HomeMy WebLinkAboutCD General Plan 2040 Economic and Fiscal Technical Consulting ServicesAGREEMENT FOR PROFESSIONAL SERVICES
FOR GENERAL PLAN 2040 ECONOMIC AND FISCAL TECIDNCAL
CONSULTING SERVICES
This Agreement is made and entered into this _.1L day of JO.nuo..v~ , 2019, by
and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and BAE URBAN CONOMICS,
INC. (hereinafter "CONTRACTOR").
RECITALS
WHEREAS, on March 5, 2018, CITY'S City Council adopted Resolution No. 14478,
which accepted the Final Work Program and initiated the preparation of General Plan 2040; and
WHEREAS, the City does not have existing staff persons dedicated to long range planning
efforts or the staffing capacity amongst existing staff to conduct an Economic and Fiscal analysis
for the General Plan 2040, and CONTRACTOR has the expertise to do so; and
AGREEMENT
NOW, THEREFORE, the parties hereby agree as follows:
1. PROJECT COORDINATION.
A. CITY'S Project Manager. Barry Miller is hereby designated the PROJECT
MANAGER for the CITY and said PROJECT MANAGER shall supervise all aspects of the progress
and execution of this Agreement.
B. CONTRACTOR'S Project Director. CONTRACTOR shall assign a single
PROJECT DIRECTOR to have overall responsibility for the progress and execution of this
Agreement for CONTRACTOR. David Shiver is hereby designated as the PROJECT DIRECTOR
for CONTRACTOR. Should circumstances or conditions subsequent to the execution of this
Agreement require a substitute PROJECT DIRECTOR, for any reason, the CONTRACTOR shall
notify the CITY within ten ( 10) business days of the substitution.
2. DUTIES OF CONTRACTOR.
CONTRACTOR shall perform the duties and/or provide technical services for the General
Plan 2040, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated
herein by reference.
3. DUTIES OF CITY.
CITY shall pay the compensation as provided in Section 4 of this Agreement. CITY shall
also provide a work space for CONTRACTOR, background information, oversight and direction,
network computer access and other materials necessary for CONTRACTOR to perfonn their duties.
4. COMPENSATION.
For the full performance of the services described herein by CONTRACTOR, CITY shall
pay CONTRACTOR a total base contract amount not to exceed $117,490 for time and materials as
described in the "Budget and Schedule" included in Exhibit A. An additonal five (5) percent of the
total base contract, or $5,875, may be added to the budget upon approval of the City Manager for a
total contract amount not to exceed $123,365.
Payment will be made monthly upon receipt by PROJECT MANAGER of itemized invoices
submitted by CONTRACTOR.
5. TERM OF AGREEMENT.
The term of this Agreement shall be for 2 year(s) commencing on approval of this contract
and ending on January 22 nd , 2021. Upon mutual agreement of the parties, and subject to the approval
of the City Manager the term of this Agreement may be extended for two additional periods ofup to . ' . . one year.
6. TERMINATION.
A. Discretionary. Either party may terminate this Agreement without cause upon thirty
(30) days written notice mailed or personally delivered to the other party.
B. Cause. Either party may terminate this Agreement for cause upon fifteen (15) days
written notice mailed or personally delivered to the other party, and the notified party's failure to cure
or correct the cause of the termination, to the reasonable satisfaction of the party giving such notice,
within such fifteen (15) day time period.
C. Effect of Termination. Upon receipt of notice of termination, neither party shall
incur additional obligations under any provision of this Agreement without the prior written consent
of the other.
D. Return of Documents. Upon termination, any and all CITY documents or materials
provided to CONTRACTOR and any and all of CONTRACTOR's documents and materials
prepared for or relating to the performance of its duties under this Agreement, shall be delivered to
CITY as soon as possible, but not later than thirty (30) days after termination.
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7. OWNERSHIP OF DOCUMENTS.
The written documents and materials prepared by the CONTRACTOR in connection with
the performance of its duties under this Agreement, shall be the so le property of CITY. CITY may
use said property for any purpose, including projects not contemplated by this Agreement.
8. INSPECTION AND AUDIT.
Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for
inspection and audit, all documents and materials maintained by CONTRACTOR in connection with
its performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with
CITY or its agent in any such audit or inspection.
9. ASSIGNABILITY.
The parties agree that they shall not assign or transfer any interest in this Agreement nor the
performance of any of their respective obligations hereunder, without the prior written consent of the
other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising
hereunder shall be void and of no effect.
10. INSURANCE.
A. Scope of Coverage. During the tenn of this Agreement, CONTRACTOR shall
maintain, at no expense to CITY, the following insurance policies:
1. A commercial general liability insurance policy in the minimum amount of
one million dollars ($1,000,000) per occurrence/two million dollars ($2,000,000) aggregate, for death,
bodily injury, personal injury, or property damage.
