HomeMy WebLinkAbout1982 Ordinance No. 025ORDINANCE NO. 2 5
SEfUES OF 198-2 --
BY AlTfHORITY
COUNCIL BI LL NO . 27
JN'fHODUCED BY COUNCIL
Ml:l'IBER NEAL ----
AN ORDI NANCE APPROVING AN AGREl:l'1 ENT WITH VAR I OilS Cl'l'l ES OF TIIE COUNTY OF
ARAPAH OE A.~D BRIJ,IN , BORTZ !\ND CODDINGTON RELA'l'ING TC DfNVEH/ARAPAHOE
CO UNTIES f"ISCAL FL.0,/ STUDY.
WHEREAS , an analys i s of i ncom e and expenditut ?S oetween the c i ties of
Arapahoe Co un ty and t he County of Ar Jp,,hoe with City and County of De nver
i s necessa ry in orde r to prope rl y ass e ss charges for servi ces in inte r-
governmental re l a t ionshi ps ; and
WHEREAS , Br own , Bo rt z and Cod dington ha s the e xper t i se a nd ab ili ty to
cwduct s uch a study .
NCI,/, TII EREFORE , BE IT CRDA IN ED BY TIIE CITY COU~(!L OF '111 E CI TY OF
ENGLEWOOD , COLORADO , AS FOL LCl,/5 :
Sect i on 1.
An ag reeme nt t i tl ed 11 Pro fess iona l Se rvices Ag re ement c; ty of Aur o ra ,
Auro ra, Colo r ado , and Brown , Bo rt z and Co ddington, 100-82-1 00 -020 ,
Den ver /Arapa ho e Co unties Fi scal Flow Study " i s hereby a~proved . 5aid
ag r e e ment provi des that Brown , Bo r tz. and Coddington s hall pr ov i de
pro f ess i onal se rv:ces as a cons ul t ant to dete rmi ne wh at ben ef its Arapahoe
Cc unty r es i dents r ,,ce ive from public goods and se r v i ces provided by the
City and Coun t y o f Denve r and the proportionate s ha r e of taxes that the
Ar apahoe Co unty r esidents pay. Fu r the r , 1,hethe r Coun ty r es idents a r e
adequately compensat ing De nver for lib r ary a nd c ul tu r a l f a cilitie s . 'lhe
method of s tudy shall involve initial resea rch , rev i e w a re venue an d
expend i ture base , estimat e key econom i c var i able!.i , anal yze reven ues o f each
l oca l jur isdh:tion trac ing back approp ri at e 1:orti ons of these revenuPs t o
res i dents of. othe r j urisd i c t ions , analyze the expenditu res o f each j uris-
diction , exam in e flow-::; from one jurisd i ction to another , and integrate
r esults a nd ,,st.imate tiscal flows. Sho pping pat terns shall be r evie wed ,
incomes nalyzed , and local reven ues , i ncl uding prope rty , tax es , sales and
use taxes , cigarette taxes , arrof'lg othe rs , s hal l be examined . I.Deal
e xpendit ures for t 'ie j uri sdict i ,rn s shall be investi gated , transfe r s t hroug h
inte rmediaries , i nclud ing the Stat:e , Regional Tr ansporta ti on Dist r i c t ,
Met ropol i tan Sewer Oi s tr i ct , an. othe r distric t s , shal 1 be conside red . A
r e port shall be made conce rning ,,ach tacto r of study . A copy of said
ag reemen t is attacned hereto and niarked as 1:.:xhibit A.
Sect ion 2 .
111e Mayor of the City of Englewood ,nd t he Di r ecto r of Finance , ex
offic i o City Clerk -Tr easurer , are hereby respect ively a utho ri zed co s i g n
and attest said doclmlent for and on behalf of city Co unci l and the City of
Engle1-ood .
Introduced , read in fu ll , rnd pa $Sed on f irst reading on the 19th day
of April , 198 2 .
Published as a Bi ll for a n Ordi na nce on the 21st day o f Ap r il , 1982 .
Read by t'.tle a nd pass:d on final readi ng on the 3rd day of May ,
1982 .
Publi s hed by title as Ord ina nce No ._2_s __ , Se ri es o f 1982 , on the 5th
day of Ma y , 1982 .
