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Harris & Associates 78-495 Calle Tampico La Quinta, CA 92253 760.777.7000 November 30, 2018 Alison Bouley, PE, Senior Director Harris & Associates 22 Executive Park, Suite 200 Irvine, CA 92614 Subject: Development Impact Fee Study Update Proposal Dear Mr. Moody: 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 FeeDevelopment Impact Study Update CITY OF LA QUINTA, CALIFORNIA October 15, 2018 Harris & Associates, Inc. Table of Contents  i TABLE OF CONTENTS Cover Letter .............................................................................................................................................................................ii Statement of Qualifications ...................................................................................................................................................1 Background, Qualifications, and the Ability to Perform Services ..........................................................................................................1 Key Personnel ...........................................................................................................................................................................................3 Organization Chart ....................................................................................................................................................................................3 Resumes ....................................................................................................................................................................................................4 Similar Work Experience and References ................................................................................................................................................7 Project Understanding and Approach ...................................................................................................................................9 Project Understanding..............................................................................................................................................................................9 Approach .................................................................................................................................................................................................10 Project Management ..............................................................................................................................................................................12 Scope of Work Program ........................................................................................................................................................13 Schedule .................................................................................................................................................................................15 Contract Exceptions ..............................................................................................................................................................16 Signed Collusion Affidavit and Insurance Acknowledgments Harris & Associates, Inc.  22 Executive Park, Suite 200, Irvine, CA 92614  949.655.3900  www.WeAreHarris.com  ii October 15, 2018 Bryan McKinney, PE City Engineer, Design and Development Department City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Development Impact Fee Study Update Dear Mr. McKinney: Harris & Associates (Harris) appreciates the opportunity to work with the City of La Quinta on this development impact fee study update. Harris is currently working with multiple rapidly-growing cities throughout California and under- stands the challenges faced by our communities today in balancing a multitude of current issues (the rise of ecommerce) and being flexible to adapt to future trends (mobility options/sharing economy). With the update of the City’s 2035 General Plan being completed as recently as 5 years ago and with construction costs on the rise, updating impact fees is a critical step in ensuring that the City will have the infrastructure required to support an anticipated population buildout of over 60,000 (not including seasonal) and attract visitors to a thriving renowned destination. A robust DIF program can facilitate growth and attract investments while maintaining high-quality of life standards and recognition as the Gem of the Desert. The attached proposal describes our team’s qualifications for providing these services and our approach to completing the project successfully. The Harris team offers the City the following benefits: Project Commitment. We understand the importance of completing this study by July 1, 2019 and communicating with City staff regularly regarding any project issues. We have been working within Coachella Valley for over a decade and look forward to growing those relationships. Having worked closely with many agencies on similar projects, we understand that being flexible and innovative is key in fee programs. We approach each fee program as a unique project and will develop an approach that seeks to meet the specific and unique needs of La Quinta. Competence, Technical Ability, and Experience. Our team understands the requirements of AB1600 and the issues related to the adoption of impact fee programs. We also keep up on current case law, such as the San Clemente Beach Parking case, which highlights the importance of making proper five-year findings, as well as the recently signed Senate Bill 1202. Because we are involved in the formation of studies as well as in their implementation, we have a well-informed perspective of implementing successful impact fee programs and will use that expertise in making sound, long-term decisions for the City. Engineers and Financial Experts. As professionals with diverse backgrounds we are able to build trust with city staff, elected officials, neighborhood groups, and the development/business community. We will work with you to develop a thorough, long-range solution to the City’s