HomeMy WebLinkAboutE-09 Staff Report - PSA - Kosmont Companies - TIF Feasibility StudyCONSENT ITEM
E-9
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: FEBRUARY 19, 2019
SUBJECT: REQUEST TO APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH
KOSMONT & ASSOCIATES, INC., FOR A TAX INCREMENT FINANCING
FEASIBILITY STUDY
BACKGROUND:
The Los Angeles County Metropolitan Transportation Authority (Metro) has a vested interest in creating
an environment that promotes, encourages and supports transit riders. As a result, Metro created the
Transit Oriented Development (TOD) Planning Grant Program that funds local governments to develop
and promote equitable, sustainable, transit-supportive planning. On April 27, 2017, the Metro Board
approved funding for Round 5 of the program. Round 5 of the program offered two grant opportunity
categories: (1) Transit Supportive Regulatory Documents and (2) Tax Increment Financing Feasibility
Studies. On July 17, 2017, Staff was authorized to submit a grant application to study the feasibility of
creating a Transit-Oriented Community Tax Increment Financing District’s. The City was a successful
applicant and on March 1, 2018, the Metro Board of Directors approved the award of grant funds. At the
May 7, 2018 City Council meeting, Staff was authorized to accept the grant award of $141,000 and
since then, has executed the agreement. Staff facilitated the procurement process of securing a qualified
consultant to perform the study. The proposed actions approve a professional services agreement with
Kosmont & Associates Inc.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1) Approve a Professional Services Agreement with Kosmont & Associates Inc., for a tax
increment financing feasibility study in an amount not to exceed $141,000; and
2)Authorize the City Manager to execute the agreement, in substantial form, subject to minor
modifications acceptable to the City Attorney, on behalf of the City.
APPROVED
CITY COUNCIL
2/19/2019
Approve Professional Services Agreement with Kosmont & Associates Inc.
February 19, 2019
Page 2
ANALYSIS:
The City was one of three jurisdictions selected to study the feasibility of creating Transit-Oriented
Communities Tax Increment Financing (TIF) district/s. The TIF Study will explore the formation of an
Enhanced Infrastructure Financing District (EIFD), a Community Revitalization and Investment Act
(CRIA) or other TIF programs.
On November 19, 2018 a Request for Proposal for a Tax Increment Financing Feasibility Study was
made available on the City’s website, American Planning Association website and distributed to the
members of the California Association for Local Economic Development (CALED). A Request for
Proposal was also published in the San Gabriel Valley Tribune on November 26, 2018. A total of eight
(8) firms provided proposals by the indicated deadline of December 19, 2018. An initial review for
minimum qualifications was conducted and all eight (8) proposals were provided to the evaluation
committee consisting of members of the City Manager’s Office, Economic and Community
Development Department, Finance Department and Metro. The Evaluation Committee evaluated the
proposals based on the following criteria: (1) Experience and Qualifications; (2) Project Approach; (3)
Team Member Experience; and (4) Fee Proposal.
After careful review, the Evaluation Committee invited the top three candidates for interviews. Each
candidate firm was given an opportunity to make a presentation to the Evaluation Committee on their
project approach. Although all three firms provided excellent presentations and demonstrated their
ability to perform a quality feasibility study, the evaluation committee unanimously selected Kosmont &
Associates Inc. (Kosmont) as the most qualified firm to render services. Among the reasons the
Evaluation Committee felt Kosmont was the most-qualified were: Kosmont is retained by the Southern
California Association of Governments (SCAG) for technical advisory services related to EIFD/EIFD
screening, technical assistance and training for SCAG’s member cities, Kosmont authored an EIFD
manual regarding the formation process, they have a clear understanding of Metro’s expectations and
they’ve assisted the cities of El Monte, La Verne, and West Covina in the development of an EIFD.
Moreover, the City of La Verne was the first jurisdiction in Los Angeles County to successfully form an
EIFD. Kosmont is at the forefront of special financing districts. Their prior experience and
understanding of Metro’s requirements and grant process ensures the City will be better positioned to
successfully complete the TIF Feasibility Study on time and within budget.
The Project is divided into five different tasks: Task (1) Develop Stakeholder Engagement Plan, Task
(2) Identify Boundaries and Initial Screening Criteria, Task (3) Tax Increment Analysis, Task (4)
Identify Infrastructure Needs and Task (5) Next Steps for Implementation. Kosmont’s proposed cost is
estimated between $116,550 (low) and $136,700 (high). Among the eight proposals, Kosmont’s bid was
one of the lowest.
FISCAL IMPACT:
At the May 7, 2018 City Council meeting, Staff was authorized to accept the grant award of $141,000.
The program is reimbursement-based. Funding will be disbursed on a quarterly basis subject to
satisfactory compliance with the expenditure plan and schedule. The program will not require local
matching funds other than Staff time.
Approve Professional Services Agreement with Kosmont & Associates Inc.
