Statement of Qualifications
G O VERNMENT O R GANIZATION
Open Space and Agricultural Preservation Programs Intergovernmental Agreements Special District Formation, Consolidation and Dissolution Annexation Studies Municipal Incorporation Municipal Service Reviews
2012
A BOUT E CONOMIC & P LANNING S YSTEMS
- The Firm
- Economic & Planning Systems, Inc. (EPS) is a land
economics consulting firm experienced in the full spectrum of services related to real estate development, the financing of public infrastructure and government services, land use and conservation planning, and government organization.
- Guiding Principle
- EPS was founded on the principle that real estate
development and land use-related public policy should be built on realistic assessment of market forces and economic trends, feasible implementation measures, and recognition of public policy objectives, including provisions for required public facilities and services.
Areas of Expertise
Government Organization Open Space and Resource Conservation Land Use Planning and Growth Management Public Finance Real Estate Market and Feasibility Analysis Fiscal and Economic Impact Analysis Reuse, Revitalization, and Redevelopment Real Estate Transactions and Negotiations Regional Economics and Industry Analysis Transportation Planning and Analysis Asset Valuation and Repositioning
- Clients Served
- Since 1983 EPS has provided consulting services to
hundreds of public- and private-sector clients in California and throughout the United States. Clients include LAFCo cities, counties, special districts, multijurisdictional authorities, property owners, developers, financial institutions, and land use attorneys.
- Staff Capabilities
- The professional staff includes specialists in public
finance, real estate development, land use and transportation planning, government organization, and computer applications. The firm excels in preparing concise analyses that disclose risks and impacts, support decision making, and provide solutions to real estate development and land userelated problems.
EPS Locations
EPS Web Site
Berkeley, Los Angeles, and Sacramento, California Denver, Colorado
G OVERNMENT O RGANIZATION
Local governments, including cities, counties, and special districts, provide a range of essential services to their constituent communities. These services, which include public safety, public health and welfare, education services, parks and recreation, land use regulation and environmental protection, underpin the quality of life and the economy of local communities and regions. Because of the dynamic aspects of urban areas—population growth and development, changing service demands and standards, and desire for improved governance—local government agencies regularly make organizational changes. New districts are created, new cities are incorporated, cities annex territory, and local governments form joint exercise of powers agencies. Most of these actions are regulated in California by Local Agency Formation Commissions (LAFCo) operating within each of the State’s 58 counties.
EPS evaluates the costs, benefits, and feasibility of local government reorganization. As a part of this work, detailed pro forma budget forecasts for the new jurisdiction are prepared, alternative organizational options are evaluated, and impacts upon existing entities are estimated. These government organization studies draw upon EPS’s broader expertise in fiscal analysis, public finance, land use planning, and open space and agricultural preservation, as well as our thorough knowledge of local government forms and options and the mission and functions of LAFCo’s.
Services Provided
Open Space and Agricultural Preservation Programs—EPS prepares policies and programs
intended to preserve open space and agriculture as a part of city and county general plan policy development, general plan implementation programs, and CEQA-based mitigation programs. As a central mandate for the State’s LAFCo’s is “…discouraging urban sprawl, preserving open– space and prime agricultural lands…”, EPS also assists LAFCo’s with developing open space and agricultural programs.
Intergovernmental Agreements—EPS assists government agencies, including local, state, and federal agencies, with the formation of intergovernmental agreements. These agreements help to achieve a common interest, including the provision of a regional service such as transit or sewage treatment, the protection of natural resources, or the sharing of public revenues. EPS conducts feasibility analyses, prepares draft agreements, and assists with agreement negotiation.
Special District Formation, Consolidation and Dissolution—EPS prepares financial
feasibility studies for proposed special districts and for consolidation proposals. District formations are often necessary to create a municipal service and governance framework for newly developing communities or to improve services in existing communities. EPS feasibility studies are based on a multiyear, pro forma operating budget for the new district. EPS also specializes in preparation of special studies required before consideration of a district dissolution.
Annexation Studies—EPS prepares financial feasibility studies for annexation of territory to existing cities and districts. These annexations are typically proposed to extend municipal services to peripheral areas designated for development or seeking improvements to municipal services.