development-related infrastructure needs, while balancing the economic implications that can result from setting impact fees too high. Our diverse background means less staff time involved since we are able to review and understand technical studies, develop cost estimates, and analyze project nexus. Harris is in receipt of Addendum 1 to the Request for Proposal, dated October 9, 2018. Please contact me at 949.536-2513 or Alison.Bouley@WeAreHarris.com with any questions. We look forward to the opportunity to work with you on this exciting project. Thank you for considering our team. Alison Bouley, PE Senior Director, Public Finance 949.536.2513  alison.bouley@WeAreHarris.com K. Dennis Klingelhofer, PE Vice President, Public Finance 949.246.9041  dennis.klingelhofer@WeAreHarris.com Harris & Associates, Inc. Statement of Qualifications  1 STATEMENT OF QUALIFICATIONS Background, Qualifications, and the Ability to Perform Services Founded in 1974, Harris specializes in serving the professional service needs of public agencies and insti- tutions in the western states. We provide expertise from project conception through occupancy in the community services, transportation, water and wastewater, and education market sectors. Harris’ public finance team provides our clients with a broad range of public finance and assessment engineering services. We have extensive experience in all aspects of financial engineering and are considered experts in our field; we regularly keep up on court cases and present at seminars and conferences. Our unique combination of being engineers and financial experts allows us to provide a host of services to our clients resulting in reduced City staff time on projects. We often serve as an extension of our clients’ staff, which allows us to see the long-term implementation of our programs. This perspective allows us to evaluate the overall effectiveness of a program and offers the opportunity to constantly adjust and improve our service to clients. Harris provides our clients with the technical expertise and knowledge needed to develop and implement sound financial strategies to provide the services and facilities needed to meet the needs of new residents and workers. To date, our staff has worked with more than 100 public agencies throughout the state. Our services have included: • Development Impact Fees in compliance with AB1600 • Utility User Fees • Feasibility and rate studies to determine the best financing options • Quimby fees in compliance with government code 66477 • Maintenance fee establishment per the Health and Safety Code • Maintenance Assessment Districts, such as the California Landscape and Lighting Act of 1972 and Benefit Assessment Act of 1982, Fire Suppression and Charter City assessment district formation and administration services • Assessment district formation and administration under California’s 1911 Act and 1913/1915 Act • Community facility district formation and admin- istration under California’s Mello-Roos Community Facilities District Act • Benefit nexus studies and ballot preparation pursuant to Article XIIID of the California State Constitution • Tax formulas for special tax districts Harris & Associates, Inc. Statement of Qualifications  2 Harris helps communities develop a defensible nexus to maximize revenue collected from new development to offset the impacts of growth. We work with all stakeholders—the developers, elected officials, and the community—to develop fee programs that meet all legal requirements and support community goals for economic growth. As testimony to the effectiveness of our collabora- tive approach, we have never had a fee challenged. In developing Impact Fee Programs in accordance with the Mitigation Fee Act (AB1600), Harris is able to review Master Plans and other technical documents to determine the eligible projects, develop the projected costs of the facilities, and develop strategies to ensure that new development is paying for their fair share. This experience and knowledge helps confirm that the fees meet the legal Nexus test and provide the revenue to construct the facilities needed to serve new development. Because our team works with agencies to develop all types of Facilities Financing Plans, we are able to identify strategies for funding current deficiencies that cannot be paid for using impact fee revenues and also assist the City in developing long term maintenance funding strategies. This experience and knowledge is critical in creating a sustainable financial model for the City. In addition, we offer a unique perspective having staff who have worked as City Planners as well as in real estate development. This unique experience and knowledge is critical in creating a sustainable financial model and developing viable implementation polices that are designed specifically for La Quinta. Our assistance doesn’t end at adoption of the fee program, our team thrives on developing long term relationship and will provide you with support long after fee adoption.“ I highly recommend Harris & Associates for Development Impact Fee services. Alison Bouley served as the representative to update our dated Park Acquisition and Improvement Fee Policy. Alison had a solid understanding of the development community and all aspects of fee studies. She was professional, knowledgeable, and extremely responsive to our needs. With Alison’s guidance, the City of Manteca was able to quickly update its fees and policy and supply a document we can rely on for many years. Kevin Fant Parks and Recreation Director City of Manteca Harris & Associates, Inc. Statement of Qualifications  3 Harris has assembled an experienced team with the desire and ability to develop an Impact Fee Program that will stand up to legal scrutiny and balance the City’s financial and economic goals. Harris has provided financial engineering services to local communities for more than 20 years and is proud to serve as our clients’ trusted advisor. Alison Bouley will lead the Harris team as the project manager and will be the City’s main point of contact. She has been serving as the City of