February 19, 2019
Page 3
Prepared by: Reviewed and Approved:
Carina Campos Aaron Ledet
Economic Development Specialist Senior Management Analyst
Reviewed and Approved: Reviewed and Approved:
Matt Marquez Sergio Gonzalez
Economic and Community Development City Manager
Director
Attachments:
1. Professional Services Agreement – Kosmont & Associates Inc.
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this ____ day of ________________, 2019 by
and between the City of Azusa, a municipal corporation organized under the laws of the State of
California with its principal place of business at 213 East Foothill Boulevard, Azusa, California
91702 (“City”) and KOSMONT & ASSOCIATES, INC, (DBA, Kosmont Companies) a CORPORATION
with its principal place of business at 1230 ROSECRANS AVE., SUITE 630 MANHATTAN BEACH, CA
90266 (“Consultant”). City and Consultant are sometimes individually referred to herein as
“Party” and collectively as “Parties.”
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing TAX INCREMENT
FINANCING (TIF) FEASIBILITY STUDIES to public clients, is licensed in the State of California, and
is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services to perform a TIF FEASIBILITY
STUDY IN THE AZUSA TRANSIT ORIENTED DEVELOPMENT (TOD) SPECIFIC PLAN STUDY AREA
project (“Project”) as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional TAX INCREMENT FINANCING (TIF)
FEASIBILITY STUDY consulting services necessary for the Project (“Services”). The Services are
more particularly described in Exhibit “A” attached hereto and incorporated herein by reference.
All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits
attached hereto and incorporated herein by reference, and all applicable local, state and federal
laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be from FEBRUARY 19, 2019 to
JUNE 30, 2021, unless earlier terminated as provided herein. Consultant shall complete the
Services within the term of this Agreement, and shall meet any other established schedules and
deadlines including but not limited to the Los Angeles Metropolitan Transportation Authority
(Metro) deadlines. The Parties may, by mutual written consent, extend the term of this
Agreement if necessary to complete the Services.
Attachment 1
Professial Services Agreement – Kosmont Companies
Page 2
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall also not be employees of City and shall at all times be under
Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Consultant shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers’
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit “A” attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant’s conformance
with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows:
JOSEPH DIEGUEZ, SENIOR VICE PRESIDENT, PROJET MANAGER
FELICIA WILLIAMS, SENIOR VIC E PRESIDENT, ANALYSIS & GOVERNANCE SUPPORT
DAN MASSIELLO, SENIOR VICE PRESIENT, BONDING/MUNI FINANCE EXPERT
ANDREA CONANT, CONSESUS, OUTREACH PROJECT MANAGER
RYAN WALKER, CONSENSUS, OUTREACH TASK LEADER
3.2.5 City’s Representative. The City hereby designates the DIRECTOR OF
ECONOMIC AND COMMUNITY DEVELOPMENT, or his or her designee, to act as its representative
for the performance of this Agreement (“City’s Representative”). City’s Representative shall
Professial Services Agreement – Kosmont Companies
Page 3
have the power to act on behalf of the City for all purposes under this Contract. Consultant shall
not accept direction or orders from any person other than the City’s Representative or his or her
designee.
3.2.6 Consultant’s Representative. Consultant hereby designates MR. JOSEPH
DIEGUEZ, SENIOR VICE PRESEIDENT, or his/her designee, to act as its representative for the
performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative
shall have full authority to represent and act on behalf of the Consultant for all purposes under
this Agreement. The Consultant’s Representative shall supervise and direct the Services, using
his/her best skill and attention, and shall be responsible for all means, methods, techniques,
sequences and procedures and for the satisfactory coordination of all portions of the Services
under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City’s staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including a City Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Consultant’s failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub-consultants who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Period of Performance. Consultant shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”).
Consultant shall also perform the Services in strict accordance with any completion schedule or
Project milestones described in Exhibit “A” attached hereto, or which may be separately agreed
upon in writing by the City and Consultant (“Performance Milestones”).
3.2.10 Laws and Regulations; Employee/Labor Certifications. Consultant shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Consultant shal l be liable
for all violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and without
Professial Services Agreement – Kosmont Companies
Page 4
giving written notice to the City, Consultant shall be s olely responsible for all costs arising
therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of this
Agreement, from any claim or liability arising out of any failure or alleged failure to comply
with such laws, rules or regulations.
3.2.10.1 Employment Eligibility; Consultant. By executing this
Agreement, Consultant verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Consultant. Consultant also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Consultant shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Consultant shall maintain records
of each such verification, and shall make them available to the City or its representatives for
inspection and copy at any time during normal business hours. The City shall not be responsible
for any costs or expenses related to Consultant’s compliance with the requirements provided for
in Section 3.2.10 or any of its sub-sections.