Attest:
/s / Gar y R. Hi g b ee
ex off 1c 10 C1 ty Cl e r k-T r easurer
/s / Eu ge n e L. O is
Eugene L. Otis , Mayo r
!, Ga ry R. Higbee , e x c,ffic io City Cl e r k-Trtas ure r of the City of
Eng l e=,d , Co l o r ado , he r e by ce r tify that the above a nd forego i ng is a true ,
accura t e a nd comp l e t e co py of the Ord inance pa ssed on f i nal rea ding and
pub'.ished by t i tle as Ordinance No .~, Se ri es of 1982 .
-2-
/s / Gary R. Higbee
Ga r y R. Hi gbee
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PROF ESSIONAL SER\'lCES AGREE.'iINT
CITY OF AU RORA
AU RORA , COLORA DO
AND
BROWN , BORTZ AND CODD I NG TON
l 00 SOUTH MADI SON
DENVER, COLORADO B0 209
PROJECT NO . 100 -B2-100 -020
DEi VER/AR ,?AHOE COU~T IE S FIS CAL FLOWS STU DY
Morch 1982
S<:c ti on
S1:ction 11
5£:c t ion 111
Sec Li on J V
Se c ti or, I'
Sect ion VI
S r:c t. i on \'11
Sc.-ct. ior. \'111
SHt 10n 1>:
CA 10 C (J/80)
TAJILE or CO NTENTS
li asic · Service~ of t he Con ~ul t.unt.
The City's Rcspon s ibililic~
Mutual Obligations of t he City ard the Con s ultan t
Payment and Fe e Schedule
Charter, Laws and Ordinanc es
Te t'1J'lina t.ion of Cont ra ct
Changt: Orderi; or F.xtcn&ions
Equal Em,l o y,ne n l Opp o rtun it y
Spec!a 1 Co nd1 l1 ons
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AGREEMENT
'J:ll!S AGJU:EMJ:lff made as o f the ___ J_O_th_.~_~oay or_-'-M-"-a'-rc""h~----
i n the year tanet.een Hundred and Eighty-T110 by a nd · b e t w~e n LIie
Cit y of Auro ra , Color ado he re ina fte r call 1•d the CITY, and Browne , Bortz
_&_C_o_d_d_i "~9,_l_o_n _______ -'he r eina f te r called the CONSULTAN T , WITNESSE1'11,
t hat whe r eas t he CITY i n t ends t ha~ the CO NSU LTAN T, u pon written a utho r ization
as he re inafter specified, shall perform services a s he re inafter prov i d ed ;
whi ch are in a ccor danc e with the project £co pe a nd any addenda there to ,
wl-.ic h seep(: of Sl:!rvices by t hi s CONSU L.TANT t o gether with addenda , if any,
sh£. l l btcom1: a pa rt of t his agreemen t.
?;o;;, THt:RtfORE, the CI TY and t he CONSULTANT for the consideration hc rc inu ftcr
sc•t for-t r. ay:-1:1: as f ol lo.,,,•~.
S!:C T !DI: I -Rcspo n s 1bil i ties an d Basic Ser"ices of the
C'or;su lta nt
The CO!/SULTh.l:T a gree s t o pe rform professional service s i n connecti on
w1 t t-, pr c..J c:c t.s a ~ hen:inaft.e r s tca t cd, Refe r t o Sp~cial Condition s
...,,he r e applica ble (as wel l as maps a nd/or dr aw i ng s wher e a pplicab le.)
s. 'fhe co::suLT/1!JT s ha 1 serve as t h e Ci ty's professio nal consultant in
p ha ses a s speci fied, and shall gi v e c.onsulta tio n a nd adv i c e t o t he
C1ty duri ng t he performance o f !".is services .
C, J.. wod: t o be per fonne:cl by t h_c CONSULThNT s ha ll be author i zed
ir. ,..,rit.ing Cl y t he Con trac t Ad min istrator subjec t t o Council
a u t ho nzatior: a s p r ovi ded by Ordinance. Said authorization sha ll
set fort i': a!l specia l c ondi t ion s Alld r equi rements no t o t herwise
p rovided for in t his Ag reement.
o. Time o f pe rfo rma nce. The se r vices to be pe r formed bY t he CONSULTA NT
undC!r t his Agr e ement shall be convn trn ced invn ed iatel y u pon not i ce in
writi ng from the cay a nd st,all be com pleted 140 co nsecutive
Ca 1 end a r day s unle ss ex tt!ndcd by the City in wr iting .