Tracy’s financial expert for 18 years and is currently working on multiple impact fee studies and updates throughout the state. Her experience with similar projects and history of high-quality service to local municipalities will translate directly to her role on this project. She will be supported by Tim Nguyen who previously worked in La Quinta’s Design & Development’s Planning Division and has both an understanding and appreciation for the City’s high quality of life expectations. He has continued to follow planning, development, and market trends in La Quinta related to his most recent work in the real estate develop- ment industry. In addition, this background will be highlighted to help build rapport with the development and business community in the public engagement process. The team will be assisted by Adam Marston and Joel Nagamine who will serve as technical support on the project and will prepare tables, calculations, cost estimates, and the impact fee study. Dennis Klingelhofer will serve as principal-in-charge, providing QA/QC, and confirming that the project runs smoothly. City of La Quinta Senior Project Analyst Tim Ngyuen, MBA Principal-in-Charge and QA/QC K. Dennis Klingelhofer, PE Organization Chart Project Analyst Adam Marston Project Engineer Joel Nagamine, EIT Project Manager Alison Bouley, PE Key Personnel Harris & Associates, Inc. Statement of Qualifications  4 Resumes Alison Bouley, PE PROJECT MANAGER Alison has 18 years of experience providing program management and financial engineering services to cities, counties, and special districts on a wide variety of project types, including AB1600 development impact fees and Quimby fees. She has facilitated the development of a variety of Finance Plans, Fee Studies and Nexus Studies. Alison is a senior director in our public finance group and head of Harris’ development impact fee group. She is a true team-player, thriving in environments where she can accomplish the challenges presented by her clients through collaboration and problem solving. RELEVANT EXPERIENCE • City of Oxnard, Development Impact Fee Update. Project Manager. • City of Oxnard, AB1600 Annual Report. Project Manager. • City of Oxnard, Parking In-Lieu Study. Project Manager. • City of Oxnard, Impact Fee Implementation and Action Plan and Annual Report. Project Manager. • City of Tracy, ISP South Specific Plan Area. Project Manager. • City of Tracy, Ellis Finance and Implementation Plan and Program Management Services. Project Manager. • Mountain House CSD, CFF & TIF Update & Annexation Fee Calculation. Project Manager. • City of Gustine, Development Impact Fee Update. Project Manager. • City of Gonzales, Traffic Impact Fee Update. Project Manager. • City of Tracy, Citywide Master Plans, Ab1600 Fee Studies, And Ongoing Program Management. Project Manager. • City of Sacramento, Jacinto Creek Development Impact Fee Update. Project Director. • City of Manteca, Park Impact Fee. Project Manager. • City of Lodi, Infrastructure Master Plan and Impact Fees and Impact Fees Update. Project Manager. • City of Rancho Cordova, Storm Drainage Development Impact Fee. Project Manager. • Bethel Island Municipal Improvement District, Impact Mitigation Fee Program Update. Project Manager. EDUCATION BS, Civil Engineering BS, Engineering Management LICENSES Professional Civil Engineer, CA Harris & Associates, Inc. Statement of Qualifications  5 Tim Nguyen, MBA SENIOR PROJECT ANALYST Tim has 15 years of experience in real estate and urban planning in both private and public sectors, including cities of La Quinta, San Diego, and Irvine, with the latter two renowned for their innovative approach to funding infrastructure. Previously, Tim worked on land entitlements for a Top 10 national homebuilder focusing his work in the Inland Empire. Prior to joining Harris, Tim worked for a publicly-traded real estate development firm where he managed land acquisition and community planning efforts and conducted market & financial feasibility for about 100 communities. He is a member of the Builder Industry Association and has made presentations to BIA about development and policy issues. RELEVANT EXPERIENCE • City of Oxnard, AB 1600 Annual Report. Senior Project Analyst. • City of Oxnard, Parking-in-Lieu Study. Senior Project Analyst. • City of Orinda, Parking-in-Lieu Study. Project Manager. • City of San Diego, Infrastructure Financing Strategy. Project Manager. • City of San Diego, Capital Improvement Program Conformance Annual Report. Project Manager. • City of Irvine, The Irvine Company Spectrum Center Master Plan Modification. Project Manager. • City of Irvine, 100-acre Park Place Mixed-Use Master Plan Modification. Project Manager. • Inland Empire, CA, Market Analysis, Financial Feasibility, Due Diligence, and Land Acquisition to develop 1,250 residential units. Project Manager. • Los Angeles, San Diego & Orange Counties, CA, Market Analysis, Financial Feasibility, Due Diligence, and Land Acquisition to develop 600 residential units. Project Manager. EDUCATION MBA, Real Estate BS, Urban Planning K. Dennis Klingelhofer, PE PRINCIPAL IN CHARGE Dennis has more than 25 years of experience as a consultant in public finance and special assessment procedures and serves as the practice leader of our public finance group. He has provided consulting services to public agencies in all areas of fee development, including the adoption of AB1600 fees. This experience has given him an in-depth understanding of the statutory and constitutional requirements for the adoption of AB1600 fee programs. He has served as assessment engineer and special tax consultant for the formation of more than 100 benefit assessment and special tax districts and was responsible for development of the “benefit nexus” between the costs of the improvements and the benefit to properties. He has also served as the engineering manager for the development of capital improvement programs including the identification of facilities and development of cost estimates and multi- year funding strategies. Dennis is a skilled facilitator and works with stakeholders to