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CDC - Item 4B - Project Area Merger Proposal0 0 ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION STAFF REPORT TO: THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS FROM: OLIVER CHI, CITY MANAGER &L - - C-e^:- DATE: NOVEMBER 20, 2007 SUBJECT: PROJECT AREA MERGER PROPOSAL SUMMARY Currently, California Redevelopment Law allows for cities that currently have more than one active redevelopment project area to be able to merge these areas into one. The benefit of merging project areas is the ability to spend tax increment funds generated in one area in another. In the City of Rosemead, this would allow tax exempt bond proceeds as well as tax increment generated project Area No. 1 to be spent in Project Area No. 2 for various capital improvement projects like street rehabilitation, public facilities renovations, etc. As part of the 2007 -2008 CDC Budget, the Commission approved funding for the purpose of merging our two (2) redevelopment project areas. Staff has solicited proposals from reputable redevelopment consulting firms specializing in project area mergers and received responses from Urban Futures, Inc. and Keyser Marston Associates, Inc. Based upon previous relevant experience, thoroughness of the response, and overall price, staff is recommending that Urban Futures be selected to perform the project area merger. Staff Recommendation Staff recommends that the Community Development Commission enter into a professional services agreement with Urban Futures Incorporated in the amount of $135,000 for redevelopment consulting services. ANALYSIS Staff solicited proposals from a variety of firms specializing in redevelopment project area merger services. The City received a response from two firms: Keyser Marston Associates, Inc. $142,000 Urban Future Incorporated $135,000 Urban Futures, Inc.'s has provided redevelopment plan adoption, amendment, and merger services to over 100 redevelopment agencies in California. They are well APPROVED FOR CITY COUNCIL AGENDA: O 0 Community Development Commission November 20, 2007 Paae 2 of 2 known in the redevelopment profession for their overall expertise and attention to detail. Their planning and redevelopment staff has over 50 years of municipal experience in redevelopment law and practice, planning, and public finance. While staffs recommendation is not solely based on price, Urban Futures' proposal is $7,000 less than KMA. Based upon a preliminary time schedule, Urban Futures anticipates that the merger process will take approximately one year to complete. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Michelle G. Ramirez Economic Development Administrator Submi by: Bri eki Assistant City Manager Attachment A — Urban Future Incorporate Proposal Attachment B — Keyser Marston Associates, Inc Proposal URBAN FUTURES INCORPORATED Finance • Redevelopment - Implementation • Planning • Bond Administration September 28, 2007 Mr. Oliver Chi, Executive Director City of Rosemead Community Development Commission 8838 East Valley Boulevard Rosemead, CA 91770 Dear Mr. Chi: As requested please find included herewith the Urban Futures, Inc. (UFI) Proposal to Complete the Anticipated 2008 Amendment to the Redevelopment Plans for the Rosemead Redevelopment Project Area Nos. 1 and 2. This proposal to merge Project Areas No. 1 and No. 2 pursuant to specific merger provisions under the California Community Redevelopment Law incorporates new requirements established under SB1206 and other newly adopted bills affecting redevelopment plan amendments that have now been codified in the CCRL statutes, having become state law on January 1, of this year. With these new requirements in mind, in addition to our own in -house blight discovery and analysis techniques, our overall approach (and professional services fee) provides for an economic blight analysis to be prepared by the offices of Alfred Gobar Associates (AGA), economists. We believe that the inclusion of AGA in this endeavor is extremely important because of the intense focus on the presence of economic blight as a precursor to amending a redevelopment plan, regardless of the specific objective(s) of the amendment. It is our understanding that the Commission may also be interested in other redevelopment plan amendment actions including the addition of new territory, reinstating eminent domain authority, and extending the life of Project Area No. 1, for a maximum ten year period pursuant to CCRL Sections 33333.11 and 33333.10. We would be pleased to discuss any one or all of these possible amendment actions as a possible supplement_ to this proposal or as an entirely separate scope of work. If you have any questions or require additional information, please do not hesitate to contact our offices. Sincerely, URBAN FUTURES, INC. Marshall Linn, President Crestview Corporate Center - 3111 N. Tustin, Suite 230, Orange, CA 92865 -1753 Tel: (714) 283 -9334 General E -Mail: planning @urbanfuturesinc.com Fax: (714) 283 -9319 • Rosemead Comity Development Commission Proposal Redevelopment Plan Amendment Services A PROPOSAL TO COMPLETE REDEVELOPMENT PLAN AMENDMENT SERVICES FOR THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION BACKGROUND & APPROACH The Rosemead Community Development Commission (the "Commission" [activated on January 22, 2002 by Ordinance No.: 821]) currently administers Redevelopment Project Area No. 1 ( "Project No. 1 "), which includes approximately 511 acres, and Redevelopment Project Area No. 2 ( "Project No. 2 "), which includes about 203 acres; both Project Areas are shown on Attachments A and B included herewith'. The Commission is now proposing to amend the redevelopment plans (collectively the "Plans ") for Project Nos. 1 and 2 (collectively the "Projects or "Project Areas ") for the purpose of merging the Projects (the "Amendment') pursuant to authority codified under Article 16 of the California Community Redevelopment Law (CCRL; Health and Safety Code Section 33000 et seq.) commencing with Section 33480, and other applicable CCRL Sections as most recently amended .2 UFI staff is very knowledgeable of statutory requirements, case law, and recent