2. An automobile liability (owned, non-owned, and hired vehicles) insurance
policy in the minimum amount of one million dollars ($1,000,000) dollars per occurrence.
3. If any licensed professional performs any of the services required to be
performed under this Agreement, a professional liability insurance policy in the minimum amount of
one million dollars ($1,000,000) per occurrence/two million dollars ($2,000,000) aggregate, to cover
any claims arising out of the CONTRACTOR's performance of services under this Agreement.
Where CONTRACTOR is a professional not required to have a professional license, CITY reserves
the right to require CONTRACTOR to provide professional liability insurance pursuant to this
section.
4. If it employs any person, CONTRACTOR shall maintain worker's
compensation insurance, as required by the State of California, with statutory limits, and
employer's liability insurance with limits of no less than one million dollars ($1,000,000) per
accident for bodily injury or disease. CONTRACTOR's worker's compensation insurance shall
be specifically endorsed to waive any right of subrogation against CITY.
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B. Other Insurance Requirements. The insurance coverage required of the
CONTRACTOR in subparagraph A of this section above shall also meet the following requirements:
I. Except for professional liability insurance or worker's compensation
insurance, the insurance policies shall be specifically endorsed to include the CITY, its officers,
agents, employees, and volunteers, as additional insureds (for both ongoing and completed
operations) under the policies.
2. The additional insured coverage under CONTRACTOR'S insurance policies
shall be "primary and non contributory" with respect to any insurance or coverage maintained by
CITY and shall not call upon CITY's insurance or self-insurance coverage for any contribution. The
"primary and noncontributory" coverage in CONTRACTOR'S policies shall be at least as broad as
ISO form CG20 010413.
3. Except for professional liability insurance or worker's compensation
insurance, the insurance policies shall include, in their text or by endorsement, coverage for
contractual liability and personal injury.
4. By execution of this Agreement, CONTRACTOR hereby grants to
CITY a waiver of any right to subrogation which any insurer of CONTRACTOR may acquire
against CITY by virtue of the payment of any loss under such insurance. CONTRACTOR
agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but
this provision applies regardless of whether or not CITY has received a waiver of subrogation
endorsement from the insurer.
5. If the insurance is written on a Claims Made Form, then, following termination
of this Agreement, said insurance coverage shall survive for a period of not less than five years.
6. The insurance policies shall provide for a retroactive date of placement
coinciding with the effective date of this Agreement.
7. The limits of insurance required in this Agreement may be satisfied by a
combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall
contain or be endorsed to contain a provision that such coverage shall also apply on a primary and
noncontributory basis for the benefit of CITY (if agreed to in a written contract or agreement) before
CITY'S own insurance or self-insurance shall be called upon to protect it as a named insured.
8. It shall be a requirement under this Agreement that any available insurance
proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or
limits shall be available to CITY or any other additional insured party. Furthermore, the requirements
for coverage and limits shall be: (I) the minimum coverage and limits specified in this Agreement; or
(2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds
available to the named insured; whichever is greater. No representation is made that the minimum
Insurance requirements of this agreement are sufficient to cover the obligations of the
CONTRACTOR under this agreement.
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C. Deductibles and Sm's. Any deductibles or self-insured retentions in
CONTRACTOR's insurance policies must be declared to and approved by the PROJECT
MANAGER and City Attorney, and shall not reduce the limits of liability. Policies containing any
self-insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be
satisfied by either the named insured or CITY or other additional insured party. At CITY's option,
the deductibles or self-insured retentions with respect to CITY shall be reduced or eliminated to
CITY's satisfaction, or CONTRACTOR shall procure a bond guaranteeing payment of losses and
related investigations, claims administration, attorney's fees and defense expenses.
D. Proof of Insurance. CONTRACTOR shall provide to the PROJECT MANAGER
or CITY'S City Attorney all of the following: (1) Certificates oflnsurance evidencing the insurance
coverage required in this Agreement; (2) a copy of the policy declaration page and/or endorsement
page listing all policy endorsements for the commercial general liability policy, and (3) excerpts of
policy language or specific endorsements evidencing the other insurance requirements set forth in this
Agreement. CITY reserves the right to obtain a full certified copy of any insurance policy and
endorsements from CONTRACTOR. Failure to exercise this right shall not constitute a waiver of
the right to exercise it later. The insurance shall be approved as to form and sufficiency by PROJECT
MANAGER and the City Attorney.