identify issues and develop solutions that address the needs of all parties. RELEVANT EXPERIENCE • City of Oxnard, Impact Fee Implementation and Action Plan. Project Director. • City of Oxnard, Development Impact Fee Update. Project Director. • City of Oxnard, AB1600 Annual Report. Project Director. • City of Oxnard, Parking in-lieu Study. Project Director. • City of Gonzales, Water and Sewer Impact Fees. Project Director. • Bethel Island Municipal Improvement District, Impact Mitigation Fee Program Update. Project Director. • Mountain House CSD, CFF & TIF Update &Annexation Fee Calculation. Project Director. EDUCATION MS, Engineering Administration BS, Civil Engineering LICENSES Professional Civil Engineer, CA Harris & Associates, Inc. Statement of Qualifications  6 Joel is a civil engineer proficient in AutoCAD Civil 3D 2013, Bluebeam Revu, and Microsoft Office Suite. He has served as the lead on the update of several fee programs including the City of Tracy Core Fee Consolidation, City of Sacramento North Natomas Fee Update, and Mountain House CSD TIF and CFF update. His work has included updating cost estimates, preparing Nexus Studies, and calculating development impact fees in accordance with AB1600 requirements. RELEVANT EXPERIENCE • Mountain House CSD, CFF & TIF Update & Annexation Fee Calculation. Project Engineer. • City of Sacramento, North Natomas Update. Project Engineer. • City of Tracy, Core Fee Consolidation. Project Engineer. • City of Tracy, Fee Program Support. Project Engineer. • City of Tracy, Cordes Ranch Fee Program Support. Project Engineer. • City of San Francisco, Mission Bay Acquisition Audits. Project Engineer. • City of Sacramento, Acquisition Audits. Project Engineer. • City of Newport Beach, Utility Undergrounding Districts. Project Engineer. EDUCATION BS, Civil Engineering LICENSES Engineer-in-Training, CA Joel Nagamine, EIT PROJECT ENGINEER Adam Marston PROJECT ANALYST Adam has been involved in preparing finance and implementation plans and calculating development impact fees including the City of Gustine, City of Lodi, City of Tracy, and City of Sacramento. He has also been involved in a number of utility undergrounding master plans and funding studies. Adam has direct experience working as an integral part of a city’s Community Development Department. He is a versatile team-player, focused on connecting with clients and stakeholders alike to deliver a final product reflective of a collective vision of the community. RELEVANT EXPERIENCE • City of Oxnard, Impact Fee Implementation and Action Plan. Project Analyst. • City of Lodi, Impact Fees Update. Project Analyst. • City of Gustine, Development Impact Fee Update. Project Analyst. • City of Sacramento, Jacinto Creek Development Impact Fee Update. Project Manager. • City of Tracy, Tracy Hills Acquisition Audits. Project Analyst. • City of Tracy, NEI Water and Sewer Fees. Project Analyst. • City of Coronado, Utility Undergrounding Master Plan and Funding Study. Project Analyst. • City of Laguna Beach, Utility Undergrounding Master Plan and Funding Study. Project Analyst. EDUCATION BS, City & Regional Planning CERTIFICATIONS US Green Building Council, LEED Green Associate Harris & Associates, Inc. Statement of Qualifications  7 OXNARD IMPACT FEE UPDATE City of Oxnard Reference: Jesus Nava, Assistant City Manager 300 West Third Street, 4th Floor Oxnard, CA 93030 805.385.7430 | jesus.nava@oxnard.org Dates: 2017 to current Harris assisted the City in reviewing their development impact fee program to determine the status of each program. Harris recommended a plan and schedule for a comprehensive update to the City’s fee program and is currently beginning work to implement the plan by preparing new impact fees for water, sewer, traffic, storm drainage, park development, Quimby in-lieu, public safety, public buildings, utility undergrounding, afford- able housing, art in public places, and refuse. Harris will also be assisting the City in developing a parking in-lieu fee for their downtown area. In addition, Harris prepared the City’s annual AB1600 report last fiscal year. COMMUNITY FACILITIES FEE AND TRANSPORTATION IMPROVEMENT FEE UPDATES AND ANNEXATION FEE Mountain House Community Services District Reference: Ed Pattison, General Manager 230 S. Sterling Drive, Suite 100 Mountain House, CA 95391 209.831.5656 | epattison@sjgov.org Dates: 2016 to current Harris is performing an update of the CFF and TIF fees for the Mountain House CSD. The CFF fees fund parks, public buildings and public safety facilities and the TIF fee funds roads and intersections. As part of the update, Harris is creating a reimbursement policy to summarize the process for reimbursements and credits. In addition, Harris is calculating an annexation fee. The master developer built much of the initial infrastructure and as new developments annexes they are required to pay an annexation fee to reimburse the master developer for their use of the infrastructure. Harris has been working with County Council and CSD staff to clarify the various agreements and policy documents that support develop- ment in the City. Harris will be working with the City to develop and update policies and procedures moving forward. Similar Work Experience and References City of Oxnard, California Harris & Associates, Inc. Statement of Qualifications  8 CITYWIDE MASTER PLANNING, FEE UPDATE, AND ONGOING PROGRAM MANAGEMENT City of Tracy Reference: Andrew Malik, Development & Engineering Services Director 333 Civic Center Plaza Tracy, CA 95376 209.831.6423 | andrew.malik@ci.tracy.ca.us Dates: 2008 to current The City of Tracy embarked on the process of preparing master plans for water, wastewater, recycled water, traffic, storm drainage, parks, public facilities, and public safety. Harris was responsible for coordinating with the City’s consultants and acting as the City’s program manager. Once the studies were completed, Harris prepared the AB1600 reports for parks, public safety, and public facili- ties. Harris also coordinated with and provided direction to the technical consultants preparing the AB1600 reports