3.2.10.2 Employment Eligibility; Subcontractors, Consultants, Sub-
subcontractors and Subconsultants. To the same extent and under the same conditions as
Consultant, Consultant shall require all of its subcontractors, consultants, sub-subcontractors and
subconsultants performing any work relating to the Project or this Agreement to make the same
verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Consultant verifies that they are a duly authorized officer
of Consultant, and understands that any of the following shall be grounds for the City to
terminate the Agreement for cause: (1) failure of Consultant or its subcontractors, consultants,
sub-subcontractors or subconsultants to meet any of the requirements provided for in Sections
3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with
such requirements (including in those verifications provided to the Consultant under Section
3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in
compliance with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Consultant
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
Professial Services Agreement – Kosmont Companies
Page 5
3.2.10.5 Equal Opportunity Employment. Consultant represents
that it is an equal opportunity employer and it shall not discriminate against any subconsultant,
employee or applicant for employment because of race, rel igion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities
related to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions of
City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs
or guidelines currently in effect or hereinafter enacted.
3.2.10.6 Air Quality. To the extent applicable, Consultant must
fully comply with all applicable laws, rules and regulations in furnishing or using equipment
and/or providing services, including, but not limited to, emissions limits and permitting
requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or
California Air Resources Board (CARB). Although the SCAQMD and CARB limits and
requirements are more broad, Consultant shall specifically be aware of their application to
"portable equipment", which definition is considered by SCAQMD and CARB to include any
item of equipment with a fuel-powered engine. Consultant shall indemnify City against any
fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory
agency for violations of applicable laws, rules and/or regulations by Consultant, its
subconsultants, or others for whom Consultant is responsible under its indemnity obligations
provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable,
Consultant’s Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency, the State Water Resources
Control Board and the Santa Ana Regional Water Quality Control Board; the City’s ordinances
regulating discharges of storm water; and any and all regulations, policies, or permits issued
pursuant to any such authority regulating the discharge of pollutants, as that term is used in the
Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
(B) Liability for Non-compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Consultant or City to penalties, fines, or additional regulatory requirements. Consultant shall
defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and
against any and all fines, penalties, claims or other regulatory requirements imposed as a result
of Consultant’s non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Training. In addition to any other standard of care
requirements set forth in this Agreement, Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
Professial Services Agreement – Kosmont Companies
Page 6
without impacting water quality in violation of the laws, regulations and policies described in
this Section. Consultant further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Consultant with a list of training programs that
meet the requirements of this paragraph.
3.2.11 Insurance.
3.2.11.1 Time for Compliance. Consultant shall not commence
Services under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.11.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as
required by the State of California and Employer’s Liability Insurance. The policy shall not
contain any exclusion contrary to the Agreement, including but not limited to endorsements or
provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24
26 or 21 29); or (2) cross liability for claims or suits by one insured against another.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury and
property damage. If Commercial General Liability Insurance or other form with general
aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate
limit shall apply separately to this Agreement/location or the general aggregate limit shall be
twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) Workers’ Compensation and Employer’s Liability:
Workers’ Compensation limits as required by the Labor Code of the State of California.
Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease. Defense
costs shall be paid in addition to the limits.
(C) Notices; Cancellation or Reduction of Coverage. At least
fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance
coverage has been renewed or extended shall be filed with the City. If such coverage is
cancelled or materially reduced, Consultant shall, within ten (10) days after receipt of written
Professial Services Agreement – Kosmont Companies
Page 7
notice of such cancellation or reduction of coverage, file with the City evidence of insurance
showing that the required insurance has been reinstated or has been provided through another
insurance company or companies. In the event any policy of insurance required under this
Agreement does not comply with these specifications or is canceled and not replaced, the City
has the right but not the duty to obtain the insurance it deems necessary and any premium paid
by the City will be promptly reimbursed by Consultant or the City may withhold amounts
sufficient to pay premium from Consultant payments. In the alternative, the City may suspend or
terminate this Agreement.
3.2.11.3 Professional Liability. Consultant shall procure and
maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to their
profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall
be endorsed to include contractual liability. Defense costs shall be paid in addition to limits.
3.2.11.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall include
or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or
endorsements providing the exact same coverage, the City of Azusa, its directors, officials,
officers, employees, agents and volunteers shall be covered as additional insured with respect to
the Services or ongoing and complete operations performed by or on behalf of the Consultant,
including materials, parts or equipment furnished in connection with such work; and (2) using
ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage
shall be primary insurance as respects the City, its directors, officials, officers, employees, agents
and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the
Consultant’s scheduled underlying coverage. Any excess insurance shall contain a provision that
such coverage shall also apply on a primary and noncontributory basis for the benefit of the City,
before the City’s own primary insurance or self-insurance shall be called upon to protect it as a
named insured. Any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way. Notwithstanding the minimum limits set
forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified
minimum limits of coverage shall be available to the parties required to be named as additional
insureds pursuant to this Section 3.2.11.4(A).