11. INDEMNIFICATION.
A. Except as otherwise provided in Paragraph B., CONTRACTOR shall, to the fullest
extent permitted by law, indemnify, release, defend with counsel approved by CITY, and hold
harmless CITY, its officers, agents, employees and volunteers (collectively, the "City
Indemnitees"), from and against any claim, demand, suit, judgment, loss, liability or expense of
any kind, including but not limited to attorney's fees, expert fees and all other costs and fees of
litigation, (collectively "CLAIMS"), arising out of CONTRACTOR'S performance of its
obligations or conduct of its operations under this Agreement. The CONTRACTOR's obligations
apply regardless of whether or not a liability is caused or contributed to by the active or passive
negligence of the City lndemnitees. However, to the extent that liability is caused by the active
negligence or willful misconduct of the City Indemnitees, the CONTRACTOR's
indemnification obligation shall be reduced in proportion to the City lndemnitees' share of
liability for the active negligence or willful misconduct. In addition, the acceptance or approval
of the CONTRACTOR' s work or work product by the CITY or any of its directors, officers or
employees shall not relieve or reduce the CONTRACTOR's indemnification obligations. In the
event the City lndemnitees are made a party to any action, lawsuit, or other adversarial proceeding
arising from CONTRACTOR'S performance of or operations under this Agreement,
CONTRACTOR shall provide a defense to the City lndemnitees or at CITY'S option reimburse
the City lndemnitees their costs of defense, including reasonable attorneys' fees, incurred in
defense of such claims.
B. Where the services to be provided by CONTRACTOR under this Agreement are
design professional services to be performed by a design professional as that term is defined under
Civil Code Section 2782.8, then, to the extent permitted by law including without limitation, Civil
Code sections 2782, 2782.6 and 2782.8, CONTRACTOR shall indemnify and hold harmless the
CITY and its officers, officials, and employees (collectively City lndemnitees) from and against
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damages, liabilities or costs (including incidental damages. Court costs, reasonable attorney's fees
as may be determined by the Court, litigation expenses and fees of expert witnesses incurred in
connection therewith and costs of investigation) to the extent they are caused by the negligence,
recklessness, or willful misconduct of CONTRACTOR, or any subconsultants, or subcontractor
or anyone directly or indirectly employed by them, or anyone for whom they are legally liable
(collectively Liabilities). Such obligation to hold harmless and indemnify any indemnity shall not
apply to the extent that such Liabilities are caused in part by the negligence or willful misconduct
of such City Indemnitee.
C. The defense and indemnification obligations of this Agreement are undertaken in
addition to, and shall not in any way be limited by, the insurance obligations contained in this
Agreement, and shall survive the termination or completion of this Agreement for the full period
of time allowed by law.
12. NONDISCRIMINATION.
CONTRACTOR shall not discriminate, in any way, against any person on the basis of age,
sex, race, color, religion, ancestry, national origin or disability in connection with or related to the
performance of its duties and obligations under this Agreement.
13. COMPLIANCE WITH ALL LAWS.
CONTRACTOR shall observe and comply with all applicable federal, state and local laws,
ordinances, codes and regulations , in the performance of its duties and obligations under this
Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with
these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify
and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities,
penalties, fines and all other consequences from any noncompliance or violation of any laws,
ordinances, codes or regulations.
14. NO THIRD PARTY BENEFICIARIES.
CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in
any third party, any benefit or right owed by one party, under the terms and conditions of this
Agreement, to the other party.
15. NOTICES.
All notices and other communications required or permitted to be given under this Agreement,
including any notice of change of address, shall be in writing and given by personal delivery, or
deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to
be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the
date of deposit with the United States Postal Service. Notice shall be given as follows:
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TO CITY's Project Manager:
TO CONTRACTOR's Project Director:
16. INDEPENDENT CONTRACTOR.
Barry Miller
City of San Rafael
1400 Fifth A venue
P.O. Box 151560
San Rafael, CA 94915-1560
David Shiver
BAE Urban Economics, Inc.
2600 10 th St., Suite 300
Berkeley, CA 94710
For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers,
agents and employees shall act in the capacity of an Independent Contractor, and not as employees of
the CITY. CONTRACTOR and CITY expressly intend and agree that the status of
CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not
that of an employee of CITY.
17. ENTIRE AGREEMENT --AMENDMENTS.
A. The terms and conditions of this Agreement, all exhibits attached, and all documents
expressly incorporated by reference, represent the entire Agreement of the parties with respect to the
subject matter of this Agreement.
B. This written Agreement shall supersede any and all prior agreements, oral or written,
regarding the subject matter between the CONTRACTOR and the CITY.
C. No other agreement, promise or statement, written or oral, relating to the subject
matter of this Agreement, shall be valid or binding, except by way of a written amendment to this
Agreement.