for water, wastewater, recycled water, traffic, and storm drainage. Harris gave presentations to the development community, prepared agenda items, attended City Council meetings, and answered questions regarding the studies and methodology as required. The Harris team was able to reach consensus on the costs, approach, and fees, and adopt the fee program without it being challenged at the City Council meeting. Harris continues to support the City with the ongoing admin- istration and update of the program including preparing fee quotes, finance plans, credit and reimbursement calculations, and assisting with CIP preparation and administration. In addition, we have looked at the impacts of emerging laws and trends in the industry by analyzing fees for Accessory Dwelling Units and evaluating the potential to scale fees by home size. The City is moving to Opencounter for impact fee quotes and Harris is supporting them in that process as well. IMPACT FEE UPDATE City of Lodi Reference: Charles Swimley, Director of Public Works 221 W. Pine Street Lodi, CA 95240 209.333.6706 | cswimley@lodi.gov Dates: Updated expected completion 2018; original study adopted in 2012 Harris assisted the City with the development of master plans and a development impact fee program in 2012 that includes water, sewer, storm drainage, roads, police, fire, community facilities, and art in public places. At this time, Harris is updating the fee program to incorporate changes in land use, updated project costs, and the inclu- sion of a recycled water fee. Harris presented at multiple stakeholder meetings in support of the 2012 study and will do the same for the update. PARK MASTER PLAN AND FEE STUDY City of Manteca Reference: Kevin Fant, Parks and Recreation Director 252 Magnolia Avenue Manteca, CA 95337 209.456.8639 | kfant@ci.manteca.ca.us Dates: Completed 2016 The City of Manteca selected the Harris team to update the parks master plan and development impact fees. The City’s current fees were not sufficient to support the development of new parks. The City’s objective was to create a parks master plan and impact fee study that would provide a sound planning document and funding source moving forward. Harris calculated the fees and prepared the AB1600 fee study. Harris also led several meetings with the development community, City Council, and Planning Commission. One of the unique policy decisions that was made was not to include a neighborhood park fee, but rather to require developers to build and dedicate their own parks to avoid prevailing wage requirements. We did include an in-lieu fee for cases where building and dedicating a park was unfeasible. City of Tracy, California Harris & Associates, Inc. Project Understanding and Approach  9 PROJECT UNDERSTANDING AND APPROACH Project Understanding The City of La Quinta is a renowned residential and resort community nestled along the foothills of the San Jacinto and Santa Rosa Mountains in the heart of the internationally-recognized Coachella Valley. La Quinta is on pace to become among the largest city (in population) in the Valley with its counterparts older and nearly built out. La Quinta is already one of the most affluent areas in Riverside County which is part of the booming Inland Empire metropolitan region. The 2035 General Plan, the City’s blueprint as it develops in the next two decades, aims to realize La Quinta’s vision to become a Neighborhood-oriented, Healthy, Vibrant, and Heritage minded, Fiscally sound, Safe, Full Service, Resort oriented, Circulation minded and Conservation focused community. The City’s objective is to complete an update to the development impact fee (DIF) program. The most recent update was in 2013 in conjunction with the adoption of the 2035 Plan and focused on the Land Use, Circulation, Parks & Recreation, and Infrastructure and Public Services elements. The aim of this DIF update is to empha- size Transportation Improvements, Civic Center, Library, Community Center, Park and Recreation, Maintenance and Fire Protection Facilities and to consider adding a drainage fee. It is understood the City is working on the Citywide Transportation Deficiency Analysis which will be used to establish the scope and cost of DIF-eligible transportation improvements. Harris recognizes that an important aspect of this work (and which will require resources) will be the need to consult with appropriate City staff to acquire pertinent information to update each individual impact fee. The City is also looking to the Consultant for professional guidance to potentially establishing the Drainage Fee; The City’s DIF program was established in 1999 which helped facilitate La Quinta’s growth spurt in the 2000’s. The Great Recession, led by the collapse of the housing market in 2008, heavily impacted communities throughout the state especially the Inland Empire. La Quinta and the Inland Empire has since recovered; today, the macro economy is firing on all cylinders by many measures which leads to new set of challenges such as managing a healthy tax base, maintaining housing affordability, adapting to e-commerce and the new sharing economy, addressing aging infrastructure and collecting sufficient capital financing to accommodate growth. The Mitigation Fee Act (Act), commonly known as Assembly Bill 1600 (AB1600), was enacted by the state of California in 1987 and created Section 66000 et. seq. of the Government Code. AB1600 was enacted to ensure that new development mitigates its impact on the City’s infrastructure. The Act sets requirements for establishing the fee as well as annual reporting requirements. In addition, every five years, the agency must make findings that demonstrate the continuing need for the fee and show that there is an expenditure plan for all revenues. If these findings are not made, the agency could be required to refund any unexpended fees. Given the time that has passed since La Quinta’s last comprehensive fee update, and the significant changes in economic-related trends such as recovery of the housing market, and escalating labor and construction costs, a fresh look at the