David Taussig & Associates, Inc.
78-495 Calle Tampico La Quinta, CA 92253 760.777.7000
November 30, 2018
David Taussig, President
David Taussig and Associates, Inc.
5051 Canyon Crest Drive, Suite 201A
Riverside, CA 92507
Subject: Development Impact Fee Study Update Proposal
Dear Mr. Taussig:
Thank you for your proposal for the development impact fee study update. We are
pleased to have the attention of firms with your qualifications propose on projects
within the City of La Quinta. Unfortunately, another firm was selected to provide the
development impact fee study update as identified on the request for proposals (RFP).
We appreciate the time and effort your team invested in your proposal and encourage
you to submit work proposals in the future.
Sincerely,
Bryan McKinney
City Engineer
cc: Danny Castro
Design and Development Director
Project File
CITY OF LA QUINTA
GEM of tine DESERT --
DEVELOPMENT IMPACT FEE STUDY UPDATE
RESPONSE TO REQUEST FOR PROPOSALS (RFP)
Proposal Due Date: 5:00 p.m. on October 15, 2018
PREPARED BY:
David Taussig and Associates, Inc.
5051 Canyon Crest Drive, Suite 201A
Riverside, CA 92507
Newport Beach
San Frmcisco
Saul Jose
Riverside
Dallas
October 15, 2018
Bryan McKinney, PE
City Engineer
City of La Quinta
Design and Development Department
78-495 Calle Tampico La Quinta, CA 92253
RE: Consulting Services for City of La Quinta Development Impact Fee Study Update
Dear Mr. McKinney:
DAVID TAUSSIG & ASSOCIATES, INC. ("DTA") is pleased to submit this proposal in response to the City of La
Quinta's ("City") Request for Proposals ("RFP") to assist the City in (i) developing a capital facilities program
that will serve as a Needs List for the preparation of an updated AB 1600-compliant development impact
fee justification study ("Fee Study") and (ii) preparing an updated Fee Study with fee levels that will support
Needs List construction costs through buildout of the City. As explained in our proposal, DTA has been
working on development impactfee studies since the approval of AB 1600 by the California State Legislature
in 1987. Our firm has extensive experience in determining legally defensible impact fees and has prepared
approximately 350 fee justification studies to date for a variety of public facilities improvements, including
roads, water and sewer facilities, storm drainage, library, police and fire, public transit and general city
facilities, as well as affordable housing. While most of these fee studies were applied on a City-wide or
unincorporated County -wide basis, DTA has also prepared studies impacting specific geographic zones
within a City, or for a Specific Plan or other more localized benefit -area. Notably, in recent years, our firm
has prepared AB 1600-com pl ia nt fee justification studiesforthe Cities of Anaheim. Blythe, Brawley, Calexico,
Cathedral City, Chino Hills, Coachella, Costa Mesa, Fontana, Hesperia, Live Oak, Los Banos, Mammoth
Lakes, Palo Alto, Paso Robles, Pasadena, Perris, Red Bluff, Redlands,. Rialto, San Francisco, San Jacinto,
San Luis Obispo, Torrance and Tustin, as well as for the Counties of Colusa, Riverside, San Bernardino, San
Luis Obispo, Santa Barbara and Yuba, among others.
As explained in the attached proposal, DTA is a public finance and urban economics consulting firm
founded in 1985 that specializes in infrastructure and public services finance. Our firm has offices in
Newport Beach, San Francisco, San Jose, and Riverside, California, and branch offices in Dallas and
Houston, Texas, to service our clients in the Midwestern and the Southwestern United States. DTA is a
registered and licensed Municipal Advisor with the U.S. Securities and Exchange Commission and
Municipal Securities Rulemaking Board (#No. 867-01160). Notably, all of DTA's managers at the Vice
President level and above have obtained a Series 50 license as a registered Municipal Advisor with the
SEC/MSRB, under rules promulgated following the Dodd -Frank Act in 2010.
In addition to the preparation of AB 1600-compliant fee justification studies, DTA is also involved in the
formation of public finance districts to fund infrastructure and public services costs. We are the State
leader in the formation and administration of Community Facilities Districts ("CFD"), having established
over 1,000 CFDs to date. We are also actively involved in establishing Assessment Districts, Enhanced
Infrastructure Financing Districts, and a variety of other debt financing instruments and tax credit
programs. In addition, DTA is active in the fiscal and economic analysis of land development impacts,
project feasibility studies, and economic development studies. DTA staff has prepared over 400 fiscal
impact reports ("FIRs") estimating the revenue and cost impacts of various land use decisions on cities,
counties, and special districts. Additional information on DTA is available on our website
(www.taussi .com).
Our firm has assembled a project team for the City's Fee Program update with the breadth of experience to
provide impact fee consulting services in a professional and timely manner. This engagement would be
primarily handled out of DTA's Riverside and Newport Beach offices. David Taussig, the President of DTA,
would be the Principal -in -Charge and have the City's primary account responsibility. Mr. Taussig's phone
contact number is 1-800-969-4382, and his email address is dtadavid@taussig.com. Mr. Taussig would be
assisted by Nathan Perez, Esq., Managing Director; Kuda Wekwete, Senior Vice President; and Steve Runk,
PE, Vice President of Engineering Services, as well as other support staff. Resumes for our senior team
members are included in Section 2 of this proposal. No subconsultants would be utilized by DTA for this
engagement.
If you have questions regarding this proposal, please call me or Kuda Wekwete of my staff at 1-800-969-
4382. We look forward to having an opportunity to work with you and the rest of the City's team on this
engagement.
Best regards,
David Taussig
President
TABLE OF CONTENTS
SECTION PAGE
I. DTA STATEMENT OF QUALIFICATIONS...................................................................................................3
II. PERSONNEL INFORMATION AND QUALIFICATIONS..............................................................................5
III. REFERENCES.......................................................................................................................................13
IV. UNDERSTANDING AND APPROACH.................................................................................................... 20
V. SCOPE OF WORK................................................................................................................................. 25
VII. SCHEDULE...........................................................................................................................................31
J �DAVID TAUSSIG
& ASSOCIATES Toc
SECTION 1 ■ STATEMENT OF
QUALIFICATIONS
I. DTA STATEMENT OF QUALIFICATIONS
A. OVERVIEW
DAVID TAUSSIG & ASSOCIATES, INC. ("DTA") is a public finance and urban economics consulting firm
founded in 1985 that specializes in infrastructure and public services finance. Our firm has offices
in Newport Beach, San Francisco, San Jose, and Riverside, California, and branch offices in Dallas
and Houston, Texas, to service our clients in the Midwestern and the Southwestern United States.
Additional information on DTA is available on our website (www.taussig.com).
Since its establishment in 1985, DTA has completed consulting assignments for over 2,500 clients
in ten (10) states. During this period, the firm has been involved in the formation of over 1,500
public finance districts, with total bond authorizations exceeding $60 billion. Our financing
programs have utilized a variety of public financing mechanisms such as Assessment Districts
("ADs"), Community Facilities Districts ("CFDs"), Certificates of Participation, Tax Allocation Bonds,
Sewer and Water Revenue Bonds, Marks -Roos Bond Pools, Landscaping and Lighting Districts
("LLDs"), Enhanced Infrastructure Financing Districts, and various types of fee programs.
Our experience implementing a variety of public financing mechanisms and analyzing City budgets
has enabled us to prepare Public Facilities Financing Plans that include capital financing
alternatives and revenue projections, as well as infrastructure master plans, sewer and water rate
analyses, and other related documents that transcend just the preparation of fee studies. In
addition to the planning and implementation of financing mechanisms, DTA is also involved in the
fiscal and economic analysis of land development impacts, project feasibility studies, and economic
development studies. DTA staff has also prepared over 400 fiscal impact reports ("FIRs") estimating
the revenue and cost impacts of various land use decisions on cities, counties, and special districts.
Perhaps DTA's most outstanding qualification is the dedication and loyalty of its senior employees,
many of whom have worked at DTA for 15 years or more and are available should any unique
situations arise. DTA can offer a level of management expertise unequaled throughout the public
finance consulting industry.
