07-012, Town Hall Services, Villa Serra Apartments
07-0/2..
P.O.#:
Contract Amount:$8.500
AGREEMENT
BETWEEN
CITY OF CUPERTINO
AND
TOWN HALL SERVICES,
ECONOMISTS AND PLANNERS
FOR
PROFESSIONAL SERVICES
THIS IS AN AGREEMENT MADE AS OF January 8. 2007, BETWEEN CITY
OF CUPERTINO (hereinafter referred to as CITY), and TOWN HALL SERVICES,
(hereinafter referred to as Consultant).
WITNESSETH:
WHEREAS, CITY intends to provide Consulting Services for Enrollment and Fiscal
Impact Analvsis for Villas Serra Apartments (hereinafter referred to as Project) and,
WHEREAS, CITY requires certain professional services in connection with Project
(hereinafter referred as Services); and
WHEREAS, Consultant is qualified and prepared to provide such Services;
NOW, THEREFORE, in consideration of the promises contained herein, the parties agree
as follows:
ARTICLE 1 - SERVICES TO BE PERFORMED BY CONSULTANT
1.1 Specific Services and the associated scope of services, payment, schedule, and
personnel will be defined in specific Task Order as mutually agreed by City and
Consultant.
1.2 All Task Orders will by reference incorporate the terms and conditions on this
Agreement, and become formal amendments hereto.
ARTICLE 2 - COMPENSATION
2.1 Compensation for Consulting services performed under this Agreement shall be
compensated for on a Cost Plus Fixed Fee basis. When using this basis of
compensation, the City agrees to pay Consultant actual costs incurred, subject to
an agreed upon Cost Ceiling, plus a Fixed Professional Fee (Fixed Fee).
For purposes of this Agreement, the actual costs shall include:
Direct Labor Cost
Overhead Cost
Other Direct Costs (Direct Non-salary Costs)
Outside Services
Labor rates shall be based on a normal 8-hour day, 40-hour week, with overtime
paid for authorized work. Technicians, drafters, and support personnel are paid at
one and one-half times their regular rate for overtime. Professional personnel are
paid at their regular rate for overtime. Overhead Cost shall be the sum of Fringe
Benefits and Indirect Costs.
As a portion of the total compensation to be paid to Consultant, City shall pay a
Fixed Professional Fee negotiated for each Task Order as profit for services
rendered by Consultant covered by this Agreement and its Task Orders. The
Fixed Fee may be increased for additional authorized services only by subsequent
task order or amendment changing the scope of work:
Definitions are as follows:
a) Direct labor is salaries and wages paid to personnel for time directly
chargeable to the project. Direct labor does not include the cost of
Consultant's statutory and customary benefits, such as sick leave, holidays,
vacations; and medical and retirement benefits nor the cost of the time of
executive and administrative personnel and others whose time is not
identifiable to the project.
b) Fringe benefits include Consultant's statutory and customary benefits, such
as sick leave, holidays, vacations, medical and retirement benefits,
incentive pay, tuition, and other costs classified as employee benefits.
c) Indirect costs are allocations of costs that are not directly chargeable to a
specific engagement and are commonly referred to as Consultant's
overhead. Indirect costs include provisions for such things as clerical
support, office space, light and heat, insurance, statutory and customary
employee benefits, and the time of executive and administrative personnel
and others whose time is not identifiable to the Consulting Services for
Enrollment and Fiscal Impact Analysis for Villas Serra Apartments Project
or to any other project. Under no circumstances can the same labor costs
be charged as direct labor and also appear at the same time as indirect
costs, and visa versa.
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d) Other (non-labor) direct costs include such typical expenses as cost of
transportation and subsistence, printing and reproduction, computer time
and programming costs, identifiable supplies, and charges by reviewing
authorities.
e) Outside Services shall include all charges from outside consulting firms or
subconsultants.
2.2 Reimbursement for mileage shall not exceed the prevailing Internal Revenue
Service's standard mileage rate.
2.3 A Cost Ceiling will be established for each Task Order, which is based upon
estimated labor-hours and cost estimates. Costs as described above, comprising
direct labor, overhead cost, and other direct costs, shall be payable up to a Cost
Ceiling as specified in the Task Order. A Maximum Fee Ceiling. or Task Order
Firm Ceiling, will also be established for each Task Order, which includes the
Cost Ceiling plus the Fixed Fee.
2.4 Consultant shall invoice City monthly for the actual costs incurred, and a pro-
rated portion ofthe Fixed Fee for work-performed during the previous month. If
the Maximum Fee Ceiling is reached, the Consultant will complete the agreed-
upon work for the Maximum Fee Ceiling. With City staff approval, labor hours
may be reallocated within the tasks without renegotiation in such a manner so as
not to exceed the Maximum Fee Ceiling.
2.5 The Consultant shall provide the City with a review of the budget amounts when
75 percent of the Cost Ceiling for any task has been expended. Consultant may
request a revision in the Cost Ceiling for performance of this Agreement, and will
relate the rationale for the revision to the specific basis of estimate as defined in
the Scope of Services. Such notification will be submitted to the City at the
earliest possible date. The authorized Cost Ceiling shall not be exceeded without
written approval of the City.