E. The cm:sULT /J ;T shall inform t he City in writing _o f a ll s~-,
consu t.ar,t £ it. i n te nds t o lure t o pc:rfonn work 1n conn e-ct1on w1th
this prCi J '?Ct a nd s hal l ke:ep t he Ci ty informed on a ny c hanges or
audll1 or.~ to t h ls irdo n na ti on. T he City will approve: all s u b -
c onsu 1 tu:--. t£ prior t o c omm encement of wo rk on t h1 s project. The
cor:s ut ·!A!!T s~,a l be re sJ.)Onsible for 1..he: pe rformance of t he sub-
con!:iul ta n ts . Nothing contained here in shall c r eate any contractual
re: atior.shlfJ between an y sub -consult.an t and the Ci t y.
CA-10 C (J/80)
r. Where a pplicuble' the CONSULTANT •hall furnish the Ci ty a bCt of
reprodu cible record print6 of drawing showing those chang e!i ~a<le
during t he construction process bu,ed on the marked up pr in t.!.,
drawings and other data furnished by the Contractor and/or the
field inspe ctor .to the CONSULJANT . Tho furnishing of s uch reprodu-
cible "as-built 11 material shall be a re.quirement of the CONSULTAN1·
whenever services und er this 1'greement involve a structure or im-
provement unl ess specifically waived in writing by t~.e City and
final payment for the services provided hereunder shall be withheld
until such is fur nished.
C. Scope:
The scope of serv ices is deta i led in the attachments to t his contrac t ,
which are herein incorpo r a ted by reference as follows:
Attachmen t l -Proposal from Brow ne, Bortz & Cod dington dat ed
,J a nua ry 29 , 1982.
Attach•n ent 11 -Supplemental propos al from Bro wne, Bortz &
Codding ton dated FebruMy 17, 1982.
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H.
Th e CONSULTANT sha ll be r esponsible for any injury to pe rson •~ or damaq,,
to p r o EJ e cty from negllgt=nt a c t s or . crrort. and omi &!.ioni;; of Liu,: C.:ON ¼UL.'l'ti.~·r ,
its ag ents and employees. The CONSULT/INT shall provide the City wi th a
certificate of liabili t y cov e rage as follows:
(l) The CONSULTANT shall carry a Comprehensive General Liability I1 1~u1 .1 11c c
policy including Broad Form Pr operty Dam age, Completed Operations and
Co nt ra c tual Liabi lity for liinits no t less than
$400,0 00 .00 each occurrence for dama ges of Bodily Injury or Dcnth
to two {2) or mar<: person~
S150 ,000 .00 for damages of Bo di ly Injury or Death to o ne per son
and
$10 0,000.00 each o c cur r ence f o r d amage to or d estr uction of propert y
and
(2) The CON SULT AJ~T s hall c a r r y a comprehensive Automobile Liab ility
l:1~-rancc.-pol icy including coveragc for all owned motor v ehic l e s •rnd
'r .. :-cd a nd nc,n -owncd mo tor vehic le s (or limits not les s t han
~ 3V:O , 000 . 00 cc:1c l , a ce ident for all dam ages of Bod ily 1 njury or oeat h
t o tw o or mo r e pe r sons
subjt:c.:t to
n o0 ,o ou .oo (o r damages o f 60:!ily I njury o r Death to one person
and
~sc ,ooc..oo ea d . occurrence• fo r all damage to or de s t ruct ion
of 1.1 r opc•n. y .
{ 3 ) I nsu rance coverage Special Ht ... a r ds: Spec ial Haz.ards coverag e
S'.lC h a s, but no t limited t o, property d amage as o result of
EX?los ion hazard, col l apse haza rd , Und erground Property damage
ha zard, c ommor.l y kno-..r.-i as XCU , s h all be r equi red if specified in
se:tion I X, special Conditions.
I~ I workJ,".en' s corn~onsa t:or. Jo so rance, Workmen's Compensation Insurance
shall cover t h e obliga,ions of t he CON SUI.T A);T in accordance wi t h t he
prov isions of th• wo rkmen 's Coll\pensa tio n Act , a s a.mc ndod, of t he
St.ate o f Colorado,
15 1 S Jh -C ontr actor's Jnsura nce, Jt s hall b e the res ponsibility of t he
c:O1 :SUI.T h!:T ~tiiathlS sub -contrac t o r s a r e properly insured
t u inE::e t the alio vc., r(:qui r cmcnts bc.:forc hc pcrmi ts them to convncncc
C.j,c!d'-ion o f tht proJ t Ct .