B. DEVELOPMENT IMPACT FEE STUDIES
DTA has been performing development impact fee consulting services for 31 years, since 1987,
which was when the California Legislature enacted the Mitigation Fee Act (the "Act" or "AB 1600")
and codified it under California Government Code §66000 et seq. DTA has had extensive
experience preparing DIF studies that have complied with Section 66000 et seq. and have
withstood legal scrutiny to the point where none of our prior studies has been subject to any
litigation. DTA also retains in-house legal counsel who will be engaged in this project and can clarify
any legal issues that may arise related to the review or preparation of a nexus -based Fee Study.
All of DTA's AB 1600 studies and our Assessment District formation work include a benefit cost
analysis and determination of nexus between the facilities financed, existing and future land uses,
and the specific financing mechanism. DTA has prepared approximately 350 fee justification
studies and analyses throughout California involving fees for a variety of public improvements,
including transportation, water, sewer and flood control facilities, fire and police stations, parks,
libraries, public transit facilities and other types of infrastructure. AB 1600 studies prepared by DTA
in recent years include studies for the Cities of Anaheim, Blythe, Brawley, Calexico, Cathedral City,
Chino Hills, Coachella, Costa Mesa, Escalon, Firebaugh, Fontana, Hesperia, Goleta, Kingsburg, Live
�J �DAVID TAUSSIG
&ASSOCIATES 3
SECTION 1 ■ STATEMENT OF
QUALIFICATIONS
Oak, Los Banos, Mammoth Lakes, Palo Alto, Pasadena, Paso Robles, Perris, Red Bluff, Redlands,
Reedley, Rialto, San Francisco, San Jacinto, San Luis Obispo, Torrance, Tustin and Victorville; and
for the Counties of Colusa, Kings, Riverside, San Bernardino, San Luis Obispo, Santa Barbara and
Yuba, among others.
Regarding DTA's current workload and our firm's ability to provide the services requested in a timely
manner, DTA's dedication to quality control enables our firm to produce high -quality work in a quick
and efficient manner to correspond with even the most aggressive financing schedule. The high
quality of DTA's services can be largely attributed to the caliber of our staff. DTA has a staff of more
than 60 employees, all of whom are directly involved solely in public finance. Staff members come
from backgrounds in several fields, including land development, public administration, civil
engineering, investment banking, economic consulting, redevelopment, law, and land -use planning.
This diversity of experience and expertise allows DTA to meet a wide variety of challenges, both
related to the actual work -product and client management. All of DTA's personnel have
considerable experience in computer -based financial analysis and modeling, which is a key
component of the firm's consulting services. This approach ensures that the development of
computer models utilized in the City's Fee Study will be in experienced hands.
In addition, DTA's quality control program includes ongoing staff mentoring, training, and internal
review processes. DTA senior staff take a hands-on approach to ensure accuracy, thoroughness,
and timely delivery of our public finance consulting services. Our senior staff will continually provide
guidance, oversight, and quality assurance checks throughout the duration of the City's project and
for every project deliverable. For detailed information on the qualifications of DTA's key personnel
to be assigned to this project, including resumes, please refer to Section 2, below.
1, �DAVID TAUSSIG
& ASSOCIATES 4
SECTION II ■ PERSONNEL
INFORMATION AND
QUALIFICATIONS
I. DTA PROPOSED PROJECT PERSONNEL
DTA has assembled a project team with the breadth of experience needed to assist the City in
the preparation of an updated impact Fee Study. DTA has an enviable reputation for producing
high -quality work in a quick and efficient manner to correspond with even the most aggressive
project schedule. Our clients also receive high levels of personal attention from senior staff, with
a Vice President or senior manager always available to meet with public agency staff and other
groups.
Our team organization for this engagement is illustrated below. Project roles of our key team
members are described below and are followed by professional biographies.
GEM of the DESERT ----
a
�J %DAVID TAUSSIG
&ASSOCIATES
David Taussig
President
Principal -in -Charge
Kuda Wekwete
Sr. Vice President
Project Manager
Nathan Perez, ESQ.
Managing Director
Legal Analysis
Steve Runk P.E.
Vice President
Engineering
�J �DAVID TAUSSIG
& ASSOCIATES 5
SECTION II ■ PERSONNEL
INFORMATION AND
UALIFICATIONS
DTATEAM BIOGRAPHIES
David Taussig
President I dtadavid a,taussig.corn
Project Role - Principal -in -Charge
David Taussig, CEO/President, will serve as Principal -in -Charge of DTA's project
team and will handle primary account responsibilities for this engagement. Mr.
Taussig will attend meetings as necessary and supervise all project staff. Mr.
Taussig has over 40 years of experience in the fields of real estate finance and
urban economics. His areas of expertise include municipal finance programs
for infrastructure and public facilities development, fiscal and redevelopment
impact analysis, and land development project feasibility studies.
=' Mr. Taussig has an extensive background in computerized financial analysis.
Since founding DTA in 1985, Mr. Taussig has developed a number of state-of-the-art analytical methods
and modeling approaches, as well as personally directed the formation of more than 1,000 public
financing districts, and the subsequent sale of tax-exempt municipal bonds. These districts have funded
public infrastructure and services for a variety of types of residential and non-residential development,
and have included several hundred master planned communities built throughout California, as well as
in several other western states. Mr. Taussig's work has involved both the preparation and
implementation of financing plans, and his public -sector clients have included virtually every major urban
county and city within California, as well as hundreds of special districts. He has provided similar
consulting services to many of the largest land development firms in the State. The financing programs
implemented by Mr. Taussig have ranged from land -secured Community Facilities Districts to
redevelopment tax -increment programs and lease revenue -based Certificates of Participation. He is also
responsible for DTA's successful efforts related to funding opportunities under a variety of State grant
programs and various federal tax credit programs, and is currently involved in placing municipal revenue
streams and Qualified Opportunity Zone projects with private investors.
Mr. Taussig has also overseen the preparation of numerous feasibility and impact studies involving the
computerized analysis of project cash -flows and/or impacts on public agencies and landowners. He has
assumed project management responsibilities for over 100 AB 1600 Development Fee Justification
Studies, including recent studies prepared on behalf of the cities of Blythe, Fontana, Coachella, Live Oak,
Paso Robles, Pasadena, Perris, Red Bluff, San Luis Obispo, Torrance and Tustin, as well as the Counties
of Colusa and San Bernardino. He has also been responsible for the preparation of over 200 fiscal
impact studies utilized by public agencies to determine the impact of new development or annexations
on a municipality.
Prior to establishing his own firm, Mr. Taussig was Director of Finance for Gfeller Development Company,
where he was responsible for all take-out and construction financing for the Company's residential
projects and infrastructure. He also prepared development project pro formas that were used by
prospective lenders and joint venture partners to evaluate the Company's proposed projects.
Mr. Taussig was previously employed for six years by Mission Viejo Company ("MVC") where, as Manager
of Housing and Community Development, he was involved in the planning and financing of two planned
communities encompassing over 50,000 homes. Mr. Taussig was responsible for a substantial portion
of MVC's mortgage financing and infrastructure financing during that period. He also worked for five
`� �DAVID TAUSSIG
& ASSOCIATES 6
SECTION II ■ PERSONNEL
INFORMATION AND
QUALIFICATIONS
years in the public sector as the administrator of a federal housing and community development
program, and as a land -use planner. Mr. Taussig's educational background includes a Master's in City
Planning from the University of California at Berkeley and a B.A. in Economics from Cornell University.
He received full certification from the American Institute of Certified Planners in 1982, and he is a
Registered Investment Advisor. Mr. Taussig is also a member of the national Urban Land Institute's
Public Private Partnership Council. Mr. Taussig is a re istered and licensed Municipal Advisor with the
SEC/MSRB.
RECENT DEVELOPMENT IMPACT FEE STUDY ENGAGEMENTS - Mr. Taussi
• City of Blythe
• City of Cathedral City
• City of Chino Hills
• City of Coachella
■ City of Costa Mesa
• City of Fontana
• City of Live Oak
• City of Pasadena
• City of Paso Robles
• City of Perris
• City of Red Bluff
• City of Rialto
• City of San Jacinto
• City of San Luis Obispo
■ City of Torrance
• City of Tustin
■ City of Victorville
• County of Colusa
• County of Riverside
• County of San Bernardino
• County of San Luis Obispo
• County of Santa Barbara
�J �DAVID TAUSSIG
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SECTION II ■ PERSONNEL
INFORMATION AND
KUDA WEKWETE
UALIFICATIONS
' Sr. Vice President I kwekwete@taussi .com
Project Role - Project Manager
Kuda Wekwete, Senior Vice President, will serve as Project Manager for the
DTAteam and will be the City's primary point of contact throughout the course
of this engagement. Mr. Wekwete will be responsible for the ongoing
execution and completion of the entire work plan - matching DTA's work and
deliverables with the City's needs and objectives.