2.6 The fixed professional fee will not be changed except in the case of a written
amendment to the Agreement, which alters the Scope of Services. City and
Consultant agree to negotiate an increase or decrease in Cost Ceiling and Fixed
Fee for any change in Scope of Services required at any time during the term of
this Agreement. Consultant will not commence work on the altered Scope of
Services until authorized by City.
2.7 Direct labor rates are subject to revision to coincide with Consultant's normal
salary review schedule. Adjustments in direct labor rates shall not affect the firm
ceiling without prior written authorization of the City.
2.8 City shall pay Consultant in accordance with each Task Order for Services.
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2.9 Consultant shall submit monthly statements for Services rendered. City will make
prompt monthly payments in response to Consultant's monthly statements.
ARTICLE 3 - PERIOD OF SERVICE
3.1 Consultant's services will be performed and the specified services rendered and
deliverables submitted within the time period or by the date stipulated in each
Task Order.
3.2 Consultant's services under this Agreement will be considered complete when the
services are rendered and/or final deliverable is submitted and accepted by City.
3.3 If any time period within or date by which any of the Consultant's services are to
be completed is exceeded through no fault of Consultant, all rates, measures and
amounts of compensation and the time for completion of performance shall be
subject to equitable adjustment.
ARTICLE 4 - CITY'S RESPONSIBILITIES.
City will do the following in a timely manner so as not to delay the services of
Consultant.
4.1 Provide all criteria and full information as to City's requirements for the services
assignment and designate in writing a person with authority to act on City's behalf
on all matters concerning the Consultant's services.
4.2 Furnish to Consultant all existing studies, reports and other available data
pertinent to the Consultant's services, obtain or authorize, Consultant to obtain or
provide additional reports and data as required, and furnish to Consultant services
of others required for the performance of Consultant's services hereunder, and
Consultant shall be entitled to use and rely upon all such information and services
provided by City or others in performing Consultant's services under this
Agreement.
4.3 Arrange for access to and make all provisions for Consultant to enter upon public
and private property as required for Consultant to perform services hereunder.
4.4 Perform such other functions as are indicated in each Task Order related to duties
of City.
4.5 Bear all costs incident to compliance with the requirements of this Section.
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ARTICLE 5 - STANDARD OF CARE
5.1 Consultant shall exercise the same degree of care, skill, and diligence in the
performance of the Services as is ordinarily provided by a professional Consultant
under similar circumstance and Consultant shall, at no cost to City, re-perform
services which fail to satisfy the foregoing standard of care.
ARTICLE 6 - OPINIONS OF COST AND SCHEDULE'
6.1 Since Consultant has no control over the cost of labor, materials, equipment or
services furnished by others, or over contractors', subcontractors', or vendors'
methods of determining prices, or over competitive bidding or market conditions
or economic conditions, Consultant's cost estimate and economic analysis shall be
made on the basis of qualification and experience as a professional.
6.2 Since Consultant has no control over the resources provided by others to meet
contract schedules, Consultant's forecast schedules shall be made on the basis of
qualification and experience as a professional.
Consultant cannot and does not guarantee that proposals, bids or actual project
costs will vary from his cost estimates or that actual schedules will not vary from
his forecast schedules.
ARTICLE 7 - SUBCONTRACTING
7.1 No subcontract shall be awarded by Consultant until prior written approval is
obtained from the City.
ARTICLE 8 - CONSULTANT-ASSIGNED PERSONNEL
8.1 Consultant shall designate in writing an individual to have immediate
responsibility for the performance of the services and for all matters relating to
performance under this Agreement. Key personnel to be assigned by Consultant
will be stipulated in each Task Order. Substitution of any assigned person shall
require the prior written approval of the City, which shall not be unreasonably
withheld. If the City determines that a proposed substitution is not responsible or
qualified to perform the services then, at the request of the City, Consultant shall
substitute a qualified and responsible person.
ARTICLE 9 - OWNERSHIP OF DOCUMENTS
9.1 All work products, drawings, data, reports, files, estimate and other such
information and materials (except proprietary computer programs, including
source codes purchased or developed with Consultant monies) as may be
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accumulated by Consultant to complete services under this Agreement shall be
owned by the City.
9.2 Consultant shall retain custody of all project data and documents other than
deliverables specified in each Task Order, but shall make access thereto available
to the City at all reasonable times the City may request. City may make and retain
copies for information and reference.
9.3 All deliverables and other information prepared by Consultant pursuant to this
Agreement are instruments of service in respect to this project. They are not
intended or represented to be suitable for reuse by City or others on extensions of
this Project or on any other project. Any reuse without written verification or
adaptation by Engineer for the specific purpose intended will be at City's sole risk
and without liability or legal exposure to Consultant; and City shall indemnify and
hold harmless Consultant against all claims, damages, losses, and expenses.
including attorney's fees arising out of or resulting from such reuse. Any such
verification or adaptation will entitle Consultant to further compensation at rates
to be agreed upon by City and Consultant.
ARTICLE 10 - RECORDS OF LABOR AND COSTS
10.1 Consultant shall maintain for all Task Orders, records of labor and costs used in
claims for compensation under this Agreement. Records shall mean a
contemporaneous record of time for personnel; a methodology and calculation of
the Multiplier for fringe benefits and indirect costs; and invoices, time sheets, or
other factors used as a basis for determining other non labor Project charges.
