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AGENDA ITEM NO. 21.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 03/25/2025 Originating Department: Public Works |
City Manager:
Department Head:
SUBJECT:
Changes to the Agreement between the City of Hawthorne and DTA Public Finance to perform a Development Impact Fee Study
RECOMMENDED MOTION:
Staff recommends that the City Council approve the changes to the agreement with DTA Public Finance and authorize the City Manager or his desginee to enter into and execute the agreement and make any minor amendments.
DISCUSSION:
During the March 11, 2025 meeting, the City Council approved the agreement between the City of Hawthorne and DTA Public Finance ("consultant") to perform a Development Impact Fee Study.
However, the consultant requested revisions to the agreement. The revised agreement adds the following languages:
Section 2, "Services" - Such work shall be performed on a time and materials basis at additional cost in accordance with the payment rates set forth in Exhibit A if the total budget, as set forth in Exhibit A, has been reached.
Section 7, "Ownership of Documents" - Notwithstanding the above, computer software (including without limitation financial models, compilations of formulas and spreadsheet models) and products derived from such software, prepared by Consultant are Instruments of Service of Consultant and shall remain the property of the Consultant. Consultant shall likewise retain all common law, statutory and other reserved rights, including the copyright thereto. However, the fixed final work product delivered by Consultant shall belong to the City.
Section 8, "Indemnification" - Additionally, in light of the uncertainty created by the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado, Consultant shall not defend, indemnify, or hold free and harmless the City or any of its agents from claim arising out of, pertaining to, or incident to the Nollan/Dolan test under the U.S. Constitution's Fifth Amendment Takings Clause.
However, the consultant requested revisions to the agreement. The revised agreement adds the following languages:
Section 2, "Services" - Such work shall be performed on a time and materials basis at additional cost in accordance with the payment rates set forth in Exhibit A if the total budget, as set forth in Exhibit A, has been reached.
Section 7, "Ownership of Documents" - Notwithstanding the above, computer software (including without limitation financial models, compilations of formulas and spreadsheet models) and products derived from such software, prepared by Consultant are Instruments of Service of Consultant and shall remain the property of the Consultant. Consultant shall likewise retain all common law, statutory and other reserved rights, including the copyright thereto. However, the fixed final work product delivered by Consultant shall belong to the City.
Section 8, "Indemnification" - Additionally, in light of the uncertainty created by the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado, Consultant shall not defend, indemnify, or hold free and harmless the City or any of its agents from claim arising out of, pertaining to, or incident to the Nollan/Dolan test under the U.S. Constitution's Fifth Amendment Takings Clause.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
This is part of Objective 2.1 in the City's Economic Development Strategic Plan to re-evaluate and update the City's Development Impact Fees.
FISCAL IMPACT:
None. The estimated funds for $74,145 are available in the adopted fiscal year 2024-2025 and 2025-2026 budgets and will be paid for under the impact fees fund.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
Attachments
- Original Agreement for Development Impact Fee Study
- Changes to Agreement for Development Impact Fee Study