D. The terms and conditions of this Agreement shall not be altered or modified except
by a written amendment to this Agreement signed by the CONTRACTOR and the CITY.
E. If any conflicts arise between the terms and conditions of this Agreement, and the
terms and conditions of the attached exhibits or the documents expressly incorporated by reference,
the terms and conditions of this Agreement shall control.
18. SET-OFF AGAINST DEBTS.
CONTRACTOR agrees that CITY may deduct from any payment due to CONTRACTOR
under this Agreement, any monies which CONTRACTOR owes CITY under any ordinance,
agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or
other amounts.
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19. WAIVERS.
The waiver by either party of any breach or violation of any term, covenant or condition of
this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any
other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation
of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent
acceptance by either party of any fee, performance, or other consideration which may become due or
owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation
by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance
or regulation.
20. COSTS AND ATTORNEY'S FEES.
The prevailing party in any action brought to enforce the terms and conditions of this
Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney's fees expended in connection with such action .
21. CITY BUSINESS LICENSE/ OTHER TAXES.
CONTRACTOR shall obtain and maintain during the duration of this Agreement, a CITY
business license as required by the San Rafael Municipal Code CONTRACTOR shall pay any and
all state and federal taxes and any other applicable taxes. CITY shall not be required to pay for any
work performed under this Agreement, until CONTRACTOR has provided CITY with a completed
Internal Revenue Service Form W-9 (Request for Taxpayer Identification Number and Certification).
22. SURVIVAL OF TERMS.
Any terms of this Agreement that by their nature extend beyond the term (or termination) of
this Agreement shall remain in effect until fulfilled, and shall apply to both Parties' respective
successors and assigns.
23. APPLICABLELAW.
The laws of the State of California shall govern this Agreement.
24. COUNTERPARTS AND ELECTRONIC SIGNATURE.
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one document. Counterpart signature
pages may be delivered by telecopier, email or other means of electronic transmission.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month
and year first above written.
CITY OF SAN RAFAEL
ATTEST:
LINDSAY LARA, City Clerk
APPROVED AS TO FORM:
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CONTRACTOR
By: -------------
Name: David Shiver
Title: Principal
[lf Contractor is a corporation, add signature of second
corporate officer]
Name: Matt Kowta
Title: Managing Principal
EXHIBIT A
SC C
BAE will perform the following scope of services:
Task 1: Reconnaissance/Startup
The BAE project manager will attend initial meetings with City staff to start the project and meet
key participants. These meetings will provide an opportunity to determine data needs and
resources, identify points of contact at the City and other agencies, and determine how essential
tasks will be performed. BAE will prepare a specific list of data requirements related to its
economics analysis scope, including but not limited to retail sales, planned and proposed
projects, property and ownership records, and identification of sub-areas ~or economic analysis.
The meetings will also cover the project schedule and milestones, as well as issues related to
· mapping and GIS.
Task 1 Deliverables: Attendance at start-up meeting and data request memorandum.
Task 2: Participation in Community Engagement Program
BAE will attend two meetings of the General Plan Steering Committee and at least three
community-wide workshops. Additionally, BAE's budget includes an additional 30 hours of project
manager time for participation in other public meetings (in addition to those described above)
and stakeholder meetings related to the General Plan over the next two years. BAE's budget
includes time required to prepare PowerPoint slides that summarize economic issues and/or
findings from BAE's work product for incorporation into the City's presentations.
Task 2 Deliverables: Attendance at two GPSC meetings and three community workshops;
30-hour meeting reserve; PowerPoint slides related to BAE's work on project.
Task 3A: Assess Existing Economic Conditions
BAE has taken the proposed scope for Task 3 and separated the assessments of economic and
fiscal conditions into separate tasks for clarity. Task 3A covers economic conditions, and Task 3B
will cover fiscal conditions.
3A.1: Citywide Evaluation
For this task, BAE will collect and analyze the baseline data that will underpin the Economic
Vitality Element of the General Plan, while also providing data that informs future land use,
transportation, and housing policies. Since the adoption of the 2020 General Plan there have
been many changes in the economy. The retail sector has been quickly evolving in response to
the rise of e-commerce and shopper preferences for retail environments that offer an experience.
The region's high cost of housing has negatively impacted local businesses that find it challenging
to recruit and retain employees. At the same time, employers are finding that locations near
transit and providing heavily amenitized work environments give them competitive advantages in
accommodating their workforce. As a result, owners of older suburban office and industrial
properties have had to reinvest in their properties to upgrade their space and provide on-site
amenities.