These records must be made available to the City upon reasonable notice of no
more than 48 hours during the period of the performance of this Agreement.
10.2 After delivery of. Services (completion of Task-Orders) under this Agreement, the
Consultant's records of all costs used in claim's for compensation under this
Agreement shall .be available to City's accountants and auditors for inspection
and verification. These records will be maintained by Consultant and made
reasonably accessible to the City for a period of three (3) years after completion of
Task Orders under this Agreement.
10.3 Consultant agrees to cooperate and provide any and all information concerning
the Project costs which are a factor in determining compensation under this
Agreement as requested by the City or any public agency which has any part in
providing financing for, or authority over, the Services which are provided under
the Agreement.
10.4 Failure to provide documentation or substantiation of all Project costs used as a
factor in compensation paid under Article 2 hereof will be grounds for City to
refuse payment of any statement submitted by the Consultant and for a back
charge for any City funds, including interest from payment; or grant, matching or
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other funds from agencies assisting City in financing the Services specified in this
Agreement.
ARTICLE II - INSURANCE
Consultant shall provide and maintain at all times during the performance of the
Agreement the following insurances:
11.1 Workers' Compensation and Employer's Liability Insurance for protection of
Consultant's employees as required by law and as will protect Consultant from
loss or damage because of personal injuries, including death, to any of his
employees.
11.2 Comprehensive Automobile Liability Insurance. Consultant agrees to carry a
Comprehensive Automobile Liability Policy providing bodily injury liability. This
policy shall protect Consultant against all liability arising out of the use of owned
or leased automobiles both passenger and commercial. Automobiles, trucks, and
other vehicles and equipment (owned, not owned, or hired, licensed or unlicensed
for road use) shall be covered under this policy. Limits of liability for
Comprehensive Automobile Liability Insurance shall not be less than $1,000,000
Combined Single Limit.
11.3 Comprehensive General Liability. Insurance as will protect Consultant and
City from any and all claims for damages or personal injuries, including death,
which may be suffered by persons, or for damages to or destruction to the
property of others, which may arise from the Consultant's operations under this
Agreement, which insurance shall name the City as additional insured. Said
insurance shall provide a minimum of $1 ,000,000 Combined Single Limit
coverage for personal injury, bodily injury, and property damage for each
occurrence arid aggregate. Such insurance will insure Consultant and City from
any and all claims arising from the following:
1. Personal injury;
2. Bodily injury;
3. Property damage;
4. Broad form property damage;
5. Independent contractors;
6. Blanket contractual liability.
11.4 Consultant agrees to maintain such insurance at Consultant's expense in full force
and effect in a company or companies satisfactory to the City. All coverage shall
remain in effect until completion of the Project.
11.5 Consultant will furnish the City with certificates of insurance issued by
Consultant's insurance carrier and countersigned by an authorized agent or
representative of the insurance company. The certificates shall show that the
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insurance will not be cancelled, altered, or reduced without at least thirty (30)
days prior written notice to the City. The certificates for liability insurance will
show that liability assumed under this Agreement is included.
ARTICLE 12 - LIABILITY AND INDEMNIFICATION
12.1 Having considered the risks and potential liabilities that may exist during the
performance of the Services; and in consideration of the promises included herein,
City and Consultant agree to allocate such liabilities in accordance with this
Article 12. Words and phrases used in this Article shall be interpreted in
accordance with customary insurance industry usage and practice.
12.2 Consultant shall indemnify and save harmless and defend the City and all of their
agents, officers, and employees from and against all claims, demand, or cause of
action of every name and nature arising out of negligent error, omission, or act of
Consultant, its agents, servants, or employees in the performance of its services
under this Agreement.
12.3 In the event an action for damages is filed in which negligence is alleged on the
part of City and Consultant, Consultant agrees to defend City. In the event City
accepts Consultant's defense, City agrees to indemnify and reimburse Consultant
on a pro rata basis for all expenses of defense and any judgment or amount paid
by Consultant in resolution of such claim. Such pro rata share shall be based upon
a final judicial determination of negligence or, in the absence of such
determination, by mutual agreement.
12.4 Consultant shall indemnify City against legal liability for damages arising out of
claims by Consultant's employees. City shall indemnify Consultant against legal
liability for damages arising out of claims by City's employees.
12.5 Indemnity provisions will be incorporated into all Project contractual
arrangements entered into by City and will protect City and Consultant to the
same extent.
12.6 Upon completion of all services, obligations and duties provided for in the
Agreement, or in the event of termination of this Agreement for any reason, the
terms and conditions of this Article shall survive.
12.7 To the maximum extent permitted by law, Consultant's liability for City's damage
will not exceed the aggregate compensation received by Consultant under this
Agreement or the maximum amount of professional liability insurance required by
this Agreement, which ever is greater.
ARTICLE 13 - INDEPENDENT CONTRACTOR
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Consultant undertakes performance of the Services as an independent contractor and shall
be wholly responsible for the methods of performance. City will have no right to
supervise the methods used, but City will have right to observe such performance.
Consultant shall work closely with City in performing Services under this Agreement.