Mr. Wekwete has a background in mathematical modeling and statistical
analysis. Since joining DTA in 2005, Mr. Wekwete has been heavily involved
in the formation of Assessment Districts, Community Facilities Districts,
Landscaping and Lighting Maintenance Districts, and the sale of special
district bonds. His work has included the preparation of tax spreads and overlapping debt analyses for
the formation and/or sale of bonds for over 200 special districts established throughout California. In
this role, Mr. Wekwete has prepared Rates and Methods of Apportionment, CFD and Engineers' Reports,
and documents required for the formation of a CFD, the sale of property, and the annual levying of a
special tax.
Mr. Wekwete has also been actively involved in the preparation of development impact fee studies,
especially in the areas of transportation, sewer, water and flood control infrastructure costing and the
apportionment of these costs over various land use types based on benefit criteria. His engineering
background has enabled him to work closely with DTA's Vice President of Engineering Services in
applying a variety of apportionment methodologies to the development of fee studies and the
establishment of benefit assessment districts for several dozen public sector clients. Mr. Wekwete also
has experience in the preparation of Fiscal Impact Reports, Tax Increment Analyses, and Public Facilities
Financing Plans, and has performed due diligence services and disclosure documentation for land
purchasers, public agencies, and lenders.
Mr. Wekwete received his B.S. in Operations Research & Industrial Engineering from Cornell University
and his M.S. in Industrial Engineering from Columbia University. He holds a Series 50 license as a
registered Municipal Advisor with the SEC/MSRB. under rules promulgated followingthe Dodd -Frank Act
in 2010.
RECENT DEVELOPMENT IMPACT FEE STUDY ENGAGEMENTS - Mr. Wekwete:
• City of Cathedral City
• City of Paso Robles
• City of Chino Hills
• City of Perris
• City of Coachella
• City of San Jacinto
• City of Costa Mesa
• County of San Bernardino
• City of Fontana
• County of San Luis Obispo
• City of Pasadena
• County of Santa Barbara
�J �DAVID TAUSSIG
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NATHAN PEREZ, ESQ.
SECTION II ® PERSONNEL
INFORMATION AND
QUALIFICATIONS
Managing Director I nperez@taussil4.com
Project Role -Legal Analysis
Nathan Perez, Esq., a DTA Managing Director, will be responsible for legal
reviews of DTA's work product. Mr. Perez is intimately familiar with case law on
both a State and Federal level regarding the California Mitigation Fee Act and
other nexus issues and is an important component of the DTA Team.
f Mr. Perez has a background in law, economics, business administration, and
a X ` statistical analysis. Since joining DTA, Mr. Perez has been involved in all
asnacts of the fnrmntinn and imnlementntinn of hundreds of Melln-Rnns
Community Facilities Districts and Assessment Districts throughout California and other states, with
responsibilities related to the development of tax spread proforma analyses, the preparation of rate and
method of apportionments, public reports, and the accompanying agreements and bond disclosures.
Mr. Perez is DTA's Program Manager for the California Statewide Communities Development Authority -
Statewide Community Infrastructure Program ("SCIP"), for which DTA acts as the Assessment Engineer
and Administrator for new Districts throughout the State.
Mr. Perez also has extensive expertise in the preparation, peer -review, and defense of development
impact fee studies. This includes considerable work related to the preparation of facilities needs lists
and the apportionment of infrastructure and services costs to a variety of land uses based on benefit
criteria. He has also specialized in the apportionment of costs and the setting of service levels for the
construction and maintenance of law enforcement and fire protection facilities, open space acquisition,
parkland, transportation facilities, drainage facilities, government services facilities, community centers,
and library facilities. Mr. Perez' recent work on development impact fee studies has included
engagements for the cities of Escalon, Firebaugh, Goleta, Kingsburg, Palo Alto, Pasadena, Paso Robles,
Reedley, Rialto, San Jacinto, San Luis Obispo, and the Counties of Kings, San Bernardino, and Yuba,
He has also completed nearly 125 fiscal impact reports and 65 economic development analyses for a
variety of residential, commercial, and mixed -use developments throughout California, New Mexico,
Washington, and Texas. Finally, his experience as an attorney has allowed Mr. Perez to effectively and
efficiently evaluate dozens of state and Federal legal, regulatory, and administrative frameworks related
to public finance and infrastructure development.
Prior to joining DTA, Mr. Perez worked for the Boston office of an international law firm, where he advised
sponsors, managers, and investors on the tax aspects of fund formation and investment. Mr. Perez is
admitted to the bar in both Massachusetts and California. Mr. Perez received his law degree from
Harvard Law School, and his B.A. in Economics and History, with the highest distinction, from the
University of North Carolina at Chapel Hill. Mr. Perez is an active member of the Urban Land Institute,
where he regularly volunteers with UrbanPlan, the California Bar Association, and the Hispanic National
Bar Association. He also sits on the Board of Directors and Executive Board that governs his local
Business Improvement District, presently volunteering as the district's Treasurer.
(https://www.willowglen.org,/About_WGBA).
Mr. Perez also holds a Series 50 license as a registered Municipal Adviser with the SEC/MSRB, under
rules romul ated following the Dodd -Frank Act in 2010.
�J �DAVID TAUSSIG
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SECTION II ■ PERSONNEL
INFORMATION AND
QUALIFICATIONS
RECENT DEVELOPMENT IMPACT FEE STUDY ENGAGEMENTS - Mr. Perez:
■ City of Escalon
• City of Paso Robles
• City of Firebaugh
■ City of Reedley
■ City of Goleta
• City of San Jacinto
City of Kingsburg
■ City of San Luis Obispo
• City of Los Banos
■ County of Kings
■ City of Mammoth Lakes
• County of San Bernardino
■ City of Palo Alto
■ County of Yuba
�J �DAVID TAUSSIG
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STEVE RUNK, P.E.
SECTION II ■ PERSONNEL
INFORMATION AND
UALIFICATIONS
Vice President, Engineering Services I srunk@taussig:com
Project Role - Price Estimation Engineer (State License Number C23473 -
California Registered Civil Engineer)
Steve Runk, P.E., Vice President, will provide engineering expertise, assist in
the selection of facilities to be included on the Facilities Needs List, prepare
and/or review facilities cost estimates, and contribute to the apportionment
analysis for specific facilities to be included in the fee program.
Mr. Runk has over 40 years of experience in the design and construction
management of major civil engineering projects, including roadways, bridges,
sewer and water improvements, and flood control facilities, as well as grading
for public works projects and the construction of commercial and industrial
buildings. Mr. Runk's specific responsibilities have included design, quality control, specifications,
estimates, construction bid packages, construction coordination and construction management, cost
analysis and control, scheduling, manpower forecasting, staffing and marketing. He has also assisted
public agencies and developers in the procurement of fundingfrom Caltrans and other federal and state
agencies.
Mr. Runk has a proven track record of meeting schedules and adhering to budgets. Since joining DTA in
2000, he has worked with local agencies to resolve community issues and to negotiate scope changes
with contractors to ensure the timely and satisfactory completion of construction projects. He has also
acted as project manager for the establishment of Assessment Districts and the preparation of
numerous AB 1600 Development Fee Justification Studies. Mr. Runk specializes in preparing
assessment apportionment formulas and fee studies for roads and storm drains, and water and
wastewater facilities.
Prior to joining David Taussig & Associates, Mr. Runk, as Senior Construction Manager for Holmes &
Narver, Inc., successfully completed the construction of SR-41 Freeway in Fresno County, which was the
County's first Measure "C" sales tax funded freeway. Prior to this project, Mr. Runk successfully
completed SR-71 Freeway in Chino/Chino Hills, Calif. This $98 million project was the first Measure "M"
sales tax funded project for the San Bernardino Association of Governments. Mr. Runk's responsibilities
on both included contract management, quality control, public relations, cash flow analysis, project
closeout and compliance with Federal and State funding requirements.