BAE's analysis will look at San Rafael's role in the Marin/ North Bay economy and the greater Bay
Area economy with these and other trends in mind. BAE will also look at the economic function of
various sub-areas within the city, such as East San Rafael and the Northgate area. As part of this
subtask, BAE will conduct a SWOT analysis, assessing San Rafael's Economic Strengths,
Weaknesses, Opportunities and Threats. Economic and real estate market trends will be
assessed, including existing and projected conditions in the residential, office, hotel/hospitality,
retail, and industrial markets. BAE will also evaluate the City's existing 2020 General Plan
Economic Vitality Element and any current economic development strategic plan or work plans.
Upon completion of this task and Task 3B, BAE will produce a comprehensive summary report on
economic and fiscal conditions, including graphs, tables, and narrative. The work will include an
executive summary and a slide deck suitable for presentation.
Subtask 3A1.a. Existing Conditions. As part of this subtask, BAE will gather and analyze available
data regarding San Rafael's economy, including employment by sector, retail sales and spending
patterns, business location patterns, commuting patterns, unemployment, and wages. To the
extent possible with the available information, the following subject areas will be covered. Data
will be drawn from such sources as the U.S. Census, American Community Survey, California
Employment Development Department, California State Board of Equalization, and private-sector
data vendors such as Esri and Costar. In addition to using industry data, conclusions about the
local economy will be informed by up to twelve (12) interviews with local business owners, retail
property owners, developers, realtors, and economists. Up to two small group discussions may
also be convened for this purpose. BAE would recommend that one of these small group
discussions be focused on the City's retail environment.
Demographic Overview. The City of San Rafael prepared a demographic overview of San Rafael
in July 2018 to support the City's General Plan effort, which BAE will use to inform the economic
analysis for the General Plan. As part of the assessment of existing conditions for the General
Plan, BAE will supplement the data provided in the existing demographic overview as appropriate
to inform the planning process, which could include cross-tabulations using Public Use Microdata
Sample (PUMS) data from the ACS to gain additional insight on key demographic trends. BAE's
budget for this task includes preparation of maps and other graphics to communicate key
findings.
Jobs. For this task, BAE will acquire City-level data by major industry from the California
Employment Development Department for the most current period and for one or two comparable
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periods in the past (e.g., five years or ten years) in order to show trends. In addition, BAE will
review American Community Survey (ACS) data by workplace geography, which is more inclusive
of all workers (i.e., includes self-employed) and Longitudinal Employer-Household Dynamics
(LEHD) data. Assuming the City's business license data has employment counts and can be
made available to BAE, BAE can use that source to further analyze trends in new business
creation and number of smaller businesses. Another source of data is Hoovers/Dun & Bradstreet
that can provide data for detailed NAICS codes regarding number of employees, year of
establishment, and women/minority ownership.
Key areas of concern include:
• Employment in San Rafael by detailed NAICS code
• Historical trends in employment and unemployment
• Identification of largest employers in San Rafael and trends
• Business license trends
• Small business characteristics and trends
• Start-ups and venture capital investment during recent years
Jobs-Housing Balance/Labor Force. For this task, BAE will rely in large part on ACS data,
including the most current five-year data as well as the more limited one-year supplemental data.
Additional workforce data will be derived from LEHD. For commute patterns, the City seeks to
reconcile discrepancies between LEHD data, ACS data, and data in the TAM model. Review of the
methodologies for each of these sources, and of other data sources will be used in an attempt to
determine the validity of each source and resolve significant differences between them. Key
areas of concern include:
• Characteristics of the San Rafael resident workforce (wages, labor force characteristics)
• Commute patterns (where residents work, where local employees live, where those
moving into new housing developments are working)
Retail Sa/es. San Rafael has the highest retail sales in Marin County, accounting for
approximately one-quarter of the county's taxable retail and food service sales. The analysis will
consider San Rafael's competitiveness in particular retail sectors relative to other cities in the
market area, and the city's potential to draw additional regional and community-serving retail to
Downtown and other destinations. The analysis needs to support Land Use Map decisions for
commercial activities, as well as economic development programs to capture desired activities.
The impacts of technology on consumer shopping habits on the demand for brick and mortar
space will be a particularly important consideration. BAE's analysis will indicate the City's one or
more points of retail 'gravity,' e.g., existing or proposed retail locations that would have access to
the greatest population and employment base.
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Using published data from the State Board of Equalization, BAE will discuss retail trends by
sector, and will supplement this analysis with any more recent disclosable data the City
possesses (typically as provided by Hdl or Muni Services), and Economic Census data to estimate
the additional non-taxable sales in San Rafael. The leakage analysis will look at consumer
spending patterns and sales in other potential benchmark area. Overall future trends given
technology, online sales, etc. and impacts on demand for brick and mortar space will be
evaluated through literature review, looking also at national-level trends as shown in the U.S.