ARTICLE 14 - COMPLIANCE WITH LAWS
In performance of the Services, Consultant will comply with applicable regulatory
requirements including federal, state, and local laws, rules, regulations, orders, codes,
criteria and standards. Consultant shall procure the permits, certificates, and licenses
necessary to allow Consultant to provide Consulting Services for Enrollment and Fiscal
Impact Analysis for Villas Serra Apartments. Consultant shall not be responsible for
procuring permits, certificates, and licenses required for any construction unless such
responsibilities are specifically assigned to Consultant in Task Order.
ARTICLE 15 - NONDISCLOSURE OF PROPRIETARY INFORMATION
Consultant shall consider all information provided by City and all drawings, reports,
studies, design calculations, specifications, and other documents resulting from the
Consultant's performance of the Services to be proprietary unless such information is
available from public sources. Consultant shall not publish or disclose proprietary
information for any purpose other than the performance of the Services without the prior
Written authorization of City or in response to legal. process.
ARTICLE 1.6 - TERMINATION OF CONTRACT
16.1 The obligation to continue Services under this Agreement may be terminated by
either party upon seven days written notice in the event of substantial failure by
the other party to perform in accordance with the terms hereof through no fault of
the terminating party.
16.2 City shall have the right to terminate this Agreement or suspend performance
thereof for City's convenience upon written notice to Consultant, and Consultant
shall terminate or suspend performance of Services on a schedule acceptable to
City. In the event of termination of suspension for City's convenience, City will
pay Consultant for all services performed and costs incurred including termination
or suspension expenses. Upon restart of a suspended project, equitable
adjustment shall be made to Consultant's compensation.
ARTICLE 17 - UNCONTROLLABLE FORCES
17.1 Neither City nor Consultant shall be considered to be in default of this
Agreement if delays in or failure of performance shall be due to uncontrollable
forces, the effect of which, by the exercise of reasonable diligence, the
nonperforming party could not avoid. The term "uncontrollable forces" shall
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mean any event that results in the prevention or delay of performance by a party
of its obligations under this Agreement and which is beyond the control of the
nonperforming party. It includes, but is not limited to, fire, flood, earthquake,
storms, lightening, epidemic, war, riot, civil disturbance, sabotage, inability to
procure permits, licenses, or authorizations from any state, local, or federal
agency or person for any of the supplies, materials, accesses, or services required
to be provided by either City or Consultant under this Agreement, strikes, work
slowdowns or other labor disturbances, and judicial restraint.
17.2 Neither party shall, however, be excused from performance if nonperformance is
due to uncontrollable forces which are removable or remediable, and which the
nonperforming party could have, with the exercise of reasonable diligence,
removed or remedied with reasonable dispatch. The provisions of this Article
shall not be interpreted or construed to require Consultant or City to prevent,
settle, or otherwise avoid a strike, work slowdown, or other labor action. The
nonperforming party shall, within a reasonable time of being prevented or delayed
from performance by an uncontrollable force, give written notice to the other
party describing the circumstances and uncontrollable forces preventing continued
performance of the obligations of this Agreement. The Consultant will be
allowed reasonable negotiated extension of time or adjustments for City initiated
temporary stoppage of services.
ARTICLE 18 - MISCELLANEOUS
18.1 A waiver by either City or Consultant of any breach of this Agreement shall not
be binding upon the waiving party unless such waiver is in writing. In the event
of a written waiver, such a waiver shall not affect the waiving party's rights with
respect to any other or further breach.
18.2 The invalidity, illegality, or unenforceability of any provision of this Agreement,
or the occurrence of any event rendering any portion or provision of this
Agreement void, shall in no way effect the validity or enforceability of any other
portion or provision of the Agreement. Any void provision shall be deemed
severed from the Agreement and the balance of the Agreement shall be construed
and enforced as if the Agreement did not contain the particular portion or
provision held to be void.
ARTICLE 19 - INTEGRATION AND MODIFICATION
19.1 This Agreement (consisting of pages 1 to 14), together with all exhibits executed
by the undersigned, is adopted by City and Consultant as a complete and
exclusive statement of the terms of the Agreement between City and Consultant.
This Agreement supersedes all prior agreements, contracts, proposals,
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representations, negotiations, letters, or other communications between the City
and Consultant pertaining to the Services, whether written or oral.
19.2 The Agreement may not be modified unless such modifications are evidenced in
writing signed by both City and Consultant.
ARTICLE 20-SUCCESSORS AND ASSIGNS
20.1 City and Consultant each binds itself and its directors, officers, partners,
successors, executors, administrators; assigns and legal representatives to the
other party to this Agreement and to the partners, successors, executors,
administrators, assigns, and legal representatives of such other party, in respect to
all covenants, agreements, and obligations of this Agreement.
20.2 Neither City nor Consultant shall assign, sublet, or transfer any rights under or
interest in (including, but without limitation, monies that may become due or
monies that are due) this Agreement without the written consent of the other,
except to the extent that the effect of this limitation may be restricted by law.
Unless specifically stated to the contrary in any written consent to an assignment,
no assignment will release or discharge the assignor from any duty or
responsibility under this Agreement. Nothing contained in this paragraph shall
prevent Consultant from employing such independent consultants, associates, and
subcontractors as he may deem appropriate to assist him/her in the performance of
the Services hereunder and in accordance with Article 7.