(G ; E«ors a nd Omission s, The CONSUi.TANT a grees t o save and hold t he
City t,a n nl css from •nY and all claims , cause s o f act io n, s u its and
.
liabilities wh ich aris e in connection with the CONS ULTANT 'S n cgllgc11 l
pe-r f o nnan c e here u nde r ,
The CO NSULTANT will main tai n such insurance again st errori; and omission~
as wi ll prot.ect hitn from claims resulting from the performance of his
""°r k under t h is Agreement . Said coverage sh&ll b e in an amount not
le ss than s 50,000.
Th i s ind emn ifi ca tion shall not a ppl y to cl aims or demand s ari s ing out of
c irc um s tance s 1.nvo ! v ing p r o f <:~!,101.1c.1 l l i iili i 1 i ty I exc ept those c aused by
negligent act s o f t he COt~SU LTAIJ T in pe rformance of the services hereunder .
If the ded ucti b l e provisions o f the CONSU LTl,NT 'S coverag e a r c q u e~Lionablc,
tt,1: tit·; muy then r c:qu1:!;L "J1 r oo f of /\~::,e:u,."
SEC T10IJ 11 --THE CITY'S RESPON S19l LITIES
/,. Prov 1d1: full 1 nfonnation 1nclucllng dt:tililcci s c o pe cl S LO i t s rcq u.i.rl!.lnL:11L :.
for t he p r ojects.
B. Ass ist t he CONS ULTANT by placing a•. his dis posal all availabl e i n f ormati on
per t i;.e:-:t to the site s of t he p r oj ec-~s including previous re ports and a ny
other dat.a r elative t o d es ign or c on~tructi or, of the pro jects.
c . Gi ve ;:,r o:r,p t no tice t o th~ CON~ULTA.NT whe neve r the Cit y observes o r
othen-.·ise becomes a ware: of any de fect in t he pr ojects.
D. o::.tai:-, a p p r oval of all governmc::-: .. al author ities having j urisdiction ove r
the p rojec rs a nd such appr ovals a1 •d c onsents !ram such o t her individua ls
or bodies as ma ;• be nece ssary f o r c ompleti on o f the pro j ects .
E. Furnish , o r d1rc:·=t tht! cor:SULT kt lT to p r ov 1d e at the City 's expe n se,
r,ece~;;.0:-·1 ad J.it1 0 :-.~1 servi c <:s .
s r::T iO:. 1!l --MUTUAL OBLlGATlONS or TH ClTY ANO THE CONS ULTAN T -----
1,.. Tr.i s ;,-;r e emer,t does not guara nt ee to t he CONSULT ~NT any work ex cept
a s a utf,c.,r1:1.c> ir, a cco 1danct! ~·i th Section 1 above, or i:rea\.~ an ex c lu sive
Cor1s 'J lti 1,~ c:or.tr a ct.
E. All of ti,c service s cc.in temp lat<!d unde r t his Agreement are p e r sona and
!:!.iil l 11o t be a s~i q ned, subll•t or tran s ferred •.ithout the writt en c o ns c:r,t
CJ f Ll1l C.:l \ '/,
C. Th{> C.:O!~SU LTIJ~T a nci '1 ny and till of it& perliionne l utilized b y t.hc C1t y
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unde r t h e tcnns of this Agreement ·shall remain the agen.ts and em j-,loycc !:.
of the CONSULTANT a nd are not, nor shall b e cons trued to b e, ag ent !; or
employees o f the City ,
D. All plan s and specifications prepared by the CONSULTANT are t he producL
of his training, exp erience and professional skill; accordi ngly , they
r emain his pl'operty, an d he shall maintain them in the i'r bid, conditi on
!or fu t u re referencl?, The City shail rece i ve a r eproducible copy for
use s o l ely i n connection with t lli s projec1 Any r e -u se will be o n ly
wi th t h e CONSULTANT'S writte n permission.
E. Wh eneve r possible the pe r iod of perfo rman ce of any specific p roj e ct
unde:rtuken by U1t.: CON SULT ANT sh-1 11 be mutu,.dly d c t(!rmi ncd by the C1ty
a nd the CON SU LTANT prior t o the t ime that notice to proceed on suc h
wo rk is give:z, by the City.