Census data from the Annual and Monthly Retail Trade Surveys and their data on the "electronic
economy."
Tourism and Hospitality Trends (Hotels, Restaurants, Entertainment). Starting with data obtained
from STR, a national vendor of data on hotel operations and occupancy trends, BAE will assess
the strength of the local lodging market vis-a-vis Marin County and/or the greater Bay Area. STR
categorizes hotels by market segment, and the inventory they provide will show the size of
different market segments. Additional information will be gathered from the City and other
sources, including regarding any proposed projects. BAE will look at overall tourism trends for
San Rafael and Marin County to the extent possible with available data. The leakage analysis
may provide insight into the extent to which local restaurants and nightclubs are attracting diners
from beyond San Rafael; this will be supplemented through interviews with key City staff and a
limited number of restaurants and entertainment venues. BAE will also attempt to assess the
importance of any recurring special events in the City as attractions.
Real Estate Market. For commercial and industrial space, the evaluation of real estate market
conditions will include an evaluation of the current inventory of space, vacancy rates, asking
rents, and a review of businesses recently attracted to the city (as well as businesses that may
have recently left the city or chosen an alternate location). The analysis should consider the
competitive strengths and weaknesses of San Rafael overall, and of various sub-districts within
San Rafael. It should look at the types of tenants drawn to each area of the city, and the types of
commercial spaces that would best meet employer needs in the short, medium, and long-term. It
should consider the market potential and demand for higher value uses on older commercial and
industrial sites, and the local and regional implications of encouraging (or discouraging) reuse of
such sites. BAE will discuss the following aspects of San Rafael's real estate market and trends
in the market:
• Building permit trends and volumes
• For-Sale and Rental Housing (prices, rents, volumes, absorption, pipeline)
• Retail (rents, vacancy, absorption, pipeline, citywide and by district)
• Office (rents, vacancy, absorption, pipeline, citywide and by district)
• Tech and Industrial/Flex (rents, vacancy, absorption, pipeline)
• Other (hospitals, institutional, public, etc.)
• Market potential of key opportunity sites
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• Economic viability of the City's development standards, including relationship between
FAR, density, and height limits, and value of height bonuses provided for affordable
housing and other community benefits, as well as how development standards help or
hinder existing retail centers.
• Impact of City fees and inclusionary housing requirements on the viability of development
Projections. As part of the economic overview, BAE will consider projections of future growth in
San Rafael, using ABAG/Plan Bay Area projections supplemented by other sources and San
Rafael-specific factors elicited in this analysis. These projections will be used to determine likely
demand for future floor space by land use and housing type, and will assess what Incentives and
regulatory strategies could be used to achieve desired uses. A key part of this subtask will be to
coordinate with the rest of the General Plan consultant team, in order to maintain consistency
across the Plan documents, including the EIR.
Task 3A.1 Deliverables: Draft and Final Existing Conditions Technical Report. BAE will
deliver one draft to the City and, after receipt of consolidated comments, will prepare a
final report.
3A.2: Downtown Economic and Market Profile
More focused analysis of the Downtown economy will be required as part of the Downtown
Precise Plan. This task will be funded through the Downtown Precise Plan grant and will be
invoiced separately from other tasks in this Scope.
BAE will prepare an Economic and Market Profile for Downtown San Rafael to supplement the
citywide analysis described above. This Profile will address the relationship of Downtown San
Rafael to other business districts in San Rafael, Marin County, and the region. Parcel-level data
for Downtown will be evaluated to provide an understanding of value and revenue per acre as
well as other metrics that will inform future economic strategies, development standards, and
land use choices.
The analysis will assess the potential market demand for transit-oriented development-including
office, retail, and ownership and rental housing uses-in Downtown San Rafael. BAE will develop
static proformas for four (4) land uses (or mix of land uses) to assess the financial feasibility of
each development type based on current and projected land development costs, potential lease
rates and sale prices, City fees and standards, and other pertinent factors. As part of the
analysis, the feasibility of providing affordable housing also will be addressed, taking into account
the economics of current inclusionary housing requirements (and potential benefits). The relative
cost and benefits of the City's development incentives also will be considered. Specifically, BAE
will consider the value of additional development entitlements (e.g., height and density) relative to
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the cost of desired benefits (e.g., affordable housing, public space, etc.). BAE's retail analysis in
Task 3A.1 will be expanded for deeper analysis of the downtown district.
BAE understands that the economic analysis for the Downtown Precise Plan will involve close
coordination with City staff and the rest of the consultant team to ensure that the economic
analysis is responsive to issues that arise during the overall planning process. BAE believes that
our proposed budget for this task is sufficient to allow time for a somewhat iterative process with
City staff and the rest of the consultant team in order to meet these needs.