legislative amendments in the form of SB1206 and others (being effective January 1, 2007) relative to redevelopment plan amendments. Inasmuch as redevelopment plan adoption and amendment activities are receiving increased scrutiny from lawmakers, taxing entities and the public generally, in addition to our usual due diligence, focus on Project detail, and sensitivity to client and community issues, UFI will make an extra effort to help the Commission comply with all new legal requirements affecting this amendment process including those specific to blight documentation and analysis. Of course, all tasks identified below will be completed in full compliance with appropriate provisions of the CCRL. The UFI approach to processing the Amendment is "turn -key" and includes all aspects of CEQA compliance, and preparation of all required resolutions and attendant staff reports." ' The City Council adopted the redevelopment plan for Project No. 1 on June 22, 1972 (by Ordinance No.: 340). This redevelopment plan has been amended on three occasions; December 9, 1986 (by Ordinance No.: 592) to establish the tax increment collection limit [about $250MM], and to establish eminent domain sunset date; December 20, 1994 (by Ordinance No.: 752) to comply with AS 1290; and January 22, 2002 (by Ordinance No.: 822), to eliminate the Plan's date restriction on establishing loans, advances and indebtedness. It should be noted here that without extension the effective life of the Plan for Project No. 1 will expire on June 27, 2012, 18 years before the expiration of the effective life of the Plan for Project No. 2. The City Council adopted the redevelopment plan for Project No. 2 on June 27, 2000 (by Ordinance No.: 809); this Plan has not been amended. If this Plan is the 30 year maximum term it will expire in June 2030. z The Amendment falls under the general provisions of CCRL Section 33354.6(a); the UFI approach to processing the Amendment will also be guided by recently amended CCRL Articles 12 and 16 (2006; effective January 1, 2007), which amendments included the addition of CCRL Section 33451.5, and modification to existing CCRL Sections 33456, and 33486, respectively. 3 CEQA means the California Environmental Quality Act, as codified under Public Resources Code Division 13, Environmental Protection. ° Other than meeting attendance, UFI only requires that Agency staff provide information as requested, and review completed documents as appropriate and necessary to ensure consistency and accuracy with respect to the "local perspective." C: \Documents and Settings \mramirez \Local Settings \Temporary Internet Files\ OLK501 \RedevPlnSNcs_Revised.doc SeplF -2- • Rosemead Com*ty Development Commission Proposal for Redevelopment Plan Amendment Services PROPOSED WORK PROGRAM Urban Futures (and, to the extent described herein, Alfred Gobar Associates) proposes to complete the following work tasks: Task 1: Prepare and Monitor Project Schedule; Meet with Staff (or at a later date per staff) Task 2: Prepare Property and Business Interest Exhibits for Use by Commission Legal Counsel /City Attorney to Determine Public Official's Potential for Conflict of Interest Task 3: Conduct parcel specific Blight Reconnaissance in the Project Areas Task 4: Formulate Taxing and Environmental Entity Transmittal Manifests Task 5: Prepare and Transmit Courtesy Notice of Plan Amendment to all Affected Taxing Entities Task 6: Prepare and Present Advisory Briefing for City Planning Commission Information Purposes Task 7: Prepare and Transmit CCRL Section 33344.5 Preliminary Report Including Required CCRL Section 33451.5(c) [2006] and 33486(a) [2006] Components 6 Task 8: Prepare Amendments to Plans' Task 9: Review Commission Indebtedness, Bonding, and Housing Compliance Status Vis- a-Vis CCRL Sections 33486(b) and 33487; As Necessary Provide Recommendations to Staff with Respect Thereto Task 10: Prepare for and Conduct Commission Workshop for Briefing and Update on Blight Analyses, Task 9 Findings, and Other Amendment Activities to Date Task 11: Prepare Initial Study, Negative Declaration, and Related Notices per CEQA Requirements" 5 This Proposal assumes UFI will complete parcel level field reconnaissance in the Project Areas in full compliance with the provisions of CCRL Sections 33354.6(a), 33451.5(c) [2006], and 33486(a) [2006]. The Commission could elect to fund a less intensive "block - level' review of the Project Areas rather than the parcel -level analysis; however, we believe the cost of the more intensive parcel specific field review and subsequent analysis is minimal compared with the risk that a block -level survey might not be found sufficient to ultimately allow the City Council to find that "significant blight remains within one of the project areas" (CCRL Sections 33486(a)), and that the Project Area(s) contain "necessary and essential parcels for the elimination of the remaining blight" (CCRL Section 33451.5(c)(1). The UFI approach to field reconnaissance, blight discovery, and analysis is shown in Attachment C, included herewith. 6 Alfred Gobar Associates (AGA) will prepare the economic blight analysis (baseline analysis) component of the 33344.5 Preliminary Report including the required 33451.5(c) [2006] and 33486(a) [2006] components, and the CCRL Section 33352 Report to the City Council. The AGA analysis will document those conditions and trends indicative of economic dislocation described in the AGA work scope included herewith as Attachment D. This Proposal does not anticipate the use of other adjunct professionals. The Amended Plans will incorporate all revisions necessary to affect proposed amendment actions and may be written to replace and supersede the existing Plans. C MD uments and Setdngs\rnramirez %L al Settings \Temporary Internet Files \OLK501 \RedevPlnSNU Revised.doc Septe -3- • Rosemead Comity Development Commission Proposal_for Redevelopment Plan Amendment Services Task 12: Prepare CCRL Section 33453 Report for Planning Commission Consideration and Approval Task 13: Prepare Joint Public Hearing Notices with Attachments, and Commission and City Council Resolutions Consenting to a Joint Public Hearing (JPH), and Authorizing