20.3 Nothing herein shall be construed to give any rights or benefits to anyone other
than City and Consultant.
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TASK ORDER NO. 1
to
AGREEMENT
BETWEEN
CITY OF CUPERTINO
AND
SHOOLHOUSE SERVICES, ECONOMISTS AND PLANNERS
FOR
PROFESSIONAL SERVICES
Dated January 8, 2007
I. PURPOSE
The consultant shall provide Consulting Services for Enrollment and Fiscal
Impact Analysis for Villas Serra Apartments on behalf of the city of Cupertino for
submission to the Cupertino City Council according to the attached Schedule for
Inititiative Report Preparation.
2. PROJECT COORDINATION
Project shall be coordinated with Vera Gil, Senior Planner, in the Community
Development Department. Consultant may need to coordinate work with other
City staff, the applicant (Taylor Woodrow Homes) and the school districts as
directed.
3. SCOPE OF SERVICES
Attached Proposal for Consulting Services for Enrollment and Fiscal Impact
Analysis for Villas Serra Apartments, Exhibit A, is hereby incorporated as part of
this agreement.
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I. STUDY DESCRIPTION
Situation
Prometheus Real Estate Group is requesting approval for 117 residential apartment units on a site
located at Homestead and Stelling Roads. The project would consist of a reconfiguration of the
existing 388 apartment units, and the addition of 117 new apartments (for a total of 50S units at
the site) where the existing Villa Serra apartments are situated. The City has requested that an
analysis of the fiscal and enrollment impacts of the proposed project (only on the additiona1117
new apartment units) be analyzed. Therefore, Town Hall Services is submitting this proposal
that outlines an analysis of the project's impact.
Town Hall Services is uniquely qualified to undertake such a study. During its 10 years, it has
prepared over 200 reports for over 120 cities, counties and school districts in California. Its
studies have focused primarily on enrollment forecasts, facility planning, and impact mitigation,
especially fee justification documents. In some situations, the firm has been brought in by a
developer to prepare an analysis serving the interests of both a school district and the developer.
Additionally, Town Hall Services recently completed similar analyses for the City of Cupertino.
This study involves city planning issues and is undertaken in the context of assessment of a
proposed project. Town Hall Services has undertaken hundreds of studies focusing on city
planning issues, including participating in the preparation of more than one hundred EIRs.
Scope of Work and Work Plan
Task 1. Estimate Student Generation. The estimation of the number of students generated
by the project (and how that number will change over time) is the key component of the analysis.
We have, and will seek additional, information available from the Cupertino Union Elementary
and Fremont Union High School Districts from recent studies regarding student generation rates
(SGRs) from different types of housing.
Task 2. Determine Enrollment Capacities of the Impacted Schools. We will determine the
enrollment capacities ofNimitz Elementary, Cupertino Junior High, and Homestead High
Schools. This will be done with reference to the standards of the two districts.
Task 3. Compare Projected Enrollment with Enrollment Capacities. We will compare the
enrollments for the three grade levels projected in Task 2 with the capacities determined in Task
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Enrollment and Fiscal Impact Analysis
3, both with and without the proposed project. The information from this task will enable those
interested in the project to evaluate the impact.
Task 4. Estimate Development Impact Fee Revenue. Pursuant to Education Code Section
17620 (Levell fees) and Government Code Section 65995.5 (Level2 fees) developers must pay
any applicable development fees have been paid before the city or county can issue a building
permit. We will determine which of the two sections apply to the fees levied by Cupertino Union
Elementary and by Fremont Union High School Districts and the fee amounts charged by each
district. Since the fees are levied on a per square foot basis, the total square feet of the project's
homes will have to be estimated. We wiUlook to the developer for information as to the size of
the proposed units. If the unit sizes are not consistent with what we would expect for such units,
we will develop information about the typical sizes of units in comparable projects. The fee
revenue for each of the school districts will be simply the product ofthe total square footage
times the applicable fee rate.
Task 5. Determine the Cost of Additional Capacity. The cost and feasibility of adding
additional capacity to the three impacted schools, or to other schools if a district indicates that
needed capacity would be added at another school rather than at the directly impacted school.
The impact fee justification document of each school would be a resource. In addition, we
recommend that we interview the Director of Facilities for each district to insure that his or her
perspective is recognized.
Task 6. Compare Project Fee Revenue with the Cost of Additional Capacity. The
revenues will be compared to the cost to determine whether the District, if it lacks adequate
capacity, would have the adequate revenues to fund the needed capacity.
Task 7. Project Operating Revenues Generated by the Project. The Cupertino Union
School District is a "Revenue Limited" school district. This means that the property tax revenue
will be irrelevant. The State will guarantee per pupil funding up to the amount budgeted that
year by the legislature, filling in the gap between that amount and local property tax revenues.
Conversely, Fremont Union High School District is a "Basic Aid", i.e. not revenue limited and
thus eligible only for minimum state aid, we will estimate the assessed value and consequent
property tax revenues. This will also include the examination of the net fiscal impact of the
conversion of the existing property from commercial use to its new use as residential
(approximately 117 apartment units).
