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HomeMy WebLinkAboutItem 7.1 DSRSD Study Proposal (2) CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 10, 1985 SUBJECT Dublin San Ramon Services District Study Proposal EXHIBITS ATTACHED Proposal RECOMMENDATION 1 ) Approve Hughes , Heiss & Associates as the Consult- ing Firm to conduct the evaluation of the services provided by the Dublin San Ramon Services District 2 ) Approve the Scope of Services 3 ) Approve the addition of a Dublin San Ramon Services District Staff member to the study steering commit- tee , along with the existing City Council liaison members and City Managers 4 ) Authorize the City Manager upon review of the City Attorney to execute a contract with Hughes , Heiss & Associates in the amount of $59,010 5 ) Authorize a budget transfer from reserves in the amount of $12 , 000 to cover those costs incurred prior to the end of the Fiscal Year FINANCIAL STATEMENT: Should the City of San Ramon approve the proposal and participation in the study , the cost to the City of Dublin would be between $29, 500 and $32 ,900. Dublin, as lead agency would bill San Ramon for its share of the study . DESCRIPTION In accordance with earlier City Council direction at its meeting of April 22 , 1985 , representatives from the Dublin City Council and City Manager have met with representatives from the San Ramon City Council and City Manager to consider the selection of a consultant to undertake a review of the services provided by Dublin San Ramon Services District and also to review the scope of services that would be included as part of that study . . Upon interviewing three consulting firms , it was the consensus of the joint committee that Hughes , Heiss & Associates would best meet the needs of both Cities in performing such a study. The committee members also have reviewed the proposed scope of services and concur with its content . As indicated in the attached document , the scope of services would undertake the review of park and recreation, garbage , water and sewer services presently provided by the Dublin San Ramon Services District . This study would also be coordinated with the Fire Services Study presently being performed by Angus McDonald & Associates . The consultant has indicated that upon authorization, he anticipates that the study could be completed within 6 months. The consultant has recommended that a steering committee be formed which includes a key Dublin San Ramon Services District Staff representative who could verify the accuracy of the information collected . The consultant has indicated that this would assist him in keeping the study within the 6 month time table . The total fixed price cost of this contract with the consultant would be $59 , 010. Since the water services study is being primarily done for the City of Dublin, and greater time is being spent on behalf of the City of San Ramon with respect to solid waste , the exact distribution of the costs of the study has not been determined at this time . However, in all likelihood , the City of Dublin could expect to pay anywhere from $29, 500 to $32 ,900 for its share of the study. Since the City of San Ramon is acting as the lead agency with respect to the Fire Services Study , the committee members agreed that it would be appropriate for the City of Dublin to act as the lead agency on this study . This would involve the City of Dublin contracting with Hughes , Heiss & Associates directly , and billing the City,of can Ramon for their share of the cost of the study. 7 ---------------------------------------------------------------------------- COPIES TO : Hughes , Heiss & Associates / 675 Mariners Island Blvd ITEM NO . � • 1 Suite 108 San Mateo , CA 94404 . J Evaluation of Alternative Approaches for Providing the Services of the Dublin-San Ramon Services District i CITY OF DUBLIN CITY OF SAN RAMON June 1 , 1985 Hughes , Heiss & Associates 675 Mariners Island Boulevard Suite 108 San Mateo, CA 94404 n HUGHES • HEISS & ASSOCIATES M A N A G E M E N T C O N S U L T A N T S 675 Mariners Island Blvd. /Suite 108 San Mateo, California 94404 415/570-6111 June 1, 1985 � I Mr. Richard C. Ambrose City Manager City of Dublin Post Office Box 2340 Dublin, CA 94568 Dear Mr. Ambrose: We have completed our interviews with the members of the Dublin and San Ramon City Councils as well as the city managers of both communities. Based on these interviews, we have gained individual perspectives on issues related to the delivery of parks and recreation, solid waste, water, and sewer services in each community. Based on these interviews and our review of materials previously prepared, we have developed a preliminary work approach designed to address issues and concerns related to the potential withdrawal of all or some of these services from the Dublin-San Ramon Services District. The letter which follows contains two major sections: ( 1) our proposed approach to the services analysis; and (2) estimated project cost. In addition, we have included as an attachment to this letter a copy of our letter previously submitted which outlines the quali- fications and experience of Hughes, Heiss and Associates. i 1 . PROPOSED APPROACH TO THE SERVICE ANALYSIS. As we noted during our discussions with your selection committee, we would propose to establish a Project Steering Committee to work with the consulting team over all key phases of the project. The Project Steering Committee should be comprised of elected and appointed representatives of both Dublin and San Ramon as well as staff personnel from the Dublin-San Ramon Services District. This should include the General Manager and Finance Director. We feel district staff representation at this level is important to provide both of the cities ready access to district staff comments about the accuracy of the consulting team' s findings and conclu- sions regarding the various aspects of district operations. The paragraphs which follow