Transmittal of Public Notices with Related Attachments Task 14: Prepare Manifest of Assesses, Residents and Businesses for the Joint Public Hearing Mailing; Coordinate Mail House JPH Mailing Operations and Publications (Four Publication Dates)' UFI to transmit JPH Notices (Certified Mail) to Affected Taxing Entities Task 15: Transmit Required Documents to State Finance Director, and HCD Not Less Than 45 Days Prior to Joint Public Hearing 13 Task 16: Prepare Agency Report to the Legislative Body Pursuant to CCRL Sections 33457.1 and 33352 Task 17: Prepare Adopting Ordinance(s), Related Resolutions and CEQA Findings Resolutions Approving Negative Declaration, and Various Staff Reports Necessary to Adopt the Plan(s) Amendments; Work with City Clerk to Publish and Post JPH Notices as Required By CCRL and CEQA Task 18: Assemble and Distribute Public Hearing Evidentiary Records Task 19: Prepare For and Conduct One (1) Community Redevelopment Workshop Task 20: Prepare for and Attend Commission and City Council Joint Public Hearing Task 21: Prepare and Transmit Final Filings (CCRL Section 33487 /CEQA); Archive Amendment Files 9 Unless the Commission directs otherwise, because of the nature of the Amendment (i.e., fiscal in nature), this proposal assumes preparation and distribution of a negative declaration the basis of which will be fully explained in the initial study prepared for the Amendment, cost of EIR preparation is not included in this proposal. e Planning Commission role in CEQA compliance process may /may not be required; Agency staff must provide consultant with Agency's adopted CEQA Implementation Plan Guidelines. 10 City Attorney /Commission special counsel should provide written opinion as to adequacy of City's General Plan prior to the commencement of Amendment proceedings. UFI will not be responsible for making this determination. 11 UFI will use GIS and Metroscan to develop parcel manifest; mail house participation based upon separate contract. UFI will provide mail house reference; Commission may designate preferred mail house contractor. Joint Public Hearing notices must be sent to all persons with an interest, as defined under the CCRL, in the Project Areas. 12 This is the only required "consultation" with affected taxing entities. In the event a consultation(s) is requested by one or more taxing entities UFI will participate in the consultation process as directed by staff on a time and materials basis. 10 This Proposal does not include UFI /AGA time to respond to objections that the Commission may receive from the State Department of Finance and /or HCD prior to or at the joint public hearing (CCRL Section 33451.5(e) and (f) [2006]). If requested by the client, UFI /AGA will participate in preparing responses on a time and materials basis. C: \Documents and Settings\mramirez \Local Settings \Temporary Internet Files\ OLK501 \RedevPlnSrvcs_Revised.doc Septc -4- • Rosemead Comoty Development Commission Proposal for Redevelopment Plan Amendment Services MEETING ATTENDANCE This Proposal provides for UFI staff to prepare for and attend seven (7) meetings. These will consist of the following: two (2) City Planning Commission meetings (see task nos. 6 and 12); one (1) public workshop (property owners /tenants /residents, see task no. 19); three (3) Commission /City Council meetings (one meeting as directed; includes task nos. 9 and 20); and one (1) staff meeting at City Hall. IF - PROFESSIONAL SERVICES FEE UFI proposes to complete the proposed scope of work for a fixed professional services fee of $125,000. In addition to our professional services fee, UFI advises the Commission that additional funds should be set aside for Amendment - related expenses to be incurred by the Commission. These costs are generally outlined below: • Document printing costs, • Joint Public Hearing mailings (estimated to be about $2.50 per mailed piece [includes postage, printing, and handling]) and other mailing costs, • CEQA fees of approximately $1,800, • GIS and /or other electronic data purchase from County of Los Angeles or other sources (if utilized), • Mail house services, and • "Out of Pocket" travel costs such as car rental and other travel expenses. We recommend that the Commission budget an estimated additional $10,000 for these costs. Please note that these costs will be incurred from third party vendors and will be invoiced to the Commission as described below. The commission will receive invoices or receipts, as appropriate, for each of these costs. All out -of- pocket expenses incurred by UFI including postage, travel, electronic data files, etc., or other funds sponsored by UFI to process the Amendment on the client's behalf will be invoiced at cost plus a 10% administration /handling fee. 14 This professional services fee does include the services provided by Alfred Gobar Associates. This Proposal does not include bilingual presentations or written materials; if the Agency deems these services to be necessary, they can be provided for an additional fee. Legal services fees are not included as a part of the professional services fee indicated herein nor are they included in the estimated $27,000 additional Amendment related costs set forth herein. 15 Joint Public Hearing notices must be transmitted to designated recipients within the Project Areas. C: \Documents and Settings\Mramirez \Local Settings \Temporary Internet Files\ OLK501 \RedevPlnSrvcs_Revised.doc Sepic -5- • Rosemead Comity Development Commission Proposal for Redevelopment Plan Amendment Services CURRENT HOURLY RATES UFI Principal ................................. ............................... $187.00 per hour Principal Planner ...................... ............................... 120.00 per hour Senior Planner ........................... ............................... 95.00 per hour Planner ...................................... ............................... 85.00 per hour Assistant Planner ....................... ............................... 65.00 per hour Planning Technician .................. ............................... 45.00 per hour I_[H_l Principal ................................. ............................... $132.00 per hour Independent Consultant ( Principal ) ......................... 