City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Richard: This letter is in response to your request to provide some additional fiscal impact and financial feasibility analysis of the Bollinger Development Project. The development project as currently proposed contains 216 single family dwelling units, two 18-hole golf courses, public trails, a park and equestrian staging area. Staff has provided us with a copy of the following documentation: ■ Status report on Bollinger development project ■ Financial analysis of golf course prepared by ERA (January 21, 1993) • Feasibility analysis of Camarillo Golf Course prepared by Golf Realty Corporation (December 1, 1992) • Preliminary public financing analysis prepared by RPR Inc. (April 21, 1993). OBJECTIVES/WORK TASKS Based on the status of the Bollinger project and the summary of issues raised at the joint City Council/Planning Commission workshop, the primary objectives and work tasks of the additional services should include: • Review, assess and update as necessary financial feasibility work completed to date on golf course development. ■ Review market feasibility of residential units as proposed. S a cram en t o • Dallas • Newport Beach ME than Wa . Suite 101. Sacramento. CA 95825 is(916)929-5575 fax (916)929-2076 03/23/95 08:53 22918 929 2075 RALPH ANDERSON S 0003/004 Mr. Richard Hare Bollinger Analysis Page 2 • Determine fiscal impact of the Bollinger project on the City of Moorpark based on alternative build-out scenarios. = Review And comment on advisability of bond financing for major project infrastructure improvements. • Provide technical assistance to the City on elements and conditions of a proposed development agreement. The products of the assignment will include: • Written assessment of the golf course feasibility work completed to date including assumptions, adequacy of market data and areas of concern. • Written assessment of the market feasibility of the residential development as proposed. It should be noted that a significant amount of the background work needed to complete this analysis is being done in conjunction with the other work for the City. As such, there is not a significant amount of additional effort required to complete this task. • A report on net fiscal impact analysis of Bollinger Project on the City of Moorpark based on a number of scenarios including total project, golf course only (18 holes versus 36), residential only. This work will be done in conjunction with the model being developed for other projects in the City. • A written and verbal assessment of key issues and factors from the City's perspective in considering alternatives for public financing of all or a portion of the Bollinger Project. • Verbal and written assistance regarding the key elements of a development agreement with the project proponent and the City. PROJECT STAFFING As proposed, we will use the same project team as the Messenger Development project. That team includes: • Joe Hinsberg, Vice President, Ralph Andersen = Suzanne Bragdon, Vice President, Ralph Andersen MAP 77 '0 -• - - 03/23/95 08:53 ''916 929 2075 RALPH ANDERSON S 0004/004 Mr. Richard Hare Bollinger Anarysis Page 3 ■ Chris Davis, Principal of the Davis Group In addition, we propose to use Richard Kiss, Vice President of Public Finance.for Sutro & Company to provide additional expertise in the area of public financing feasibility. I have worked with Mr.Kiss on projects in the past and believe he brings a perspective of the needs and concerns of the City in these types of project fundings. • COST AND TIMING The assignment can be completed within thirty days from the issuance of a notice to proceed from the City. To the extent possible, all meetings will be scheduled in conjunction with other work performed for the City to expedite the process and control project costs. The cost for the project will be $11.240. This includes the cost of professional services for the project team as well as reimbursable expenses. The breakdown for members of the project team includes: • RA & A- $7,440 • Davis Group - $2,000 • Richard Kiss - $1,800 If you have any questions regarding this letter proposal, please do not hesitate to give me a call. Sincerely, As jk4Y s- •b P. 1-linsber: ice 'r- i -nt MAR 23 '95 07:52 916 929 2075 PAGE.R04