Previously, Mr. Runk held positions with various public and private engineering entities in which he
delivered projects requiring a wide variety of engineering expertise. He holds a B.S. in Engineering from
the University of California at Los Angeles and an M.S. in Civil Engineeringfrom California State University
at Long Beach. Mr. Runk is a registered Civil Engineer in the States of California and Washington.
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SECTION II ■ PERSONNEL
INFORMATION AND
QUALIFICATIONS
RECENT DEVELOPMENT IMPACT FEE STUDY ENGAGEMENTS - Mr. Runk:
■ City of Anaheim
City of Hesperia
■ City of Blythe
City of Live Oak
• City of Brawley
City of Redlands
• City of Calexico
City of Rialto
• City Cathedral City
■ City of San Luis Obispo
■ City of Chino Hills
■ City of Tustin
• City of Fontana
■ County of San Bernardino
• City of Goleta
IJ FSDAVID TAUSSIG
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SECTION III ■ REFERENCES
III. DTA DEVELOPMENT IMPACT FEE STUDY REFERENCES
DTA has provided public finance consulting services to virtually every major City and County in
the State. Our City clients are too numerous to list individually, but include the Cities of Anaheim,
Fresno, Irvine, Long Beach, Los Angeles, Sacramento, San Diego, San Francisco, and San Jose.
Our County clients have included the Counties of Alameda, Butte, Contra Costa, Fresno, Imperial,
Los Angeles, Madera, Marin, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego,
San Francisco, San Luis Obispo, Santa Barbara, Shasta, Sutter, Stanislaus, and Yuba. DTA has
also provided public finance consulting services for over 250 school districts, water districts, and
fire protection districts throughout California.
Listed on the following pages are examples of five (5) of DTA's recent development impact fee
studies for municipalities in California, as well as our references for each of these five studies.
We encourage you to contact our references to learn firsthand how well DTA staff meets the
needs of its clients.
NJ PSDAVID TAUSSIG
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SECTION III ■ REFERENCES
CITY OF PASADENA, CA
CLIENT
PROJECT LOCATION: Pasadena, CA
■ City of PasadenaMr. Mike Bagheri
Transportation Manager
Ms. Juliana Iturrizaga
Associate Engineer
Suite 210
221 East Walnut Street
Pasadena, CA 91101
Phone: (626) 744-7664
mbegheri@citvofc)asadena.net
jiturrizaga@cityofpasadena. net
SCOPE OF WORK
■ Projections of future population, housing, and
�.
employment
■ Coordination with the City to identify needed
facilities
■ Review of master plan to identify facilities
■Determination of the appropriate level of service
- -
* Calculation of fee amounts for residential and non-
residential land uses based on Vehicle Miles
Travelled criteria
■ Documentation of all work and preparation of AB
City of Pasadena, CA
1 1600 Fee Study
PROJECT DESCRIPTION AND FINAL OUTCOME
DTA recently prepared a comprehensive Transportation Impact Fee for the City of Pasadena involving the
use of Vehicle Miles Travelled ("VMT"), as opposed to Average Daily Trips, as the criteria for determining fee
levels on different land uses. DTA worked with the City's Transportation Department and an outside
transportation engineeringfirm to develop a comprehensive Needs Listthat included mass transit facilities,
parking facilities buses, bike paths and pedestrian paths to complement roadways and ensure mobility in
a congested urban environment. This work included reviews of the City's current Master Plan of Roads, as
well as the use of the City's Traffic Demand Forecasting Model. It was the Forecasting Model that DTA
ultimately used to determine VMT data by Traffic Area Zones ("TAZ"), with future development projections
and existing development data ultimately being utilized to determine fee levels that depended on the
location of the future development. Future development in more suburban areas ultimately were
characterized by higher VMT levels and higher fees, while future development in infill areas near public
transportation had lower VMT levels reflecting their great use of mass transit.
In the process of preparing the study, DTA met with City staff from each of the divisions of the City's
Transportation Department, and made presentations to the Building Industry Association, CalTrans,
Chamber of Commerce, Realtors Association, Municipal Services Committee, Planning Commission and
City Council.
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SECTION III ■ REFERENCES
CITY OF PASO ROBLES, CA
PROJECT LOCATION: Paso Robles, CA
CLIENT
■ City of Paso Robles
Mr. Warren Frace
Community Development Director
1000 Spring Street
Paso Robles, CA 93446
Phone: (805) 237-3970
SCOPE OF WORK
■ Coordination with the City to identify needed facilities
■ Calculation of fee amounts for residential and non-
residential land uses
■ Preparation of Fiscal Impact Analysis
■ Preparation of fee ordinance
■ Documentation of all work and preparation of AB
1600 Fee Study
PROJECT DESCRIPTION AND FINAL OUTCOME
DTA is currently working on an update to an original AB 1600 Fee Justification Study that our firm originally
prepared for adoption by the Paso Robles City Council in 2006. DTA's 2006 engagement involved the
preparation of the Fee Justification Study and a Fiscal Impact Analysis for the City. Since then, DTA has
prepared updates in 2009, 2012, and 2014. We are currently working with the City on an additional
update to establish new land use categories for small apartments to encourage affordable housing. In
addition, our major project objectives included a comprehensive review of existing City fee programs and
ordinances, identification of needed backbone infrastructure, with emphasis on the transportation facilities
required east of State Highway 101, as well as costs related to any existing infrastructure deficiencies in that
area, an update of the City's existing fee program, and preparation of a draft ordinance to be utilized by the
City for collection of fees.
In addition, DTA also successfully completed the formation of a City-wide Mello -Roos Community Facilities
District to mitigate the police and fire protection services shortfalls determined through the preparation of the
Fiscal Impact Analysis. Furthermore, DTA has very recently prepared a series of cash flow pro formas for each
major infrastructure category of the City's Public Facilities Needs List (the "Needs List") for long-term budget
and financial planning purposes.
1� 1%DAVID TAUSSIG
& ASSOCIATES 15
SECTION III ■ REFERENCES
CITY OF ANAHElM, CA
PROJECT LOCATION: Anaheim, CA
Platinum Triangle, Anaheim, CA
CLIENT
i City of Anaheim
Ms. Natalie Meeks
Director of Public Works
200 South Anaheim Blvd.
Suite 276
Anaheim, CA 92805
Phone: (714) 765-5176
nmeeks@anaheim.net
SCOPE OF WORK
• Projections of future population, housing, and
employment
• Coordination with the City to identify needed
facilities standard
■ Development of facilities cost estimates
■ Calculation of fee amounts for residential and
non-residential land uses
■ Restructuring of existing fee program to promote
greater transparency
• Documentation of all work and preparation of
AB 1600 Fee Studv
PROJECT DESCRIPTION AND FINAL OUTCOME
DTA recently assisted the City with a comprehensive update of the City's development impactfee program, some
of which had been prepared by DTA in previous years. As part of this update, DTA prepared demographics data,
needs lists, and fee models for police, fire, library, parks, and transportation facilities. DTA worked with the police
and fire departments to develop calls for services data that were utilized in determining relative benefits from
police and fire -protection facilities to residential versus non-residential development. This Anaheim study also
included concepts related to levying fees for the intensification of existing uses, as well as demolition of existing
uses, with credits being earned for lost residential and non-residential properties. In addition, as part of our
role, DTA restructured the City's existing fee program in a manner that is more transparent and user-friendly for
all constituents, including the City and future developers.
Asa corollary to this work, DTA analyzed the feasibility of implementing a land secured financing program to fund
the proposed public infrastructure and maintenance within the area known as the Platinum Triangle. Our
recommended structure included both CFDs and ADs and is intended to provide a high likelihood that the
program can be successfully implemented, while at the same time providing flexibility, equity and an ability to
accommodate the needs resulting from the relatively extended anticipated build -out period. In addition, DTA
analyzed various funding mechanisms for the City related to the proposed 3.5 mile monorail system, or fixed
guideway, that would run from the new transportation hub known as ARTIC to Disneyland. Special taxes and
assessments will ultimately be levied on approximately 18,000 new residential units and 20 million building
square feet of non-residential property. DTA assisted the City in the formation of the first bond issue out of
approximately $388 million in multiple bond issues to pay for the Platinum Triangle improvements and levy an
assessment for annual maintenance services.