SECTION I V -PAYME NT AND FEE SC HEDULE
lt 1 :... u1 ,<lt.:r~tood lH1d o.1 qrt.:t.:U t.,y ,.11 ,d Lctwccn the p urtic ~ lic n .•t.o, that tlw
Ci t y shall 1=ay the CO NSULTANT !or s e rv ices furnis hed , and t he CONSULTAN'J'
st,dl l ac cept u s f ul l pa ym ent f or such se rvi c e s, amou n t s of money com puted
as fol lo...,·s:
1,. The co:;suLT/..1 11' s hall main ta in ?io u r ly r ecord s of time wo 1 ked by it s
pe r sonne:l t o su pport any aud i t s the Cit y muy r equire, and s hall bi ll
t~.c.-(1ty mc1r.th l y for costs accrued dur ing t t.c r>rcccd ing month. Bill i nq!;
d.u:l l..1c: !;C:I..1Urulcd u~ m:cc•!:.!;;tl r y to s ho\.l' d irec t charges t o spcc1f 1c pn.i) .. ·ct
c:. Jc.,Lis . Upor. subm1.ssion of s uch billing s to t he Ci t y , a nd a pproval by
de sign,lted Ci t y per~onni:l , payment shad be i s s ued. I t is unde r stood
u :-.: uc;ri:eC. t hat thf: City moi' re quir<: a ma.x 1mwn of twenty-one (21) d ay ~
t c r,.r uc(.-£~ I,ayn,1.:nt r.1fte r r cce:!v!nCJ bil l inq i n p ro per f o nn on form ~
prov!ded b y th<: City .
5. Total Com::)er,satior: The City a9 r ccs t.o pay and t he CONS ULTANT a grt.?cs
t o acce p t for the technical and prof e :isionol se rvices c ontained in
Se::t i.o :, I c on tra c ted he re in a S:.llf, not to exceed ____ 6_0~,0_0_0_. ____ _
do llars. Th1s fee s hall incluje all s ervices rendered by t he ~,:i'T u ndc.-r thi ~ Ag reemen t incl uding all travel, livi ng and ove r head
l:;(f.-1.::-isc s incur r..:c by the CC,l~SULThHT in connection wit h p erforming
t h e serv ices herein except f o r special se rvices authorized in writ.ing
by t :1e City . Tt-,e sum abov e s :ipul atc•C. shall be considered a "Not to
Exce ed'' cost to t he City .
SECTI OX V --Ct-lJ,RTIR , U\'11.'S AN O ORDINANCES
The CO NSU :.Th.::7 , at all tune::;, a grees t o observe a ll '-~e deral and St ate
t..a...,·s , Or Cinances , a nd Ch arter Prov ision s of the City of Aurora, a nd all
r ules and r eg:;la ti ons issued pursuant t t:c r eto, which in a.ny ma nner affect
o r ;ov..:rr. r.r,(: planr,inq and construction o f wo r k c o ntemplated untj er tliis
h sr~F.rth:r.t.
SECTIOS VJ --TEf<l'.ll,ATIOh or COKTRACT
1:, t h rouc;1 . a ny caust:, t he COtlS'JLTIJlT shall fa ll t o fulf1ll 1n t im <:ly
.1:·1u fJrv ;,1.:: 11,cinn t:f it !, ob ligatio,,s unde r t his Cont1·a c t, or if t he CONS L'LT A1"!'
s t.uil v1vJut 1.: .J l,Y c.i \lie cCJve:, ... r,'..~, c:1gr.:uinetn t s, or !;llpulation o f thi~ CCJn -
ll,1..: ~ltY ~11Sl ll d11.:,e:u1 ....,;r, huvc '1.111.: ri (J~L to tcnninatc-t hl s Co nt roc t
by g iving wr itten noti c e t o the CONSU l..TANT of s u ch t enni n ation u nd
specifying the e ff ec t i v e d ate the reo f, a t leas t fi ve ( 5) da y~ !.>'-'f o r'-'
the ef f ective date of terminat ion . I n that event , a ll f inished or
un(inished documen t s, c omp uter p rog r a ms, d ata , stud ies, survey~,
drawings, maps, 1node l s, p hotogr a p hs , and r e por t s o r Q.t he r ma t c r ·ial
pn:pare:d by t he CONSULTANT u nde r this Contract s hall, at t he o p ti o n
of the Ci ty, become i t s property, and the CON SULTAN T .s h al l b e ent i tled
t o receive j us t, equ i tab l e c ompensation f o r any sa ti s f ac t o r y work
completed on suc h docwnen t s a nd other mate ri a l s.
