Loading...
HomeMy WebLinkAbout1995-10-10 - AGENDA REPORTS - HR&A ECONOMIC IMPACT STUDY (2)AGENDA REPORT City Manager royal Item to be presented b CONSENT CALENDAR DATE: October 10, 1995 SUBJECT: HR&A ECONOMIC IMPACT STUDY/ROSE INSTITUTE STUDY REBUTTAL DEPARTMENT: City Manager's Office/Special Projects BACKGROUND The firm of Hamilton, Rabinovitz & Alschuler (HR&A) of Universal City, California was contracted by the City to conduct the review of the Socioeconomic Sections of the Draft Environmental Impact Report/Draft Environmental Impact Statement for the Proposed Elsmere Canyon Solid Waste Management Facility. In a separate document, an independent report was commissioned from the Rose Institute of Claremont College by BKK in an attempt to demonstrate the potential economic benefits that would be generated by the Elsmere Canyon Solid Waste Management Facility within the County of Los Angeles. The Rose Institute Study claims that substantial economic benefit will result from the proposed Elsmere Canyon Solid Waste Management Facility. Staffs preliminary review of the study indicates that there are substantial errors, omissions and flaws contained within the Rose Institute Study. Staff is recommending that HR&A's original contract be amended to allow them to conduct an analysis of the Rose Institute Study and to prepare a rebuttal to the Economic Analysis contained within the study. HR&A's analysis and rebuttal report is projected to cost approximately $7,750. Following the completion of the Rose Institute Study analysis, staff will evaluate the need for further economic study to quantify the impacts of the proposed Elsmere Canyon Solid Waste Management Facility on local businesses and tax revenues and return to Council for authorization of further contract amendments should such analysis be desired. FISCAL IMPACT Funds for the amendment to the HR&A contract in the amount of $7,750 are available in Account No. 20-2259 and would be transferred to Account No. 01-4103-230. amendhra.agn APPROVE Agenda Items -a RECOMMENDATION It is recommended that the City Council approve a contract amendment to the HR&A Economic Impact Analysis contract in the amount of $7,750 to prepare a rebuttal to the Rose Institute Study and authorize the transfer of $7,750 from Account No. 20-2259 to Account No. 01-4103- 230 and authorize the City Manager to execute the contract amendment. ATTACHMENTS Contract Amendment amendhra.agn PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT IS MADE BETWEEN THE CITY OF SANTA CLARITA, A MUNICIPAL CORPORATION, (HEREAFTER THE "CITY") AND HAMILTON, RABINOVITZ & ALSCHULER, INC. (HR&A), A CALIFORNIA CORPORATION (HEREAFTER THE "CONSULTANT"): THE PARTIES HERETO AGREE AS FOLLOWS: Recitals. This Agreement is based upon the following facts: (a) City desires professional assistance in preparation of a critique of the Rose Institute Estimates of Economic Impact from the Elsmere Facility (the "Project") more particularly described in Exhibit A, attached and incorporated herein by reference; (b) Consultant has been selected to perform the Project, being fully qualified and having agreed to do so subject to the terms and conditions of this Agreement; and (c) City's legislative body has determined that the public interest, convenience and necessity require the execution of this Agreement. 2. Services. Consultant agrees to perform all services described in Exhibit A, and as further clarified in Exhibits B and C. Consultant shall meet and consult with representatives of City at all stages during the conduct of the work required pursuant to this Agreement to assure that the City's designated representative is fully and completely informed as to the nature and extent of the work being performed by Consultant and as to the status and quality of such work. 3. Compensation. City shall compensate Consultant for its services based upon the costs set forth in Exhibit A and incorporated here by reference. The total cost of this contract shall not exceed Seven thousand, seven hundred, fifty dollars and zero cents ($7,750.00), which represents the total compensation to be paid to Consultant by City (the "Project Fee") for all work to be done by Consultant pursuant hereto and includes all allowable costs. Such costs shall be reimbursed only if approved by City as to nature, type and amount. The Project Fee shall include the costs of duplication for all reports and documents described in Exhibit A. Upon authorization to proceed with this project, the City shall make an initial payment of fifteen percent (15%) of the Project Fee ($1,162.50) to the Consultant. Upon receipt of Consultant invoices submitted as work progresses, the City shall make payments based on the satisfactory completion of milestone tasks in the following amounts: Thirty-five percent (35%) for Tasks 1.0 and 2.0 of the Scope of Work, thirty percent (30%) for Task 3.0 of the Scope of Work, and twenty percent (20%) for Task 4.0 of the Scope of Work. This payment schedule is described in Exhibit Din accordance with the work phases identified in Exhibit A, Scope of Work. The project phase invoices shall include a breakdown of phase and tasks being billed for, and shall identify work performed by authorized project staff. Within fifteen (15) days after receipt of a project phase invoice, City shall either approve such invoice or return it to the Consultant specifying any objections. Invoices shall be paid within sixty (60) days after approval, as set forth in the attached Demand Warrant Register Schedule. (Attachment A.) Upon submission of Consultant's final work products under this agreement, in a scope, nature, and form satisfactory to the City, all final monies shall be paid to the Consultant. 