DTA has also been extensively involved with the City in establishing a campaign to build public awareness for
the proposed financing districts that will affect all of the property owners within the Platinum Triangle. The project
area encompasses a wide variety of voters with varying interests in the project (i.e., developers, builders, existing
non-residential owners, residents, etc.) DTA has assisted the City in their public outreach efforts to address the
concerns of all such stakeholders. DTA is also the special tax consultant/assessment engineer for five existing
CFDs as well as a Maintenance Assessment District for the City's Disneyland resort area.
�J �DAVID TAUSSIG
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SECTION III ■ REFERENCES
CITY OF PALO ALTO, CA
PROJECT LOCATION: Palo Alto, CA
City of Palo Alto, CA
CLIENT
■ City of Palo Alto
Ms. Nancy Nagel
Senior Management Analyst
Administrative Services
250 Hamilton Ave
Palo Alto, CA 94301
Phone: (650) 329-2223
Nancy. Nagel@cityofpaloalto.org
SCOPE OF WORK
■ Projections of future population, housing, and
employment, in coordination with ABAG
■ Coordination with numerous City departments to
identify needed facilities
■ Review of General Plan to identify needed facilities
■ Calculation of fee amounts for residential and non-
residential land uses
■ Documentation of all work and preparation of AB
1600 Fee Study
■ Preparation of CFD cashflows to mitigate gap fundi
PROJECT DESCRIPTION AND PROJECT OUTCOME
DTA recently completed a City-wide development impact fee update as part of a comprehensive review of
fiscal strategies. DTA worked with over a half -dozen City Departments to develop a "fair share" method of
apportioning all costs in this unique, largely built -out community.
The purpose of the updated study was to recommend appropriate fee justification methodologies and fee
levels, based on a legally supportable analysis of City-wide impact fees required for new residential and non-
residential development within the City. DTA reviewed the City's impact fees levels against eight (8) peer
communities, and ultimately created two (2) entirely new fees - Public Safety (fire, police, etc.) and General
Government Facilities.
The required impact fee levels were documented in a written report prepared pursuant to California
Government Code 66000 (AB 1600). DTA further assisted with estimating costs, conducting demographic
research, making presentations before the City Council, and benchmarking current and proposed fees
against those of peer communities.
DAVID TAUSSIG
FM & ASSOCIATES 17
SECTION III IN REFERENCES
COUNTY OF SAN BERNARDINO, CA
CLIENT
PROJECT LOCATION: County of San Bernardino, CA
2 County of San Bernardino
Mr. Tom Hudson
Director of Land Use Services
Dept.
r�
385 North Arrowhead Ave.
?�+f:
San Bernardino, CA 92515
Phone: (909) 252-5105
ti
Tom.Hudson@lus.sbcounty.gov
SCOPE OF WORK
■ Projections of future population, housing, and
employment
■ Coordination with the County to identify needed
facilities
■ Review of General Plan to identify needed facilities
-
■ Calculation of fee amounts for residential and non -
residential land uses
■ Documentation of all work and preparation of AB
County of San Bernardino Courthouse, San Bernardino, CA
1600 Fee Study
■ Formation and administration of special districts
PROJECT DESCRIPTION AND FINAL OUTCOME
DTA was hired in 2012 to prepare a fee study covering a variety of impact fees for all of the unincorporated
portion of San Bernardino County, as well as selected fees that would be applied Countywide to cover those
facilities, such as regional parks, that serve the entire County. The study covered parks, trails, roads, flood
control, sheriff, fire, detention center, library, and museums. DTA used a standards -based approach for
regional parks and trails fees, as well as fees for coroner -sheriff, detention, fire, library, and museum
facilities. Our firm then employed plan -based and capacity -based approaches for roads, flood control,
water, and wastewater facilities. The study was made more complicated by the benefits generated by
certain unincorporated County facilities that were shared with existing and new development within
incorporated cities (e.g., flood control facilities), as well as the road fees, which were complicated by the
existence of a separate fee for regional roads imposed by the San Bernardino Council of Governments.
While the study itself has been completed, the County has never implemented a comprehensive fee
program previously, and the fee program has not yet been officially adopted by the Board of Supervisors.
In addition, DTA has served as the County of San Bernardino's special tax consultant since 2002. In this
role, we assisted in the formation of special tax bond issuances for the County's ten (10) CFDs and
Improvement Areas.
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SECTION III ■ REFERENCES
CITY OF PERRIS, CA
PROJECT LOCATION: Perris, CA
Mercado Park, Perris, CA
CLIENT
■ City of Perris
Mr. Darren Madkin
Deputy City Manager
Community Services
101 N. D Street
Perris, CA 92570
Phone: (951) 943-6100
DMadkin@cityofperris.org
SCOPE OF WORK
• Projections of future population, housing, and
employment
• Coordination with the City to identify needed facilities
standard
■ Development of facilities cost estimates
■ Calculation of fee amounts for residential and non-
residential land uses
■ Documentation of all work and preparation of AB 1600
Fee Studv
PROJECT DESCRIPTION AND FINAL OUTCOME
In order to adequately plan for new development and identify the public park and recreation facilities and costs
associated with mitigating the direct and cumulative impacts of new residential development, DTA was retained
by the City of Perris in 2005 to prepare an AB 1600 Fee Justification Study. DTA recently partnered with the City
to update the fee program to include non-residential, as well as residential land, uses based on projected future
development for 2017-2040. The Park Fee Study has identified the additional public park and recreation
facilities standard required by new development ("Future Park Standard"), thereby determining the amount of
land needed to be acquired and improved by the City for additional parks to meet the needs of future residents
and employees. DTA developed a database of park and recreational facilities costs to estimate the cost of the
facilities required by the City. The firm also used its subscription CoStar database to determine current levels of
development for different land use types. DTA made changes to the Study based on specific input from the
Planning Department and the Deputy City Manager. City Council is expected to adopt fees to fund 5.0 acres of
improved parks for every 1,000 new residents generated by new development.
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SECTION IV ■ UNDERSTANDING
AND APPROACH
IV. DTA'S UNDERSTANDING AND APPROACH TO DEVELOPMENT IMPACT
FEE STUDIES
A. OVERVIEW OF DTA'S APPROACH TO PREPARING LA QUINTA'S COMPREHENSIVE
DEVELOPMENT IMPACT FEE STUDY
It is DTA's understanding that the City is seeking a consultant to update its existing Fee Program. In
brief, the updated Fee Program shall be based upon a revised facilities needs list ("Needs List")
prepared by DTA with the assistance of City staff that reflects the City's current infrastructure needs
and costs, and is based on existing and future population, employment, and development forecasts.
All of the work performed by DTA will be memorialized in an updated AB 1600-compliant nexus -
based Fee Study prepared by DTA and approved by the City Council at a public hearing after
meetings have been held with City staff and outside stakeholders.
DTA's approach to this engagement will include examining the City's existing Fee Program to
determine whether its current impact fees are sufficient to meet the long-term needs for expected
growth in development, with consideration to any possible incentives or disincentives which may be
created by current impact fees of any new fees that are imposed. DTA shall also cultivate new
development impact fees for the following facilities
• Transportation (based on Vehicle Miles Traveled after removing facilities already funded
through TUMF and CVAG transportation fees)
• Parks and Recreation Facilities
• Civic Center
• Library
• Community Center
• Maintenance Facility
• Fire Protection Facilities
DTA will also analyze all of the revenue sources available to fund the City's proposed Needs List
facilities, including unexpended fees collected to date and available within each Fee Program (e.g.,
existing fund balances), fees anticipated to be collected based on current development projections
forthe City through buildout (which is the "target date" for the City) and other documentable funding
sources. This work will require DTA to coordinate with the City's Design and Development
Department staff to determine appropriate development projections for the City. DTA will also
coordinate with the City's Administrative Services Department to determine the amounts of funding
available from the City's existing Fee Programs and other revenue sources to finance the
outstanding facilities on the original Needs Lists
In addition, DTA's Vice President of Engineering Services will work with the City's Public Works
Department staff to prepare costs for outstanding Needs Listfacilities; this approach will enable the
City to determine if the City's existing Fee Program generates sufficient revenues to cover future
development's share of these costs. Through this process, DTA will identify any shortfalls in
projected fee revenues and determine new fee levels warranted at the current time.