N"twithstand i ng t he ctbove , th,.; CONSU LTANT sha ll no t b<.• re li ~ved of
liabili t y ::o the Cit.y fo r damag es s us t ained by t he City by virtue of
a ny breac h o f t he Co n tract by t he CONSULTANT, a nd the Ci t y ma y withhold
a ny payments t o t he CONSULTANT for the pur pose of seto ff unt i l such time
a s t he exa c t amount o f d ama ges due the Cit y f r om the CON S LIL TAN T i ~
detenn i ned .
Th £: C.:lty may t ermi nate th i s Contract at any time by givi ng written
no tlCE-t o t he CONSULT ANT o f such t erminati on and speci fy ing t h e ~ff e c t ive
date: the reof , at le ast fifteen (1 5 ) d ays befor e t he effective da t e of
s uch te r.:una t ion. In t ha t eve nt , a l l finished or unfinished documents,
cor-j~.:t.e r r-r og r am s , dau,, studies , sur vey s, d rawing s, oiaps,rno de l s , photo -
t;ra ;~;,s , a nd repor ts or o t her mat e r ial pre p ared by t he CONSULTP.NT under t !",l:>
Cv:-.:..ra c t. shall , at. th~ o p tion of t he Cit y , become its property. I f t h l..'
Cc.,r,tract is tenr,ina t cd by the C1 ., a s p rov.ided he r ein , t he COt-:SULTA NT ,..,111
ti c r~:..:.d ar. am o un t whi c h be a rs the same rat.1 0 t o t he tota l compensa ti on c.1 ~
t !1e: s1.:rv i ccs actually pc rfo rmt!d bea r to the t o tal s e r vi ces o f the CON Sl'L'i'i-::-:·
'-~'✓1.::-1.:J by u --.1s Cc.r,tru c t., le~s payn•en t s of compe:nsa t.1 on p rcv iou~ly m...i th ·.
l!' tl-.1 s Ca r.t r ac t is te rmina t ed duC: t o t he fault of t he CONSULTANT, termi na t1 o r.
o ~ Ceir,t r il c :. f o r c a ust:, relative to termination, shall apply .
SECTIO~ VI! --CHANGE ORDERS OR EXTEN S IONS
Tr,1.: Clt.'/, it,uy f rorr L1 m1.: t o t i ml:!, r e qu i re changes in the scope o f thC!
s1:rv 1.ces of t i":e CONS ;.;LTANT t o ·be performed here in . Suc h changes , 1n-
cl ud1..c; a:-iy inc re as e or decrease in the a.moun t of t h e CONSULTANT 'S
co:r,?E::-is at i or., -..,;hi c h are mutually a greed u pon by a nd between t he Cit y
anC the c or,;s:.:LTA:n , sr.all b e incor porated i n 'wr it ten Change Ord e rs
o r EA-te ns i ons t o t h is Cont ract.
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SECTIO N VI II --EQUAL EMPLOYMENT OPPORTUNITY
~. Th e CONSULTANT wil l not di s criminate against any employee or appl ica nL fur
em pl oytne nt becaus e of race , color , r eligion , sex or nat i onal o r igin. The
CON ~ULTAJ\T shall adhe r to acce p tab l e a ff i Tlllative action guideline s i n sel-
e c ti ng cmpl oye •:s and s hall ens u re that employ(!c S urc treated dur ing empl oy -
men t, wit hou t regard to their r ace, colo r, r <!li gio n, sex o r nationa l ori&in .
Suth u c t ion shall in c lude , Lu l n llt bl: liu1ltcU t o, th e.· f ollowin l:: cu1ployu1L•Hl,
u pgrading, demotion, or. transfer, re c ruitment or recruitment ad ve rti s i ngi
la yoff o r termina t ion , ratc:s of p.i y o r oLIH;T f o r w~ of compc11~ut1un; und
selection for tra ining , inc luding apprenticeship. The CO NSULTANT agrees t o
post in conspicuous pl aces , a vailable to employees and applicant s for
e mploy,:nent, not ice s t o b e provided by the Local Publi c Agency s e t ting fo rt h
t h1: p r ovi~i on !. o f t hi!;. nondiscrimi na t ion cluuH•.
