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15 Staff Report - Market Study UpdateCOUNCIL AGENDA REPORT DATE: December 1, 1998 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER SUBJECT: MEETING DATE: 12/07//98 ITEM NO. MARKET STUDY UPDATE AND SPECIFIC PLAN ENVIRONMENTAL REVIEW A. ADOPT RESOLUTION AUTHORIZING TOWN MANAGER TO EXECUTE AN AGREEMENT WITH ECONOMIC RESEARCH ASSOCIATES FOR CONSULTING SERVICES TO UPDATE THE MARKET STUDY AND BUSINESS DEVELOPMENT STRATEGY REPORT FOR NORTH FORTY SPECIFIC PLAN AREA; B. ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AMENDED AGREEMENT WITH ROBERT BEIN, WILLIAM FROST AND ASSOCIATES FOR CONSULTING SERVICES TO FACILITATE GENERAL PLAN TASK FORCE II, COLLECT TECHNICAL DATA, PREPARE GENERAL PLAN UPDATE AND NORTH FORTY SPECIFIC PLAN, AND PREPARE SEPARATE ENVIRONMENTAL REVIEWS FOR THE GENERAL PLAN UPDATE AND NORTH FORTY SPECIFIC PLAN. RECOMMENDATION: 1. Adopt resolution authorizing the Town Manager to execute an agreement with Economic Research Associates for consulting services to update the Market Study and Business Development Strategy Report for the North Forty Specific Plan Area (Attachment 1). 2. Adopt resolution authorizing the Town Manager to execute an amended agreement with Robert Bein, William Frost and Associates for consulting services to facilitate General Plan Task Force II, collect technical data, prepare a General Plan Update and North Forty Specific Plan, and prepare separate Environmental Reviews for the General Plan and North Forty Specific (Attachment 2). BACKGROUND: On November 2, 1998, the Town Manager presented Council a report from the General Plan Committee recommending that Economic Research Associates (ERA) be retained to update the 1991 Final Market Study and Business Development Strategy Report for the North Forty Specific Plan Area. The Committee made this recommendations because the report is out of date, and because an update is needed to evaluate the proposed land uses in the Specific Plan. The Council concurred with the Committee and directed staff to prepare a resolution for adoption. A draft resolution, agreement, and proposal for services from ERA for this work are provided with this report as Attachment 1. In conjunction with the Market Study recommendation and a Planning Commission referral regarding a pending development application for a parcel in the North Forty Specific Plan Area, both the Council and General Plan Committee directed Robert Bein, William Frost, and Associates (RBF), the General Plan Update consultant, to accelerate the preparation of the North Forty Specific Plan "Post -Haste". PREPARED BY: LEE E. BOWMAN PLANNING DIRE TOR Reviewed by: _01_ Attorney finance Revised: 12/1/98 5:05 pm Reformatted: 10/23/95 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZING TOWN MANAGER TO EXECUTE AN AGREEMENT W/ ERA ASSOCIATES AND AMEND AN EXISTING AGREEMENT W/ RBF ASSOCIATES December 1, 1998 The accelerated schedule authorized by Council compels the separation of the environmental reviews for the North Forty Specific Plan and the General Plan Update. Attached to this report are a justification letter with a revised scope of work and fee estimate provided by RBF and Draft Resolution with an Amended Agreement for Services for RBF to perform these tasks (Attachment 2). DISCUSSION: North Forty Area Market Study and Business Development Strategy Report Economic Research Associates (ERA) estimates that the North Forty Market Study and Business Development Strategy Report will take 90 days and cost $27,250. ERA still has the original data from the Town's economic analysis for the Commercial Specific Plan Committee Report and is familiar with the nature of the Town's budget and local economy. The consultant can begin updating the report as early as the third week of December 1998 and finish by the report by the middle of March 1999. North Forty Specific Plan and Environmental Reviews Originally, the General Plan Update schedule included concurrent processing of environmental reviews for the North Forty Specific Plan by RBF. However, due to the accelerated time schedule, the State mandated public review of the Specific Plan requires separate preparation of a more detailed environmental assessment for the defined Specific Plan project area rather than the broad range Town -wide environmental overview required for the full General Plan Update. The Specific Plan environmental review will be more site intensive and involves the preparation of an Expanded Initial Study and a Mitigated Negative Declaration (approximately 90-120 days) rather than the preparation of a full Environmental Impact Report (approximately 9-12 months). RBF anticipates that preparation of the environmental reviews for the Specific Plan not to exceed $12,057 and anticipates completion of a Draft North Forty Specific Plan by the end of February 1999 with the separate environmental reviews to be completed as early as May 1999. The General Plan Update and North Forty Specific Plan preparation contract costs will increase from $420,539 to $432,596. CONCLUSION: The Council should adopt the resolution authorizing the Town Manager to execute an agreement with Economic Research Associates for consulting services to update the Market Study and Business Development Strategy Report for the North Forty Specific Plan Area (Attachment 1) and adopt the resolution authorizing the Town Manager to execute an amended agreement with Robert Bein, William Frost and Associates for existing consulting services to facilitate General Plan Task Force II, collect technical data, prepare a General Plan Update and North Forty Specific Plan, and prepare Environmental Reviews for the General Plan and North Forty Specific (Attachment 2) ENVIRONMENTAL ASSESSMENTS: Is not a project defined under CEQA, and no further action is required. Account # Account # PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZING TOWN MANAGER TO EXECUTE AN AGREEMENT W/ ERA ASSOCIATES AND AMEND AN EXISTING AGREEMENT W/ RBF ASSOCIATES December 1, 1998 FISCAL IMPACT: The update of the 1991 economic market study prepared by ERA for the North Forty Specific Plan will cost approximately $29,980 ($27,250 + 10% contingency based on total project cost). The accelerated schedule for the preparation of the North Forty Specific Plan and an earlier separate environmental review by RBF will add approximately $13,270 ($12,057 +10% contingency based on RBF's additional cost estimate) to the original budget of $462,539. With this change the total budget for the preparation of the General Plan Update and North Forty Specific Plan is $475,809. The total cost for these two projects including the ERA Market Study update is $505,789. The cost for these projects will be funded by General Plan Update fees. The Town Council has reserved $462,539 for the project. Approximately $137,633 is currently in Account 100-26751 to fund addition to the General Plan Update. Account # Description Bal as of 11/25/98 Proposed Revised Bal. 100-26751 General Plan Update $137,633.00 ($43,250.00) $94,383.00 Account # Description Budget as of 11/25/98 Proposed Revised 3150-61751 General Plan Update $315,400.00 $13,270.00 $328,670.00 3150-61754 General Plan -ERA Study $0.00 $29,980.00 $29,980.00 Establish project budget as follows, 3150-61751-UPDATE98: Budget as of 11/25/98 Description Proposed Revised 46031 GP- Update (100-26751) $462,539.00 $13,270.00 $475,809.00 Task 8-810064 Environmental Review-N40 $0.00 $12,060.00 $12,060.00 81999 Contingency $42,000.00 $1,210.00 $43,210.00 Establish project budget as follows, 3150-61754-ERAMKT: Budget as of 11/25/98 Description Proposed Revised 46031 GP- Update (100-26751) $0.00 $29,980.00 $29,980.00 810090 ERA Market Study-N40 $0.00 $27,250.00 $27,250.00 81999 Contingency $0.00 $2,730.00 $2,730.00 n PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZING TOWN MANAGER TO EXECUTE AN AGREEMENT W/ ERA ASSOCIATES AND AMEND AN EXISTING AGREEMENT W/ RBF ASSOCIATES December 1, 1998 Attachments: 1. Draft Resolution, Agreement, and Proposal for Services for ERA Associates to update Market Study for North Forty Specific Plan Area. 2. Draft Resolution, Amended Agreement for Services for RBF Associates to facilitate General Plan Task Force II, collect technical data, prepare a General Plan Update and North Forty Specific Plan, and prepare Environmental Reviews for the General Plan and North Forty Specific, and Justification Letter, Scope of Work and Fee Estimate for North Forty Environmental Reviews. LEB:EO N:1DEVICNCLRPTSTRAUPDTE.TC2 RESOLUTION 1998- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING AGREEMENT TO PREPARE AN UPDATE OF THE 1991 FINAL MARKET STUDY AND BUSINESS DEVELOPMENT STRATEGY REPORT FOR NORTH 40 SPECIFIC PLAN AREA. BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos enter into an agreement with Economic Research Associates, to prepare an update of the 1991 Final Market Study and Business Development Strategy Report for the North 40 Specific Plan Area and that the Town Manager is authorized, and is hereby directed, to execute said agreement in the name and in behalf of the Town of Los Gatos. The contract shall not exceed the amount of $27,250.00 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7th day of December 1998, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: ATTEST: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:1DE V\RESOSIERAUPDTE. RES ATTACHMENT 1 AGREEMENT FOR ECONOMIC RESEARCH CONSULTANT SERVICES THIS AGREEMENT is entered into this day of , 19, by and between the Town of Los Gatos, State of California, herein called the "Town", and ENVIRONMENTAL RESEARCH ASSOCIATES (ERA), engaged in providing economic research consulting services herein called the "Consultant". RECITALS A. The Town is currently undertaking activities to prepare a Specific Plan for its North Forty Specific Plan Area and this action requires an update of a 1991 Economic Research Associates Final Market Study and Business Development Strategy Report for the North 40 Specific Plan Area to determine appropriate land uses