4. Time for Performance. Consultant shall in good faith utilize its best efforts to perform all of the work required under this Agreement in accordance with the Time Schedule Summary attached as Exhibit B and incorporated herein by reference. During the preparation of the draft(s) of the EIR, the Consultant shall provide a complete response to all staff comments, concerns, and corrections within fifteen (15) working days of all comments being received. 5. Consultant Staff. The Consultant Project Staff identified in Exhibit C shall be responsible for completing the activities identified in Exhibit A. Changes of Consultant Project Staff members or other modifications to Consultant's staffing, including subconsultants for this project, shall be made only with the prior written approval of the City. 6. Status of Consultant. Consultant shall be deemed for all purposes to be an independent contractor in the performance of work pursuant to this Agreement. This Agreement shall not be deemed, for any purpose, to have created between the parties hereto a partnership, joint venture or other relationship other than that of independent contractor insofar as Consultant is concerned. Consultant shall be responsible for obtaining the services of all persons required to perform the work required by this Agreement, including, but not limited to, such subcontractors as Consultant desires to employ as such. Consultant shall advise all such subcontractors that the City bears no obligation for the payment of fees for their services or costs incurred and that such are the exclusive obligation of Consultant. 7. Changes. The City and Consultant may make changes in the work only if mutually agreed upon. If such changes cause an increase or decrease in the Consultant's cost of, or time required for, performance of any services under this agreement, whether or not changed by an order, an equitable adjustment in compensation to Consultant shall be made and this agreement shall be accordingly modified in writing. No such change shall be effectuated except in writing, executed by each party hereto, expressing such changes and reducing or increasing Consultant's compensation based upon such change or changes. 8. Litigation. If City becomes involved in litigation regarding the Project and desires Consultant's assistance or testimony, City shall compensate Consultant for its services according to the normal hourly rates. 9. Ownership of Documents. All documents, studies, surveys, drawings, maps, models, photographs and . reports as prepared by Consultant, or any of its subcontractors, pursuant to this Agreement, shall be deemed for all purposes to be the property of the City. All such materials, including originals, shall be transmitted to the City upon completion of the work by Consultant hereunder, or upon sooner termination of this Agreement. No person, including Consultant, shall be permitted to utilize any of the material referred to in this paragraph without City's prior written consent. 10. Indemnity. Consultant does hereby agree to defend, indemnify, and hold harmless the City of Santa Clarita and the respective appointed and elected officers, boards and commissions, agents and employees ("Indemnified Parties") from and against any and all claims and losses, costs or expenses which arise out of Consultant's negligent performance of the work under this Agreement provided that such liability, loss, cost or expense is caused by the act or omission of Consultant, or any of its officers, employees, servants, agents, or subcontractors in performance of this Agreement. Consultant's obligation to the Indemnified Parties shall include reasonable attorney fees, costs and expenses incurred by the Indemnified Parties in such defense, if Consultant is found to have been negligent in performance of work under this Agreement. The provision of liability insurance coverage as required by Paragraph l 1 of this Agreement shall not affect Consultant's obligations under the indemnity provisions of this Paragraph 10. 