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SECTION IV ■ UNDERSTANDING
AND APPROACH
B. SPECIFIC TASKS INCORPORATED IN DTA'S APPROACH TO LA QUINTA'S IMPACT FEE STUDY
With respectto the Fee Study, DTA would provide all-inclusive professional and technical assistance
to the City in (1) developing a capital program "Needs List" for purposes of calculating fees for those
faciliites to be included in the City's Fee Program, (2) reviewing the existing City Fee Program and
applicable sections of the City of La Quinta Municipal Code, including a review of the City's fee
expenditures to date, as well as funds still on hand in each existing Fee Program (3) preparing a
comparative study of impact fees levied by surrounding communities and neighboring cities (i.e.,
Palm Springs, Palm Desert, Indian Wells, Cathedral City, Indio, County of Riverside, etc.) (OPTIONAL
TASK), (4) preparing demographic projections of future City development, (5) apportioning facilities
costs between future development and existing development and calculating appropriate fee levels,
(6) calculating and recommending new fee levels based on the new Needs List, (7) attending
meetings with City staff, stakeholders, and/or City Council to obtain input and present the interim
status of the Fee Study, as well as the final Fee Study (8) preparing a comprehensive review of
required impact fee levels documented in a written report that is in compliance with California
Government Code 66000 et seq., (9) preparing an appropriate Ordinance and implementation
schedule for adoption and implementation of the Fee Program by the City, and (10) developing a
list of steps necessary for the implementation and administration of the Fee Program.
There are also a number of policy issues to be addressed, among them (1) identify best practices
for allowing fee credits, reimbursements, phased -in increases and/or other fee program
considerations; (2) provide incentives for City's target projects (e.g., affordable housing) or mixed -
use projects; (3) consider fee reductions for infill projects; (4) provide clear definitions of specific
"development" types; (5) determine whether current infrastructure and public service levels are
adequate; (6) consider how accessory dwelling units should be addressed; (7) establish an
accounting system to adequately account for future improvements to the City's road network; and
(8) determine whether development fee should be collected at building permit or Certificate of
Occupancy.
DTA's final report ("Report") would present a fee methodology that satisfies the "rational nexus"
tests used by California courts to determine the legality of development exactions. Having been
subjected to legal and developer scrutiny, DTA has developed a streamlined approach and
methodology which establishes a rational and substantial nexus between future development and
the need for public facilities. In addition, DTA will look at existing fee program practices and
methodologies to determine if there is a more efficient and reasonable method of preparing the fee
structure.
In determining a reasonable nexus for each specific type of public facility, DTA will utilize one or
more methodologies discussed below, depending upon the data and other information available
from the City, and its current infrastructure policies. These fee methodologies employ the concept
of an Equivalent Dwelling Unit ("EDU") to allocate benefit among various land use classes. EDUs
are a means of quantifying different land uses based on their level of equivalence to a residential
dwelling unit, where equivalence is measured in terms of potential infrastructure use or benefitfrom
each type of public facility. For many types of facilities, EDUs are calculated based on the number
of residents or employees generated by each land use class. For other facilities, different measures,
such as the number of service calls, number of trip -miles, or amount of storm water run-off more
accurately represent the benefit provided to each land use class. Transportation facilities typically
demand EDU calculations predicated on a per -unit, per -trip, or Vehicle Miles Travelled basis.
The three fee methodologies used by DTA to establish EDUs for a public facility within a typical AB
DAVID TAUSSIG
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SECTION IV ■ UNDERSTANDING
AND APPROACH
1600 fee study are based on (i) an existing infrastructure plan, (ii) a predetermined capacity
amount, or (iii) a generic standard
PLAN -BASED FEES
The first method of apportioning fees is based on a "Plan," such as a Master Plan of Facilities, which
identifies a finite set of improvements. These facilities plans generally identify a finite set of facilities
needed by the public agency, and are developed according to assessments of facilities needs
prepared by staff and/or outside consultants and adopted by the public agency's legislative body.
With this Plan -Based Approach, specific costs can be projected and assigned to all land uses
planned, often with a specific time period in mind that reflects new development projections. In
preparing an impact fee analysis, facilities costs can be allocated in proportion to the demand
caused by each type of future development. This Plan -Based Approach is generally preferable to the
two other approaches to fee cost allocations listed below, but requires the existence of a facilities
plan, which is not always available.
CAPACITY -BASED FEES
The second method of fee assessment is based on the "capacity" of a service or system, such as a
water tank or a sewer plant. This kind of fee is not dependent on a particular land use plan (i.e.,
amount or intensity) but rather it is based on a rate or cost per unit of capacity that can be applied
to any type of development, as long as the system has adequate capacity. This fee is useful when
the costs of the facility or system are unknown at the outset; however, it requires that the capacity
used by a particular land use type be measurable or estimable. Capacity -based impact fees are
assessed based on the demand rate per unit. This fee would most typically be assessed for water
or wastewater systems.
STANDARD -BASED FEES
A third method of assessing fees is based on "standards" where costs are based on units of
demand. This method establishes a generic unit cost for capacity, which is then applied to each
land use per unit of demand. Parks are an excellent example of this type of fee structure.
California's Quimby Act allows cities and counties to establish a service standard, typically three
(3.0) to five (5.0) acres of parkland per thousand residents, which may be required of all new
residential development. This standard is not based on cost but rather on a standard of service.
This methodology provides several advantages, including not needing to know the cost of a specific
facility, how much capacity or service is provided by the current system or having to commit to a
specific size of the facility.
In preparing its analysis, DTA will apply one or more of these three methodologies to each facility
type to generate applicable fee levels. However, the results of our quantitative analyses will be
tempered by real -world factors that need to be considered by the City prior to adopting revised fee
levels. For example:
■ How do the proposed fee levels compare with those imposed in neighboring jurisdictions?
• Do any of the fee components need to be substantially modified or eliminated?
• Will the calculated fee levels be so high they discourage future development? If so, the list
of needed facilities could be truncated, with more facilities being assigned to individual
development projects through conditions of approval, so they are not funded through the
City's fee program, and therefore fee levels can be decreased.
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SECTION IV ■ UNDERSTANDING
AND APPROACH
• As the fees calculated by DTA are considered "maximum" fee levels as defined under the
California Mitigation Fee Act, should the City impose lower fees for one or more land use
types for a period of time to encourage certain types of land development?
■ Should a "fee credit" program be established for developers who build or oversize facilities
on the City's facilities needs list?
■ Should the City consider reduced fees for infill and mixed -use development projects?
■ Should the City consider alternative methodologies for calculating dwelling unit equivalents
for varying sized residential projects?
• Should a stakeholders' committee or group be established to ensure outside input prior to
the preparation of a fee study?
■ Should the automatic fee escalator be reviewed to possibly further mitigate the impacts of
inflation on the fee program prior to the preparation and adoption of the next fee program
by the City?
These questions and related issues will be discussed during the kick-off meeting and will affect the
implementation of the Scope of Work provided in Section 5.
Since its establishment in 1985, DTA has been at the forefront of establishing innovative solutions
and methodologies for our clients. Having prepared numerous AB 1600 fee studies since the
adoption of this legislation by the State in 1987, DTA has pioneered many of the industry's
techniques and standards. While some of our competitors have attempted to use our work
methodology, they have often been unable to modify our methodology to account for the unique
circumstances that impact a particular situation. Today, DTA continues to seek innovative solutions
and refine our work product to better serve and protect our clients.
DTA's experience gives us the ability to analyze a client's needs and match those needs with specific
financing mechanisms to maximize the capacity of a financing program while minimizing burdens
on property owners. The variety of financing structures for which we have provided our services
have given us a perspective and level of experience that is unique to our industry. DTA's financial
consulting services and work products reflect the scrutiny and refinement that can only come
through such extensive experience. This experience can be crucial in identifying and resolving
issues and helping our clients avoid the pitfalls we have seen cause problems for other
municipalities.