and economic/business strategies to incorporate into the Specific Plan. B. The Town desires to engage a Economic Research Associates, the "Consultant" to provide consulting services in conjunction with the preparation of this update, because of Consultant's experience and qualifications to perform the desired work. C. The Consultant represents and affirms that it is qualified and willing to perform the desired work pursuant to this Agreement. AGREEMENTS NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. The Consultant shall be responsible for fulfillment of the following tasks as outlined in the scope of work on the following pages. Revised: August 28, 1998 N:\DEV\ERWIN\ERA-N40. CON Page 1 of 9 SCOPE OF WORK Requirements The scope of work of the update of the 1991 Final Market Study and Business Development Strategy for the North 40 Specific Plan Area shall include the following responsibilities by the Consultant: A. Completion of a Draft Document update by March 1,1999 and a Final Document by March 15, 1998. The Consultant shall deliver these work product to the Town Planning Department by 12:00 noon on the dates noted above. B. Attending a minimum of one preliminary scoping meeting with staff. C. Preparation of the Market Study Business Development Plan Study Update. The consultant shall provide 3 copies of the draft and 25 copies of the final draft. The consultant shall also provide electronic file copies of the final document in a WordPerfect 5.1 or approved word processing software format via a 3 1/2 inch floppy disk medium at the time that the final draft copies are delivered to the Town. D. The Market Study Business Development Plan Study Update shall include the following information: 1. Introduction/Project Overview Community Objectives for Update Review of Growth Outlook for Santa Clara County Local and Regional Demographics (population and employment forecast) 2. Summary of Market Conclusions and Strategy Recommendations for the North 40 Specific Plan Area with discussion of: Long -Term Market Opportunities Obstacles to Development Strategy Recommendations and Implementation Measures Relationship/Impacts to Townwide Issues 3. Retail Market Analysis of: Market Area Boundaries Market Area Demographics Market Area Supply Health of Los Gatos Retail Sector Strengths and Weaknesses Retail Market Segment Detailed Examination of Market Opportunities Concerns of Town (Commercial Specific Plan Committee Recommendations, Residents, Business Owners, etc.) Revised: August 28, 1998 N:1DEV \ERWIN\ERA-N40. CON Page 2 of 9 4. Cinema Complex Market Demand: Review Market Demographics Review Sales Performance of Complexes in Competing Trade Area Recommend appropriate Cinema/Entertainment Program for Area 5. Hotel Market Analysis of: Regional Hotel Market Transient Lodging Revenues Existing Hotel Comparables Hotel/Motels Under Construction or Planned Hotel Room Demand (Local, County, Silicon Valley Region) 6. Office Market Analysis of: Regional Office Overview Santa Clara County Office Inventory Existing Los Gatos Office Buildings Planned Office Projects Office Demand (Local, County, Silicon Valley Region) 7. Fiscal Implications of Land Use Decisions E. Attending a minimum of one Planning Commission and one Town Council meeting as required by the Planning Director. Additional meetings will be authorized by the Planning Department on an "as needed basis", and the Town will be charged only for time and materials. Funds to pay for any additional meetings must be authorized by the Town prior to the meeting. The required Planning Commission and Town Council meetings shall be scheduled by the Town prior to June 30, 1999. F. Preparation of follow up clarification letters or documentation for any information (e.g. memos to clarify sections or language in a prepared document, providing a copies of market/economic data, copies of field visit notes/dates, etc.) on an as needed basis as required by the Planning Director at no additional cost to the Town. G. Review of all background studies and demographic data reports that are relevant to the project. 2. Time of Performance. The services of the Consultant are to commence upon the execution of this Agreement with completion of the program by June 30, 1999. 3. Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and Local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to Town that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement Revised: August 28, 1998 N:\DEV\ERWIN\ERA-N40.CON Page 3 of 9 any licenses, permits, and approvals which are legally required for Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos. 4. Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement. 5. Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town's property and shall be delivered to the Town upon the completion of Consultant's services or at the Town's written request. All reports, information, data. and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by the Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant. 6. Compensation. Total compensation for Consultant's professional services shall not exceed $27,250, and payment shall be based upon Town approval of each task as it is completed. The Town shall withhold final payment of 10-percent of this full amount until the completion of all tasks noted in the scope of work. Billing shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. The billing information shall be formatted to reflect the tasks outlined in the scope of work. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form. Payment shall be net thirty (30) days. All invoices and statements to the Town shall reference the Town's purchase order number and be addressed as follows: Invoices: Town of Los Gatos Attn: Accounts Payable P.O. Box 949 Revised: August 28, 1998 N:\DEV \ERWIN\ERA-N40. CON Page 4 of 9 Los Gatos, CA 95030 Statements: Town of Los Gatos Attn: Sandy Ortiz P.O. Box 949 Los Gatos, CA 95030 7. Availability of Records. Consultant shall maintain the records supporting this billing for not less than three (3) years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant's offices during business hours upon written request of the Town. 8. Project Manager. The Project Manager for the Consultant for the work under this Agreement shall be William Lee, Senior Vice President. 9. Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. No portion of these services shall be assigned or subcontracted without the written consent of the Town. 10. Notices. Any notice required to be given shall be deemed to be duly and properly given if provided in written form and mailed postage prepaid, and addressed to: To Town: To Consultant: Lee E. Bowman, Planning Director Civic Center P.O. Box 949 Los Gatos, CA 95030 William Lee, Senior Vice President Economic Research Associates 388 Market Street, Suite 1580 San Francisco, CA 94111 OR personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town. 11. Independent Contractor. It is understood that the Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, the Consultant may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Revised: August 28, 1998 N:1DEV IERW INIERA-N40. CON Page 5 of 9 Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Consultant or is based on allegations of Consultant's negligent performance or wrongdoing. 12. Conflict of Interest. Consultant understands that its professional responsibilities is solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Consultant warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest should it discover it has done so and shall, at the Town's sole discretion, divest itself of such interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person, Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship. 13. ,Equal Employment Opportunity. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act. 14. Insurance. A. Minimum Scope of Insurance: Consultant agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single Revised: August 28, 1998 N:\DEV \ERWIN\ERA-N40. CON Page 6 of 9 limit per accident for bodily injury and property damage. iii. Consultant shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by the Town before work commences. iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement. B. General Liability: The Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of Consultant, premises owned or used by the Consultant. This requirement does not apply to the professional liability insurance required for professional errors and omissions. ii. The Consultant's insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers. iv. The Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. C. All Coverages: Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk. Revised: August 28, 1998 N:\DEV\ERWIN\ERA-N40.CON Page 7 of 9 D. In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees. 15. Indemnification. The Consultant shall save, keep and hold harmless indemnify and defend the Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Consultant, or any of the Consultant's officers, employees, or agents or any sub - consultant. 16. Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement. 17. Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior or Municipal Court of the County of Santa Clara. 18, Termination of Agreement. The Town and the Consultant shall have the right to terminate this agreement with or without cause by giving not less than fifteen (15) days written notice of termination. In the event of termination, the Consultant shall deliver to the Town all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement hereto, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination. 19. Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant. 20. Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, including costs of appeal. 