11. Insurance. During the entire term of this agreement, Consultant agrees to procure and maintain General/Public and Professional public liability insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury; including death there&om, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of the City or Consultant, its sub -consultants or any person acting for the City, or Consultant or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of the City, or Consultant, or its sub -consultants, or any person acting for the City or Consultant, or under its control or direction. Such public liability and property damage insurance shall also provide for and protect the City against incurring any legal cost in defending claims for alleged loss. Such General, Public and Professional liability and property damage insurance shall be maintained in full force and effect throughout the tern of the Agreement and any extension thereof in the following minimum limits: (a) A combined single limit policy with coverage limits in the amount of $1,000,000 per occurrence will be considered equivalent to the required minimum limits. All of such insurance shall be primary insurance and shall name the City of Santa Clarita as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then Consultant agrees that the minimum limits herein above designated shall be changed accordingly upon request by the City Manager. Consultant agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages to persons or property resulting from Consultant's activities, the activities of its sub -consultants or the activities of any person or persons for which Consultant is otherwise responsible. (b) Worker's Compensation Insurance The Consultant shall procure and maintain, at its sole expense, Worker's Compensation Insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Consultant and the City against any loss, claim, or damage arising from any injuries or occupational diseases happening to any worker employed by the Consultant in the course of carrying out the within agreement. (c) Automotive Insurance The Consultant shall procure and maintain, at its sole expense, throughout the term of this agreement and any extension thereof public liability and property damage insurance coverage for automotive equipment with coverage limits of not less $500,000 combined single limit. All such insurance shall be primary insurance and shall name the City of Santa Clarita as an additional insured. (d) Evidence of Insurance A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City's Risk Management Officer shall be submitted to the City prior to execution of this agreement on behalf of the City. (e) Notice to City, Insurance Coverage Change The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or canceled by the carrier, for non-payment of premiums otherwise, without thirty (30) days prior written notice of amendment or cancellation to the City. In the event the said insurance is canceled, the Consultant shall, prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. (f) The Consultant - An Independent Contractor: It is understood and agreed that the Consultant is, and at all times shall be, an independent contractor and nothing contained herein shall be construed as making the Consultant, or any individual whose compensation for services is paid by the Consultant, an agent or employee of the City, or authorizing the Consultant to create or assume any obligation r liability for or on behalf of the City. (g) Hold Harmless Consultant agrees to indemnify, defend and save City and its agents and employees harmless from any and all liability, claims, damages or injuries to any person, including injury to (consultant's) employees and all claims which arise from or are connected with the performance of or failure to perform the work or other obligations of this agreement, or are caused or claim to be caused by the acts or omissions of Consultant, its agents or employees, and all expenses of investigating and defending against same; provided, however, that this indemnification and hold harmless shall not include any claim arising from the sole negligence or willful misconduct of the City, its agents or employees. 12. Termination. This Agreement may be terminated at any time prior to the completion of the Project, and without cause, in accordance with the following: (a) By City upon fifteen (15) working days written notice, mailed first class, postage prepaid, or by personal service to Consultant; and, (b) By Consultant upon fifteen (15) working days written notice, mailed first class, postage prepaid, or by personal service to City. Notices given pursuant to this paragraph shall be deemed to be effective on the tenth (10th) day following the giving of notice of such termination whether mailed or delivered. In the event of termination pursuant to this paragraph, Consultant shall be compensated by City pro rata for work performed as of the day of giving of such notice. 