(B) Automobile Liability. The automobile liability policy shall
include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers,
employees, agents and volunteers shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or
borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance
coverage shall be primary insurance as respects the City, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage
excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance
maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be
excess of the Consultant’s insurance and shall not be called upon to contribute with it in any
Professial Services Agreement – Kosmont Companies
Page 8
way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available
insurance proceeds in excess of the specified minimum limits of coverage shall be available to
the parties required to be named as additional insureds pursuant to this Section 3.2.11.4(B).
(C) Workers’ Compensation and Employers’ Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written
notice by certified mail, return receipt requested, has been given to the City; and (B) any failure
to comply with reporting or other provisions of the policies, including breaches of warranties,
shall not affect coverage provided to the City, its directors, officials, officers, employees, agents
and volunteers. Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the City, its officials,
officers, employees, agents and volunteers, or any other additional insureds.
3.2.11.5 Separation of Insureds; No Special Limitations; Waiver of
Subrogation. All insurance required by this Section shall contain standard separation of insureds
provisions. In addition, such insurance shall not contain any special limitations on the scope of
protection afforded to the City, its directors, officials, officers, employees, agents and volunteers.
All policies shall waive any right of subrogation of the insurer against the City, its officials,
officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically
allow Consultant or others providing insurance evidence in compliance with these specifications
to waive their right of recovery prior to a loss. Consultant hereby waives its own right of
recovery against City, its officials, officers, employees, agents, and volunteers, or any other
additional insureds, and shall require similar written express waivers and insurance clauses from
each of its subconsultants.
3.2.11.6 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City. Consultant
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its directors, officials, officers,
employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and defense
expenses.
3.2.11.7 Subconsultant Insurance Requirements. Consultant shall
not allow any subconsultants to commence work on any subcontract relating to the work under
the Agreement until they have provided evidence satisfactory to the City that they have secured
all insurance required under this Section. If requested by Consultant, the City may approve
different scopes or minimum limits of insurance for particular subconsultants. The Consultant
and the City shall be named as additional insureds on all subconsultants’ policies of Commercial
General Liability using ISO form 20 38, or coverage at least as broad.
3.2.11.8 Acceptability of Insurers. Insurance is to be placed with
Professial Services Agreement – Kosmont Companies
Page 9
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the City.
3.2.11.9 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
3.2.11.10 Reporting of Claims. Consultant shall report to the City, in
addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in
connection with the Services under this Agreement.
3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Accounting Records. Consultant shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Consultant shall allow a representative of City during normal
business hours to examine, audit, and make transcripts or copies of such records and any other
documents created pursuant to this Agreement. Consultant shall allow inspection of all work,
data, documents, proceedings, and activities related to the Agreement for a period of three (3)
years from the date of final payment under this Agreement.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit “A” attached hereto and incorporated herein by reference. The total compensation
shall not exceed ONE HUNDRED THIRTY SIX THOUSAND SEVEN HUNDRED AND ZERO CENTS
($136,700) without written approval of the City Council. Extra Work may be authorized, as
described below, and if authorized, will be compensated at the rates and manner set forth in this
Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
Professial Services Agreement – Kosmont Companies
Page 10
itemized statement which indicates work completed and hours of Services rendered by
Consultant. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, “Extra Work” means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City’s Representative.
3.3.5 Prevailing Wages. Consultant is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of
prevailing wage rates and the performance of other requirements on “public works” and
“maintenance” projects. If the Services are being performed as part of an applicable “public
works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total
compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage
Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in
effect at the commencement of this Agreement. Consultant shall make copies of the prevailing
rates of per diem wages for each craft, classification or type of worker needed to execute the
Services available to interested parties upon request, and shall post copies at the Consultant’s
principal place of business and at the project site. Consultant shall defend, indemnify and hold
the City, its elected officials, officers, employees and agents free and harmless from any claim or
liability arising out of any failure or alleged failure to comply with the Prevailing W age Laws.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Consultant,
terminate the whole or any part of this Agreement at any time and without cause by giving
written notice to Consultant of such termination, and specifying the effective date thereof, at
least seven (7) days before the effective date of such termination. Upon termination, Consultant
shall be compensated only for those services which have been adequately rendered to City, and
Consultant shall be entitled to no further compensation. Consultant may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Consultant to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Consultant in connection with the performance of Services
under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
Professial Services Agreement – Kosmont Companies
Page 11
or in part as provided herein, City may procure, upon such terms and in such manner as it may
determine appropriate, services similar to those terminated.