Task 8. Calculate per Student Operating Costs and Compare with Project Revenues. The
operating budgets of the districts will be divided by enrollment to determine per student
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City of Cupertino
Enrollment and Fiscal Impact Analysis
operating costs at each school level. These multiplied by the number of students at each school
level will provide an estimate of operating costs. These will be compared with the operating
revenues calculated in Task 8.
Task 9. Prepare a Written Report. We will prepare a written report setting forth our analysis
and calculations. It will describe our approach and include sufficient detail for the reader to
follow and check on our analysis and calculations.
Task 10. Amend Cumulative Impacts Section and Corresponding Spreadsheet. Previous
fiscal and enrollment impact analyses have been completed for other proposed development
projects. This report will amend previous discussions and spreadsheets relating to the cumulative
impacts to include the potential impacts from the proposed Prometheus apartment project.
Task 11. Attend a Public Meeting. Mr. Sanger will attend a public meeting and make a
presentation and/or answer questions as requested.
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II. ADMINISTRATIVE
Project Team
Town Hall Services staff will constitute the project team. Stephen Sanger will undertake the
work on this study. He prepared the previous reports for the City of Cupertino. Mr. Sanger has
been with Town Hall Services for over four years. Prior to that time he worked on the State
School Facilities Bond Measure Proposition 47 and for the Cities of Mountain View and
Redwood City.
J. Richard Recht, who has been president of Town Hall Services since its incorporation ten years
ago, will also be assisting with the project. He has worked on many studies including the tasks in
this study and has been a frequent speaker, expert witness, and author as to the analysis
methodologies involved.
Recent Projects and References
The three recent projects summarized here were selected because all involved our undertaking
objective studies and preparing credible reports in potentially contentious situations. All three
involved either a city or developers who had an interest opposite that of the school district.
Sunnyvale Elementary School District and City of Sunnyvale: During 2004, Town Hall
undertook research and analyses for ajoint City/School District evaluation of the future adequacy
of District school facilities. The project was instigated due to concerns about the impact of
rezoning downtown that would result in increased residential development. The result was a
joint City Council/School Board session and an ongoing program for the planning of school
facilities. Mr. Recht was project manager for the study and personally undertook much of the
work.
Reference: Dr. Benjamin Picard,
Associate Superintendent,
Sunnyvale Elementary School District
(408) 522-8200, ex. 208
River Islands Development: River Islands/Cambay Group is the developer of a 3,130 unit
project located near Manteca, California. The firm, with the participation of Banta Elementary,
the local school district, contracted with Town Hall to construct a model of the generation of
students over time from the development. A development with many of the same characteristics
was identified, its student generation patterns determined, and projections made under alternative
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City of Cupertino
Enrollment and Fiscal Impact Analysis
development schedules. Again Mr. Recht was the project manager and Mr. Sanger undertook
many of the work tasks.
Reference: Buster McCurtain
Consultant to River Islands/Cambay Group and the Banta Elementary District
(530) 587-0451
Proposed Project Schedule
We will begin as soon as authorized to do so. You would need a draft report for City review by
January 31, 2007 to keep on your planned schedule.
Insurance
Town Hall Services has general liability insurance of $2 million and Worker's Compensation.
Project Budget
The cost of a study of this nature depends on the extent to which the assumptions need to be
justified by research and the report needs to be detailed, comprehensive, and credible. We have
budgeted for a strong research effort and a detailed and comprehensive report. However, much
of this analysis will rely on recent data gathered for the previous project reports, and this will
assist us in keeping the cost of this analysis to a minimum. Thus, the cost of this study for an
analysis of the Prometheus Residential Apartment Project will be $8,500.
Billing Rates
The billing rates ofMr. Recht and Mr. Sanger, which include all costs with the exception of
travel and materials, are as follows:
Mr. Recht
Mr. Sanger
$135.00 per hour
$ 85.00 per hour
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December 2006
III. QUALIFICATIONS AND EXPERIENCE
Town Hall Services offers the experience and talents of principals long recognized as being at the
forefront of California school facility issues. It serves school districts in the areas of impact
analysis, fee documentation, land use and planning, demographics, the disposal of unused sites,
and related issues.
The goal of Town Hall is to have the ability to cover all of the linked needs of comprehensive
enrollment, facility, and financial planning. We prepare enrollment projections that identify the
impact of factors such as new development and the changing characteristics of older
neighborhoods, thereby providing a basis for calculating facility needs and for budget planning.
The analysis of existing facility capacity determines the need for additional capacity. And our
evaluation of alternative means of providing new capacity, including building remodeling and
rehabilitation, allows the district to select an optimal program for accommodating future
enrollment needs. This analysis in turn is the basis for development fee documentation,
including that for the alternative fees authorized by SB 50.
The expertise of our principals has been trusted by school districts imposing development fees
and/or seeking full mitigation of development impacts since 1986, when California law with
regard to fees was adopted. These experts have provided the documentation for the fees imposed
by more than 100 districts. We have also assisted districts whose fees have been challenged by
strengthening their documentation. We have advised districts in the preparation of the defense of
legal challenges and have served as their expert witnesses in court.