DTA has assembled a project team with the breadth of experience needed to assist the City in the
preparation of an updated impact Fee Study. DTA has an enviable reputation for producing high -
quality work in a quick and efficient manner to correspond with even the most aggressive project
schedule. Our clients also receive high levels of personal attention from senior staff, with a
President or senior manager always available to meet with public agency staff and other groups.
C. COORDINATION WITH CITY STAFF
Having been involved in the preparation of development impact fee studies since the adoption of
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& ASSOCIATES 23
SECTION IV ■ UNDERSTANDING
AND APPROACH
AB 1600 in 1987 and having completed over 350 impact fee studies since then, DTA has developed
a process for working effectively with public agencies to prepare legally defensible fee studies. In
addition to holding a formal kickoff meeting with all City departments who will be working with us to
develop the Facilities Needs List, DTA schedules individual follow-up calls with each department.
We also hold monthly progress calls with whoever on staff is leading the project, as well as any other
interested City staff members. A senior DTA staff person (in the case of the City of La Quinta, it
would be Kuda Wekwete, a DTA Senior Vice President) is assigned to lead the project and handle
all day-to-day responsibilities, including interactions with City staff.
In addition, as discussed below under Task No. 9 in our Scope of Work, DTA will hold four (4)
additional meetings, with City staff in attendance at all four. These meetings include one (1)
additional strategy session with the City team and/or ad hoc City Council committee to help
determine the project's direction; one (1) Community meeting, which would include Building
Industry Association representatives; one (1) City Council meeting and one (1) City Council public
hearing. We have found during prior Fee Study engagements that involving community groups and
the Building Industry Association in the development of the infrastructure Needs List and the review
of the draft Fee Study provides the political support needed by the City Council in its deliberations
and approval of the Fee Program.
DAVID TAUSSIG
& ASSOCIATES 24
SECTION V ■ SCOPE OF WORK
V. SCOPE OF WORK FOR DEVELOPMENT IMPACT FEE STUDY
The Scope of Work listed below has been devised to include all tasks necessary to prepare and
update the City's current fee program so that it continues to comply with California Government
Code Section 66000 et seq. in concert with the jurisprudence developed by various Federal
District and State Courts. DTA's General Counsel regularly reviews state and federal legal and
administrative opinions, regulations, and statutes that might affect or modify Development
Impact Fee Nexus Studies in California.
Work products stemming from the Work Plan described in this section will include:
■ A memorandum summarizing the fee methodology options
• The draft and final administrative reports
• Comparative Regional Impact Fee Survey
• Facility/Capital Needs List
• Fee implementation ordinance
TASK No. 1 - DEVELOP PROJECT STRATEGY AND KICK-OFF MEETING (WEEKS 1-4)
DTA staff will meet with City staff in a project kick-off meetingto finalize the details of the project,
deliverables, timetables, and tasks, discuss the fee methodologies and best practices, identify
needed information (i.e., reports, project/needs lists, stakeholder groups, data, etc.), prepare
final schedule, discuss the public process, and resolve other concerns as appropriate.
TASK NO. 2 - PREPARE COMPARATIVE REGIONAL IMPACT FEE SURVEY (WEEKS 1-71
DTA shall conduct a regional survey of the development impact fee programs that are currently
being imposed in other neighboring jurisdictions, as selected by the City. The survey will include
the current fee levels, current fee methodology, and current fee credit methodology. Survey
results will be formalized into a summary report and presented to City staff for review.
TASK No. 3 - DEVELOP POPULATION AND DWEWNG UNIT PROJECTIONS WEEKS 1-7
DTA will compile and document existing and future population, employment and development
estimates for the City. The projections resulting from this task will ultimately be used to calculate
fee levels. At this stage, DTA would evaluate City resources, influences, and all factors affecting
the existing Study, and the various current and proposed/new fees.
This task comprises four subtasks:
Subtask 3(A) - Population Projections
DTA will gather existing information on present and future population for the City from various
sources, including City Staff, the General Plan, existing Master Plans, SCAG, the U.S. Census, the
State Department of Finance, and from other data sources, including the City's Capital
improvement Program (CIP).
rJ FSDAVID TAUSSIG
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SECTION V ■ SCOPE OF WORK
Subtask 3 B - Conduct Entitlement Research and Projections
DTA will coordinate with the Community Development Department to determine existing and
future residential and non-residential development within the City over the planning horizon
(2040, or such other horizon as selected by City staff.) To complete this subtask, DTA will:
Review the General Plan/CIP and related plans to determine expected development
land use patterns in the City.
Review City records to identify existing entitlements for dwelling units and
commercial/industrial development.
Project the number of new dwelling units and commercial/industrial development
based on existing entitlements and on population projections through 2040, or such
other target year as selected by City staff.
Subtask 3(C) - Review Current City Fee Structure
DTA shall review and summarize the City's current development fee structures, and current City
policies and procedures and other regulatory requirements affecting potential fee structures and
revenue program requirements.
Subtask 3 D - Review Prior City Fee Justification Studies
DTA shall review the approach and methodology utilized in prior City fee justification studies to
determine the best way to meet the City's current needs.
TASK No. 4 -PREPARE/ REVIEW FACILITY CAPITAL NEEDS AND LEVELS of SERVICE WEEKS 1-10
This task entails a review of the facility and capital needs required to serve the new development
in the study area projected under Task 3. DTA will use existing City materials (including any
relevant master plans) as base documents and focus on updating this information.
For any fee program to be comprehensive in its scope, it is necessary to complete a thorough
identification and review of all the facilities impacted by additional growth, including those
already discussed in the General Plan or CIP, as well as an audit trail for future changes to these
facilities and/or their costs. This task will require close coordination with all City departments.
Subtask 4 A - Survey/Interview City Staff
DTA shall survey/interview City staff to review projected facilities in the City, along with major
equipment needs, the timing at which improvements will be needed, and any physical data that
would assist in developing the costs estimated below in Subtask 4(C). Based upon the results
of the surveys and interviews, DTA will verify and, if appropriate, expand the list of new facilities
found in the General Plan/CIP to be included within the fee program for the City.
Subtask 4 B - Facilities List
Based on the information collected in Subtask 3(A), DTA shall work with the City to prepare a
facilities Needs List that details the new facilities and equipment to serve new development in
the City.
Subtask 4(C) - Review Cost Estimates
DTA's engineering and technical staff will, as necessary; consult with City department heads
and/or engineering staff or equivalent to ascertain and understand in-house cost data for
existing and projected facilities and equipment; apply appropriate inflation and cost of living
escalators to the list of projected public facilities to determine future costs; review and/or refine
existing cost data; examine major sources of revenue to fund construction of new public facilities;
DAVID TAUSSIG
�J & ASSOCIATES 26
SECTION V i SCOPE OF WORK
and provide a proportional estimate between projected costs for new facilities and projected
revenue from mitigation fees and other sources.
TASK No. 5 - DEVELOP METHODOLOGY FOR CALCULATING APPROPRIATE FEE LEVELS WEEK5 8-15
This task entails developing the methodology used to establish the fee amount for each fee
component to the extent appropriate. Two critical issues must be considered in developing a fee
program. The fee program must generate revenues in a timely manner, and the methodology
must meet the nexus or benefit requirements of AB 1600. Since fees of any kind are
controversial, it is critical that any fee established be legally defensible.
DTA's fee study methodology must meet the nexus or benefit requirements of AB 1600, which
mandate that there be a nexus between fees imposed, the use of the fees, and the development
projects on which the fees are imposed. Furthermore, there must be a relationship between the
amount of the fee and the cost of the improvements. In order to impose a fee as a condition for
a development project, the methodology must accomplish the following:
• Identify the purpose of the fee.
• Identify the use to which the fee is to be put. If the use is financing public facilities,
the facilities must be identified.
■ Determine how there is a reasonable relationship between the fee's use and the
development project on which the fee is imposed.
• Determine how there is a reasonable relationship between the need for the public
facility and the development project on which the fee is being imposed.
Implicit in these requirements is a stipulation that a public agency cannot impose a fee to cure
existing deficiencies in public facilities or improve public facilities beyond what is required based
on the specific impacts of future development. The benefit methodology established in this
subtask will be documented in the Report. DTA shall prepare a memorandum to City staff
summarizing available methodologies and their pros and cons. Methodologies to review will
include programs based on auto vehicle trips, all mode trips (e.g., auto, transit, bike, pedestrian),
square footages or household units, etc.