DIF program is a critical step in maintaining fiscal sustainability. La Quinta's Village District with the Santa Rosa Mountains in the background Harris & Associates, Inc. Project Understanding and Approach  10 Harris understands the challenges agencies are facing today and is working with cities to address the problems of tomorrow by adapting to evolving technologies, mobile workforce, change in housing preferences, more diversified communities, and a shift to how we live, work and play. La Quinta shares similar challenges to many of our clients; however, unlike other jurisdictions, the City is proactive and collaborative with both public and private partners which has afforded exciting and unique opportunities: additions of Montage and Pendry luxury hotels at Silver Rock; transformation of Old Town Village into a more pedestrian and bicycle friendly environment; development of The Centre which will provide much needed range of modest housing opportunities; the continued buildout of CV Link which will provide multi-modal connections to other communities in the Valley; and a new vision for Highway 111 Corridor, a vital economic arterial which makes up 70% of the City’s sales tax revenues. Harris is committed to working with the City of La Quinta to balance these often competing challenges to develop a legally defensible but sustainable fee program for the City. We also understand that the City’s economy thrives on recreation and leisure activities with a strong focus on retail and dining sectors as seasonal residents increase the City’s population by 50% during winter, and we will work with the City and community to develop a fee program that achieves the various goals of civic leaders while promoting a vibrant 21st century economy and maintaining strong quality of life standards for which La Quinta is historically renowned. Approach Based on our experience over the years, we have found that development impact fee updates involve four key stages and approaching each step as described below, allows for a successful and streamlined process. 1. Information Gathering – this step involves working with the City to understand land use, development trends, infrastructure needs, costs, fund balances, and overarching goals and policies. Holding a kick-off/ strategy session early in the process and meeting with each department will be key in determining the City’s goals and gathering information on the projects to be funded. 2. Calculations – this step involves the physical calculations to develop the impact fee amounts. During this step, the information received in step one gets put to a reality check against the goals of the City. Harris always schedules a meeting with the City at this step in the process to discuss challenges with the numbers and to calibrate the steps for moving forward. Harris presents a comparison with surrounding and compa- rable agencies to help with this reality check. 3. Report Preparation – during this step, a general consensus has been obtained on the numbers and now the implementation policies must be decided and incorporated into the text of the report. The report forms the legal basis for the document and input from the City Attorney is desired at this stage. 4. Stakeholder Engagement – this step of the process is critical in informing all stakeholders and getting buy-in from all. Meetings with the development community are key during this step. We utilize these meetings to present information and obtain input to determine Harris & Associates, Inc. Project Understanding and Approach  11 where concerns or issues lie. We address these with staff before moving on to the next step. At this point in the process we anticipate two City Council meetings, one meeting with the development community, and one Financial Advisory Committee meeting. There are four main approaches that can be used to develop and update Development Impact Fee Programs. Harris will work with the agency to determine the best approach for each fee category. The four approaches are described below. Facility Standards Method The standards based method determines the facilities and associated costs required to accommodate growth based on adopted City Standards. Depending on the fee analysis, the City currently may or may not have sufficient facilities to meet the adopted standard. If the City’s existing facilities are below standard, then a deficiency exists. In this case, the portion of the cost of planned facilities associated with correcting the deficiency must be allocated to funding sources other than the fee. Public facilities fees can only fund planned facilities needed to accommodate new development at the adopted standard. Master Plan Method The master plan method uses a facility standard based on all existing and projected new development, and all existing and planned facilities designed to serve that development. The standard represents the average cost of all facilities, per square foot of commercial development or per dwelling unit for residential, required to serve the entire service population (existing and new). The key variable affecting the standard is the amount and cost of planned facilities. Planned Facilities Method The planned facilities method calculates the standard solely based on the ratio of planned facilities to the increase in demand associated with new development. This method is appropriate when planned facilities only benefit new development, such as a wastewater trunk line extension to a previously undeveloped area. This method also may be used when there is excess capacity in existing facilities that can accommodate new development. Existing Inventory Method The existing inventory method uses a facility standard based on the ratio of existing facilities to the existing service population, as calculated by a cost per unit or per square foot. Under this approach, new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through an annual capital improvement plan and budget process. Harris & Associates, Inc. Project Understanding and Approach  12 Harris’ project management and coordination approach is based on