132.00 per hour Senior Research Associate ........ ............................... 88.00 per hour Independent Consultant (Research) ......................... 88.00 per hour Research Associate ........................ .......................... 72.00 per hour FieldStaff .................................. ............................... 60.00 per hour Word Processing /Report Preparation ........................ 60.00 per hour PROJECT TIME FRAME UFI proposes to complete the proposed scope of work within about ten (10) months from date of official notice to proceed. UFI will not be responsible for delays in the adoption process which may be caused by circum- stances not under its control. OFFICE SYSTEMS NOTES UFI uses the following: i) WordPerfect 11; ii) Mapinfo and ArcView geographic information system (GIS); iii) Transamerica Intellitech data (MetroScan); iv) Microsoft Office 2003 and XP, including Powerpoint presentations; v) Keyhole Pro aerial imagery; and vi) Adobe Acrobat and Photoshop. UFI web site URL: http: / /www.urbanfuturesinc.com C. \Documents and Settings\mramirezlLocal Settings \Temporary Internet Files\ OLK501 \RedevPlnSrvcs_Revised.doc Septc -6- 0 0 ATTACHMENT A PROJECT AREAS MAP (No.1 AND No. 2) -7- n Z z0 z z W W E U aw �o v fN WW y u O Z O wwz it e�gg�gg� p0 Waz W W M< = a ¢ s a3l3Ee w c e Ww °>o oi- WWZ QU W N F W lA e E e m m $ �� LLw O¢K < I–o< a d CL Fq o K n In K Z Q m * 6 In ; `� O ) F_C JLL Q o oz F r�7 rsa ULLinrc uu� 2 Q V Om a o I I tp•`... 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N m c nv F❑ N UtD� � 5`— o E v r T c O D m y E o n u y 6 U n N o C y D v o o = o o - W W .L N N O W N O O y C . Q . 0 ry a n L D c W J Oo'avcEm.. cny roc o c `m uucnnu`o'c a 2 x d _ •� ... will 11'11I1i� `�i��JOj• •�� � �II still L m A C ti m 10 IL � LL U y � U D• _ ION III 0 amcc co O O N 41 O N W ?• = D pl r W _ L m O Ip O C 22-6 a W N W O U O W a U am —.p'y ca m_om 12 c E v c j ~ O N U L O) Y T m U O % L D S I- a N C7 d N N A W s t T = N J D y � m .a N E m m E v w L`. N m c nv F❑ N UtD� � 5`— o E v r T c O D m y E o n u y 6 U n N o C y D v o o = o o - W W .L N N O W N O O y C . Q . 0 ry a n L D c W J Oo'avcEm.. cny roc o c `m uucnnu`o'c a 2 x d 0 ATTACHMENT D ALFRED GOBAR ASSOCIATES SCOPE OF WORK -14- O ALFRED GOBAR ASSOCIATES October 1, 2007 Mr. Jon Huffman URBAN FUTURES, INC. 3111 N. Tustin Avenue, Suite 230 Orange, CA 92865 Sent Via Mail & Email: jonh @urbanfuturesinc.com aMa !IED U- J LID ` Subject: Project Amendment Economic Blight Assessment — Rosemead, California Dear Jon: Our understanding is an economic blight analysis is required in connection with an amendment to merge two existing redevelopment Project Areas — Project Area No. 1 and Project Area No. 2. Each existing Project Area includes a diverse mix of land use development and covers a large section of the City of Rosemead. The existing pattern of land use in each Project Area affects the workscope required to assess whether or not conditions indicative of economic blight remain present. A synopsis of existing land use conditions in each Project Area is generally summarized below: • Project Area No. 1 is located in the southern section of the City and covers large contiguous areas of residential, commercial - retail land use. Garvey Avenue functions as the primary commercial - retail corridor serving in the southern section of the City. Project Area No. 1 includes a 1.2 -mile section of Garvey Avenue, where existing land use is characterized by an eclectic mix of small strip - commercial and freestanding retail activities. Residential neighborhoods within Project Area No. 1 are situated to the north and south of Garvey Avenue and extend to the southern limits of the existing Project Area. A scattering of office and industrial land use also exists along major thoroughfares bisecting Project Area No. 1. Project Area No. 2 is located in the northern section of the City dominated by a diverse mix of commercial land use on either side of Valley Boulevard and Rosemead Avenue. Valley Boulevard functions as a primary commercial - retail corridor and the Rosemead Avenue - Interstate 10 Freeway interchange constitutes the single largest commercial - retail node serving the larger community. Project Area No. 2 includes a 1.8 -mile stretch of Valley Boulevard and nearly all commercial - retail land use along a 1.2 -mile section of Rosemead Avenue. Both Project Areas include important commercial - retail land use intended to serve the community. Both Project Areas also include a diverse mix of land use generating demand for public protection services required to reduce the threat of crime and public safety burden on the community. Beginning in 2007, SB1206 makes important legislative changes to the California Community Redevelopment Law that affect the analysis of economic blight required in connection with the proposed amendment to merge both Project Areas. Under the law, conditions that indicate blight must remain present and significant in at least one of the two Project Areas to warrant the proposed 300 So. Harbor Blvd., Suite 900, Anaheim, CA 92805 -3721 (714) 772 -8900 (714) 772 - 8911 -FAX -15- 0 0 ALFRED GOBAR ASSOCIATES Mr. Jon Huffman Economic Blight Assessment — Rosemead, California Page 2 merger (CCRL Section 33486a). Based on the indicated legal requirements, the recommended approach is to first assess each Project Area separately for conditions indicating economic blight and then determine if existing conditions in either Project Area are significant enough to warrant the proposed merger. This proposal addresses recommended research to assess and evaluate conditions indicative of economic blight. Most indicators of economic blight cannot be readily assessed at a parcel - specific level due to the reporting limits of reliable data sources used to assess economic conditions. Instead, the investigation of economic blight must consider factors not readily identified by a visual inspection. A reasonably objective assessment of economic blight conditions must rely on diverse sources of data that may not readily describe the precise boundary of the Project Area. The