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Government Organization
EPS Statement of Qualifications
November 2012
Municipal Incorporation Feasibility—EPS prepares financial feasibility studies for
communities seeking municipal incorporation. These studies include initial feasibility studies completed for community-based organizations and comprehensive fiscal analyses legally required for formation. These feasibility studies are based on a multiyear, pro forma operating budget for the new city.
Municipal Service Reviews—EPS prepares “municipal service reviews,” which are comprehensive assessments of local government agencies within a county. Concerns regarding the proliferation of special districts in California led to legislation requiring the Local Agency Formation Commissions to conduct reviews of existing local government entities. These reviews are intended to identify opportunities to improve municipal services through consolidation and other reorganization efforts. EPS also assists with identification and review of Disadvantaged Unincorporated Communities (DUCs), per recent State legislation.
Representative Projects
Open Space and Agricultural Preservation
Santa Rosa/Rohnert Park Community Separator Area, Preservation Strategies, Sonoma
County, California
South Livermore Valley Area Plan Agricultural Preservation Strategy, Livermore, California Davis Agricultural Buffer and Farmland Mitigation Ordinance, Davis, California Yolo County Habitat Conservation Plan Economic Analysis and Financing Plan, Yolo County,
California
Davis Open Space Implementation Plan, Davis, California Santa Rosa Recreation and Needs Assessment Study, Santa Rosa, California Nicasio Valley Financial Evaluation of Transfer of Development Rights, Nicasio, California Green Valley Area Plan Transfer of Development Program, Solano County, California North Livermore General Plan Amendment, Open Space Strategy, Livermore, California North Natomas Agricultural Land Preservation Strategy, Sacramento, California San Martin/Gilroy Greenbelt Implementation Strategy Report, Gilroy, California
Intergovernmental Agreements
Tiburon/Marin County Cooperative Agreement, Tiburon, California Orange County Fire District Feasibility Study, Orange County, California Regional Transportation Authority Intergovernmental Agreement, Roaring Fork, Colorado
Master Property Tax Sharing Agreement, San Joaquin County, California
Special District Formation and Consolidation
Mount Diablo Health Care District Special Study, Concord, California Morgan Hill Fire District Annexation Feasibility Study, Morgan Hill, California
Mark West CSD Feasibility, Sonoma County, California
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Government Organization
EPS Statement of Qualifications
November 2012
Monterey CSD, Monterey County, California
East Orange Water and Wastewater Utilities Study, Orange County, California Rancho Mission Viejo Public Services, Orange County, California
Victorville Water Consolidation, San Bernardino County, California
Victorville District Consolidation and Dissolution, Victorville, California
Public Service and Facility Database, Santa Cruz County, California
Mountain House Community Services District, San Joaquin County, California Orange County Fire District Feasibility Study, Orange County, California West Marin Septic Management Organizational Options and Feasibility Analysis, Marin County,
California
Southern Marin Fire Consolidation Study, Marin County, California Graton CSD Updated Financial Feasibility Analysis, Graton, California
Annexation Studies
Sunset Beach Governance Options Peer Review, Sunset Beach, California
Martinez Annexation Study, Martinez, California
Great Park Annexation Fiscal/Financial Analysis, Orange County, California Annexation Fiscal Analysis for Goleta Valley, Santa Barbara, California Southeast and Southwest Area Plans Financing Plans, Santa Rosa, California
Danville Annexation Support, Danville, California
North Natomas Neighborhood Landscape Service CFD No. 99-02, Sacramento, CA Sacramento Annexation Economic Analysis, Sacramento, California Murrieta Annexation Fiscal Analysis, Murrieta, California Fiscal Study and Annexation Tax Sharing Agreement, Winters, California City and County Annexation Fiscal Impact Analysis, Hollister, California
Municipal Incorporation Feasibility
East Los Angeles CFA, Los Angeles, California
Laughlin Incorporation Feasibility Analysis, Laughlin, Nevada Pahrump Incorporation Feasibility Analysis, Pahrump, Nevada Initial Fiscal Analysis of the West Ranch/Castaic/Tesoro Areas, Los Angeles County, California