communication, timeliness, and quality control. In managing our projects by these three key elements we facilitate a close and positive relationship with City staff. The success is evident in the resulting long term relationships we have developed with our clients. Communication. We believe that a project’s success is dependent on our ability to achieve consensus among all stakeholders. Our project team members are skilled communicators who understand the importance of providing clear and concise informa- tion to all parties involved, especially information disseminated to public officials and the community. In addition, open communication with the project team is key. Harris suggests holding regular project meetings and will provide meeting minutes and action item lists. We also provide a monthly project status report noting percent complete for each task, any concerns with the budget, any outstanding issues needing resolution and the planned work for the following period. Timeliness. We understand the required scope of work and commit to turning around reports and other required documents promptly to meet the City’s schedule. Harris will maintain a project schedule and coordinate closely with City staff and will alert them immediately to potential delays in schedule and other issues arising during the project. Our team is quick to adapt to changes in the project and will work with the City to minimize any impact these changes have on the schedule. Quality Control. We understand that our clients put their trust in our abilities and we are committed to earning that trust on every project. Our approach to quality control is focused on assembling a project team with the required project experience and knowledge based upon the specific requirements of the assignment, keeping the City staff informed of any issues identified and recommended solutions, and assigning both a junior and senior level staff member to provide an independent review of each project deliverable utilizing our QA/QC checklist. COMMUNICATION TIMELINESSQUA L I T Y CON TRO L Project Management Harris & Associates, Inc. Scope of Work Program  13 SCOPE OF WORK PROGRAM This section outlines Harris’ scope of work for the project, detailed by task. Our goal is to create a scope that is responsive to the City’s needs but can be redefined as more specific details are known. Task 1: Project Kick-Off Meeting Harris and the City will hold a kick-off meeting to review the objectives of the study, refine the project scope, agree on methodology, discuss needed information, develop a detailed schedule and answer any questions. Harris will prepare an agenda before the meeting and a summary after that includes an action item list, needed information, a summary of key decision and the refined project scope/schedule. Communication protocols and contact information will also be established during the meeting and documented in the meeting summary. Task 2: Monthly Project Development Team Meetings Harris will participate in monthly Project Development Team meetings. Harris will report on progress and/or concerns and identify potential solutions and courses of action. Five meetings are assumed. The day preceding the meeting, Harris will provide an agenda of items to be discussed. Following the meetings, Harris will provide meeting minutes summarizing the discussion highlights and actions to be taken by Harris and the City Team. Harris will provide a summary to the City Team to ensure all are in agreement and understand tasks to be completed. These meetings summaries and action item lists will help avoid unnecessary delays in the project schedule. Task 3: Data Collection and Review Harris will review existing documentation such as the City of La Quinta's Development Impact Fee Study (February 2013), Capital Improvement Plan (May 2018), the 2035 General Plan, and the update to the Citywide Transportation Deficiency Analysis among others. Harris will meet with each applicable department representative to gather input/information about the level of service standards, projects that need to be funded, and available information to assist in updating each DIF program. Harris' Tim Nguyen leading strategy session with City of Coronado's City Manager, Public Works Director, and City Engineer. Based on a review of the documents and after meeting with applicable departments, Harris will determine the best approach for updating each of the City’s current fees and will make suggestions on other fees to consider. Per the Request for Proposal, the following fees are anticipated to be included in the study: • Transportation Improvements • Parks and Recreation Facilities • Civic Center • Library • Community Center • Maintenance Facilities • Fire Protection Facilities The storm drainage fee is included as an optional task. Task 4: Land Use Analysis & Forecast Utilizing the General Plan as the base document, Harris will work with the City to develop a forecast of new development over a 20-year period in order to develop a projected revenue forecast and estimate the anticipated development that must be served. We will also develop other key assumptions such as population densities. Task 5: Develop Project Costs Harris will identify the projects that will be funded within each fee category and will identify the estimated project costs. For fee categories where it is determined that an existing inventory approach or a facilities standard approach be used, Harris will develop the supporting documentation to support such a fee. Harris will meet with the City to review the project lists and costs prior to moving into the fee calculation. Harris & Associates, Inc. Scope of Work Program  14 Task 8: Public Outreach Meeting Harris will hold a Public Outreach meeting with members of the public, development and/or business community. These meetings are helpful in gaining consensus. This meeting is typically held prior to City Council or committee meetings. Harris will prepare all presentation materials and handouts for the meetings and will present the information in a clear and concise manner. Harris will prepare meeting