Task 3A.2 Deliverables: Draft and Final Downtown Economic and Market Profile Technical
Report. BAE will deliver one draft to the City and, after receipt of consolidated comments,
will prepare a final report.
Task 38: Assess Existing Fiscal Conditions
For this task, BAE will review the City Budget, and provide a summary of the sources and uses of
funds and discuss relevant revenue initiatives. BAE will evaluate City revenue sources, such as
property tax, sales tax (including Measure E sales tax), franchise tax, business tax, and transient
occupancy tax. BAE will identify key properties that generate significant revenue to the City. BAE
will also provide an overview of the relative stability of each revenue source over the course of an
economic cycle and factors that could impact City revenues over the long term. The results of this
assessment will be incorporated into the comprehensive summary report on economic and fiscal
conditions as described for Task 3A and used as the baseline for the fiscal model to be developed
for Task 4. BAE will prepare graphics to communicate findings and facilitate public understanding
of existing fiscal conditions.
Task 3B Deliverable: Internal technical memorandum for incorporation in Task 4.
Task 4: Evaluate Economic and Fiscal Implications of Land Use Alternatives
BAE will participate with other members of the General Plan team in the evaluation of land use
alternatives and potential land use policy choices. This should include attendance at meetings
with staff and participation in community workshops (see Task 2 above), along with research and
analysis to consider the market implications of the land uses and development standards
(density, FAR, height, etc.) that may be considered for different sites. The City is particularly
interested in understanding the fiscal impacts of potential land use choices, including metrics
that indicate existing and projected revenue generation (per acre, per parcel, etc.) for Downtown
and other business districts. This could include the development of graphics and maps that
illustrate economic productivity at the district, city, and county level.
BAE will develop a General Fund fiscal impact model for San Rafael to test assumptions regarding
future developments and to project the net fiscal impacts of the anticipated new development
6
that would be accommodated by the Land Use Element of the proposed General Plan Update.
The results of this analysis will help the City and the consultant team to refine the Land Use
Element, balancing fiscal concerns with other planning considerations, such as economic
development, community character, environmental impacts, etc. BAE will base the fiscal impact
projections on estimates of the net increase in development, by land use category, that could
occur under the proposed General Plan Update Land Use Element.
In developing the fiscal impact model, BAE will complete the following steps, leading to both an
Excel model that can be used to estimate future General Fund revenues and service costs, as
well as a narrative report describing the methodology and results, and the recommendations for
refinement of a fiscally sustainable General Plan Update.
• Analyze City's current and projected budget (see Task 38)
• Prepare Revenue Projections -This will include estimating future General Fund revenues
as appropriate (includes sales tax, property tax, property tax in-lieu of vehicle license fees,
charges for services, and other key revenue sources
• Prepare Service Cost Projections
o Interview representatives of key City departments to discuss working service
standards, impact of changes in land use on services
o Develop relevant average service cost multipliers and marginal service cost
estimates for departments to serve projected growth
• Estimate and analyze projected fiscal revenues and service costs per increment of growth
anticipated under the updated General Plan
• Provide feedback to consultant team and city re: recommended changes to Land Use
Element
To complete this task BAE will prepare a Fiscal Impact Report including discussion of
methodology, assumptions, and results, along with tables, graphs, and recommendations for
refinement of a fiscally sustainable General Plan Update. If necessary, BAE will recommend fiscal
mitigation measures to ensure the fiscal sustainability of the adopted General Plan Update.
Task 4 Deliverables: Draft and Final Fiscal Impact Technical Report. BAE will deliver one
draft to the City and, after receipt of consolidated comments, will prepare a final report.
Task 5: Peer Review of Economic Vitality Element and Other General Plan
Elements
BAE will participate in the development of policies and implementing actions in the Economic
Vitality Element, and may weigh in on other General Plan policies as they are developed.
Authorship of the Economic Vitality Element itself will be the responsibility of the in-house staff
team, and not BAE. BAE will have a key supporting role and will review and comment on
administrative drafts, suggesting revisions as appropriate. BAE will also participate as a "subject
7
matter expert" on issues related to fiscal impacts, financing of capital projects, probable timing of
future development, community benefits, economic development initiatives, and similar
economically-focused topics addressed by the General Plan.
Task 5 Deliverable: Respond to City staff questions and review draft sections of the
Economic Vitality Element as directed.
Task 6: Plan Adoption
BAE will be available during the Plan adoption process to respond to staff questions relating to
data, analysis, and policies with economic impacts. However, BAE is not expected to participate
in Planning Commission and City Council hearings related to Plan adoption. Hours shown for this
task in BAE's budget may be reallocated, as approved by City, to cover any excess labor incurred
in other tasks.