economic blight analysis for Rosemead, therefore, begins with an assessment of available data sources to determine which of the following economic conditions to investigate on a priority basis: • Depreciated or Stagnant Property Values • Adequacy of Commercial Facilities • Overcrowded Housing and Poverty • Public Safety Risk and Related Economic Burden For the Project Area to suffer from economic blight, only one economic condition must exist. Our recommended approach is to begin an evaluation of multiple economic conditions since blighted areas are often impacted by multiple impediments to economic growth. The research objective corresponding to each condition noted above is summarized as follows: • Property Value Analysis — to determine the extent underlying land value has failed to keep pace with comparable land use in the surrounding market area. Stagnant property values are a manifestation of economic circumstances limiting the utilization of property. • Adequacy of Commercial Facilities — to determine the extent existing retail - commercial facilities that provide needed retail products and services to neighborhood residents are lacking and the extent existing commercial facilities are otherwise plagued by excess vacancies, inordinately low lease rates, and technically obsolete conditions that hinder economically viable commercial use. This detailed analysis will focus on retail - commercial in one of the two existing Project Areas based on review with Agency and Finance Department Staff. • Overcrowded Housing and Poverty — to determine housing occupancy and income levels within the Project Area using the latest information from Bureau of Census and local service agencies compiling records of housing occupancy and resident income. Overcrowded housing and poverty reflect living circumstances closely associated with conditions of economic and social displacement contributing to crime and public safety problems. • Public Safety Risk — investigation of Police and Fire response call data for the Project Area and comparable land use in other portions of Rosemead to determine the extent residents and businesses suffer excessive public safety risk (crime and fire hazard risk) and the City incurs an undue economic fiscal burden to serve the area. ROSEMEAD EGON BLIGW SCOPE OCT -07 -16- 0 s ALFRED GOBAR ASSOCIATES Mr. Jon Huffman Economic Blight Assessment — Rosemead, California Page 3 Alfred Gobar Associates regularly evaluates conditions indicative of economic blight and has prepared numerous studies for such communities as Murrieta, Upland, Soledad, Manteca, Gridley, Hanford, and Kings County, to name a few. Our approach in assessing blight relies on research principals and methodologies regularly used in economic development and real estate market studies prepared private investor, and developer clients. For your benefit, we also website describing our research capabilities at www.gobar.com Very truly yours, ALFRED GOBAR ASSOCIATES Alonzo Pedrin Principal for public agency, maintain a modest ROSEMEAD ECON BLIGHT SCOPE OCT -07 ^/ -1 R-— L KGYSER MARSTON ASSOC�,TLiATEES ADVISORS IN PUBLIC /PRIVATE REAL ESTATE DEVELOPMENT A REAL ESTATE Jul 25, 2007 RFnt ESTATE Y REDEVELOPMENT AFFORDABLE HOLDING ECONOMIC DEVELOPMENT SAN FRANCISCO Mr. Brian Saeki A. BERRY KEYSER TIMOTHYC. KELLY Redevelopment Administrator KATE EARLE FUNK DEBBIE M. KERN City of Rosemead ROBERT 1. WETMORE 8838 E. Valley Boulevard I OS ANGELES Rosemead, California 91770 CALVIN E. HOLLIS. II KATHIEEN H. HEAD JAMES A. BABE Re: Proposal for Redevelopment Merger Services PALIL C. ANDERSON GREGORY D. Soo-Hoo KEVIN E. ENGSTROM JULIE L. RONEY Dear Brian: SAN CTGO GERALD M. TRIMBI.E Keyser Marston Associates, Inc. (KMA) is pleased to submit this proposal to provide PAUL C. MARRn Redevelopment Plan amendment services to the Redevelopment Agency of the City of Rosemead (Agency). The proposed scope of services provides for "full' Redevelopment Plan amendment services to assist the Agency in preparing all the necessary documents and notices required to merge the Agency's two Redevelopment Project Areas. We appreciate the opportunity to submit this proposal and look forward to working with the Agency. Feel free to call us with any questions or comments at (213) 622 -8095. Sincerely, KEYSER MARSTON ASSOCIATES, INC. Paul C. Anderson Principal Attachment 500 SOUTH GRAND AVENUE, SU H E 1480 i LOS AN GELES. CALIFORN IA 90071? PHONE 213 622 8095 'YFAX 213 622 5204 PA0707020.KMA:PA:CK:9bd W W W.KEYSERMAP,STON.COM 90900.000.0o2N7rzOro7 0 0 PROPOSAL FOR REDEVELOPMENT PLAN AMENDMENT SERVICES Prepared For: THE REDEVELOPMENT AGENCY OF THE CITY OF ROSEMEAD JULY 2007 Submitted By: Keyser Marston Associates, Inc. 500 South Grand Avenue, Ste. 1480 1660 Hotel Circle North, Ste. 716 Golden Gateway Commons Angeles, CA 90071 San Diego, CA 92108 55 Pacific Avenue Mall (213) 622 -8095 (619) 718 -9500 San Francisco, CA 94111 FAX (213) 622 -5204 FAX (619) 718 -9508 (415) 398 -3050 FAX (415) 397 -5065 0 TABLE OF CONTENTS I. REQUIREMENTS FOR MERGER OF REDEVELOPMENT PROJECTS ............................1 IL PROJECT UNDERSTANDING AND APPROACH.... .................2 III. SCOPE .................................................................................................. ..............................3 A . DOCUMENT PREPARATION ........................................................... ..............................3 Plan Amendment Document Preparation ........................................... ..............................3 Task1 - Schedule of Actions .............................................................. ..............................3 Task 2 — Resolutions, Hearing Notices and Ordinances ..................... ..............................3 Task 3 — Notices to Taxing Agencies, Department of Finance (DOF) and Housing and Community Development ( HCD) ......................................... ..............................3 Task 4 — Redevelopment Plan Amendments ...................................... ..............................3 Task5 - Preliminary Report ................................................................ ..............................4 Task 6 - Report to the City Council ..................................................... ..............................4 B. PROJECT COORDINATION ............................................................. ..............................5 Task 1 - Schedule Monitoring and Project Management .................... ..............................5 Task 2 - Consultations with Taxing Agencies ..................................... ..............................5 Task3 - Community Meeting .............................................................. ..............................5 Task4 - Staff Reports ........................................................................ ..............................6 Task 5 - Attendance at City Meetings ................................................. ..............................6 IV. SCHEDULE ........................................................................................... ..............................7 V. BUDGET, EXPENSES AND PAYMENT SCHEDULE .......................... D Proposal for Redevelopment Plan Amendment Services Keyser Marston Associates, Inc. Rosemead Redevelopment Agency Page i PA0707020.K W:DVB:gbd 99900.000.0 0 2/7 2 510 7 • • REQUIREMENTS FOR MERGER OF REDEVELOPMENT PROJECTS There are specific provisions in the California Community Redevelopment Law (CRL) that govern the merging of redevelopment project areas. Per Article 12 (commencing with Section 33450) of the CRL, the City Council may, by ordinance, amend a redevelopment plan upon recommendation of the Agency. Before recommending amendment of a redevelopment plan, the Agency is required to hold a public hearing on the proposed amendment. Article 16 (commencing with Section 33485) of the CRL includes the specific requirement and procedures to be followed to merge redevelopment project areas. Per Section 33486(a), before adopting the ordinance amending each affected redevelopment plan, the City Council shall find, based on substantial evidence, that both of the following conditions exist: Significant blight remains within one of the project areas. 2. This blight cannot be eliminated without merging the project areas and the receipt of property taxes. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 1 PA0707020 ":DVB:9bd 999 .M.00WQ5W It. PROJECT UNDERSTANDING AND The Redevelopment Agency of the City of Rosemead (the "Agency') would like assistance in amending the Redevelopment Plans to merge Redevelopment Project No. 1 and Redevelopment Project No. 2. The Merger would allow tax increment to be shared between the Projects, but would not change the basic financial provisions including the provision to collect tax increment. Keyser Marston Associates, Inc. (KMA) proposes to provide redevelopment plan amendment services to the Agency. It is our understanding that the Agency will prepare the appropriate environmental review document or will consult separately for these services. KMA would be responsible for the overall coordination of the Amendment effort, and would prepare the analysis evaluating the feasibility of merging Projects including financial feasibility. This would include preparing and monitoring the Amendment adoption schedule; preparing the required documents, including the amendments to the Redevelopment Plans; assisting in drafting staff reports; and attending meetings. It is assumed that Redevelopment Project No. 1 and Redevelopment Project No. 2 (the "Constituent Projects ") would retain separate Redevelopment Plans. KMA has included a budget to prepare the required notices, resolutions and adoption ordinances. Because both Projects are being amended to merge, two separate ordinances would be required. Because the Agency is not proposing to add territory or amend existing provisions for eminent domain authority in the Constituent Project Areas, the formation of a Project Area Committee (PAC) will not be required. In lieu of a PAC, the Agency will follow an alternative community participation process including holding an information meeting to present the Amendments and to receive input from property owners and occupants in the proposed Merged Project Area. KMA will provide all of the necessary services to facilitate the community outreach effort. KMA recommends that the Agency retain special legal counsel to oversee the merger process. If legal counsel is retained, they may wish to prepare the Amendments, resolutions, notices and ordinances. If this is the case, our scope and budget will be adjusted accordingly. Finally, it is assumed that staff will handle all mailings and duplication of documents. We recommend that staff contract with a mailing house to prepare and deliver the joint public hearing notices. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 2 PA0709020 KM DVB gM 99900.000.002/ aW7 • e III. SCOPE The following scope of services is divided into two service areas: Document Preparation, and Project Coordination. These services represent the full range of services required to take the Agency through the Plan amendment process. A. DOCUMENT PREPARATION Plan Amendment Document Preparation Task 1 - Schedule of Actions KMA will prepare a detailed and summary schedule of actions identifying all activities required by law leading to the adoption of the Amendment. The schedule lists actions, responsible parties, scheduled dates and documents to be prepared. Product:......... Detailed and Summary Schedule of Actions Task 2 — Resolutions, Hearing Notices and Ordinances There are numerous resolutions and notices including the plan amendment adoption ordinances that are either required or recommended to document that all of the required steps in the plan amendment process have been taken. KMA will prepare drafts of these documents for staff's use. KMA assumes that the drafts will be reviewed by the Agency's legal counsel prior to being finalized by staff. Task 3 — Notices to Taxing Agencies, Department of Finance (DOF) and Housing and Community Development (HCD) The affected taxing agencies, DOF and HCD are required to be notified of the Agency's intent to amend the Redevelopment Plan(s). KMA will identify the name, address and contact for these entities. For staffs reference and use, KMA will also provide