provide relatively detailed descriptions of the scope and content of each of the analytical tasks which make up the project. i i I Task 1 -- Prepare a Detailed Analysis of the Revenues, Costs and Liabilities Associated wl—t'F DSRSD. Key to the evaluation of each service area is a thorough understanding of the current structure of DSRSD from the perspective of revenues and revenue sources; allocation of revenues to support each of the various components of district operations; the cost of all services delivered by the district; bonded debt; and relationships of revenues and costs to the overall scope of DSRSD operations. To develop this understanding, the project team will develop a detailed ;1 profile of DSRSD to include the following major components: Revenue sources and amounts for each of the last three years. jDetailed analysis of current (current fiscal year and proposed for next fiscal year) operating costs for each district service area to include costs related to: - Staffing - Operating expense - Capital improvement schedules and requirements I - Other cost elements as appropriate Specific use of revenues to support district operations by detailed service area to include both operating expense and capital improvements. The major focus of the analysis will be to link each service delivery area and overall district overhead with specific revenue sources employed to support each cost and expenditure component. The structure, amount, and characteristics of all bonded debt to which the district is currently committed. Current and longer-range contracts to which DSRSD is committed. -� The nature, amount, characteristics and any potential commitment of all financial reserves currently maintained by DSRSD. Each of the data elements documented above will be recorded in the form of a detailed written statistical and narrative profile of DSRSD' s cost and revenue structure. In addition to providing a detailed portrayal of the existing cost and revenue structure of the district, the profile should cover such other key areas as: -2- How each district service is supported by specific revenue source. The extent to which related revenues support direct service delivery and the extent to which: Direct revenues exceed direct service costs for certain services. ; - In those instances where costs exceed direct revenue, the source and extent of subsidization by other revenue sources needs to be identified and documented. Once completed, this profile will be circulated for review by the district staff to identify inaccuracies and omissions. Once completed, the profile will be reviewed in detail with the Steering Committee. Task 2 -- Document how DSRSD is Organized, Staffed, and Operated to Deliver Services to the Dublin and San Ramon Area, and Develop Fami rarity .with Both Cities Administrative and Management Capabilities. A key element of the service analysis will involve determining the impact of individual service withdrawal on both cities and the district considering administrative and management impact; cT ey processing and support systems; capital and operating equipment; and the like. To support subsequent analysis, it is important that the consulting team have a detailed uderstanding of how the district is organized, staffed, and operated to support each of the services involved in the study. This understanding is important from the perspective of determining the impact on each of the cities of absorbing responsibility for the various services, and comparably, for being able to calculate the impact on the district staff and operating budget of transfer of responsibility of each of the services to both Dublin and San Ramon. To develop this level of understanding, the consulting team will document district operations from the following perspectives: Administrative Staff: Identify the proportion of staff time identifiable with each basic service operation. This would include such analyses as the following: Determining proportional involvement of financial staff in such activities as sewer billing, water billing, and other direct service related operations. i -3- I i Documenting level of engineering staff support to each of the service operations maintained by the district. Basic allocation of overall administrative staff time between and among administrative overhead and basic service operations. - Documenting the nature and type of administrative systems (e.g. , data processing) employed to support the various -; service components. Developing a detailed understanding of the organization, staffing, and work assignments of all direct service delivery operations including park maintenance, the sewer plant operation, sewerage collection system maintenance staff, water distribution system maintenance staff, and -1 the like. The focus of this analysis would be to determine the level of staff involvement in each basic service area covered by the study. Analytical activities accomplished by the project team would include identifying areas in which direct service staff are involved in multiple services. I The results of.this analysis of district operations would be documented in the profile previously described at the conclusion of Task 1 above. To insure accuracy, the profile will be circulated among appropriate members of the DSRSD staff and once completed, would be provided to the Steering Committee to serve as a basic reference for subsequent study tasks. In addition to focusing on DSRSD operations , this task will also involve developing an understanding of both Dublin and San Ramon' s operating and administrative structures. Development of this understanding is key to the subsequent evaluation of the impact of - i absorbing all or some of the services on Dublin and San Ramon' s operating and administrative structures and processes. Existing city capabilities will be documented in the form of staffing levels and staff assignments , financial management and processing systems, and the