21. Entire Agreement. This Agreement constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, conditions, understandings Revised: August 28, 1998 N:1DEV\ERWINIERA-N40.CON Page 8 of 9 or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party. IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement as of the date indicated on page one (1). Town of Los Gatos Consultant: David W. Knapp, Town Manager Print Name Town of Los Gatos ATTEST: Clerk of the Town of Los Gatos, Los Gatos, California Marian V. Cosgrove, Town Clerk Approved as to Form: Orry P. Korb, Town Attorney Revised: August 28, 1998 N:\DEV\ERW IN\ERA-N40. CON Title Page 9 of 9 ERA Economics Research Associates Proposal for Market Analysis of the North 40 Area Of Los Gatos Submitted to Town of Los Gatos Planning Department Submitted by Economics Research Associates October 22, 1998 ERA Proposal No. 36581 DlecO V,_,.srin. for DC L.OnC,Or. TOWN of LOS GATOS PLANNING DEPARTMENT (408) 354-6372 July 10, 1991 Mr. William Lee Senior Vice President E.�oncmics Research Associates 1160 Battery Street, Suite 350 Sam Francisco, CA 94111 Dear BHI: wish to cornmerd EAA and particularly Ardraa Morgan Tcr her role in the Pusiress District market and revitalization study EPA prepared for us. ERA's economic analysis was welt-ccncaived arc well -.executed; Andrea presented the result clearly to the committee; and EPA met the project schedule required. As you knew, we have already had some developer interest in building the retail canter that ERA recommended for the Yuki property. At the final public hearing on the Commercial Specific ?fan, Committee's Final Resort, the Council indicated that the economic analysis was the finest reccrt aver received from a consultant. ltant. The Commercial 'Specific Plan Committee and l agree. We look forward to contacting you in the future when we have need of additional economic analysis. Very truly yours, Lee E. Bowman Planning Director LEB:SLcher C11:LETTERS\LEE CIVIC CENTER • 110 EAST MAIN STREET • P.O. BOX 949 • LOS GATOS, CALIFORNIA 95031 TECHNICAL PROPOSAL MARKET ANALYSIS FOR NORTH 40 AREA IN LOS GATOS INTRODUCTION In early 1991 ERA prepared a Market Analysis and Business Develoament Stratesv Report for Three Los Gatos Business Districts. That report examined the market opportunities available to Los Gatos and recommended strategies to encourage economic development and to fiscal position. The North 40 area was one of the districts examined by that report, which the Los Gatos Town Council indicated was "the finest report ever received from a consultant." The Town is now updating its General Plan and is concurrently developing a Specific Plan for this North 40 area. Because the very rapid growth of the Silicon Valley economy has stimulated extensive hotel, office and retail development, the Town is concerned that the land uses proposed in the Specific Plan be both realistic and serve the lone term interests of the community. In order to address this concern, the Town has requested that ERA.: prepare an updated market analysis to support the preparation of the North 40 Area Specific Plan. SCOPER OF WORK 1. Gain Understanding of Community Objectives • Meet with the Town staff to refine work scope and to collect relevant background information. . • Meet with key members of the Specific Plan Committee to gain a first hand understanding of local community objectives and concerns. 2. Review Growth Outlook for Santa Clara County • Review regional and local area population and employment growth forecasts for Santa Clara County with focus on the greater Los Gatos area. • Examine recent economic developments that affect Silicon Valley and compare the regional and local forecasts to recent actual growth. • Evaluate the underlying economic reasons for the future growth rate to continue, accelerate or de -accelerate. 1 • Identify the hotel properties which currently serve the Western Santa Clara County market and determine their quality level, average daily room rates, occupancy rates, number of rooms and meeting facilities. • Research transient occupancy tax collection trends to determine hotel demand growth for Los Gatos and nearby communities. • Forecast market area hotel room -night demand growth from the various sources of demand, including business travelers, meeting attendees and independent travelers. • Identify and evaluate the planned and proposed hotel projects that will compete with future development on the North 40 property. • Determine the number of rooms, size of meeting facilities, timing and types of hotel that can be developed on the subject property. • Identify market strata, amenities and support facilities required for success. 7. Estimate Demand for Office Development • Examine past Santa Clara County office demand growth by submarket. • Based upon ERA's regional growth forecasts. project Santa Clara County office space demand growth. Review the current vacancy rates, rental rates, tenant improvement allowances and absorption history of the major office buildings in the subareas which will compete with office development on the North 40 property. • Identify and evaluate future competing office developments in terms of location, size of project, amenities planned, likelihood of development and timing of implementation. • Estimate the North 40 property's market share and office absorption potential. 8. Integrate Research & Analysis Into Market Report • Provide three copies of the draft market report to Town staff for review. • Provide 25 copies of the final market report to the Town for distribution. 9. Attend Meetings to Present Findings • Attend one Planning Commission meeting if required by the Planning Director. 3 i NOV-19-98 13:55 FROM:ERA SF ID:4155565274 PAGE 2/2 V o o e e o 0 0 0 0 e O O N �O 0 00 \0 N' ,-.• .-r 4.6 w O O O O O O O O O p � N v'9 O O O O v1 O vy v1 In 00 00 %0 C? 00 Oh d' en O N N N a N c' f�! rt M — [� 69 0 0 as O O O O � 0 kri kr) I1 --+ (I It m 00C O O p 0 p0 0 O N cen o = N. N O d• 1 O h op N 69 .l > .1:s N N N aa r�r 69 CIA 00 O 00 0 00 V 69 O 69 0 0 0 0 0 0 0 0 0 O In Ft+ bO d0 .zt0 d0' 000 O IIQ — rn C1 EA co • 0 a) 70 asu 00 + 0 X En w c ..c o -0 :: -a co 0 co O 0 0 av t[ U Q co q y c as /15 0 a'a I a� c) a. = y — x UC7a�UxOaQo F x F= al ya) r-+ N M 4 \O (- 00 01 2 t-+ ECONOMICS RESEARCH ASSOCIATES Founded in 1958, Economics Research Associates (ERA) has become one of the lar?est land economics and real estate consulting firms in the United States. The firm, with five offices in the United States and one in London, has a total staff of approximately 85 employees. The firm has performed over 12,500 consulting assignments. ERA's client mix is about twenty percent international clients and eighty percent domestic. The domestic volume is evenly divided between government agencies and private interests. SERVICES TO THE REAL ESTATE INDUSTRY ERA real estate development services include concept development, market studies, financial analysis, market penetration strategies, structuring .pf leasing programs, solicitation of joint venture partners, site location analysis, and packaging of complex projects. While ERA's services are extremely important to the smaller development firms which do not have similar expertise in-house, the major development firms will often solicit a second opinion from ERA on particularly complex or innovative projects. Knowledge of the Development Community ERA most likely has greater familiarity with the regional, national and international land development community than any other firm of its type. ERA has worked directly for'.or has evaluated the proposed projects of the following major development organizations: The Irvine Company, Gerald D. Hines Interest, Del Webb Corporation, Hyatt Corporation, Homart Development, Mobil Corporation, Millennium Partners, Marriott Corporation, Weyerhauser Properties, Catellus Development, The Hahn Company, Simon De Bartolo Group, The Mills Corporation, Wilson Gates, the Rouse Company, Trammell Crow Company and many others. Development Financing ERA understands land development financing from both the private and public perspectives. One of the most frequently cited reasons for securing an ERA study is project feasibility documentation for financial institutions. ERA studies have contributed to the financing of billions of dollars of real estate development both in the United States and overseas. Dedication to Objectivity ERA's operating philosophy is to provide high level and objective consulting services in the area of land use and land development economics. ERA does not provide brokerage services, leasing services, nor does it assume equity positions in development projects because such activities could compromise consulting objectivity. 1 titled Adaptive Use: Development Economics Process and Profiles. Successful adaptive reuse naturally extends the economic life of historic buildings. ERA has performed adaptive use and historic preservation work in Boston (Faneuil Hall Area), St. Louis (Old Post Office Building), Chicago (Historic Pullman Area), and Lowell. Massachusetts (Lowell National Cultural Park). Economic/Fiscal impact Studies The pressure for increased efficiency in government is contributing to a growing demand for economic and fiscal impact evaluation of public policies, programs and projects. ERA has computerized fiscal models to examine the impacts of plan alternatives and specific development projects. In Southern California, ERA examined the fiscal implications of creating a 25,000-acre new community in San Diego County and the economic impacts of Los Angeles hosting the Summer Olympic Games. Transportation/Joint Development ERA offers a wide range of services to transportation agencies, often in consort with transportation planners and engineers. The economic impact of all port operations for. the Port of Portland was recently examined by ERA. Analyses of transportation system financing alternatives for resort communities such as Aspen, Colorado, and Mammoth, California, are other examples of ERA involvement. Transit station or transportation terminal -related land development, often via joint -use agreements between public and private entities, is yet another area of ERA concentration. The firm's experience in joint development planning. and project implementation is both current and substantial. ERA