13. Notices. Notices to be given pursuant to this Agreement shall be in writing and shall be personally served upon the party to be notified or shall be deposited in the United States Postal Service, postage prc-paid, certified and registered, and addressed to the parties as follows: (a) CITY: Jeff Kohn, Deputy City Manager Special Projects Office 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 cc: Carl Newton, City Attorney Burke, Williams, and Sorensen 624 W. Grand, 1 Ith Floor Los Angeles, CA 90017 (b) CONSULTANT: Hamilton, Rabinovitz & Alschuler, hic. 10 Universal City Plaza, Suite 1960 Universal City, CA 91608-1084 Attention: Paul J. Silvem Except as otherwise provided in Section 12 above, notices given pursuant to this Agreement shall be deemed given on the date of personal service or the fifth (5th) consecutive calendar day following the deposit of the same in the United States Postal Service, or its successor. The individuals named in this paragraph shall be deemed, for all purposes, to be the representatives of the parties to this Agreement and empowered to act, pursuant to the terms of this Agreement, for and on behalf of that party. Either party hereto may, in writing, change the designation of the responsible representative for that party. 14. Conflict of Interest. Consultant covenants that neither the Consultant, nor any officer thereof, has any interest, nor shall acquire any interest, directly or indirectly, which will conflict in any manner with the performance of the Consultant services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by Consultant. Consultant further covenants that Consultant has not contracted with nor is the Consultant performing any services directly or indirectly, with the Los Angeles District of the U.S. Forest Service, BKK Corporation or any of its subsidiaries, Dames and Moore Consultants, the County of Los Angeles Department of Regional Planning, and further covenants and agrees that Consultant and/or its subcontractors shall provide no service or enter into any contract with any of the parties prior to the completion of this Agreement. 15. Construction. This Agreement shall be construed under the laws of the State of California and shall not be construed against, or in favor of, either party by reason of the fact that it was prepared by one party or the other. 16. Entire Agreement. This Agreement, with attachment(s) and exhibits, constitutes the entire agreement between the parties and each party acknowledges that it is not relying on any prior, or contemporaneous, other agreements or representations, oral or written, in entering into this Agreement. 17. Cations, Numerals, and Headings, Gender and Number. The captions, numerals and headings used herein are for the propose of identification and location of the terms and for ease of reading and shall not be used to alter, amend or otherwise change the plain meaning of the language in the text or the intention of the parties. Wherever gender or number is used, it shall include that gender or number which is appropriate to the context of the language wherein such gender or number is used. 18. Attorneys Fees. Should any party hereto reasonably retain counsel for the purpose of enforcing or preventing the breach of any provision hereof, including but not limited to the institution of any action or proceeding to enforce any provision hereof, for damages by reason of any alleged breach of any provision hereof, for a declaration of such party's rights or obligations hereunder or for any other remedy, then if said matter is adjudicated (which term includes arbitration) the prevailing party shall be entitled, in addition to such other relief as may be granted, to be reimbursed by the losing party for all costs and expenses incurred thereby, including but not limited to reasonable attorney's fees and costs for the services rendered to such prevailing party. 19. Amendment. This Agreement may be amended only by a writing executed by all of the parties. 20. Counterparts. This Agreement has been executed in two counterparts either of which may be used as an original. One such counterpart shall be delivered to the Obligee when fully executed and the other to the Obligor when fully executed. 21. Waivers. A waiver of any default of an obligation required by this Agreement shall not constitute a waiver of any subsequent default of same, or any other obligation under this Agreement. 22. Time of the Essence. Time is of the essence to this Agreement. 23. Effective Date. The effective date of this Agreement shall be September 5, 1995. 24. Severability. If any portion of this agreement is deemed to be void or is held to be invalid, other sections, or portions thereof of this Agreement shall remain valid and in force, and shall be interpreted as though the void or invalid portion(s) had not been incorporated herein. 