like. In addition, interviews with top management staff will focus on plans and alternatives related to future expansion of each `J city' s administrative, management and staff capabilities , documented through interview with key representatives of each city staff. I Upon the completion of Task 2, the project team will begin the analysis i and evaluation of transitioning each of the services to control and oper- ation of Dublin and San Ramon. In evaluating each of the service areas , it is important that the analysis fulfill several important criteria: -4- ; Based on the anlaysis of revenue generation sources , determine the scope of revenues likely to be transferred to each city if the park and recreation function were transitioned from DSRSD to each of the cities. Analysis needs to include: Revenue source. Revenue amounts. Legal , mechanical , and any other issues related to transfer of revenues. All park and recreation facilities owned and operated by DSRSD need to be evaluated from several perspectives: Size and scope of facilities. - Value of land to include cost and acquisition and current estimated value. - Specific funds employed to acquire land currently employed for park and recreation purposes. This will include identification of revenue sources and, if possible, relative contributions of both the Dublin and San Ramon areas based on tax revenues generated. Current capital improvements on each park parcel . This would include: . . Cost of capital improvements when installed. .. Major improvements added since installation. .. Estimated depreciated value. _ I .. Major capital improvements needed. . . Scope and capacity of all capital improvements. Any conditions impacting both the use, value and the potential transfer of capital facilities employed to support park and recreation programs. This would include conditions involving leases, limitations on use, and other factors. Included in this analytical step would be estimation of the potential for the Federal government to modify or to revoke the lease on the Dublin Sports Ground if the property were transferred from DSRSD for use and control by the City of Dublin. -6- Accomplish the same type of analysis related to all capital equipment employed to support park maintenance operations. Identify and evaluate all bonded debt related to DSRSD park acquisitions. This would include determination of: The amount. Retirement date(s) . Annual debt service costs. -� - Legal factors related to transfer of responsibility for bonded debt based on transition of responsibility for overall park and maintenance progams from the district to the cities. Identify and evaluate all reserves currently maintained by DSRSD to support park lands acquistiion. To display the operating cost impact of transfer of responsi- bilities for park maintenance from DSRSD to the cities , it will be necessary to estimate staffing and other cost requirements related to the assumption of park and recreation services by each of the cities. To develop this estimate, we will undertake the following work steps: Determine maintenance cost requirements for each city to include staffing, maintenance equipment, and other operating expenses. Maintenance costs will be estimated at two levels: (1) Replication of the current DSRSD service level ; and (2) Optimum or top maintenance service levels for park facilities. Estimates will also include costs of correction of existing, significant facility problems. Costs will be analyzed on a program-by-program basis (e.g. , parks , pools, etc. ) . These estimates will be translated into a pro-forma operating budget and appropriate start-up costs for eac city. -J Once basic maintenance requirements have been defined and costed, the project team will prepare several alternative scenarios for transferring facilities and revenue related to park and recreation _) operations to the two cities. These scenarios can be expected to include the following basic components: Alternative formulae for dividing facilities between the two cities to include the strengths and weaknesses of each formula from the perspective of each individual city. i -7- Consistent with the formulae developed, proposed distribution of facilities between the two cities to include any financial steps required to "balance" value of the facilities involved. Proposed distribution of revenues under each scenario. Proposed distribution of reserves under each scenario. Proposition 4 impact of cost and revenue transfer. Alternatives for transitioning responsibility for debt related to park and recreation operations including exploration of: Legal ramifications involving the transfer of responsi- bility for debt retirement. The potential to maintain the DSRSD structure until debt is retired. Specific approaches to dividing responsibility for park and recreation facility related debt. The cost. impact of servicing the debt until retirement is reached. The impact of assuming responsibility for park and recreation services on both Dublin and San Ramon' s management and administra- tive structure. This would include evaluating the extent to which park maintenance services could be "matched" with other i field maintenance activities currently undertaken by staff of Dublin and San Ramon. In addition to the analysis of the impact of service transfer on both Dublin and San Ramon, the analysis will need to include determination of the impact on DSRSD of losing the responsibility for parks and recreation in terms of the impact of service transfer on overall district administrative and management organization and operations. The analysis of each scenario would also need to include —' detailed evaluation of issues related to the implementation of service transfer under that scenario. This would include ! consideration of such issues as steps involving transfer of district maintenance staff to one or both cites and considera- tion of such factors as impact of staff transfer on pension and retirement