Task 6 Deliverable: Respond to staff questions.
Task 7: Project Management and Administration
BAE expects to attend periodic project management and work progress meetings, either by
conference call or in person. Time also will be required for general email correspondence and
communication/coordination with members of the project team. The budget for this task is built
into previous tasks.
Task 7 Deliverables: Project team conference calls; project updates, respond to City staff
or project team emails.
8
J GT S H u
Budget
BAE has prepared a budget totally, $117,490, or $122,860 with the optional task, for both the
General Plan update and Precise Plan for the City's downtown, inclusive of all labor and
expenses. BAE invoices monthly and will be prepared in a format acceptable to the City. Data
expenses are billed as incurred with no mark up. Costar data is invoiced as a fixed amount on a
per job basis and one expense is proposed for this engagement.
Principal VP Associate Analyst Total
General Plan Tasks $300 $210 $140 .lli Budget
1 Reconnaissance/Startup 4.0 6 .0 10.0 $3,860
2 Participation in Community Engagement Program 16.0 45.0 8.0 $15,370
3A Assess Existing Economic Conditions (Excluding Precise Plan work) 16.0 35.0 50.0 40.0 $22 ,950
3B Assess Existing Fiscal Conditions 6.0 10.0 34.0 16.0 $10,180
4 Evaluate Economic and Fiscal Implications of Land Use Alternatives 6 .0 20.0 60.0 16.0 $15,920
5 Peer Review of Economic Vitality Element & Other General Plan Element 10.0 16.0 $6,360
6 Plan Adoption 2.0 4 .0 $1 ,440
7 Project Management and Administration 4 .0 20 .0 4.0 $5,960
LABOR 64 156 166 72 $82,040
EXPENSES (includes data purchase and mileage) $650
Mileage 250
Esri 250
EDD-City data 150
BAE GENERAL PLAN BUDGET $82,690
Precise Plan Tasks
3A.2 Downtown Economic and Market Profile 20.0 60.0 70 .0 50.0 $33,150
LABOR $33,150
EXPENSES (includes data purchase and mileage) $1,650
Mileage $50
STR data purchases $600
Costar $1 ,000
BAE PRECISE PLAN BUDGET WITHOUT OPTIONAL TASK $34,800
TOTAL BAE BUDGET WITHOUT OPTIONAL TASK $117,490
9
Schedule
BAE has the capacity to undertake this engagement and understands that draft technical reports
would have to be prepared and reviewed by the City and consultant team by early 2020 for public
release. As part of the start-up meeting, BAE will confer with the City and its selected team to
finalize a schedule for BAE's deliverables. Upon BAE's authorization to proceed, a draft existing
conditions analysis (Task 3) technical report can be submitted within 60 days of authorization to
proceed. A draft fiscal impact analysis (Task 4) can submitted within 45 days of authorization to
proceed. BAE understands the need to coordinate the schedule for the economic analysis for the
Downtown Precise Plan with the overall Downtown Precise Plan schedule, is prepared to complete
the analyses for the Downtown Plan on a separate schedule from the General Plan analysis as
needed.
10
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Community Development
Project Manager: Ethan Guy
Extension: x2392
Contractor Name: BAE Urban Economics, Inc.
Contractor's Contact: David Shiver
Contact's Email: dshiver@bael.com
D FPPC: Check if Contractor/Consultant must file Form 700
Step RESPONSIBLE DESCRIPTION
DEPARTMENT
1 Project Manager a. Email PINS Introductory Notice to Contractor
b. Email contract (in Word) & attachments to City
Atty c/o Laraine .Gittens@cityofsanrafael.org
2 City Atta rney a. Review, revise , and comment on draft agreement
and return to Project Manager
b . Confirm insurance requirements, create Job on
PINS, send PINS insurance notice to contractor
3 Project Manager Forward three (3) originals of final agreement to
contractor for their signature
4 Project Manager When necessary, * contractor-signed agreement
agendized for Council approval
*P SA > $75,000; o r Purcha se> $75 ,000; or
Pu blic W orks Contract> $175,000
Date of Council approval
PRINT CONTINUE ROUTING PROCESS WITH HARD COPY
5 Project Manager Forward signed original agreements to City
Attorney with printed copy of this routing form
6 City Attorney Review and approve hard copy of signed
agreement
7 City Attorney Review and approve i nsurance in PINS, and bonds
(for Public Works Contracts)
8 City Manager/ Mayor Agreement executed by Coun cil authorized official
9 City Clerk Attest signature s, retain s original agre e ment and
forwards copies to Project Manager
COMPLETED
DATE
1/4/2019
1/4/2019
1/9/2019
1/9/2019
1/10/2019
□ N/A
Or
1/22/2019
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