Carmel Valley Incorporation CFA, Monterey County, California Arden Arcade IFA, Sacramento County, California Menifee Valley CFA, Riverside County, California La Jolla IFA, San Diego County, California Rancho Santa Fe IFA, San Diego County, California Malaga CFA, Fresno County, California San Martin IFA and CFA, Santa Clara County, California
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EPS Statement of Qualifications
November 2012
Rancho Cordova IFA/CFA, Sacramento County, California Olivehurst IFA, Yuba County, California Castro Valley CFA, Alameda County, California Los Angeles Reorganization, San Fernando Valley, California Carmel Valley IFA, Monterey County, California Oakhurst IFA, Madera County, California Elk Grove CFA, Sacramento County, California Goleta Incorporation CFA, Santa Barbara, California Oakley CFA Technical Support, Contra Costa County, California Rancho Santa Margarita CFA, Orange County, California Windsor Incorporation CFA, Sonoma County, California El Dorado Hills IFA/CFA, El Dorado County, California
Pleasant Grove Incorporation CFA, Yolo County, California
Alamo IFA, Contra Costa County, California Templeton Incorporation IFA, San Luis Obispo County, California Isla Vista Governance Options, Isla Vista, California Aptos IFA, Santa Cruz County, California
Evaluation of Truckee Incorporation Feasibility Studies, Nevada County, California Shasta County Incorporation CFA Review, Shasta County, California
Lake Tahoe IFA, Douglas County, Nevada
Municipal Service Reviews
Merced County Municipal Service Reviews (MSR), Merced, California Victorville Municipal Service Review, Victorville, California Sonoma County MSRs for Sanitation, Fire, and Cities, Sonoma County, California
Modesto Master Services Element/MSR, Stanislaus County, California
Merced County MSRs for Water, Sanitation, Cities, Resource Conservation, and Other
Districts, Merced County, California
Los Alamitos, Seal Beach MSR, Orange County, California Rancho Mission Viejo MSR, Orange County, California
Project Profiles—Intergovernmental Agreements
Tiburon/Marin County Cooperative Agreement
Tiburon, California
EPS assisted the Town of Tiburon with negotiating a Cooperative Agreement with Marin County for maintenance of Paradise Drive, a major thoroughfare. This agreement would allow annexation of unincorporated territory to the Town, with the Town providing municipal services, while having Marin County continue its obligation to maintain Paradise Drive as a County road.
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Government Organization
EPS Statement of Qualifications
November 2012
In addition to preparing the financial forecasting framework to estimate implications for property tax revenues, fee revenue, and service costs, EPS assisted with the evaluation of options.
Orange County Fire District Feasibility Study
Orange County, California
EPS evaluated the financial feasibility of creating a fire district independent of Orange County. Utilizing population forecasts, EPS estimated station and staffing requirements, as well as cost trends. EPS developed a ten-year cash flow model replicating the proposed District’s revenues and expenditures. Several assumptions were tested, including alternative fee structures and cost-sharing arrangements among the participating cities. The results helped to determine financial feasibility and evaluate the equity of different cost-sharing structures.
San Joaquin County Master Tax Sharing Agreement
San Joaquin County, California
San Joaquin County’s existing property tax sharing agreement with its jurisdictions was subject to scrutiny within the County as a potential barrier to growth and development. Based on discussions with key stakeholders in the County, it was determined that San Joaquin County would enter into negotiations to modify the tax sharing agreement, in conjunction with a series of potential tradeoffs involving the cities’ possible participation in capital funding initiatives.
EPS assisted the County in the evaluation and negotiation of a revised agreement. EPS conducted a comprehensive analysis of County growth prospects and tested various potential amendments using a detailed fiscal model developed by EPS. In addition, EPS worked with representatives of individual cities, the Building Industry Association, and other economic development stakeholders such as the San Joaquin Partnership to provide information and record concerns. Based on these technical and outreach efforts, the County and its seven cities unanimously adopted the revised agreement.