fund liabilities of each city. -8- Each of these scenarios will be documented in the form of a detailed written progress report for review by the Project Steering Committee and each of the cities. The progress report will document each of the scenarios developed and evaluated by the project team in terms of the cost and revenue impact on each city; specific steps needed to implement transition of service to include legal , financial , and administrative steps; and will include a detailed analysis of the advantages and disadvantages of each scenario from the perspective of each individual city. Task 4 -- Evaluate Alternative Approaches for Providing Solid Waste Collection and Disposal Services to DubT�inand San Ramon. The issues involved in the analysis of solid waste collection and disposal services are substantially different than those related to park and recreation activities. They essentially involve: j Analysis of the potential to expand lower cost service currently available in Dublin and the southern portion of San Ramon to the entire City of San Ramon including unincorporated area within the City' s sphere of influence. The potential for the cities to assume the role of franchisor from the DSRSD to include aquisition of franchise fees plus other related revenues. Resolution of these issues will require contact with agencies and parties beyond the City of Dublin and the City of San Ramon and DSRSD. Contact will need to include the Central Sanitation District i and the two scavenger companies currently involved in providing service to the Dublin and the San Ramon area and include consideration of impact of transfer of service delivery and contract control respon- sibilities in light of the solid waste management structure of which Dublin, San Ramon, and the DSRSD are a part. Basic analytical steps to be accomplished in completing this task include the following: Evaluate current services and costs related to the delivery of : i solid waste collection services to Dublin and San Ramon. This will involve analyzing the services of Valley Disposal and the ' Oakland Scavenger Service and determining the comparability, service differentials, and cost differentials between the two organizations. To fully evaluate service and cost issues , it will be necessary to make an "apples to apples" comparison between the two services and contracts based on detailed analysis of services provided and their costs. Determine the specific legal role of DSRSD and the Central Sanitation District as franchisors in the granting of contracts for scavenger services . This would include identification of specific legal issues related to the transition of franchise -9- rights from DSRSD to the individual cities and from Central Sanitation to San Ramon. A key issue to be analyzed includes the impact of adjustment of the existing structure on San Ramon's access to the Altamont land fill and associated impact on solid waste disposal costs. Document the specific characteristics of each current contract and the related cost structure in both the Dublin and San Ramon areas . This would include identifying the specific impact of service mix on contract costs with special focus on the role of commercial development on subsidizing or moderating the costs of residential solid waste collection service. Document the administrative tasks and related costs involved in 1 contract and administration including both the DSRSD/Oakland Scavenger contract and the Central Sanitation District/Valley Disposal contract. This would include detailed analysis of -� such items as customer billing responsibility, collection responsibility, and other relevant factors and their relation- ship to: The level of franchise fee involved in the various contracts. j - Specific relationships to DSRSD administrative and ' financial staffing. Identify and analyze other issues having direct impact on service to both the Dublin and San Ramon areas. This would include special focus on determining the impact of county boundaries on land-fill use and the potential to provide contracts which would include city spheres of influence as well as areas currently falling within city boundaries. Based on information collected above, identify options open to each city in regard to the delivery of solid waste collection and disposal services. Special focus would include the following: i Dublin -- determine the steps necessary to transfer authority and responsibility for solid waste disposal contracting from F-I DSRSD to the City of Dublin. This would include detailed analysis of the expected cost and revenue impact related to contract transition and detailed identification of the impact of contracting responsibility on the city administrative and management structure. For example, this would include consider- ation of responsibility for customer billing and collection and the relationship to assignment of that responsibility to the j level of franchise fee available through the contract. San Ramon -- determine the potential for the city to contract with one service provider and determine the relative costs and benefits of each potential contracting approach. Specific issues to be resolved in the analysis include the following: -10- The potential to serve all of San Ramon through contract with the Oakland Scavenger Service to include access to the lower cost Altamont landfill . Comparative cost and service impact of providing service through Valley Scavenger to all of San Ramon. The potential to establish a contract to serve the entire San Ramon sphere of influence with a single contract service provider; reducing residential rates by providing - an improved mix of commercial and residential customers; _ and. in the interim before commercial areas currently in the unincorporated area are annexed, to contract with the Central Sanitation District for delivery of scavenger services to those areas. ` Like the analysis for the City of Dublin noted above, evaluation of all options open to the City of San Ramon need to include the detailed impact of assuming contract management and franchisor responsibilities on the administrative and management structure of the City of San Ramon. Proposition 4 impact of service transfer. 