Included in the services provided to client districts are:
Economic/ Demol!raphic Forecasts
Student Generation Rates (SGRs) in new
housing when first occupied and after
several years of occupancy
SGR changes in existing neighborhoods
Emollment cohort rates by housing type
New development patterns and timing
Impacts of attendance boundary changes
Financial Planninl!/ Fee Documentation
Development fee documentation
including for alternative fees
Mitigation negotiation & agreements
Mello-Roos district planning
Comprehensive financial planning
Facilitv Planninl!
Capacity analyses/ facility usage
New facility needs analysis
Remodeling & rehabilitation projects
Facility master plans
Disposal of surplus sites
Town Hall Services
Geol!raphic Information Systems
Mapping current district and school attendance areas
Considering future attendance boundary locations
Facility needs analysis
Facility needs analysis
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City of Cupertino
Enrollment and Fiscal Impact Analysis
Town Hall principals have conducted or participated in studies for numerous school districts,
including the following (partial list):
Alameda City School District
Alhambra City Elementary School District
Alhambra City High School District
Alpine Union Elementary School District
Alum Rock Elementary School District
Anaheim City Elementary School District
Anaheim Union High School District
Antioch Unified School District
Bellevue Union Elementary School District
Belmont Elementary School District
Bennett Valley Union Elementary School District
Buellton Union Elementary School District
Burbank Unified School District
Cabrillo Unified School District
Campbell Union Elementary School District
Carlsbad Unified School District
Castaic Union School District
Centralia Elementary School District
Chaffey Joint Union High School District
Chico Unified School District
Coming Union Elementary School District
Coming Union High School District
Corona-Norco Unified School District
Cupertino Union Elementary School District
Davis Joint Unified School District
Del Mar Unified School District
Dixon Unified School District
East Side Union High School District
Etiwanda School District
Fremont Unified School District
Fremont Union High School District
Gateway Unified School District
Gorman Elementary School District
Grossmont Union High School District
Hart-Ransom Union Elementary School District
Hayward Unified School District
Healdsburg Union School District
Hillsborough City School District
Jamul-Dulzura Union Elementary School District
Jefferson Elementary School District
Jefferson Union High School District
Laguna Salada Elementary School District
Lagunitas Elementary School District
La Honda-Pescadero Unified School District
Lake Elsinore School District
Lakeside Union Elementary School District
Larkspur Elementary School District
La Mesa-Spring Valley School District
Las Lomitas Elementary School District
Lemon Grove Elementary School District
Moreno Valley Unified School District
Live Oak Elementary School District
Los Altos Elementary School District
Los Angeles Unified School District
Lucia Mar Unified School District
Magnolia Elementary School District
Mill Valley Elementary School District
Milpitas Unified School District
Modesto City Elementary School District
Morgan Hill Unified School District
Mt. Diablo Unified School District
Mt. Pleasant Elementary School District
Mt. View-Los Altos Union High School District
Newhall Elementary School District
Norwalk - LaMirada Union School District
Novato Unified School District
Oak Grove Elementary School District
Oakley Elementary School District
Ontario-Montclair School District
Petaluma Joint Union High School District
Pittsburg Unified School District
Poway Unified School District
Ramona Unified School District
Redding Elementary School District
Redwood City Elementary School District
Reed Union Elementary School District
Riclunond Elementary School District
Rincon Valley Union Elementary School District
Riverside Unified School District
Ross Valley School District
San Diego Unified School District
San Francisco Unified School District
San Juan Unified School District
San Jose Unified School District
San Leandro Unified School District
San Lorenzo Unified School District
San Ramon Valley Unified School District
Santa Cruz City School Districts
Santa Rosa City School Districts
Santee Elementary School District
Saugus Union Elementary School District
Savanna Elementary School District
Scotts Valley Unified School District
Sonoma Valley Unified School District
Soquel Union Elementary School District
South San Francisco Unified School District
Sunnyvale Elementary School District
Vallejo City Unified School District
Windsor Unified School District
Wright Elementary School District
Woodland Joint Unified School District
Yucaipa-Calimesa Joint Unified School District
Town Hall Services
December 2006
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City of Cupertino
Enrollment and Fiscal Impact Analysis
Stephen M. Sanger
Work Experience
Mr. Sanger has significant experience in the public sector working for municipal agencies,
consulting firms, and elected officials over the past 13 years. He has participated in numerous
projects and studies for the Federal Government, cities, counties, and school districts in the State
of California. The focus of his responsibilities have included school district financing, school
facilities financing and planning, education demographics, and California cities redevelopment,
economic development and land use planning.
Since the beginning of his tenure with Town Hall Services, Mr. Sanger has both assisted in and
had major responsibility for impact fee justification studies, student enrollment projections,
development impact analyses, and school district financial analyses for over 20 school districts
and cities in California. Mr. Sanger's school district clients have ranged from as small as 3,000
students to as large as 22,000. In many instances, Mr. Sanger's clients have benefited from his
projection of student enrollment as his clients have faced important facilities expansion and/or
reduction issues, both having major impacts on local communities.