minutes which summarize the key decisions and input received and will facilitate follow-up calls with City staff on how best to address these concerns. Harris will make any necessary edits to the impact fee report following this meeting. Task 9: Stakeholder Meetings Harris will prepare and present at up to three meetings, including two with the City Council and one with the Financial Advisory Committee. The presentations will be prepared in a clear and concise manner. Harris will document any concerns or changes and address those in the report. Harris will assist with the preparation of any agenda items and resolutions prior to the meetings and will review any affected ordinances for proposed changes. Following adoption of the study, Harris will provide the desired number of copies to the City as well as an electronic version of the report. Task 10: Optional Services - Drainage Study Harris has the expertise and capacity to guide the City on establishing a DIF for future drainage improvements. This process would include identifying facilities and estimating project costs then preparing and calculating the fee. It is assumed that this work will be incorporated into the impact fee study. A fee for this work is provided as an optional task. Task 11: Optional Services - Other Potential DIF Studies Harris will meet with the City to discuss other potential categories of fees that the City may want to incorporate into their DIF program. This may include a Police Fee, Public Art Fee, or Affordable Housing Fee for example. Once it is understood what fees the City wishes to move forward with, Harris will provide a scope of work for those facilities in the fee study. Task 6: Impact Fee Calculation Harris will prepare and calculate the fee for each category based on the methodology and costs established in earlier tasks. The fees will include an administrative fee component and will include all project soft costs. The model will be developed such that assumptions and costs can easily be changed and the fees re-calculated using different assumptions. This will also allow the fees to be easily updated over time. Harris will compare the proposed City fees to the fees of surrounding and similar cities to confirm reasonableness, consistency, and feasibility of the fees. Harris will present the draft fees and comparison to the City, which will allow the City to review all assumptions and calculations before moving forward. Harris will make necessary changes before beginning the impact fee study. Task 7: Prepare Draft Impact Fee Report Based on the decisions made in Task 6, Harris will prepare a draft impact fee report which will include necessary graphics, maps, cost estimates, calculations, findings, and other technical documentation necessary to create a defensible nexus between the previous or new fees and the development projects upon which they will be imposed. The report will include a discussion of the statutory and legal framework as well as the legal requirements for annual and five-year updates and other administrative policies. A list of the projects and the anticipated costs will also be included in the report. The report will be prepared in an easy to understand and follow format and include all necessary legal and technical information. Harris will meet with the team to present the report to the team and will gather comments from the team. Harris will revise the draft impact fee report based on the comments received and present a final report to the City. Gathering public space in Old Town La Quinta. Harris & Associates, Inc. Schedule  15 SCHEDULE Harris developed the following schedule based on our experience with other cities. Harris & Associates, Inc. Contract Exceptions  16 CONTRACT EXCEPTIONS Harris would request that the City consider the following contract modifications. With that being said, Harris has worked with hundreds of clients throughout California and we do not anticipate an issue with coming to an agreement on the contract language. 1. SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to ________________, Project No. NA , as specified in the “Scope of Services” attached hereto as “Exhibit A” “and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants acknowledges that Contracting Party is a provider of first-class professional work and/ or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all applicable ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by reasonably acceptable to the City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. 6. INDEMNIFICATION . 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by reasonably acceptable to the City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by reasonably acceptable to the City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without Harris & Associates, Inc. Contract Exceptions  17 limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the perfor- mance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by reasonably acceptable to the City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the negligent performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. d. Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequen- tial damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. Harris & Associates, Inc. Signed Collusion Affidavit and Insurance Acknowledgments  18 SIGNED COLLUSION AFFIDAVIT AND INSURANCE ACKNOWLEDGMENTS Please find the Signed Collusion Affidavit and Insurance Acknowledgments attached herein. 78-495 Calle Tampico La Quinta, CA 92253 760.777.7000 NON-COLLUSION AFFIDAVIT FORM Must be executed by proposer and submitted with the proposal I, __________________________________ (name) hereby declare as follows: I am ______________________________ of _________________________, (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: _______________________________________ Address: _______________________________________ Alison Bouley, PE Senior Director of Public Finance Harris & Associates, Inc. Alison Bouley, PE Senior Director of Public Finance Harris & Associates, Inc. 22 Executive Park, Suite 200, Irvine, CA 92614