staff with an electronic file. Product:......... Required Taxing Agency DOF and HCD Notices, Mailing List, and Electronic Version of the File Task 4 — Redevelopment Plan Amendments KMA will prepare a draft and a final version of the Amendment to each of the Redevelopment Plans to effectuate the Merger of the Redevelopment Projects. Each Amendment will be prepared in a form that will allow it to be attached to its respective Proposal for Redevelopment Plan Amendment Services Keyser Marston Associates, Inc. Rosemead Redevelopment Agency Page 3 PA0 070K.KMA:DVB:gbd 99900,000.00=&07 • e Redevelopment Plan, i.e., KMA will not re -type the existing Redevelopment Plans. Task 5 - Preliminary Report KMA will prepare one draft and one final version of the Preliminary Report. KMA's approach to preparing the key documentation for the Merger (Preliminary Report and Report to the City Council) is to describe the reasons and benefits to merging Projects, provide background on Agency accomplishments, and document remaining blighting conditions in the Project Area anticipated to receive tax increment from the donor project. A financial feasibility analysis will also be included in the Preliminary Report and Report to the City Council describing the effect of merging Projects on projected tax increment, bonding capacity and ability and timing to financing remaining redevelopment projects. Product:......... One Draft and One Final Version of the Preliminary Report' Task 6 - Report to the City Council KMA will prepare one draft and one final version of the Report to the City Council. The Report will be prepared in accordance with the requirements of Section 33352 of the CRL, and will incorporate the evidence from which the City Council will make certain findings upon adoption of the Amendment. The Report to the City Council will also contain a summation of the process followed in adopting the Amendment as required in the CRL, and the information contained in the Preliminary Report in addition to the following: • Amended five -year Implementation Plan(s); (KMA will update the existing Implementation Plans to reflect the proposed merger);' • An explanation of why redevelopment cannot be accomplished by the other government activities or the private sector acting alone; • The plan or method of relocation for families or persons temporarily or permanently displaced; • The environmental review document (by reference); • The report and recommendations of the Planning Commission; ' Agency staff will be responsible for duplication and distribution. 2 If the Implementation Plan requires substantial amendments beyond the effects of the merger, these services will be provided on a time and materials basis outside this contract. Proposal for Redevelopment Plan Amendment Services Keyser Marston Associates, Inc Rosemead Redevelopment Agency Page 4 PA07070m.WA.0v : g m N900,000.0021MW 0 0 A summary record of consultations with the community; The neighborhood impact report; and The summary of consultations with affected taxing entities. Product:......... One Draft and One Final Version of the Report to the City Council B. PROJECT COORDINATION Task 1 - Schedule Monitoring and Project Management This task will include coordinating with staff and legal counsel on upcoming actions and updating the full schedule once, and the summary schedule up to five times. Furthermore, as part of this project management task, if the Agency receives written objections on the Amendment, KMA staff will be available on a time - and - materials basis to assist in preparing the required responses to the received written objections. Product:......... Revised Schedule of Actions and Ongoing Coordination with Staff Task 2 - Consultations with Taxing Agencies KMA will provide responses to questions raised by affected taxing agencies. It is assumed that there will be minimal need for consultations. However, if substantial responses are required or meetings are necessary, KMA will provide these services, as necessary, on a time - and - materials basis. Product:......... Prepare Responses to Affected Taxing Agencies Task 3 - Community Meeting KMA will conduct a community meeting and present the proposed Merger and the Agency's redevelopment program. KMA will tailor the presentation for the venue and may include a PowerPoint presentation in addition to coordinating the meeting, agenda and handouts. KMA will provide the Agency with notices for the community information meeting. It is assumed that staff will hire a mailing house to generate mailing lists for owners and occupants as well as duplication and handling of mail for the community meeting /joint public hearing notice. Product:......... Conduct Community Meeting Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 5 PA0707020XM :OVB:gbd 99900.000.00777 125/07 • Task 4 -Staff Reports KMA will work with staff to prepare all necessary staff reports. This will include summarizing the proposed actions and providing background information for incorporation into the staff reports. Product:......... Staff Reports Task 5 - Attendance at City Meetings KMA anticipates attending /making presentations at a kick -off meeting with staff, hosting a community meeting (included in Task 3), attending the Agency meeting approving the Preliminary Report, and attending the joint public hearing on the Amendment adoption. KMA will attend additional meetings as requested to be billed on a time - and - materials basis. Product:......... Attendance at Three Additional Meetings Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 6 PA0707020XMA:DVB:gdd 99900 000.002/785/07 IV. SCHEDULE s As shown below, KMA proposes to complete the scope of services within seven months (assuming a start date in early August 2007), with a target adoption date of February 2008. ants begins preparation of Preliminary Report and Neg. Dec. staff and legal counsel determine conflict of interest and confirm General Plan ice with state law and conformance with Redevelopment Plans Report is completed 2ct -07 'PJAgency approves Preliminary Report and receives "Drgft Redeyeiopmggt PIan.Amendments Consultations with Agency transmits Prelim. Report to affected taxing agencies 