1 The last step of the analysis would be to evaluate the impact on DSRSD of transitioning responsibility for solid waste collection and disposal services to the two cities. This would include specific evaluation of the impact of loss of franchise fee revenue on overall district overhead structure and other related issues. It should be noted that the project team has clear understanding of the timing issues related to the evaluation of options open to the cities in regard to the delivery of solid waste collection and disposal services. Our planning will be to complete this task in sufficient time for the city councils to have adequate information to identify options open to them and to negotiate appropriate courses of actions with involved parties. As will be noted in the project work schedule outlined later in this letter, we expect to complete this task by the ,beginning of September. Task 5 -- Evaluate the Potential for Dublin to Assume Water Services and Operations for Its Service--Tr—ea. I i Water services in the Dublin-San Ramon area involve a variety of service deliverers. DSRSD, through use of Zone 7 water, provides water services to Dublin. -11- San Ramon receives water through the East Bay Municipal Utilities District. Given the above, preliminary interviews indicate that San Ramon has no interest in considering alternative approachs to water services delivery, while Dublin is interested in the impacts of transitioning responsibility for water service delivery and distribu- tion system maintenance from DSRSD to the City of Dublin. - ! Key work steps involved in completing Task 5 include the following: Document and analyse the relationship between Zone 7 and DSRSD in regard to water acquisition, treatment, distribution, and related costs and revenues. The analysis will need to have specific focus on: - The basic legal arrangement between Zone 7 and DSRSD in regard to the provision of water to include costs and other related financial commitments. DSRSD involvement in administrative and operating activities related to water system operations including: . . Water billing . . Distribution system maintenance .. Other activities Any specific debt responsibilities of DSRSD related to water system operations. This would include financial commitments related to recent improvements in Zone 7 water storage capabilities. Through interview with DSRSD staff and evaluation of relevant documents, determine capital improvement needs related to the water distribution system to include expected timing and costs. , JConduct a detailed analysis of the cost and revenue structure of current water system operations. j Based on the above, identify the impact of transitioning water service to the City of Dublin. Develop relevant alternatives and evaluate each in terms of the following: -12- Legal issues related to responsibility tranfser. Gross and net revenue impact of transfer to include any potential impact on current sales and purchase price differentials. - Identification of the administrative impact of responsibility assumption by Dublin to include impact on administrative structure and capabilities involving such issues as: r� . . Administrative and financial staffing. .. Financial processing systems to include such issues �l as responsibility for water billing. .. Other factors, as appropriate. Staffing impact of assuming responsibility for distribu- tion system maintenance to include such issues as the following: . . Potential to transition DSRSD distribution system maintenance staff to the City of Dublin and related impact on such issues as city pension liability. .. Potential economies of scale in assigning responsi- bility for distribution system maintenance to and linking those responsibilities with those of the existing field maintenance staff available to the City of Dublin. .. Impact on engineering staff or staff capability requirements for the City of Dublin related to distribution system maintenance. . . Proposition 4 impact of service transfer. i - Evaluation of the longer-range impact of assuming responsibility for the water system to include: . . Any necessary capital improvements to upgrade the distribution system programmed for the next 10 to 15 years. .. Other involvement in Zone 7 capacity improvement projects. -13- Concurrently, the project team would evaluate the impact of service transfer on the DSRSD from the perspective of: Impact on overhead staffing. Revenue loss and the ability to support overall district administration. Any impact in terms of line staffing requirements including evaluation of the ,extent to which water system maintenance requirements overlap and are combined with requirements for maintaining sewerage collection systems. Based on the above, identify key implementation steps necessary to transition responsibility from DSRSD to the City of Dublin. As with previous tasks, the results of Task 5 will be documented in the form of a detailed progress report which will be reviewed in detail by the Project Steering Committee and, when appropriate, the ! Dublin City Council . Task 6 -- Evaluate Alternative Approaches for Managing and Providing ewerage Collection an reatment Services to Dublin an San Ramon. Sewer operations represent a much more complex issue than the services previously discussed. Because of the regional nature of much of DSRSD' s sewer operations, Dublin and San Ramon cannot be considered in isolation. The analysis also needs to include: The City of Pleasanton. DSRSD involvement with LVWWMA. Interviews with council members and the city managers indicate that the major issues involved with the sewer system include the following: Responsibility and authority over capacity planning