Project Profiles—Special District Formation,
Consolidation, and Dissolution
Mount Diablo Health Care District Special Study
Concord, California
Contra Costa LAFCO initiated a Special Study in response to past and ongoing community concerns about whether the Mount Diablo Health Care District (MDHCD) should continue as a special district, and in response to recommendations of the Healthcare MSR adopted by Contra Costa LAFCO in 2007. The MDHCD was the subject of Grand Jury Reports in 2001, 2003, 2008 and 2011. The Grand Jury was concerned that the District was no longer fulfilling a useful mission and should be dissolved. Other members of the community had called on LAFCO begin the process of dissolving the District.
Under Government Code (GC) §56375(a)(3), a commission may initiate the dissolution or consolidation of a district only if that change of organization or reorganization is consistent with a recommendation or conclusion of a study prepared pursuant to §56378 (special study), §57425, (SOI update), or §56430 (MSR). EPS prepared the Special Study pursuant to Government Code §56378 to assist LAFCO with their decision and required findings.
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Government Organization
EPS Statement of Qualifications
November 2012
Morgan Hill Fire District Annexation Feasibility Study
Morgan Hill, California
The Santa Clara County Central Fire Protection District proposes to improve the delivery of fire protection services in the County by annexing the City of Morgan Hill, which currently contracts with the District for service. In addition to efficiencies gained by creation of a larger regional fire protection entity, the dedication of property tax revenues to fire protection can help to achieve service improvements.
EPS assisted the City and County in analyzing the proposed annexation. The EPS analysis included a Plan for Services. The Plan describes how services would be provided and who would provide the services, what infrastructure and capital improvements would be required, and how the services would be financed. In addition, the Plan demonstrates the District’s capability to provide necessary services without lowering the level of service provided to areas currently served by the District. The report found potential benefits; however, the results are contingent upon State decisions regarding the allocation of property taxes following annexation.
Community Services District for Water Services
Mark West, Sonoma County, California
At the request of the Sonoma County Water Agency, EPS assessed the feasibility of the formation of a Community Services District (CSD) in the Mark West area to acquire, operate, and manage the area’s water system. California-American Water Company, a privately held company whose operations are regulated by the California Public Utilities Commission, owns and operates the system serving approximately 2,050 residential connections and 280 commercial connections.
EPS’s report provided an initial review of feasibility, describing advantages and drawbacks of public operation of the currently private system, as well as the potential impacts on rates and other costs to residents and property owners related to acquisition and operation. The analysis also discussed options related to the phasing of the CSD formation, bond issuance, and acquisition of the system.
Mark West Community Services District Feasibility
Sonoma County, California
The Sonoma County Water Agency retained EPS to assess the feasibility of forming a CSD in the Mark West area to provide a range of services, including lighting maintenance, road maintenance, enhanced levels of sheriff protection, solid waste management, parks and recreation, and water service. These services, with the exception of water service, were provided by the County.
The formation of a CSD offered the community an opportunity to address community concerns and desires for enhanced levels of service, while also providing a forum for local management and direction. CSD formation would establish an entity that could manage the acquisition and operation of the local water system, if the community decided to pursue the cost and effort that would be required. The cost of acquiring the water system was evaluated in a prior EPS analysis.
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Government Organization
EPS Statement of Qualifications
November 2012
East Orange Water and Wastewater Utilities Study
Orange County, California
A large property owner/developer in Orange County owned a large area of property located partially within the City of Orange and partially within its sphere of influence. This property had been divided into several planning areas. EPS conducted financial analysis as part of a report to LAFCo evaluating options for the provision of domestic water and wastewater service to the proposed development areas. Two water districts and the City of Orange had all expressed a willingness and desire to provide municipal water and wastewater services to at least portions of the same development areas. To assist the Orange County LAFCo in determining the most appropriate provider, EPS reviewed the financial implications of each prospective service provider, including rate implications.
Victorville District Consolidation and Dissolution
Victorville, California
EPS analyzed options for consolidating water services in the Victorville area, including a budget analysis of the new entity. EPS also assisted the City in its application to LAFCo to consolidate several subsidiary special districts that served the area but were already functionally consolidated into the City organization. The districts included fire, recreation and parks, and sanitation.