B. The COKSL' TM\T 1w ill I in all solicitations o r adv e r tisements for e mploye i:s
pla c ed by or on be h alf of t he CONSULTANT , s t at e tha t all qualified applicants
._,ill H:ce:ive considera t io:1 for empl oyment withouL re ga r d t o ra c t", colo r ,
rr:ligi o n , se:>: or n,Hi o nal o ri gin.
C . The: coi:s ~L;A:;T 1.i il l c au~t t he foregoi n g provis i on s t o be in se rte d i n al l
su bc.ont rJ i:l!) f o r any .... ark c overed by t his co ntra ct s o tlrnt s uch p r ovisions
\.:iJ. Lt.: ~.111.!iog upc,n 1:"1 tl1 subcon t r uclo r, pro vide d l h..i l the f o r cbo inL, pr i.>-
v.!:i i on s s ha:l not a ;,ply to cont r acts or subcontr ac t s f o r standa r d com.merc1 .'.ll
!:i "i ; L~!> c,r ru1,,.1 01.Jte:rial~.
:.i . 'it i l: CO !,Si.._·;;\:;, ~l..:.dl kbj • _u.:11 r1:co rd~ ..i nti ~ul,m;l such re port~ COI\C l 'flllllf, ll H·
ra cial an.: ethnic o rigi r, of a pplic ants for empl c1YD1 e n t and e mployef!s as t he
C :/ o f ,\~,r o ra , State and r·ti,;~r al Ag1;:nc i es muy r equire .
E. The co~s L-_':nKT agrees t o c om,)ly \,,l f t h su ch ru les , regulat ion s oi guideline s
as th e City of Au ror a, State o r Fe de ral Age nc ie s ma y is s ue t o im pl ement t hese
r 1.::ql..1 r e:-\;r.~ s .
SECTIO~ IX --SPECI A:. CO:-/D IT!ONS
flher eve~ the words "Ci ty of Auror a " o r "City " appea r 1n, th is Agre ement,
t ney shall be take n t o mea n the collec tive gro up of go ve r nm enta l ent 111es
.,.,~11 ch a ,·e, contra ct 1r,; fot" th is se r vice , t a ... 1i t: City of Aurora, Ci t y o f
L,1tLlet on , Clly o f Gr<;en ,ood Vill age, City of Glendal e , C11 y of Cherry
H1lls _V1ll age, C1ty 0 1 Bow Ma r., C1ty ,11 Englewood , and Arapahoe County.
Tne _CHJ o f /.urora shall s erve as the ooenc y responsible for cont ract ad -
r1r,1 stra t 1on . Separate letters fr om t h•.;e en t i :ies have been re ceived
L, the Ca; o f Auro.-a wh i ch sta t e the in tent of ea ch enti t y Lo pa.rticipat ~
ir. tne cos t cf this project, as follo1·1 1:
~ 1 t/ of /\urora
Cit y of Che r r y Hi l;s Vill age
Ci tf of Eng 1 ew ood
$26 ,4 00
1 , 200
6 ,000
Ci t y of Gre enwood Villa~e
City of Gl endale
Ci t y of Li t tleton
Ci t y of Bow Mar
Ar apa hoe Cou nty
Total
$ l ,200
600
6,000
,JOO,,..,_ ~~--
B. In voi ces shou l d be submitted to t he City of Aurora, Off i ce of Co nt r ac t
Ad min is t r at i on , Roo rn 712 , 1470 Sout h Ha vana St ree t, Aurora, Co l ora do
80012 . With re fere_nce t o Section IV, Payme nt and Fee Sch edul e ,
Subsec t i on A, t he Ci t y sha l l mak e every reaso nable e f fo rt t o pro cess
pa ym ent within the st i pulated twenty-one (21) da y per i od. Howe ver,
beca usr: of t he number of parties to this contract whos e a pprova l
may be ne ces sar y pri or to payment, this time period may of neces s i ty
not be mH . Therefor~. t he CONS ULT ANT und ers t and s and ag ree s t hJ l
poy rn e"t >i i t hi n fo r t y-'ive (45 ) days i s acc e pt ab l e.