and permit _i issuance. Interviews suggest that the "first come, first served" basis of permit issuance currently applied by DSRSD is a complicating factor on land use planning and control by both Dublin and San Ramon. Conversely, the actual delivery of sewerage collection and treatment services appears to be a significantly lower priority concern based on the comments of the majority of council members from both jurisdictions. -14- i To resolve the issues related to the delivery of sewerage treatment and collection system maintenance activities , the following work steps would be accomplished: Thoroughly document the legal structure of current DSRSD sewage treatment plant and collection system operations including relationships with Dublin, San Ramon and Pleasanton. In addition, develop a detailed understanding of the relation- ship between DSRSD and LVWWMA, as well as the influence and interests of the various Federal Government agencies involved with the system in the Valley. '. i Document and evaluate the financial and operating structure of current sewer operations including: I - Existing and anticipated debt related to plant improvement and collection system expansion. Characteristics, nature, and scope of all sewer operation related revenue. The structure of basic operating costs including: i . . Plant staffing and other related operating costs. .. Staffing and other costs related to collection system maintenance. The overhead cost structure of DSRSD involving administra- tive support of sewer operations including: . . Management and administrative staffing. .. Technical support. .. Financial support including user billing. .. Other related overhead factors. �1Document and evaluate current plans and commitments related to plant and collection system expansion. Evaluate the impact of these components on future organization, staffing, and administra- tive and policy control of sewer services and operations. Document and evaluate the attitudes and concerns of all parties to the existing arrangement of plant and collection system operations including Dublin, San Ramon, Pleasanton and LVWWMA. -15- Based on the above, develop and evaluate the feasibility and impact of restructuring the current system for the delivery of sewerage collection and treatment services. While specific alternatives to be developed and evaluated are dependent on the analytical steps noted above, they can be expected to include the following: Maintain a status quo. This would include evaluating the future operation of the DSR D as solely a sewerage management agency. _ j It�would include analysis of the potential to reorganize the district as a sanitation or comparable district. The potential to dissolve the District and operate the plant as a central agency under joint control of all involved parties while � I allocating responsibility for collection system maintenance to the cities, or through a jointly controlled agency. The potential for one city to assume a lead role in operating the treatment plant and collection system and contracting with other agencies for service. The potential to increase local city control of capacity planning and permit allocation while retaining a regional approach to sewerage tratment plant operation and collection i system maintenance. Each potential model would be evaluated in terms of: The cost and revenue impact on each participating area. How each model could be implemented considering the existing debt structure and debt retirement commitments of DSRSD related to current and expected future plant operations. The administrative and management impact on all involved parties. Service and cost impact on system users. i i Consistency of each model with longer-term trends and needs. Proposition 4 impact, where appropriate. Again, the results of this task would be documented in the form of a detailed progress report which would be reviewed with the Project Steering Committee, and if appropriate, with each of the city councils. -16- i I i Task 7 -- Combine Results of the Proceeding Analysis of Individual Services Into a Summary ot Potential Courses of Action Related to the Uv—erall DSRSD Organization. At this point in the analysis, the focus has been on individual services. From a practical perspective, the analysis needs to consider the cumulative impact of reorganizing responsibility for the various functions considered in this study on the overall DSRSD organization and legal jurisdiction. As a result, the analysis in this task will cover the following areas: The impact of alternative scenarios for structuring and deliver- ing the various services considered in this study on DSRSD. This would involve evaluating various combinations of transi- tioning services to Dublin and San Ramon on the continuing feasibility of retaining a central administrative structure for DSRSD in terms of: Staffing Administrative systems i - Service relationships with each of the participating cities. These issues will need to be considered in conjunction with the results of the fire services study currently being conducted. For each potential level of continued DSRSD future operations, • identify and evaluate: Specific staffing options Organizational options to include: . . Maintenance of the status quo .. A reformated district structure _i .. Establishment of a joint powers agreement .. Other relevant organizational form Identify and document specific issues related to the implementation of each potential future model for the operation of DSRSD to include: Legal issues Impact on existing facilities -17- Potential to transfer remaining district assets to each of the participating cities. Other factors, as appropriate. The results of this analysis will be documented in the final report which is described below. Task 8 -- Prepare and Submit a Detailed Final Report. As noted in each of the task descriptions above, completion of the evaluation of specific services will result in the production of a