The memo will also discuss, as applicable, context -sensitive and transportation -demand
management adjustments, "credits" for capital improvements required as part of a project
application, and various treatments of pass -through trips to ensure "fair share" fees. DTA will
recommend a fee expenditure plan to ensure that projects can be fully funded and implemented
within any required time limits for expenditures of such funds, as well as possible flexibility to
allow collected fees to be used to provide the City match for grant applications. Finally, the memo
will include recommendations for methodology, stakeholder outreach, and next steps. Upon
review and discussion by City staff, a methodology will be selected.
Deliverable: Memorandum summarizing the fee methodology options
TASK No. 6 - DETERMINE FEE LEVELS WEExs 8-15
This task entails calculating the fee amounts based upon the dwelling unit and
commercial/industrial development projections completed in Task No. 3, facilities needs and
costs determined in Task No. 4, and the methodology selected in Task No. 5. An annual
administrative charge shall also be included within the fee.
Subtask 6(A) - Calculate Recommended Fee Amounts
DTA shall calculate the fees for the City by inputtingthe data compiled underthe precedingtasks
and computing the amount of each fee to be levied. This work will be prepared in a spreadsheet
DAVID TAUSSIG
�� & ASSOCIATES 27
SECTION V ■ SCOPE OF WORK
format, which can be updated annually.
Subtask 6(B) - Document Fee Derivation
DTA shall document the methodology utilized for the fee calculation model that can be
understood by the City and the public. DTA shall prepare written statements documenting the
validity of the methodology for deriving each of the fees for the City. These statements will be
made to meet the requirements of AB 1600 and will be documented in the Final Report
discussed below.
Subtask 6(C) - Prepare Technical Report for each Fee
DTA will prepare and provide a comprehensive background report, as well as technical reports
for each fee that documents the study results, including but not limited to, methodology, findings,
supporting justification, recommended impact fees and calculations that provide the legal nexus
between the fee recommendations and new development as statutorily required.
TASK No. 7 - PREPARE DRAFT AND FINAL REPORTS (WEEKS 8-201
This task entails preparation of the draft and final reports for consideration by City Staff and the
City Board of Supervisors.
Subtask 7(A) - Prepare Draft Report for Comments
Based on the work completed in Task Nos. 1 through 6, DTA will prepare the Draft Report for
review and consideration by City staff. The report will be prepared under the standards of AB
1600 and is expected to include:
■ Executive Summary
• Population Projections
• Facilities and Improvements List
■ Areas of Benefit (if applicable)
• Fee Calculations
• Recommended Fee Levels
• Recommended Process for Keeping Fees Current
■ Fee Credit Mechanisms
Subtask 70 - Prepare Final Report
Based on the incorporation of City staff comments and concerns on the Draft Report, DTA will
prepare the Report for presentation to the City Board of Supervisors and City staff.
Deliverable: Draft and Final Reports
�� �DAVID TAUSSIG
& ASSOCIATES 28
SECTION V ■ SCOPE OF WORK
TASK No. $ _ OUTLINE TASKS RE LURED FOR IMPLEMENTATION AND ADMINISTRATION OF FEE PROGRAM
(WEEKS 16-20)
Prepare a list of tasks required of the City once they have adopted their new Fee Program. These
tasks include the determination of actual fee levels if the City decides not to levy the maximum
fee levels allowed under the Fee Study, the implementation of the fee credit program, and other
issues the City may face when implementing the Fee Program. In addition, DTA shall prepare a
draft ordinance to adopt the Fee Program, subject to review and approval by the City's legal
counsel.
TASK NO. 9 - ATTEND MEETINGS AND PUBLIC OUTREACH (WEEKS 1-20)(PLus ADDITIONAL 45
DAYS FOR PUBLIC HEARING)
This task entails attendance at six (6) additional meetings/workshops beyond the kickoff
meeting, including meetings with City staff, the stakeholders, and the City Council to present
interim status of the study, preliminary, and final report and obtain input. Included in this task
are two (2) additional strategy sessions with the Cityteam and/or ad hoc City Council committees
to help determine the project's direction; two (2) Community meetings, including meeting with
Building Industry Association; one (1) City Council meeting and one (1) City Council public
hearing. We have found during prior Fee Study engagements that involving community groups
and the Building Industry Association in the development of the infrastructure Needs List and
the review of the draft Fee Study provides the political support needed by the City in its
deliberations and approval of the Study.
DTA shall prepare presentations and handouts for these meetings to better educate the
stakeholders, City staff, and the City Council. Additional meetings may also be held but may
require additional budget.
Information to be Provided_by the City
DTA will collaborate with various City departments and communicate proactively with the City on a regular
basis, to ensure that we have the information we need to avoid exceeding the time and resources
allocated for specific tasks. The fact that no sub -consultants would be involved in this project would
further streamline communications, as the City would have a centralized point of contact at DTA.
Specifically, DTA requests that the following information be provided by the City at no charge and in a
timely manner so that the project does not extend beyond twelve (12) months from authorization to
completion:
0 City's General Plan, any specific/master plans, development agreements, and data regarding
existing entitlements.
0 To the extent available, detailed descriptions of the proposed public facilities, including the
facility name and number of square feet, acres, etc. (for each type of facility).
0 Inventory of completed facilities within the City, including type, size, and location of the facility.
0 Cost estimates for proposed facilities (DTA anticipates that the City's cost data and estimates
will be reviewed by DTA staff and discussed with City staff).
0 Existing City Fee Ordinances and/or Resolutions.
0 Current Annual and Five -Year Reports per Government Code Sections 66006 and 66001.
0 Identification of any committed revenue sources pledged to fund proposed facilities.
0 Accounting information for fees collected (i.e., fund balances, amount of fees collected, and
J 1%DAVID TAUSSIG
& ASSOCIATES 29
SECTION V ® SCOPE OF WORK
interest earned, amount of fees expended, the timing of construction of public projects for which
fees are collected, etc.).
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HEIRP iRT BEPXX F CA 926,613
SHOULD ANY -OF THE Ate[ DEUMBED PCLJCE$ BE CANCELLED NeFORE
THE EiPRATION GATE THEREOF, N18MCE WILL aE DELIVERED IN
ACCORDANCE WITH THE POLICY PROIAS1ON&
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AL.GOL�RD 25UDI&M1) The AGORD RaMe and login eve reglaterad marks of ACORD
lkscs r. - F,II 1
reserved.
NON -COLLUSION AFFIDAVIT FORM
Must be executed by proposer and submitted with the proposal
I, David Taussig (name) hereby declare as follows:
I am President
of David Taussig & Associates
(Title) (Company)
the party making the foregoing proposal, that the proposal is not made in the interest
of, or on behalf of, any undisclosed person, partnership, company, association,
organization, or corporation; that the proposal is genuine and not collusive or sham;
that the proposer has not directly or indirectly induced or solicited any other proposer
to put in a false or sham proposal, and has not directly or indirectly colluded, conspired,
connived, or agreed with any proposer or anyone else to put in a sham proposal, or that
anyone shall refrain from proposing; that the proposer has not in any manner, directly
or indirectly, sought by agreement, communication, or conference with anyone to fix
the proposal price of the proposer or any other proposer, or to fix any overhead, profit,
or cost element of the proposal price, or of that of any other proposer, or to secure any
advantage against the public body awarding the agreement of anyone interested in the
proposed agreement; that tall statements contained in the proposal are true; and,
further, that the proposer has not, directly or indirectly, submitted his or her proposal
price or any breakdown thereof, or the contents thereof, or divulged information or
data relative hereto, or paid, and will not pay, any fee to any corporation, partnership,
company, association, organization, proposal depository, or to any member or agent
thereof to effectuate a collusive or sham proposal.
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
Proposer Signature:
Proposer Name:
Proposer Title:
Company Name:
David Taussig
President
David Taussig & Associates50
Address: 5051 Canvon Crest Dr. #201A, Riverside, CA. 92507
I
Public Finance
Public Privatc Partim—ships
1 'rbail l";cc>ncmiics
Clean Fmcrgy Bonds
,5000 birch Street, Suite 6000
\ewlx>rl Bcacli, CA 92660
I'lun►e: (SUO) 969-4382