25. Execution of Agreement. This Agreement must be first executed by the Consultant, or its representative, and approved to form by the City Attorney before it may be executed on behalf of the City of Santa Clarita. This Agreement, consisting of seven (7) pages and four (4) exhibits attached hereto, has been executed as of the day of September, 1995 WHEREFORE, the parties hereto have caused this Agreement to be executed on the dates set opposite their names below: Hamilton, Rabinovitz & Alschuler, Inc.: CITY OF SANTA CLARITA: Date: Date: Paul J. Silvem George Caravalho, City Manager Attest: Date: By:. Donna M. Grindey, City Clerk Approved as to form: Date: By: City Attorney EXHIBIT A SCOPE OF WORK Task 1. Comprehensive Review of Rose Institute's Estimates Conduct a thorough review of the Rose Institute's study to identify key assumptions, data sources and methodological tools used to prepare the impact estimates. Examples include the assumption that there are no alternative uses for Elsmere Canyon, the use of SCAG's Employment Multiplier II, and the failure to discount the estimated impacts over the project's 30 -year life back to 1995 dollars. The comprehensive review will expand this list of examples to include all factors that may have a material effect on the economic impacts of the project. Task 2. Validate Key Assumptions and Data Sources of Rose Institute's Estimates Based on the results of Task 1, conduct the research required to validate the key assumptions and data sources used by the Rose Institute to prepare the economic impact estimates. In cases where the Rose Institute's approach/data sources are shown to be inadequate, additional research will be conducted to identify the correct assumption or more suitable data source. For example, Rose assumes that there are no alternative uses for the Elsmere Canyon, and consequently, that if the project is not built, the economic benefits of the project will be lost to Los Angeles County. This assumption is clearly wrong since the DERUDEIS identifies two other solid waste disposal sites in Los Angeles County that were considered as alternatives. Thus, the correct economic analysis would recognize that not developing Elsmere Canyon does not preclude development of the Towsley Canyon and Mission -Rustic -Sullivan Canyon sites, both of which are located in Los Angeles County. Task 3. Prepare Economic Impact Estimates Using the results of Task 2 and the IMPLAN input-output model, prepare independent estimates of the economic impact of developing Elsmere Canyon. The project impact estimates will include industrial output (sales), employment, population, and personal income that can be disaggregated to as many as 514 industrial sectors. Estimates of major government revenue and expenditures would also be estimated at aggregate levels comparable to the Rose estimates. Based on our current understanding of Rose's impact estimates, the impact estimates would differ in a number of key ways. First, relevant disposal site alternatives in Los Angeles County would be recognized. Thus, failure to develop the Elsmere site does not necessarily imply that the economic impacts of in -County solid waste disposal are lost to Los Angeles County. Second, the results of the impact estimates would be assessed relative to the Los Angeles County economy to provide a sense of the scale of the project's economic impacts. Third, all dollar impacts (e.g., personal income and industrial output) will be discounted back to 1995 dollars, rather than in future year (nominal) dollars which were improperly reported by Rose. Fourth, the potential for the Elsmere project to impose service costs on local governments in Los Angeles County will be explored. Task 4. Prepare a Memorandum Report The results of Tasks 1, 2 and 3 will be summarized into a memorandum describing the review, analysis and results of the study. The memorandum will be drafted in a way that can be easily understood by a non-technical audience, and will clearly display any differences between Rose's estimates and consultant's estimates. The key impacts will be reported in graphic and tabular formats to allow for wide dissemination of the results. The technical assumptions and calculations should be appended to the memorandum to allow persons will technical interests in input-output modeling to review the key assumptions and data sources used by consultant to prepare the impact estimates. The memo will be prepared in draft for review by the City's project team. Should the City choose to release it, the memo will be revised as needed for public distribution. 7 1:0.4:II:111�:3 TIME SCHEDULE The following time schedule shall be adhered to throughout the duration of the Agreement: Draft report summarizing results of Tasks 1, 2, 3 and 4 to be completed by September 29, 1995. Revisions to be completed to produce final memorandum report within five (5) working days. 10 r�:ne�li ii PROJECT STAFF AND RATES The approved staff and hourly billing rates for this Agreement between the City of Santa Clarita and Hamilton, Rabinovitz & Alschuler, Inc. (Hit&A) are to be as follows: Partners (Hamilton, Rabinovitz, Alschuler, Hass & Laven) $275.00 Partners (Silvern) 200.00 Principles 175.00 Directors 145.00 Managers 125.00 Senior Analysts 100.00 Analysts 75.00 11 �t WARRANT SCHEDULE INVOICES DUE TO MONTH A/P BY 5:00 P.M. CHECK DATE September 8/30/95* 9/7/95 9/7/95 9/14/95 9/14/95 9/21/95 9/28/95 10/5/95 October 10/5/95 10/12/95 10/12/95 10/19/95 10/19/95 10/26/95 10/26/95 11/2/95 November 11/2/95 11/9/95 11/8/95* 11/16/95 11/15/95* 11/23/95 11/22/95* 11/30/95 December 11/30/95 12/7/95 12/7/95 12/14/95 12/14/95 12/21/95 12/20/95* 12/28/95 12/27/95* 1/4/96 * Deadline Change due to Holiday im