progress report for submission to and review by the Project Steering Committee. Once the entire project is completed, the results of all previous work tasks will be consolidated in the form of a detailed final report which will deal with each individual service as well as the potential future of the DSRSD under a variety of organizational forms. The project final report will be prepared in draft form and will be reviewed by the Project Steering Committee. Once the review has been completed, the report will be modified as appropriate and submitted in final form to each of the participating city councils. We will be prepared to present the results of this study to each of the city councils and the DSRSD Board of Directors as you deem appropriate. * * I Exhibit I, which follows this page, shows the estimated work schedule for accomplishing each of the tasks described in this section. As can be seen from review of the information represented in the exhibit: We expect approximately six months would be required to complete the project. Task sequencing has been structured to provide an evaluation of solid waste and disposal options in time to provide the participat- ing city councils adequate time to make contracting decisons. 2. PROJECT COST Exhibit II, which follows Exhibit I , provides our estimate of overall project costs. -18- The first section of the exhibit displays estimated professional staff effort required to accomplish each of the tasks described in the proceeding section. The second portion of the exhibit outlines overall project costs given this level of effort. As can be noted from review of the information presented in the exhibit, we estimate that the project could be accomplished for $59 ,000 and would be prepared to enter into a fixed price contract for this amount. This includes all charges for professional time, legal counsel to resolve specific implementation issues identified through the analysis, and all related reimbursable expenses to include production of 12 copies of the final report. We hope this provides you with the information that you require to determine whether or not the cities wish to proceed with an analysis of the services currently provided by the DSRSD. As noted earlier in this letter, the attachment to this letter provides a copy of our previously submitted letter outlining qualifications and experience of Hughes, Heiss and Asso- ciates and our project team. If you require any additional information, please do not hesitate to contact me. Sincerely yours, John W. Heiss HUGHES,HEISS AND ASSOCIATES Principal Attachment -19- i EXHIBITS I i EXHIBIT I Dublin and San Ramon PROJECT WORK SCHEDULE Weeks Following Project Start Date Task 3 _ 56 _ 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 - Analyze DSRSD costs & Revenues r 2 - Document DSRSD organi- zation and operations 3 - Evaluate parks and A l recreation service alternatives 4 - Structure and evaluate A alternative approaches for providing solid waste collection services 5 - Analyze water services of DSRSD and evaluate feasibility of transfer to Dublin 6 - Identify and evaluate alternative approaches for providing sewer services 7 - Evaluate cumulative impact of service _ I transition on DSRSD organization & operations 8 - Prepare and submit _ I final report �+ Designates reports i EXHIBIT II Dublin and San Ramon PROJECT COST ESTIMATE 1. ESTIMATED LEVEL OF EFFORT Person Hours By Staff Member Legal Task J. Heiss R. Brady Counsel Total 1 - Analyze DSRSD costs & Revenues 16 8 - 24 2 - Document DSRSD organi- zation and operations 16 16 - 32 3 - Evaluate parks and recreation service alternatives 80 40 8 128 4 - Structure and evaluate alternative approaches for providing solid waste collection services 64 40 8 112 5 - Analyze water services of DSRSD and evaluate feasibility of transfer to Dublin 40 64 8 112 6 - Identify and evaluate alternative approaches for providing sewer -- services 80 80 8 168 7 - Evaluate cumulative impact of service transition on DSRSD organization & operations 40 40 8 88 8 - Prepare and submit final report 40 40 8 88 Progress Meetings 16 16 - 32 Final Presentation 4 4 - 8 TOTAL 396 348 48 792 ATTACHMENT 1�7® HUGHES • HEISS & ASSOCIATES M A N A G E M E N T C O N S U L T A N T S 675 Mariners Island Blvd. / Suite 108 San Mateo, California 94404 415/570-6111 April 9, 1985 Mr. Richard C. Ambrose City Manager City of Dublin Post Office Box 2340 Dublin, CA 94568 Dear Mr. Ambrose: I enjoyed chatting with you last week and receiving your letter regarding the proposed study of alternative approaches for providing services to Dublin and San Ramon -- services currently provided by the Dublin-San Ramon Special Services District. As requested, I have prepared a brief letter which serves to intro- ' duce Hughes, Heiss & Associates, provides a summary of our relevant experience dealing .with comparable services and issues, and describes the qualifications of the project team we would have available to work with you. We would be pleased to present a detailed description of our work approach and a related cost estimate once study expectations and specific desired products are refined through discussion with the cities. 1. AN INTRODUCTION TO HUGHES, HEISS & ASSOCIATES Hughes, Heiss & Associates was established in 1974 to provide general management consulting services to county and city agencies in the western ^ I United States. Headquartered in San Mateo, Caliifornia, the firm has served more than 200 clients on over 350 consulting projects in the 10-1/2 years since the firm was established. We approach each project with the same basic philosophy, formulated when the firm was established -- a philosophy which focuses on providing quality analytical services through senior, experienced staff. A principal of the firm always plays a major data collection and analytical role in each of our projects, and we do not employ junior, inexperienced staff in any of our analytical efforts. 