Mr. Sanger was instrumental in the preparation and election of Proposition 47, the November,
2002 California School Facilities Improvement Bond Act. As part of the preparation of that
particular statewide ballot initiative and campaign, Mr. Sanger was responsible for the
assessment of California school facilities needs and the fiscal implications of such a large
municipal bond offering. At the time of the passage of the $13.1 billion bond measure,
Proposition 47 was the largest municipal bond measure approval in California state history. The
passage of that bond, along with a reduction of the voter threshold for local school facilities bond
measures, has allow hundreds of California schools to make necessary and overdue
improvements to existing school facilities.
Mr. Sanger has also spent over eight years conducting public policy and economic impact studies
in his performance as a local government public administrator. Mr. Sanger spent a year as an
Economic Development Manager with the City of Mountain View managing an assessment
district, redevelopment area, and the development of financing of capital facilities. Mr. Sanger
also spent three years as an Economic Development Specialist with the City of Redwood City
where his primary objective was a commercial retail/cinema development project in the
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City of Cupertino
Enrollment and Fiscal Impact Analysis
redevelopment area. In addition, he has assisted in the authoring of major economic
development strategies for the Cities of Redwood City and Mountain View, as well as several
analyses of local property and sales tax studies including redevelopment area tax increment
financing.
Mr. Sanger has also spent over two years assisting elected officials with legislative and policy
development. Mr. Sanger was a Legislative Aide to Santa Clara County Assessor Larry Stone
and an intern to United States Senator Dianne Feinstein in Washington, D.C.
EDUCATION
M.P.A. Master's Public Administration, San Jose State University, 1997
B.S. Social Sciences, San Jose State University, 1993
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December 2006
City of Cupertino
Enrollment and Fiscal Impact Analysis
J. Richard Recht
Work Experience
Mr. Recht has been an urban economist and planner for more than thirty years. This experience
includes consulting, corporate real estate development, and academic study and teaching. For the
last decade, his work has been primarily planning studies for school districts.
Mr. Recht has participated in numerous planning studies for city, county, regional, state, and
federal agencies as well as for school districts. His responsibilities have included forecasting
business activity, employment, development, population and school enrollment, and the
assessment of the fiscal effects of alternatives.
Mr. Recht's primary interest is in the area of facility planning and financing. He assisted cities in
the adoption of development fees before they were familiar except as utility connection fees, and
he was involved in the development of legislation enabling school districts to levy fees. Mr.
Rechthas worked on fee programs covering a wide range of public facilities. His work includes
identification of public facility needs; determination of facility costs; equitable allocations of
these costs among classes of development, as well as that not appropriately attributed to growth;
and justification of fee and mitigation programs in appropriate documentation. Mr. Recht has
also been a frequent speaker on the topic of development fees, including numerous presentations
at AP A national conferences.
Specific to school impact fees, Mr. Recht has been the project supervisor of more than 100
school impact fee documentation studies for California school districts. These districts have
ranged from small rural District, such as Coming Union School District in the northern
Sacramento Valley, to the largest urban District in the state, Los Angeles Unified School District,
San Diego Unified School District, and San Francisco Unified School District.
Mr. Recht also has spoken at many CASH and SLDA conferences regarding school impact fees
in general, the complexities of commercial school fee documentation specifically, and the
impacts of redevelopment on school District.
Mr. Recht has served as an advisor and expert witness for a number of districts whose
documentation has been challenged. In most of these cases involving litigation, he has been
retained to revise the District' fee documentation. Mr. Recht has had extensive experience
testifying in court and before government regulatory commissions.
Formerly, Mr. Recht was a member of the faculty of the School of Business Administration at the
University of California, Berkeley where he taught real estate and urban economics.
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Enrollment and Fiscal Impact Analysis
EDUCATION
Requirements complete except for filing of dissertation for Ph.D. in Urban Economics, at the
Department of City and Regional Planning, University of California, Berkeley.
M.C.P. in City and Regional Planning, University of California, Berkeley, 1966.
M. Div. in Social Ethics, Pacific School of Religion, 1961.
B.A. in Mathematics and Physics, Oberlin College, 1957.
PUBLICATIONS
"Rose Bushes Have Thoms," Development Impact Fees: Policy Rationale, Practice, Theory and
Issues, Planners Press, Chicago, Illinois, 1988.
"Inducing the Residential Land Market to Grow Timber in an Antiquated Rural Subdivision," co-
author Arthur C. Nelson, APA Journal, Autumn 1988.
"California Fiscal Dilemma Affects New Development", APA California Planner, January 1980.
"The Assessment of Power Plant Impacts on the Local Economy," co-author P.A. Greene, 1976.
Economic Practices Manual, Project Director and Principal Author, California State Legislature,
1975.
"So You Want to Limit Growth," Regional Environmental Management, John Wiley & Sons,
Inc. New York, New York, 1975.
Socioeconomic Impacts of Environmental Policies, Project Director and Principal Author, Office
of Planning and Research, State of California, 1973.
Jobs, People, Land: The Bay Area Simulation Study, co-authored with staff of the Center for
Real Estate and Urban Economics, University of California, Berkeley, 1968.
Open Space and the Urban Growth Process: An Economic Evaluation Using A Growth
Allocation Model, co-author Robert J. Harmon, Research Report 31, the Center for Real
Estate and Urban Economics, Institute of Urban and Regional Development, University of
California, Berkeley, 1969.
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December 2006