completed a joint development market analysis and implementation program for the twenty-six light rail stations along the Barfield Line in Portland, Oregon. As part of that study, ERA examined the joint development techniques, organizational strategies and case studies of seven regional rapid transit systems. ERA has also performed the mass transit system joint development economic analysis for the Houston region, for the Massachusetts Bay Transit Authority in Boston and for the Los Angeles Metro Rail System. ERA was also the lead consultant on the economic impact assessment of High Speed Rail for the State of California. Public and Cultural Facilities ERA is thoroughly experienced in the analysis of public and cultural facilities, including conference centers, convention centers, museums, performing arts centers, sports complexes and multi -use facilities. Types of analyses include facilities needs assessment, attendance forecasting, financial evaluation, funding plans, management and operations evaluation. public presentations and architect selection. These public facilities are excellent catalysts for generating urban vitality and are often analyzed in conjunction with multi -use developments or area revitalization plans. Recent ERA studies have included: 3 ECONOMICS RESEARCH ASSOCIATES SELECTED PROJECTS DEVELOPMENT CONSULTING FOR YERBA BUENA GARDENS Economics Research Associates assisted the City of San Francisco in establishing the development program for this major mixed use project on 24 acres in downtown San Francisco, which includes major convention hotel, office towers, Yerba Buena Cultural Center, public gardens, and an urban retail/entertainment center. ERA contributed to the preparation of the official Request for Qualifications (RFQ) for the initial development program and the subsequent RFQ for the retail/entertainment center project, participated in developer selection process, assisted during the exclusive negotiations with the selected development team, and has been acting as recreation/entertainment ,development consultant during design refinement phases for the San Francisco Redevelopment Agency. Client: Ms. Helen Sause Project Director San Francisco Redevelopment Agency (415) 749-2400 Date: 1984 - 1995 Consultant: Ray Braun MARKET ANALYSIS FOR JAZZ CLUB & CINEMA COMPLEX The San Francisco Redevelopment Agency, having reached an impasse on the financing of the Lower Fillmore Jazz Preservation District project, requested that ERA provide an independent market and financial analysis of the anchor development to this district which consisted of a Blue Note Jazz Club and an AMC cinema complex. ERA's rigorous analysis' was pivotal to the Redevelopment Agency securing both the financing and better terms from the developer and anchor tenant. Client: Mr. Ricky Tijani Project Manager San Francisco Redevelopment Agency (415) 749-2451 Date: 1997 Consultant: Bill Lee 5 SANTA CLARA COUNTY PROPERTY EVALUATION The County of Santa Clara General Services Administration retained ERA to examine 15 parcels of potentially surplus property. These properties ranged from a school site in Palo Alto to apartment sites in San Jose and mixed use possibilities on the Valley Medical Center campus. The evaluation included physical description, determination of highest economic use, financial analysis of supportable land value through development, valuation based upon comparable sales, consideration of County internal needs and joint development analysis. A strategy was recommended for each parcel. In this assignment, in addition to working with County GSA staff, ERA worked closely with the top levels of Santa Clara County administration. Client: Ms. Linda Wills General Services Administration County of Santa Clara (408) 299-3355 Ext. 7132 Date: 1998 Consultant: Bill Lee CAMPBELL OWNED PROPERTY ANALYSIS The Campbell Redevelopment Agency acquired the Winchester Drive -In theater site from bankruptcy court during the depth of the early 1990s recession. Recently the Agency retained a team lead by ERA to evaluate the financial, site and political considerations for disposing of the property. ERA evaluate alternatives including office/R&D, housing, commercial recreation, public recreation and card club uses. The City will make substantial profits by disposing of the property for office/R&D use when the deal closes escrow. Client: Mr. Marty Woodworth - Now with City of San Jose Redevelopment Manager City of Campbell (408) 866-2110 Date: 1995 Consultant: Bill Lee u 7 CONCORD NEGOTIATIONS AND POLICY CONSULTING The Concord Redevelopment Agency has used ERA for over a dozen assignments since 1983. The firm completed the initial market analysis for the Downtown Concord Redevelopment Plan in 1983 and has updated that study in 1988. In addition, ERA has prepared papers on economic development policies and strategies for the Concord City Council that included the pros and cons of attempting to develop a major retail project in the Downtown. ERA also assisted the Concord Redevelopment Agency with the negotiation of development disposition agreements, and has negotiated many such agreements for retail, office, mixed use and residential project. Once the disposition agreement is executed, ERA proceeded to prepare the reuse appraisal on these projects. Client: Bill Waterhouse Executive Director (now retired) Concord Redevelopment Agency Lee Rosenthal Goldfarb and Lipman (redevelopment attorneys) (415) 788-6336 Date: 1983 through 1990 Consultant: Bill Lee SAN JOSE ECONOMIC CONSULTING Economics Research Associates (ERA) has been retained for a series of assignments for the San Jose Redevelopfnent Agency and the City of San Jose since 1980. After five years with no developer interest in response to a previous plan, which indicated regional retail development, ERA suggested an office, hotel and support retail strategy for Downtown San Jose in its 1980 planning assignment. That plan resulted in thirteen development proposals from major national developers, and ERA participated in the selection of the development team. Many of the projects suggested in that plan have been completed or are being constructed. In 1988 ERA was rehired to expand the outlook for Downtown San Jose to the year 2020. The emphasis of the new plan, however, is for much more housing in and around the downtown to support a major retail strategy. ERA also participated as the economist in Guadalupe River Park Plan, an urban style river park running through downtown San Jose. 9 CITY OF SANTA BARBARA Economics Research Associates has been assisting the City of Santa Barbara with economic development and fiscal planning issues since 1980 as well. ERA assignments include the analysis of the changing economic base of Santa Barbara, assistance with the formation of several parking assessment districts, evaluation of the economic and fiscal implications of four alternative downtown development strategies, and a derailed cost and revenue examination of annexation or separate incorporation of the Goleta area. A hotel development and tourism was another assignment completed for Santa Barbara by ERA. ERA's work facilitated the development of the Red Lion/Fess Parker waterfront hotel in a sensitive political environment. Client: Mr. Dave Davis or Mr. John Bridley Community Development Director or Redevelopment Director City of Santa Barbara (803) 564-5455 Date: 1979 through 1995 Consultant: Bill Lee and Steve Spickard CITY OF MONTEREY ECONOMIC STRATEGY PLAN The City of Monterey retained ERA to prepare its Economic Element of the General Plan and its short term Economic Strategy Plan. In this work ERA performed the following:,1) Developed an understanding of Monterey's economic development goals, 2) Analyzed the economic structure of the Monterey community, 3) Met with an advisory committee to define objectives, 4) Examined the City of Monterey's fiscal concerns and challenges, 5) Discussed the appropriate economic development opportunities, 6) Suggested strategies for committee and City Council review, and 7) Recommended the final strategies and prepared the Economic Element. Client: Bill Fell Planning Services Director (408) 646-3885 Bill Wojtkowski Community Development Director City of Monterey (408) 646-3895 Date: 1993 Consultant: Bill Lee 11 SALT LAKE COUNTY HEADQUARTERS HOTEL ERA has assisted the Salt Lake City and County on hotel development issues on several occasions. In the early 1970s, Mr. Lee prepared a market feasibility study for the CBD West Area which recommended a 600-room convention hotel for the corner of West Temple and Second South in lieu of low-income housing which was being considered at that time. However, before the Redevelopment Agency was able to act, the private sector responded with the construction of the 515-room Marriott Hotel on the block immediately to the north of the Agency site and pre-empted the market. More recently ERA was retained by Salt Lake County and the Salt Lake Area Convention and Visitors Bureau to examine the market demand for and public assistance required for a convention headquarters hotel. In this study, ERA examined how other cities which compete with Salt Lake City secured major convention hotels. Client: 3ulieanne Peck Director of Community Services Salt Lake County (801) 468-2556 Date: 1995 Consultant: Bill Lee DENVER CONVENTION HEADQUARTERS HOTEL ERA addressed the very same issue of the feasibility of a convention headquarters hotel for the Denver Urban Renewal Authority. The market and financial analysis showed a substantial gap in feasibility, and the impact assessment indicated considerable benefit for the community. TheDenverUrban Renewal Agency, based in part upon the results of the ERA study, has just decided to allocate in excess of $20 million to induce the development of such a hotel. Client: Maurice Goodgain Denver Urban Renewal Authority (303) 538-3472 Date: Consultant: 1995 Austin Anderson 13 i EXPERT TESTLMONY FOR LOS ANGELES MTA ERA has served as expert witness on a series of trials for the Los Angeles Metropolitan Transportation