190 days taxing entities , Nov -07 Neg. Dec. is circulated for 30 days a ,.Consultant prepares Report to City Council ....... ;-' Planning Commission adopts report and recommendations Dec -07 Notice period for joint public hearing Agency and City Council consent to joint public hearing Notices mailed to owners, occupants, taxing agencies, DOF and HCD Agency sends Report to City Council to DOF and HCD (45 days before hearing) -g Agency holds community information meeting Joint public hearing on Plan Amendments First reading of ordinance adopting Plan Amendments Second reading of ordinance adopting Plan Amendments Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 7 PA070702OXMA:DVB:gbd 99WO.000.0 W2 5107 • • V. BUDGET, EXPENSES AND PAYMENT SCHEDULE As detailed on the table following this page, KMA proposes to provide consulting services for the scope of services described in this proposal on an hourly basis within an estimated budget of $117,500. Additional Services /Expenses Additional services and job related expenses not included in the above fee; such as attendance at additional meetings; several rounds of responding to affected taxing agencies; or response to extensive written objections received at the joint public hearing on the adoption of the Amendments, will be billed on a time - and - materials basis in accordance with the following fee schedule: KEYSER MARSTON ASSOCIATES, INC. HOURLY FEE SCHEDULE Directly related job expenses not induced in the above rates are: auto mileage, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost. Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date. A charge of 1 % per month will be added to all past due accounts. 'Rates for individuals in these categories will be Increased by 50% for time spent in court testimony. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 8 PA0707020.KMAAVB:gbd 99900 000.002/7125101 200712008 A. JERRY KEYSER $200.00 MANAGING PRINCIPALS' $200.00 SENIOR PRINCIPALS' $185.00 PRINCIPALS' $175.00 MANAGERS' $155.00 SENIOR ASSOCIATES $140.00 ASSOCIATES $125.00 SENIOR ANALYSTS $105.00 ANALYSTS $90.00 TECHNICAL STAFF $75.00 ADMINISTRATIVE STAFF $60.00 Directly related job expenses not induced in the above rates are: auto mileage, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost. Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date. A charge of 1 % per month will be added to all past due accounts. 'Rates for individuals in these categories will be Increased by 50% for time spent in court testimony. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 8 PA0707020.KMAAVB:gbd 99900 000.002/7125101 0 BUDGET FOR PLAN AMENDMENT SERVICES E E XP E N S E S $ 2,000.00 GRAND TOTAL $117,500.00 Note: Task budgets are estimates only. KMA will bill services hourly against the total budget. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 9 PA0707020. KMA: DVB:gbd 99900.000.0021725 /07 FEE ES Amendment to Merge Projects A. DOCUMENT PREPARATION Plan Amendment Documents Task 1 Schedule of Actions $5,000.00 Task 2 Resolutions and Ordinances $8,000.00 Task 3 Notices of Taxing Agencies, DOF & HCD $5,500.00 Task 4 Redevelopment Plan Amendments $5,000.00 Task 5 Preliminary Report $50,000.00 Task 6 Report to the City Council 20,000.00 Subtotal $93,500.00 B. PROJECT COORDINATION SERVICES Task 1 Schedule Monitoring & Project Management $10,000.00 Task 2 Consultations with Taxing Agencies $2,000.00 Task 3 Community Meeting (1) $2,000.00 Task 4 Staff Reports $5,000.00 Task 5 Attendance at City Meetings (3) $3,000.00 Subtotal $22,000.00 E XP E N S E S $ 2,000.00 GRAND TOTAL $117,500.00 Note: Task budgets are estimates only. KMA will bill services hourly against the total budget. Proposal for Redevelopment Plan Amendment Services Rosemead Redevelopment Agency Keyser Marston Associates, Inc. Page 9 PA0707020. KMA: DVB:gbd 99900.000.0021725 /07 M ®R KEYSER MARSTON ASSOCIATES ADVISORS IN PUBLIC /PRIVATE REAL ESTATE 'DEVELOPMENT ADVISORS 1W REAL ESTATTE E November 8, 2007 REDEVELOPMENT AFFORDABLE HOUSING ECONOMIC DEVELOPMENT SAN FRANCISCO Michelle G. Ramirez A. JERRY KEVSER TIMOTHY C. KELLY Economic Development Administrator KATE EARLE FUNK - City of Rosemead DE.NIE M. KERN ROBERT J. WETMORE 8838 East Valley Boulevard Rosemead, California 91770 LOS ANGELES CALVIN E. HOLLIS. II KATHLEEN H. HEAD ' Re: Addendum to Proposal for Redevelopment Merger Services JAMES A. MBE PAUL C. ANDERSON GREGORY D. SOO -HOO KEVIN E. ENGSTROM Dear Ms. Ramirez: JULIE L. ROMEY SAN DIEGO Per your request, Keyser Marston Associates Inc. (KMA), has obtained an estimate for GERALD M. TRIMBLE the cost of preparing an Initial Study /Negative Declaration for the proposed merger of PAUL C. MARRA Redevelopment Project Areas No. 1 and No. 2. Based upon discussions with Gail Ervin Consulting, an environmental consultant, with whom we have worked with on redevelopment adoptions and amendments, the cost to prepare an Initial Study /Negative Declaration would be approximately $25,000. The actual cost may vary depending on the need to prepare specialized technical studies. Assuming project start up in mid - December, Gail Ervin Consulting estimates that the Initial Study /Negative Declaration could be ready for circulation in mid - March. This is approximately one month later than indicated in our amendment adoption schedule. So rather than a seven -month amendment adoption process, the Agency should anticipate at least an eight -month process. 500 SOUTH GRAND AVENUE. SUITE 1480 > LOS ANGELES, CALIFORNIA 90071 > PHONE, 213 622 8095 > FAX 213 622 5204 W W W.KEYSERMARSTON.COM PA0711000.KMA:PA:emm 99900.000.002 Pie (l) 0 Michelle Ramirez November 8, 2007 City of Rosemead Page 2 For your information, we have included the contact information for Gail Ervin Consulting, including a link to their website where you can review their qualifications. Please call if you have any questions or if we can be of further assistance. Sincerely, KEYSER MARSTON ASSOCIATES INC. Paul Anderson cc: Gail Ervin Gail M. Ervin, Principal GAIL ERVIN CONSULTING 8561 Almond Bluff Court Orangevale, California 95662 -4419 phone: (916) 989 -0269 / fax: (916) 987 -0792 www.gailervinconsulting.com PA0711006XMATA:e 99900.000.002 fQye 11