3.5 Ownership of Materials and Confidentiality.
3.5.1 Documents & Data; Licensing of Intellectual Property. This Agreement
creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense
any and all copyrights, designs, and other intellectual property embodied in plans, specifications,
studies, drawings, estimates, and other documents or works of authorship fixed in any tangible
medium of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared by
Consultant under this Agreement (“Documents & Data”). All Documents & Data shall be and
remain the property of City, and shall not be used in whole or in substantial part by Consultant
on other projects without the City's express written permission. Within thirty (30) days
following the completion, suspension, abandonment or termination of this Agreement,
Consultant shall provide to City reproducible copies of all Documents & Data, in a form and
amount required by City. City reserves the right to select the method of document reproduction
and to establish where the reproduction will be accomplished. The reproduction expense shall be
borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of
compensation to which the Consultant is entitled under the termination provisions of this
Agreement, Consultant shall provide all Documents & Data to City upon payment of the
undisputed amount. Consultant shall have no right to retain or fail to provide to City any such
documents pending resolution of the dispute. In addition, Consultant shall retain copies of all
Documents & Data on file for a minimum of fifteen (15) years following completion of the
Project, and shall make copies available to City upon the payment of actual reasonable
duplication costs. Before destroying the Documents & Data following this retention period,
Consultant shall make a reasonable effort to notify City and provide City with the opportunity to
obtain the documents.
3.5.2 Subcontractors. Consultant shall require all subcontractors to agree in
writing that City is granted a non-exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement. Consultant represents and warrants that
Consultant has the legal right to license any and all Documents & Data. Consultant makes no
such representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Consultant or its subcontractors, or those provided to Consultant by the
City.
3.5.3 Right to Use. City shall not be limited in any way in its use or reuse of the
Documents and Data or any part of them at any time for purposes of this Project or another
project, provided that any such use not within the purposes intended by this Agreement or on a
project other than this Project without employing the services of Consultant shall be at City’s
sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it
shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless
Consultant and its officers, directors, agents and employees from claims arising out of the
negligent use or re-use of the Documents & Data on such other project. Consultant shall be
responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only
with respect to the condition of the Documents & Data at the time they are provided to the City
upon completion, suspension, abandonment or termination. Consultant shall not be responsible
Professial Services Agreement – Kosmont Companies
Page 12
or liable for any revisions to the Documents & Data made by any party other than Consultant, a
party for whom the Consultant is legally responsible or liable, or anyone approved by the
Consultant.
3.5.4 Indemnification. Consultant shall defend, indemnify and hold the City, its
directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, for any alleged infringement of any patent,
copyright, trade secret, trade name, trademark, or any other proprietary righ t of any person or
entity in consequence of the use on the Project by City of the Documents & Data, including any
method, process, product, or concept specified or depicted.
3.5.5 Confidentiality. All Documents & Data either created by or provided to
Consultant in connection with the performance of this Agreement shall be held confidential by
Consultant. All Documents & Data shall not, without the prior written consent of City, be used
or reproduced by Consultant for any purposes other than the performance of the Services.
Consultant shall not disclose, cause or facilitate the disclosure of the Documents & Data to any
person or entity not connected with the performance of the Services or the Project. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.6 General Provisions.
3.6.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
Mr. Joseph Dieguez
Senior Vice President
Kosmont Companies
1601 N. Sepulveda Blvd., #382
Manhattan Beach, CA 90266
City:
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
Attn: Matt Marquez, Economic and Community Development
Director
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
Professial Services Agreement – Kosmont Companies
Page 13
3.6.2 Indemnification.
3.6.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of act ion,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions of Consultant, its officials, officers, employees, subcontractors,
consultants or agents in connection with the performance of the Consultant’s Services, the
Project or this Agreement, including without limitation the payment of all consequential
damages, expert witness fees and attorneys fees and other related costs and expenses.
Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code
Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code
Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or
willful misconduct of the Consultant.
3.6.2.2 Additional Indemnity Obligations. Consultant shall defend, with
legal counsel chosen by City, at Consultant’s own cost, expense and risk, any and all claims,
actions or other proceedings of every kind covered by Section 3.6.2.1 that may be brought or
instituted against City or its directors, officials, officers, employees, volunteers and agents.
Consultant shall pay and satisfy any judgment, award or decree that may be rendered against
City or its directors, officials, officers, employees, volunteers and agents as party of any such
claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any
settlement paid by City or its directors, officials, officers, employees, agents, or volunteers as
part of any such claim, suit, action or other proceeding. Such reimbursement shall include
payment for City’s attorneys’ fees and costs, including expert witness fees. Consultant shall
reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any
and all legal expenses and costs incurred by each of them in connection therewith or in enf orcing
the indemnity herein provided. Consultant’s obligation to indemnify shall survive for three (3)
years beyond expiration or termination of this Agreement.
3.6.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.
In addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Consultant must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
and/or changed conditions have been followed by Consultant. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit
against the City.
3.6.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.6.5 City’s Right to Employ Other Consultants. City reserves right to employ
Professial Services Agreement – Kosmont Companies
Page 14
other consultants in connection with this Project.
3.6.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.6.7 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.6.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement.
