HomeMy WebLinkAbout7.1 DSRSD Study Proposal 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
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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
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CITY OF DUBLIN
CITY OF SAN RAMON
June 1 , 1985 Hughes , Heiss & Associates
675 Mariners Island Boulevard
Suite 108
San Mateo, CA 94404
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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
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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.
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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.
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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
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- 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:
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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.
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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.
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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:
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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.
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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.
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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.
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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
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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:
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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:
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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.
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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.
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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.
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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:
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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.
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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.
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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:
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- 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:
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. . 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.
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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.
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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.
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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
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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