2. CORPORATE EXPERIENCE RELEVANT TO THIS PROJECT A major portion of Hughes, Heiss & Associates ' analytical work has involved conduct of management and operations analyses of local government services. Through these projects, we have gained extensive experience in the various service areas targeted for analysis by Dublin and San Ramon. Illustrative projects are listed on the following page: Mr. Richard C. Ambrose City of Dubin April 9, 1985 Page Two (1) Sewer o Management, operations, and productivity analyses of ; i treatment plant and collection system operations for: i Shreveport, Louisiana Oceanside, California Sioux City, Iowa - Daly City, California Evaluation of treatment plan staffing for: - Dublin-San Ramon Community Services District Redwood City, San 'Carlos, Belmont and Menlo Park (2) Water Evaluated all facets of water system operations including administration and billing, meter reading and distribution system maintenance for: Shreveport, Louisiana Sioux City, Iowa (3) Parks and Recreation Evaluated service levels, program mix, staff productivity, and maintenance systems for park maintenance and/or recreation program operations for: -� North Bakersfield Recreation and Park District Beverly Hills Santa Rosa Palo Alto Santa Barbara Washoe County, Nevada Mr. Richard C. Ambrose City of Dubin April 9, 1985 Page Three (4) Related Systems and Services i In addition to the basic services noted above, we have also _- . analyzed other operations related to the services highlighted in your letter. These include engineering, permit processing, treatment system capacity management, and utility billing. Each of these functions would need to be considered in any study of the feasibility, cost, and service impact of shifting service delivery responsibilities from the District(s) to the cities. Relevant experience includes: Evaluation of permit processing systems for the City of Santa Rosa, and San Mateo and San Diego Counties. Analysis of engineering -staff needs for Hayward and the San Jose Airport Department, as well as two evaluations of engineering staffing needs for the Dublin-San Ramon Services District. i Consideration of utility billing system staffing needs and operations as part of studies of Finance Department operations in Modesto and Oceanside, and as part of our overall analysis of the Department of Water and Sewerage in Shreveport, Louisiana. (5) Understanding of Special District and City Organizational Issues Hughes, Heiss & Associates has had broad experience in dealing with issues involving transferring service responsibilities from and among special districts and cities. As a result, we have gained experience in dealing with such key questions as asset transfer implications; property tax transfer impact on all involved jurisdictions; bonded indebtedness implications of service transfer; staff transition issues and costs; and revenue availability considering augmentation funding of some special district services. The bulk of these experi- ences has been gained through evaluation of city-fire district issues accomplished since the passage of Proposition 13 and have included: Fire District studies of Monterey, Stanislaus, and Sonoma Counties -- covering over 40 fire districts. Mr. Richard C. Ambrose City of Dubin April 9, 1985 Page Four Evaluation of the costs and benefits to the City of Cupertino in withdrawing from the Santa Clara County - ! Central Fire Protection District. 3. CLIENT REFERENCES Listed below are references who can speak to the quality and practicality of our work: Ken Blackman City Manager City of Santa Rosa (707) 576-5361 Jean Meismer Board Member North Bakersfield Recreation and Park District (805) 399-2906 Donna MacKenzie Office of the County Administrator County of Sonoma (707) 527-2431 Michael Johnson Assistant County Administrator County of Monterey (408) 757-2561 Bob Quinlan _ I City Manager City of Cupertino (408) 252-4505 David Wurm County Clerk (Formerly Assistant CAN County of Stanislaus (209) 526-6333 Mr. Richard C. Ambrose City of Dubin April 9, 1985 Page Five 4. PROJECT TEAM QUALIFICATIONS We would plan to work with Dublin and San Ramon with a two-person _ project team of John Heiss and Richard Brady. Both Messrs. Heiss and Brady are available to work on this project assuming a starting date of May 1, 1985. Capsule resumes of both follow: John W. Heiss - A principal of Hughes, Heiss & Associates, Mr. Heiss has nearly 16 years ' experience as a consultant to private and public sector clients. Mr. Heiss has participated in each of the assignments listed earlier in this letter, gaining in-depth experience in each of the service areas being considered by Dublin and San Ramon. He has a BA degree from Dartmouth College, and an MBA from the Wharton School of the University of Pennsylvania. Richard P. Brady - is an associate with Hughes, Heiss & Associates and has been with the firm for over six years. He has had major roles in' virtually all of our previous fire district work with lead responsibility for dealing with service financing and reorganization issues. He has also analyzed recreation and park operations in Santa Barbara, participated in several of our sewerage treatment plant studies, and was Lead Analyst on our Cupertino project with responsibility for analyzing asset transfer and revenue implications related to potential City withdrawal from the Central Fire Protection District. Mr. Brady has a BA degree from California State University at Hayward and a PhD from Oxford University in England. I I hope this brief letter provides you the necessary information, and that we have the opportunity to present our proposed project team to your selection committee. As noted at the beginning of this letter, we would be pleased to provide you with a proposed work plan/work approach and related cost estimate once issues and study expectations have been more clearly refined with the cities. Sincerely yours, John W. Heiss HUGHES, HEISS & ASSOCIATES Principal