3.6.9 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.6.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.6.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.6.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.6.13 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Consultant further
agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic
Interest with the City’s Filing Officer as required under state law in the performance of the
Services. For breach or violation of this warranty, City shall have the right to rescind this
Agreement without liability. For the term of this Agreement, no member, officer or employee of
Professial Services Agreement – Kosmont Companies
Page 15
City, during the term of his or her service with City, shall have any direct interest in this
Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.6.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.6.15 Attorney’s Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney’s fees and all other costs of such action.
3.6.16 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.6.17 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6.18 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
[SIGNATURES ON NEXT PAGE]
Professial Services Agreement – Kosmont Companies
Page 16
CITY OF AZUSA KOSMONT COMPANIES
By: ________________________________
By:_________________________________
Joseph Romero Rocha Larry J. Kosmont
Mayor Chief Executive Officer
Date: _______________________________ Date: _______________________________
Attest: By: ________________________________
___________________________________
Mark Persico
Secretary
Jeffrey Lawerence Cornejo, Jr. Date: _______________________________
City Clerk
Approved as to Form:
Best Best & Krieger LLP
___________________________________
City Attorney
Date: ______________________________
Professial Services Agreement – Kosmont Companies
Page 17
EXHIBIT “A”
SCOPE OF SERVICES, SCHEDULE OF SERVICES AND COMPENSATION
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 20
SECTION 5.
MANAGEMENT OVERVIEW
& APPROACH
I.PROJECT UNDERSTANDING
Kosmont benefits from a keen understanding of the Azusa community from previous work in the City and an
understanding of transient oriented development projects along the current Gold Line and proposed extension from
previous relevant work in the cities of Duarte,Irwindale,San Dimas,and La Verne.Local community understanding
aside,Kosmont is the leading firm in the state on tax increment financing districts (EIFD,CRIA,IRFD,AHA, NIFTI,etc.)
with over 25 such districts currently under evaluation, having overseen the only EIFD to be successfully formed in Los
Angeles County and the larger six-county SCAG region to date in the City of La Verne for its TOD /Specific Plan area
surrounding its future Gold Line Station.
As TIF district subject matter expert for SCAG,Kosmont coordinated with SCAG and Metro to establish the TOD
Planning Grant Program Round 5 screening criteria,even presenting at the Metro Round 5 grant training sessions for
local jurisdictions (including the San Gabriel Valley workshop).It was Kosmont’s work with SCAG that produced the
EIFD/CRIA Technical Assistance Screening Application to be utilized for the subject feasibility analysis.
As it relates to the subject RFP,it is understood that the City is seeking a TIF feasibility study to determine how it may
finance transit-supporting infrastructure, affordable housing and other community development goals in the Azusa
Transit Oriented Development (TOD)Specific Plan Area.Kosmont further understands that Metro awarded the City
with the grant to further Metro’s own program objectives:
•Supporting municipalities in implementing complimentary transit-supportive infrastructure projects and
affordable housing;
•Increasing transitridership;
•Increasing the number of comprehensive,community-driven transit supportive planning efforts around Metro
light rail,Metrolink stations,and Metro Transitway/Bus Rapid Transit stations and adjacent transit corridors in
Los Angeles County;
•Improving local and regional efforts that enhance an equitable integration of transportation and community
planning;
•Improving the transit network and increase utilization of public transit by reducing the number of modes of
transportationnecessary to access regional and localtransit lines;
•Furthering the reduction in greenhouse gases through encouraging in-fill development along transit corridors
and transit use;
•Supportingand implementing sustainable development principles;and
•Increasing opportunities to meaningfully engage diverse stakeholders,especially underserved and vulnerable
communities,in advancing transit supportive planning efforts across the region.
Kosmont proposesthe followingWork Plan to accomplish these various objectives.
II.WORK PLAN
Task 1:Develop Stakeholder Engagement Plan
Consensus will build on outreach during the preparation of the City of Azusa TOD Specific Plan and develop a
comprehensive and strategic stakeholder engagement plan designed to support the development of and outcomes
sought for the TIF Feasibility Study.The plan will align with rhythm of the core tasks and include recommendations for
the frequency of and tools used to engage and solicit feedback from stakeholders.
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
Exhibit A
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 21
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
SECTION 5.
MANAGEMENT OVERVIEW
& APPROACH
Specifically,the engagement plan will solicit feedback to assist the Kosmont team in determining potential financing
district boundaries,and potential infrastructure and community development projects/programs to be (eventually)
funded with financing district revenues.
The plan will include recommendations on:
•Outreach methods chosen
•A schedule of meetings
•Meeting formats (open house/workshop,presentation,small group meetings,large community meetings)
•Visual tools needed to aid understanding of concepts under consideration
•Online presence (website,social platforms,online community survey,etc.)