Authority (MTA) on transit station proximity benefits. The cases concern property and easement acquisition by the MTA for construction of the Red Line and Green Line. Client: Jim Powers or Fred Fudacz Nossaman, Guthner Knox & Elliott (litigation attorneys) (213) 621-7800 Date: 1993 through 1995 Consultant: Bill Lee ADAPTIVE REUSE OF THE OLD MINT BUILDING IN SAN FRANCISCO ERA was recently retained by the United States General Services Administration (GSA) to examine the feasibility of adapting the Old Mint located at Fifth and Mission to a marketable use. In preparing the feasibility study, ERA has initiated discussions with nearby property owners to jointly undertake a major redevelopment project. If successful, this project will greatly enhance the Fifth Street corridor linking the Moscone Center expansion with the Union Square retail and hotel district. PROMENADE IN SANTA MONICA The City of Santa Monica formed the Bayside Development Corporation to undertake the redevelopment of Third Street Mall. Third Street is a three -block long, pedestrian mall which had significant commercial space vacancies in recent years particularly since the Qpening of Santa Monica Place, an urban regional shopping center at the southern edge of the mall. ERA assisted in development programming for the area, and prepared financial analysis of the revitalization program and related parking facilities. A specific improvement program was recommended which, when completed, led to the remarkable turnaround of this area. Major movie complexes, numerous restaurant facilities and retail outlets have since opened at the Promenade, making it one of the most intensively visited urban spaces in Los Angeles. 15 ERA Economics Research Associates Cllen ts City of Lafayette Downtown Project Appraisal & Analysis Town of Lompoc Retail Market Analysis City of Long Beach Convention Center Expansion Los Angeles Redevelopment Agency Economics of Downtown Strategic Plan Joint Development at Metro Rail Stations Tax Increment Analysis and Negotiation South Park Area Implementation Analysis Town of Los Gatos Business and Revenue Strategies Metropolitan Transportation Commission Santa Clara Valley Corridor Study City of Millbrae Analysis of Housing Oyer Parking Garage City of Milpitas Infrastructure Financing Monterey Hospitality Association Assessment District Formation for Tourism Promotion City of Monterey General Plan Update Economics City of Morgaa General Plan Update Economics City of Morgan Hill General Plan Update Economics Development Strategy City of Mountain View North Bayshore Area Plan Highway Improvements Financing Expert Testimony on Golf Course Economics City of Oakland Causes for Business Out -migration Cinema Complex Feasibility Oakland Coliseum Commission Economic Impact of New Arena Port of Oakland Feasibility of Jack London Marina Reconstruction Oceanside Redevelopment Agency Core Area Redevelopment City of Napa Fiscal Analysis of General Plan Alternatives City of Novato Hamilton Air Force Base Market Study Highway 101 Improvements Financing City of San Jose San Jose Redevelopment Agency Guadalupe River Park Plan Kelley Park Plan Golf Course Feasibility Jackson Taylor Neighborhood Plan Lincoln Auzerias Area Plan Golf Course Analysis Market Studies for Downtown Plan Developer Selection & Negotiation Julian Stockton Redevelopment Plan Convention Center Expansion Tax Increment Analysis Stadium Location Alternatives Sports Arena Tenant Negotiations Impact of AMC Cinerna Complex Downtown Parking Strategy City of San Juan Capistrano Downtown Revitalization City of San Luis Obispo Downtown Parking Financing City of San Rafael West Francisco Boulevard Plan Multi -modal Terminal Joint Development Developer Selection & Negotiations City Property Market Study B Street Redevelopment Feasibility City of San Ramon San Ramon Redevelopment Agency Economics and Fiscal Evaluation of General Plan Downtown Redevelopment Market Analysis Congregate Apartment Analysis Developer Negotiation (2 projects) Reuse Appraisals City of Santa Ana Parking District Formation City of Santa Barbara Airport Area Specific Plan Economics Hotel/Tourism Study Economic Base Study Growth Alternatives Evaluation Downtown Parking District Reformation Goleta Annexation Fiscal Analysis Goleta Shopping Center Impact Economics Research Associates Staff ECONO\IICS RESEARCH ASSOCIATES STEVEN E. SPICKARD, A.I.C.P. Senior Vice President Qualifications in Planning and Development Economics Steven Spickard specializes in land use economics with an emphasis on market, financial, and fiscal analysis of major new projects. During his 19 years with ERA, Mr. Spickard has evaluated markets for entire new towns as well as for individual proposed residential, retail, office, R&D, industrial, hotel, conference center, and mixed use projects throughout the Western United States, for both private and public clients. After assisting in project concept formulation from a market perspective, Mr. Spickard typically evaluates planning alternatives from the dual perspectives of private developer pro forma financial feasibility, and public sector concerns with job creation, economic development and fiscal impacts. An example of Mr. Spickard's experience with planning for sensitive areas is his recent study of the area north of Livermore, California, and the resulting strategy to preserve 10,000 acres of open space surrounding a proposed neotraditional community of 2,000 acres. He recently investigated possible re -uses fcr Mather Air Force Base in Sacramento after its closure. Other studies which have investigated private sector economic development potential include a 3,000-unit residential community in the Fast Bay hills, a new office town in downtown San Francisco, a mixed -use structure in downtown Sacramento, a neighbcrhoed retail center in Solano County, a retirement "continuing care" community adjacent to a Bay Area hospital, and a hotel and conference center on the San Mateo coast (as part of a strategy to preserve 3,000 acres of the Cascade Ranch as open space). _ For ERA, Mr. Spickard has developed a computer -based model for projecting the governmental cost and revenue implications of changes in land use or land use policy. Mr. Spickard has employed this capability to evaluate the fiscal implications: of five alternative levels of development for downtown Walnut Creek; of making use or density changes in Emery, ville's Bay Front Area; and of making changes in the Solano County General Plan. In recent years, Mr. Spickard has managed the fiscal planning and public finance strategies for: the 4,000 acre Mountain House new town proposed in the Central Valley, a 7,000 acre expansion of the City of Dublin, and a 900 acre coastal residential resort community in Half Moon Bay. In a broader economic study, Mr. Spickard recently analyzed the housing, employment, income and fiscal impacts of four alternative growth policies for guiding the future buildout of the City of Santa Barbara. As an independent consultant, Mr. Spickard analyzed the economic values of recreation and open space for the East Bay Regional Park District. Other experience prior to joining ERA includes employment with SRI International, the Department of Housing and Urban Development and with the City of Scottsdale, Arizona. These jobs involved analysis of such topics as national tax policy, subsidized housing programs, and municipal revenue projections. Mr. Spickard graduated Magna Cum Laude from the University of California, Berkeley, with a B.A. in economics. He Ifter returned to Berkeley to earn a Masters degree in City and Regional Planning. Steven E. Spickard is a charter member of the American Institute of Certified Planners. ECONOMICS RESEARCH ASSOCIATES ROBERT STEVENSON, Associate Qualifications in Urban Economics and Real Estate Mr. Stevenson provides research and analysis for a wide variety of urban economic real estate projects. Most recently he has: • Assessed the land absorption potential for a large-scale mixed -use development in the Central Valley. The study focused on residential, office and retail demand and competitive supply with an additional emphasis on themed-retail potential. Reseach involved forecasting future growth and demographic and market change induced by spillover from the Bay Area into surrounding communities; • Worked with King. County, Washington to assess the feasibility of developing multi -family housing and an assortment of mixed -use components on existing park -and -ride lots. The project demanded understanding of market as well as local political considerations in fashioning highly site -specific development proposals; • Conducted a market study for a proposed wild animal park in Northern California. Research for f • , this project involved analysis of business strategies employed by existing parks throughout North America; Assessed the market feasibility of an Internet revenue component for an entertainmentiedueational development program. Prior to joining Economics Research Associates, Mr. Stevenson's work experience included: • Working with the Municipal League of King County on a variety of projects including an investigation offpublic/private partnerships as a tool for dealing with regional transportation challenges as well as providing fiscal analysis and election support for smaller, newly incorporated cities; • Performing research and analysis and organizing community involvement opportunities for the City of Berkeley Planning Commission and the city's Advance Planning department. His work included local area plan development, input into emergency recovery preparation, and extensive involvement with the design and community input components of a bike/pedestrian freeway overcrossing; Mr. Stevenson holds a Master's degree in City and Regional Planning from the University of California at Berkeley, where he focused on Project Development and Land Use, and a Bachelor's degree in American Studies from Yale University. n Economics Research Associates ( i n A Clear Vision Since the firm'_ pioneering work in the