•Ensuring equitable access to all outreach meetings
•Addressing potential for displacement
To facilitate initial education of potential public and private sector stakeholders,Kosmont will prepare a summary of
potential funding and financing tools,such as EIFD,CRIA,AHA,NIFTI,and CFD.We anticipate a meeting with the City
to discuss the overview of funding and financing tools,confirmation of eligible target areas and projects,and goals
and objectives related to the potential implementation of said tools.Anticipated key stakeholders include City staff
and Council,local community members /registered voters,property owners,interested developers,METRO staff,
County Administrative Office,County Auditor-Controller /Treasurer /Tax Collector /Property Tax Manager,County
Board of Supervisors,Southern California Association of Governments (SCAG),State Board of Equalization /
Department of Tax and Fee Administration,special districts (e.g.flood control district,water districts,utilities
agencies).
Deliverables:Community Engagement Plan
Task 2:Identify Boundaries and Initial Screening Criteria
2.1 Determine Boundary Scenarios
Collaborating with stakeholders pursuant to the Task 1 Engagement Plan,Kosmont will identify up to three (3)
boundary scenarios for evaluation of district feasibility.The boundaries will be determined in consideration of the
grant application screening criteria as well as SCAG’s EIFD/CRIA Screening Assistance Tool (which Kosmont assisted to
develop).
Task 2.1 deliverables:Maps and written descriptions of up to 3 district boundary scenarios and concise written
explanation for development of boundaries.
2.2 Initial TIF Screening
Utilizing SCAG’s EIFD/CRIA Screening Assistance Tool,ArcGIS and other publicly available data sources,Kosmont will
prepare a matrix of primary screening criteria,including:
•Current zoning and density in project area (including consideration of anticipated zoning from land use
planning updates underway)
•Project location and infrastructure needs (location in High-Quality Transit/Transit Priority Area)
•Potential infrastructure financing solutions (property tax capture rate,Disadvantaged Community Census Tract
status,eligibility for grant funding)
•CRIA Eligibility (income,crime,unemployment stats,Disadvantaged Community designations)
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 22
2.2 Initial TIF Screening continued:
•Whether the proposed district boundaries overlap a former Redevelopment Agency Project Area
•Economic Development potential (planned projects,existing parcel values)
•Technical screening (e.g.for parcels in former redevelopment project areas,corresponding existing ROPs
obligations or other bond/financing obligations and anticipated date of maturity /expiration)
•EIFD/CRIA Successor Agency Prerequisites (finding of completion from DOF)
•Land ownership
•Benefitting taxing entities (e.g.County of Los Angeles,other taxing entities)
•Opportunity Zone census tract designation
•Existing CFD,assessment district,or other special district boundaries.
It is understood that some of this screening work will be provided to Kosmont from city staff as developed in the
grant application.Kosmont will independently update and validate such information and organize into a matrix
format.
Task 2.2 deliverables:Matrix showing TIF screening variables for each boundary scenario.
2.3 Strategic Considerations
In addition to screening criteria evaluated in Task 2.2,Kosmont will identify other quantitative and qualitative factors
potentially affecting TIF feasibility,which may include,but not be limited to:
•High-level market statistics (e.g.lease rates,vacancy rates,inventory,absorption by land use type)
•Land ownership (public/private)
•Proposed developments and timing of said developments
•Anticipated infrastructure investments (public transit,grant-funded projects,etc.).
Based on Task 2.2 screening criteria and Task 2.3 additional strategic considerations,Kosmont will identify final
preferred boundary scenario(s)for continuation into the next phase of analysis,as well as determining whether EIFD,
CRIA,CFD,BID,and/or other districts or a combination of districts district should be further studied.
Task 2.3 deliverables:High-level market and future investment analysis,summary of strategic considerations.
Task 3:Tax Increment Analysis
3.1 Revenue Generation
Based on Task 2 initial screening,Kosmont will prepare a funding and financing analysis,including preliminary tax
increment analysis (for TIF districts)and/or special tax capacity analysis (for CFD or similar tool)reflecting potential
future development and potential public and private sector partners.Kosmont will evaluate up to three (3)different
boundary scenarios and potential district types.Kosmont will utilize current and appropriate,post-ERAF property tax
distribution shares (AB8 rates)as obtained from the County Auditor-Controller’s office.
For TIF district analysis,Kosmont will include one set of revenues projections with both City and County participation
and one set with only City participation (i.e.contribution of tax increment).For scenarios including a County
contribution,assumptions will conform to the County’s EIFD/CRIA participation policy (adopted August 1,2017 by the
Los Angeles County Board of Supervisors).
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
SECTION 5.
MANAGEMENT OVERVIEW
& APPROACH
Kosmont’s analysis will identity:
•Types and timing of development projects that are planned within the boundaries of the potential district
•Potential assessed value generation by future development in the district
•Property tax increment and/or special tax funding capacity at select annual benchmarks (e.g.year 5,10,15,
20,30,45)and cumulatively over the estimated district lifetime(s)
•“But /for analysis,”characterizing whether the proposed infrastructure projects would produce the
subsequent growth in development without the special district implementation
•Whether the targeted projects are viable without contributions from the other taxing entities
•As related to potential overlap of proposed district boundaries with former redevelopment agency project
areas,analysis of corresponding relevant outstanding enforceable obligations and available revenue
implications.
3.2 Bonding Capacity
For each scenario evaluated,Kosmont Transactions Services (registered Municipal Advisor)will estimate bonding
capacity of the special district(s)at select annual benchmarks (e.g.year 3,5,10)against future revenues.
Task 3 deliverables:Tax increment revenue and present value analysis
Task 4:Identify Infrastructure Needs and Complementary Funding Sources
4.1.Identify Infrastructure and Community Development Investments
Collaborating with stakeholder pursuant to the Task 1 Engagement Plan,Kosmont will determine a range of
infrastructure and community development projects/programs,consistent with the regulations for the targeted
specific district legislation,which could make up the funding plan for the TIF district.The projects/programs will
include estimated costs /funding needs as available.In identifying projects /programs,Kosmont will reference
existing available resources,including:
•Azusa TOD Specific Plan
•Transit-Supportive Development Toolkit:10 Characteristics of Transit-Supportive Development
•Metro Countywide Sustainability policy
•First/Last Mile Strategic plan
•Green places Toolkit.
Task 4.1 deliverable:Summary of potential infrastructure and community investment projects,with an estimated
range of costs.
4.2 Identify Other Funding Sources
Kosmont will compare potential revenue generation estimated in Task 3 to the cost of infrastructure /programs
estimated in Task 4.1.It may be the case that the total desired investment will exceed the net revenues generated by
the special district(s).To this end,Kosmont will identify other complementary economic development tools and
funding sources that could be leveraged by the district,such as grants,I-Bank financing,federal Opportunity Zone tax
incentives,development impact fees,and/or other public and private funding sources.
Task 4.2 deliverable:Summary of rough order of magnitude funding plan for the TIF district,inclusive of
projects/programs,project costs and potential funding sources,as available.
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 23
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
SECTION 5.
MANAGEMENT OVERVIEW
& APPROACH
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 24
Task 5:Next Steps for Implementation
Based on findings from Tasks 1-4,Kosmont will prepare a summary memorandum outlining next steps for
implementation,a timeline,and a budget for the implementation activities.The memo will include
recommendations for the composition of the appropriate governing board for the district (Public Financing Authority
or CRIA Board),voting /approval procedures,formation milestones,and identify other factors such as CEQA
considerations and further community engagement.The memo will function as a realistic action plan and “roadmap”
for moving forward.Kosmont anticipates a presentation of analysis findings to City staff and/or Council in a meeting /
workshop format.
Task 5 deliverables:Next steps summary memo,preparation and participation at City staff /Council meeting /
workshop.
Please note:The implementation of the stakeholder engagement program will take place during Tasks 2,3 and 4
with the following deliverables:
•Community meetings
•Meeting materials/visuals (fact sheets,visualizations,augmented reality displays)
•Meeting notifications and announcements
•Online presence for project (e.g.microsite,community survey,social channels)
•Meeting notifications (Facebook ads,e-blasts)
•Meeting documentation
III.TIMING
The Consultant team is prepared to commence work immediately upon receipt of executed Agreement and notice to
proceed.The estimated timeline for completion is outlined below:
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
Task Estimated Timing for Completion
(from Assignment Authorization)
Task 1:Develop Stakeholder Engagement Plan Months 1-3
Task 2:Identify Boundaries and Initial Screening Criteria Months 3-6
Task 3:Tax Increment Analysis and Complementary Sources Months 6-8
Task 4:Identify Infrastructure Needs Months 6-8
Task 5:Next Steps for Implementation Months 9-12
SECTION 5.
MANAGEMENT OVERVIEW
& APPROACH
KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070
www.kosmont.com 25
Compensation for Tasks 1 through 5 is estimated below for professional services.
Task budgets may be re-allocated between tasks as deemed appropriate by Consultant in order to adequately
provide services to City and to remain on schedule and within overall budget.
SECTION 6.
FEE PROPOSAL
CITY OF AZUSA
Tax Increment Financing (TIF) Feasibility Study
Estimated
Cost
TASKS LOW HIGH
1 Develop Stakeholder Engagement Plan $11,010 $13,060
2 Identify Boundaries and Initial Screening Criteria $27,260 $31,360
3 Tax Increment Analysis $27,260 $31,360
4 Identify Infrastructure Needs and Complementary
Funding Sources $27,260 $31,360
5 Next Steps for Implementation $16,360 $20,460
Total Estimated Budget $109,150 $127,600
Reimbursable Expenses $7,400 $9,100
TOTAL $116,550 $136,700
LOW HIGH