U.S. leisure and entertainment industry, Economics '',search Associates has been helping a diverse roster of clients throughout the world to understand r markets, to assess risks, and to clarify the uncertainties inherent in business strategies and policy deveiopment. Our ',ob is often to clarify, to pull into focus, and to sharpen the boundaries or a preliminary pian or concept. We comprehend our client's vision —whatever the scope. objective, or location —and address their challenges through creadve thinking, structured analysis, and clear and concise communications. Our `rack record includes some of the world's most innovative development projects, attractions, and policy evaluations. Our success is a product of our steady focus on results. O I'rofessiflnal Services Focused0n Experience Understanding Insight Action Broad -Based Expertise ERA's clients and the firm's portfolio have always attracted the brightest, most talented consultants in their fields. ERA's processional staff are chosen based on the strength and quality or their experience across a broad spectrum of specialties.: he firm consdtutes a collection of professionals with specialized knowledge uniquely committed to the success of our clients. From this reservoir, we fashion project teams with the background and expertise that precisely suit the challenge at hand. :objective, Fact -Driven Analysis Our clients' challenges demand facts as a basis for action. In each engagement, :.:ERA develops a diverse array of relevant information, ranging from fundamental economic and demographic forces to detailed profiles of competitive facilities. _ We synthesize and analyze the data we collect and provide it in a coherent and usable foFn. as a basis:for action. Pragmatic, Implementation -Oriented Recommendations We measure our success hrough results. to each case our recommendations are filtered through the lens of practical experience to ensure a link between analysis and action. A Partnership with Our Clients ERA helps our clients build value, increase market share, or improve their financial performance through long-term commitments and working partnerships. We seek to transfer the knowledge and insights gained during our work to enhance our client's capabilities over the long run. Mall of America, Bloomington, MN Rignt abo, e Third Street Promenade, Santa Monica, CA Rrgnr 3erow a. b1FflXlwillimalm✓flf!liilrm� L� �Iltw w•mwamA gam 4.Y0w•wYw•wl1M1 �E.1w �J iL�11.11RYIIMM0Y11M11 wnww••O•wY••••l Real Estate Services 3y providing a market -driven development program and realistic estimates of financial feasibility ERA enables its clients to invest in, develop, and manage ?writable real estate ventures. Development arms, financial institutions, insurance companies, cor3erations, individuals., attorneys, and Iand owners seek and rely n our advice and counsel. 'IL ssignments invoving urban real estate have included economic planning for major -:fixed-use developments and planned communities, across all major property sectors: retail, office, industrial, hospitality, primary residential, recreational prope rlfies, and seniors housing. The firm often works in complex markets and with unusual client structures requiring innovative analytical approaches. Examples include our experience in analyzing retail and food-=zrvice conee'ssions in some of the world's leading airports and soon facilities, or our industry leading practice in combining retail. cultural facilities,.and entertainment. Hotel and resort deyelo rnent planning is a distinct sector of ERA's real estate practice. ERA provides market and economic planning for hotels and resorts throughout the world. Assignments range from major four -season resorts and urban hotels to projects oriented to specialty markets such as winter sports, tennis and golf. conference and convention groups, health and fitness, and casino gaming. ERA is tvidely recognized for its substantial international experience in the analysis of golf course de•. e!ooment and operations. While the golf practice is broad, and incorporates both public .1nd private courses, :nano assignments focus on the otters-bencr,'cial relationship between ,;oIf and adjacent real estate. U ter• inner Harbor. JJlhmore, MO ")o Gleo"'9sei Hotel, SCJ T L NO ',qnt -Cov. 'Y ^�•+h �r., .(Josas C;tY MO 3e.ori 5ervices• Site Selecrion Market Testing Program Development Financing Strategies Product Planning Transactional Due Diligence Expert Testimony Marketing Strategies ERA's Entertainment, Leisure and Recreation. Services Economics Research ..ssociates' experience encompasses virtually every aspect or leisure -time activity. Projects include a wide range of attractions, including major theme parks, urban entertainment centers, zoos, aquariums, sports and convention facilities, museums, expositions, and :airs; specialty entertainment facilities, events, and tours; and individual recreation facilities, clubs, and parks. ERA provides advice and guidance to more commercial recreation attractions than any other firm. Our experience in economic planning for major recreation destinations is unequaled in the industry. Our assignments result in pragmatic and creative action plans for the development, marketing, and management or recreation, entertainment, and tourism projects. Notable clients have included: Walt Disney World; Sic Flags; Knott's Berry Farm; Opryland, L.S.A.; ',Yet N Wild; National Aquarium in Baltimore: the Los Angeles Olympics Organizing Committee; Ocean Park Hong Kong; Warner Bros.; Lego; and Blockbuster Entertainment. ERA assists tourism and recreation providers in the strategic marketing and economic planning or local, regional, and national recreation facilities and in develooing economic self-sufficiency in facility operations, recreation programs, and concession:managerent. High-Impact'heatres, :co. Port Aventura, Southern Spam, .Above Services Concec't and Program Development Market Analysis Attendance P_ojecdons Finandai Analysis Capacity and Throughput Testing Reinvestment Strategies Management and Operations Analysis Partnering Strategies • - Our starf members are carefully selected and have a strong commitment to ERA, its clients, and professional development. Senior managers average over 15 years with the firm, and our clients benefit from a continuing relationship with xperienced advisors. Among the specialties represented within the firm are entertainment .onomics, real estate development. urban and regional economics, tourism •.ievelooment.:golf development d operations, retail, fiscal and economic -impact analysis, transportation economics, and parks and .ecreation planning. ERA Professionals serve as leaders in he most influential and prestigious professional organizations, inci-using the Urban Land Institute, the International Association of Amusement Parks and Attractions, the Council for Urban Economic Development. the World Tourism Organization, and . any others. Several .each in leading graduate programs in planning and real estate. A Worldwide Industry Presence ERA has an extensive record of successful projects in the Americas and throughout the world —particularly in the Pacific Rim and Europe. A major shareholder in the firm is Drivers Jonas, an independent partnership of Chartered Surveyors and Property Consultants headquartered in London and with offices across Canada and Europe. Combined with Drivers Jonas' skills in real estate transactions and asset and property management, ERA offers clients a comprehensive package of consulting services, from initial feasibility studies to ongoing implementation advisory services for both individual assets and portfolios at properties. Committed resourceful and Creative Professionals RESOLUTION 1998- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AMENDED AGREEMENT TO FACILITATE THE GENERAL PLAN TASK FORCE II, COLLECT TECHNICAL DATA, PREPARE GENERAL PLAN UPDATE AND NORTH FORTY SPECIFIC PLAN, AND PREPARE SEPARATE ENVIRONMENTAL REVIEWS FOR THE GENERAL PLAN UPDATE AND NORTH FORTY SPECIFIC PLAN. BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos enter into amended agreement with Robert Bein, William Frost, and Associates, to facilitate the General Plan Task Force II, collect technical data, prepare General Plan update and North Forty Specific Plan, and prepare separate environmental reviews for the General Plan Update and North Forty Specific Plan and that the Town Manager is authorized, and is hereby directed, to execute said agreement in the name and in behalf of the Town of Los Gatos. The contract cost shall not exceed the amount of $432,596.00. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7th day of December 1998, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: ATTEST: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\DEV\RESOS\N4OUPDTE.RES ATTACHMENT 2 AGREEMENT FOR GENERAL PLAN UPDATE CONSULTANT SERVICES THIS AGREEMENT is entered into this day of December, 1998, by and between the Town of Los Gatos, State of California, herein called the "Town", and Robert Bein, William Frost and Associates, engaged in providing General Plan update consulting services herein called the "Consultant". RECITALS A. The Town is considering undertaking activities to update the General Plan and adopt a North Forty Specific Plan. B. The Town desires to engage this consulting firm to provide consulting services for General Plan Task Force II facilitation, data collection, planning and environmental services because of Consultant's experience and qualifications to perform the desired work. C. As a result of an accelerated schedule the environmental reviews for North Forty Specific Plan require separate analysis and processing from the General Plan Update process. D. The Consultant represents and affirms that it is qualified and willing to perform the desired work pursuant to this Agreement. AGREEMENTS NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Consultant will provide General Plan update services. The project tasks are summarized below: Facilitation: Task 1 Task 2 Task 3 General Plan Task Force II meetings GPTF II sub -committee meetings Town Business License General Plan update, North Forty Specific Plan and Environmental Review: Task 1 Task 2 Task 3 Task 4 Task 5 Program Organization Community Participation Existing Conditions/ Data Collection Administrative Draft General Plan Final General Plan preparation Revised: November 24, 1998 N:IDEVIERWIN\GPUPDTE2.CON Page 1 of 8 Task 6 Task 7 Task 8 EIR preparation North Forty Specific Plan North Forty Specific Plan Expanded Initial Study/Mitigated Negative Declaration. A more detailed list of tasks and projected costs are listed in Exhibit A and Exhibit B. 2. Time of Performance. The services of the Consultant are to commence upon the execution of this Agreement with completion of the program by April 2000, as provided for in Consultants Project Schedule. 3. Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to Town that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos. 4. Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement. 5. Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town's property and shall be delivered to the Town upon the completion of Consultant's services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by the Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant. 6. Compensation. Compensation for Consultant's professional services shall not exceed $432,596; and payment shall be based upon Town approval of each task as outlined in the Council adopted scope of work. Payments are made on a reimbursement basis for services Revised: November 24, 1998 N:\DEV\ERWIN\GPUPDTE2.CON Page 2 of 8 actually performed by the consultant and for eligible costs actually incurred and paid by the Consultant pursuant to the Agreement. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form. The statement or statements requesting payment shall be in a form approved by the Town, and the Consultant shall specify in detail the services performed by the Consultant during the month or quarter for which payment is sought. In no event shall the Consultant overrun the total budget for any quarter without obtaining prior written approval from the Town. It shall be the policy of the Town to pay promptly (net 30 days) all bills which become due and payable by the Town. Payment to the Consultant shall be made 30 days after receipt by Town of monthly or quarterly reports required by the Agreement. The Consultant's invoice must include a purchase order number. The Town will determine whether payment can be made under the Agreement and may rely upon the certification by Consultant that the items appearing on the statement and its supporting data are eligible items under the Scope of Work. However, no such determination shall constitute a waiver by the Town of its right to recover from Consultant any monies paid on items that were not eligible to payment under the Scope of Work and the Agreement. 7. Availability of Records. Consultant shall maintain the records supporting this billing for not less than three (3) years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant's offices during business hours upon written request of the Town. 8. Project Manager. The Project Managers for the Consultant for the work under this Agreement shall be Paul Curtis and Laura -Worthington Forbes. 9. Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. No portion of these services shall be assigned or subcontracted without the written consent of the Town. 10. Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to: To Town: Revised: November 24, 1998 N: \DEV \ERWIN \GPUPDTE2.CON Planning Department 110 E. Main Street Los Gatos, CA 95030 Page 3 of 8 To Consultant: Robert Bein, William Frost and Associates 226 Airport Parkway, Suite 600 San Jose, CA 95110 or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town. 11. Independent Contractor. It is understood that the Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, the Consultant may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Consultant or is based on allegations of Consultant's negligent performance or wrongdoing. 12. Conflict of Interest. Consultant understands that its professional responsibilities is solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Consultant represents that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest should it discover it has done so and shall, at the Town's sole discretion, divest itself of such interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person, Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship. 13. Equal Employment Opportunity. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, Revised: November 24, 1998 N: \DEV \ERWIN\GPUPDTE2.CON Page 4 of 8 national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act. 14. Insurance. A. Minimum Scope of Insurance: Consultant agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. iii. Consultant shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by the Town before work commences. iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement. B. General Liability: The Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of Consultant, premises owned or used by the Consultant. This requirement does not apply to the professional liability insurance required for professional errors and omissions. ii. The Consultant's insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. Revised: November 24, 1998 N : \DEV \ERWIN\GPUPDTE2. CON Page 5 of 8 iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers. iv. The Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. C. All Coverages: Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk. D. In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees. 15. Indemnification. The Consultant shall save, keep and hold harmless indemnify and defend the Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Consultant, or any of the Consultant's officers, employees, or agents or any sub - consultant. 16. Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement. 17. Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior or Municipal Court of the County of Santa Clara. 18. Termination of Agreement. The Town and the Consultant shall have the right to terminate this agreement with or without cause by giving not less than fifteen (15) days written notice of termination. In the event of termination, the Consultant shall deliver to the Town Revised: November 24, 1998 N:\DEV\ERWIN\GPUPDTE2.CON Page 6 of 8 all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement pursuant to Exhibit A & B hereto, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination. Revised: November 24, 1998 N :1DEV 1ERWINIGPU PDTE2. C ON Page 7 of 8 19. Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant. 20. Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, as well as costs not to exceed $7,500 in total. 21. Entire Agreement. This Agreement constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party. IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement as of the date indicated on page one (1). Town of Los Gatos David W. Knapp, Town Manager Consultant: Paul Curtis Town of Los Gatos Robert Bein, William Frost & Associates Print Name Title ATTEST: Clerk of the Town of Los Gatos, Approved as to Form: Los Gatos, California Marian V. Cosgrove, Town Clerk Orry P. Korb, Town Attorney Revised: November 24, 1998 N:\DEV \ERWIN\GPUPDTE2.CON Page 8 of 8 Cost Savings Town Staff Preparation Meeting General Plan Task Force II Meeting Subcommittee Meetings • The following budget had been established based on a "per meeting" format This format provides a quick estimate of the total meeting facilitation budget but also an estimate of costs for additional meetings. RBF Se Associates is also submitting a proposal to provide consulting services for the preparation of the General Plan update and the EIR. If RBF is selected for both "projects", there is the potential for cost savings because of non -duplication of effort, easier contract management (saves Town, Staff time, too) and easier work effort coordination with Town Staff, etc. In addition, there are no costa included for "travel time and mileage" since Mr. Paul Curtis, the primary meeting facilitator is always in close proximity to Town offices (15 minutes from RBF offices and 5 minutes from his residence in Los Gatos). Tasks: Meeting with Town Staff Prepare meeting strategy and agenda Prepare background reports $5J0 per meeting Tasks: Meeting Attendance Meeting Preparation and Follow -Up • Prepare notice and agenda • Prepare and Distribute Issue Paper/Reports • Prepare Graphics (Display/Exhibits) • Prepare meeting notes/minutes • Follow-up of Action Items • Follow-up meeting with Town Staff $1,100 per meeting NOTE: It is RBF's experience that this is the "typical" cost for a citizen task force meeting (average 3 hours/meeting); if actual costs are less because of shorter meetings, combination of Town Staff meetings, etc., billing will be adjusted accordingly. Tasks: Meeting Attendance Meeting Preparation and Follow -Up • Prepare background report • Prepare Subcommittee meeting notes O Follow-up meeting with Town Staff $550 per meeting Budget Summary: Preparation Meetings with Town Staff (10 meetings 4 $550/meeting) No Charge General Plan Task Force II (10 meetings 4 $1,100/meeting) $11,000 Subcommittee ($550/meeting) $6,600 Town of Los Gatos Business License $75 TOTAL BUDGET $17,675 EXHIR1T A Cost Saving Possibilities Budget Billing for all budget tasks is based on an estimated number of hours necessary t complete the task. This "menu" approach allows the total budget to be reduced if certain task work efforts are reduced, modified or completely eliminated. For example, if staff provides substantial information, the Existing Conditions/Data Collection budget can be reduced, or if during the contract negotiation or General Plart Update process, the Town Staff and/or General Plan Committee determine that a reduced level of technical detail would provide an equivalent Ievel of resource analysis for General Plan preparation purposes, discrete tasks (e.g. Storm Drain Master Plan) may be scaled back accordingly. We have provided cost estimates for each "task" of the General Plan Update, EIR Storm Drain Master Plan, Trails and Bikeways Master Plan and North Forty Specific Plan. Estimated costs for optional tasks are provided at the end of this section TASKS FEE TASK 1 PROGRAM ORGANIZATION Sub -Task 1.1: Scoping Meeting Sub -Task 1.2: Communications Sub -Task 1.3: Base Maps Total Task 1 TASK 2 COMMUNITY PARTICIPATION PROGRAM (optional) TASK 3: EXISTING CONDITIONS AND DATA COLLECTION $ 2,320 $ 4,200 S 5.000 $ 11,520 Sub -Task 3.1: Field Reconnaissance $ 2,130 Sub -Task 3.2: Technical Evaluation of Existing General Plan $ 2,775 Sub -Task 3.3: Data Collection/Existing Conditions Report 3.3.1 Geologic/Seismic Hazards $ 23,320 3.3.2 Noise Contour Maps/Analysis $ 5,736 3.3.3 Public Services $ 2,000 3.3.4 Public Facilities $ 10,000 • Public Fac./Infras. Financing Alt. $ 5,000 3.3.4.1 Storm Drain Master Plan + Phase I - Baseline Data Inventory $ 36,000 •. Phase II - Drainage Deficiency I.D. $ 37,000 + Phase III - Alternative Drainage System Eval. $ 9,000 • Phase IV - Design Report $ 9,000 3.3.5 Trails and Bikeways Master Plan •> Task 1 - Existing Conditions, Inventory/ Res. $ 3,500 + Task 2 - Analyze Existing & Proposed Dev. Prj. $ 2,500 • Task 3 - Master Plan Preparation $ 6,300 •> Task 4 - Implementation Strategies $ 2,300 Total Task 33.5 Task 5 - Master Plan Document Preparation $ 6,000 Task 6 - Meetings and Hearings $ 2,500 S 23,500 3.3.6 Traffic/Circulation $ 7,500 + Optional Traffic Counts 3.3.7 Land Use Survey $ 2,500 3.3.8 Housing $ 1,200 3.3.9 Hazardous Materials $ 1,500 3.3.10 Emergency Response & Recovery $ 1.700 Total Task 3 $184,881 TASK 4: PREPARATION OF ADMINISTRATIVE DRAFT GENERAL PLAN Sub -Task 4.1: Administrative Draft General Plan (Includes update of 6 Mandatory Elements, and adoption of 1 New Elements) Sub -Task 4.1.1: Safety Element $ 2,340 Sub -Task 4.1.2: Noise Element $ 2,000 Sub -Task 4.1.3: Public Facilities/Infrastructure $ 7,250 Sub -Task 4.1.4: Traffic/Circulation Element $ 7,500 Sub -Task 4.1.5: Land Use Element $ 6,500 Sub -Task 4.1.6: Land Use Alternatives $ 4,500 Sub -Task 4.1.7: Housing Element (June 1997) $ 1,500 Sub -Task 4.1.8: Conservation/Historic Preservation Element $ 1,750 Sub -Task 4.1.9: Update Remaining Elements 5 1.100 Total Task 4 $ 34,440 TASK 5: PREPARATION OF FINAL GENERAL PLAN Sub -Task 5.1: Final General Plan $ 8,595 Sub -Task 5.2: Public Meetings/Workshops/Hearings 5 11.550 Total Task 5 $ 20,145 TASK 6: PREPARATION OF ENVIRONMENTAL IMPACT REPORT (Includes Draft EIR, Final EIR, Meeting Attendance & Public Hearings) $ 80,948 Total Task 6 $ 80,948 • Task 7: PREPARATION OF NORTH FORTY SPECIFIC PLAN (OPTIONAL) CUMULATIVE TOTAL FEE $326,934 OPTIONAL TASKS Task 2: COMMUNITY PARTICIPATION PROGRAM Sub -Task 21: One -on -One Interviews 5 1,500 Sub -Task 22: Random Sampling Community Survey $ 5,250 yes Sub -Task 23: Informational Display $ 4,730 Sub -Task 24: Community Forum $ 1950 Sub -Task 2.5: GP Update Central Committee (25 mtgs) $ 16,250 Sub -Task 26: Public Workshops (3) $ 3,950 Sub -Task 27: New Releases 5 1,500 yes Total Task 2 (Optional) 5 35,130 TASK 4.1.4: Update Existing Traffic Counts 510,Q00 yes TASK 6: EIR Optional Tasks: 4 Biological Resources $ 2,641 + Visual Analysis S 2.084 Total Task 6 $ 4,725 TASK 7: Task 1.1 Task 1.2 Task 1.3 Task 1.4 Task 1.5 Task 1.6 Task 1.7 Task 21 Task 22 Task 23 Task 2.4 Task 2.5 Task 3.1 Task 3.2 Task 4.1 Task 4.2 Task 4.3 Task 5.1 Task 5.2 North Forty Specific Plan Define Project Objectives, Concerns, and Requirements $ 2,000 Research of Existing Documents 5 1500 Field Reconnaissance $ 500 Base Mapping/Exhibits $ 1,000 Baseline Infrastructure Analysis $ 4,000 Baseline Traffic Analysis $ 1,200 Opportunities and Constraints Analysis $ 1,200 Workshops with Staff $ 5,000 Joint Workshop with Town Council and Planning Commission $ 1,Q00 Personal Interviews No Charge Public Hearings $ 2,000 Staff Liaison/Project Management $ 2,000 Goals and Policies $ 1,500 Develop Alternative Land Use Scenarios $ 3,000 Land Use and Development Regulations $ 5,000 Design Guidelines $ 10,000 Final Draft Development Regulations and Design Guidelines $ 2,500 Administrative and Public Hearing Drafts $ 10,000 Final Specific Plan Document $ 4,000 01 Reimbursables $ 2.500 Total Task 7 5 59,700 Total Recommended Optional Tasks $ 7GA30 Sccoiun VI: Cudgct CUMULATIVE TOTAL FEE (EXCLUDING OPTIONS) $326,934 CUMULATIVE TOTAL FEE PLUS NORTH FORTY SPECIFIC PLAN $386,634 CUMULATIVE TOTAL FEE PLUS ALL RECOMMENDED OPTIONS $420,539 ROBERT BEIN, WILLIAM FROST & ASSOCIATES PROFESSIONAL ENGINEERS, PLANNERS & SURVEYORS November 10, 1998 JN 650101 Mr. Lee Bowman, Planning Director Town of Los Gatos Planning Department P.O. Box 949 Los Gatos, California 95031 Dear Mr. Bowman: As you have requested, RBF has prepared a scope of work and fee estimate for preparation of the North Forty Specific Plan Mitigated Negative Declaration, separate and independent from the Los Gatos General Plan Update/EIR/Facilitator contract. The need to prepare a separate scope of work and fee estimate is a direct result of the Town Council's decision to accelerate the schedule for preparation of the North Forty Specific Plan. As you will recall, originally, the environmental compliance for the North Forty Specific Plan was included in our overall scope of work for the General Plan Update EIR at a program and policy level of analysis. The acceleration of the Specific Plan requires a separate level of CEQA analysis, as the General Plan Update and General Plan Update EIR will not yet be complete by the time the Specific Plan is completed. A separate environmental analysis will allow for projects that are proposed within the Specific Plan area to move forward prior to completion of the General Pla. One of the most significant benefits that I envision by preparing a separate analysis for the Specific Plan is the ability to focus the environmental analysis on much more of a site specific basis. For instance, had the North 40 Specific Plan been evaluated in the General Plan EIR, it would have been "lump" summed into the overall analysis of each issue, rather than receiving site -specific attention. By separating the analysis, we can more comprehensively focus the analysis (e.g. site circulation, land use compatibility, visual impacts) on a site specific basis. This will also enable us to create a much more finely -tuned mitigation program to ensure the success of the plan, as well as the integration of the mitigation for the Plan area with the overall intent of the General Plan policies being refined, updated and/or validated as part of the General Plan Update process. This would not have been possible had we evaluated the North Forty Specific Plan as a whole under the umbrella of the General Plan Update EIR. As we discussed during our meeting of November 4, 1998, we have reviewed our estimated fee for completion of the North Forty Specific Plan Mitigated Negative Declaration, particularly the air quality, noise and traffic scopes of work, and have been able to moderately reduce our fees without compromising our scope of work effort. Professional Service Since 1944 226 AIRPORT PARKWAY, SUITE 600, SAN JOSE, CA 95110-3705 • 408.451.9260 • FAX 408.451.9261 OFFICES LOCATED THROUGHOUT CALIFORNIA, ARIZONA AND NEVADA • WEB SITE: www.rbf.com onnlea M .0.y0.1 P e EXHPPIT 8 November 10, 1998 Paget This has been accomplished by relying more heavily on the design, circulation and infrastructure layout analysis being completed as part of the Specific Plan preparation effort. As we also discussed during this meeting, the spreadsheet does indeed reflect the cost savings for traffic and circulation, air quality, noise, geology and soils, and land use for data collection and baseline conditions only. These issue areas are not identical to the GP Update EIR, as we are analyzing a site specific project area, as compared to an entire Town. Therefore, the level of impact analysis and mitigation development will be far more parcel specific than one would find in a General Plan EIR, which by nature is a program -level policy document. I have included as an attachment the revised fee estimate. You will note that we have reduced our fees by approximately 16%, for a revised total estimate of $12,057. Please do not hesitate to give me a call if you have any further questions. Sincerely, aura Worthington-F Senior Project Manag Attachment: Revised Cost Estimate JN 650101 H CA U 0rCO OONr MNr EA 69 ER Cr) OOONcrCOOCOMNMMCMMOMCr c'�TrCOCOtocOCDMNCONNN69NCOCnd:et 69 MMtoa)co 69 EH r ER EA- 69 69 69. nr0NNN 69 EA 69 69 69- *a ix, NOON 69 69 NI- 69 O10 r 69 N r r 49 it) COCOCOCOr 69.696469te 0O0O 400111O N691�O N 69 69r 64 TOTAL HRS 'rC'')N N N t`titi00MMOMCO'V'cr r r r r ttCOCO 158 I Graphics 0 CO ER r r N ti 49 Ian/Expanded Initial Study/MND IProcessing 4 N r r M r O r 40, H IEngineer O CA EA CO CO N 10 r EA Air Quality HCO 10 CA O O r 00 CO W. 49 C R a. > C W I RD CO 10 N N CO CO CO c0 1.... d N CD 1A 4.4 Town of Los Gatos: North Forty Specific P a` LWF C 41, �- tO CO co co ce) In co v E9 J Photowork 1 DRAFT Preliminary Fee Estimate TASKS - RBF Administrative Draft Initial Study O a) 0 m ai Effects Found Not to be Significant Environmental Impact Analysis Geology and Soils Surface Water Hydrology Land Use Compatability Traffic and Circulation Air Quality Aesthetics Public Services, Utilities and Facilities Noise Cumulative Impacts Growth Inducing Impacts CEQA Review/Quality Control Preparation of the Draft Expanded IS/MND Administrative Final Expanded IS/MND Final MND PREPARATION OF CEQA NOTICES MITIGATION MONITORING Public Meetings/Hearings Project Management/Meetings Total Hours Total Cost Direct Costs CE! p i o 0 Admin Draft IS/MND Draft IS/MND Admin Final IS/MND 2 c2 LE cn a)) i 2i Mileage — v rn N Nm- , r NM Cr ID CD r• 00 Lc) o co 1... 10 0 N T 49, (b) technical appendices. (- i Ilows: (a) EIR text and i Total Other Direct Costs Total Direct Costs TOTAL NOT -TO -EXCEED FEE * Assumes production of two volumes as fo 650101/northfor.wb2