I
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IN WITNESS WHEREOF , the parties hereto ha ve execut ed th i s Ay, ,e,,0 11L il s uf
the day and year first above wr itten.·
Ap proved as to form:
Assistant City Atto rney , Aurora
Col orado
Atte s t :
Deputy City Cl erk , Auro ra, Co lorado
At test:
Atte s t:
--------------
/..tu:st:
At t: st:
Attest :
htt e;s t :
CIT.Y OF AU RORA, COLOR :,,,
""B'--': ___________ _
Tit 1 e:
CITY OF CHERRY HILL S VI LL AGE
Tit 1 e:
C !TY OF ENGLEWOOD
B ·:
Titl e:
CITY OF GRE ENWOOD VILLAGE
B :
Title :
CITY OF GLENDALE
B
Ti t 1 e:
CITY OF LITTLETON
Title:
CITY OF BOW MAR
~----------
Tit 1 e: -------·----
ARA PAHOE COU NTY
!3.1'_: ----------
Ti t 1 e:
CONSUL TAN T
Browne, Bortz and Codd i ngton
By :
Ti l le:
Da te:
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DENVER-ARAPAHOE COUNTY
FISCAL FLOWS STUDY
-Prepared for -
Arapahoe County Mayors and Managers
Ar ap aho e Cou nty, Co lorado
-Pr epared by -
Browne, Bortz & Codd in gto n
155 South Madison Street
Oenver , Colorado 80209
( 303 ) 321-254 7
29 ,ianuary 1982
Attachment I
Page 2 of 19
a,ownC' Bon, & Co cJ C1111y1on
,;: Sv u·~. M,,:w~on
Dl-t ~1:· Ct. {l'i10l\ B02U:J
,j~J , J21·l:l -!7
I ... . ,
Ms . Christi ne E. MacM i 1 lan
Con t r act Coordinat or
Offi ce of Cont r ac t Ad minis trat ion
Cit y of Aurora
1470 So uth Havana St reet, Roo m 712
Aur ora, Color ado 80 012
Dear Ch r isti ne:
Attachment I
PagQ 1 o f 19
29 J anuary 1962
Br o·,me , Bor tz & Coddington (BBC) is pleased t o re spond t o yo ur invitat io n
t o submit a pr oposa l for prof essi onal con s ulting ser vi ces . A recommended
'.LuUy a;iproach and informa t i on abo l't the gener al ba ck gr ound of our fir m,
c,perience of specific team mem bers an d examp le s of pas t pr ojects ar e
1ncluoea .
As an economic , financ ial , marke t an d po li cy an alysis co nsulting firm
act iv e in t he Denver Met r opoli t an Ar e a fo r th e pas t dec ade, BB C is
uniqu e ly qualified for the propo sed study . The f i r m bri ng s to the pr-ject
consioerabl e loc al exper i ence dn d famil i ar ity wi th Denve r an d Arapah oe
Coun ty f i sca l systems. BBC has an exte n;iv e lo ca l da ta bas e, prac t ic al
under sLa ndin g of in tr a-juri sd i c tio nal flows i n the Den ve r Me t r opo litan
/1rea and pas : wor king r e l ations hi ps with mos t Ar apa ho e County co mmuni -
t 1es..
For t hi s study, t he BBC project team wi ll be j o in ed by Dr. Tho ma s Mull er ,
Di,ector of Cormiun i ty Impact Studi es at The Urban Inst itute . Or. Mul ler
is a nation ally recogn i zed expe r t in urban f i sc a l ana l ysi s , and is r es pon-
sible for develo pi ng the mo s t commo nly appl i ed methodo logy i n the count ry
'or eva uati ng fisca l flows amo ng metro po l itan ar ea' j ur isdi ctions. His
work in the Richmond , Virginia ar e a played a signif i cant r ole i n a U.S .
Supreme Court dec-,sion concerni ng i ntra-metropolitan fi scal f l ow s.
If we can provide any ao oitional info rmat i on regard i ng our propose d
approach , qualifications or experience, pl e ase contac t me. We look f or -
,_a,-o to wo rking with many of t he Arapahoe Coun t y jur isdict i ons ag ain on
th is challenging project.
Enc losures
111 nf
Sincere l y,
~D ~
Keith D. Moore
Senio r Partner
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SECTION l, INTRODUCTION
At ta c h111ent I
Page 3 of 19
This prop osal is for a project involv i ng the measurement of fis cal
flow s between the City an d County of Denver and the jurisd i ct i ons in Arapa hoe
County, Col orado. The im pa ct of non -residents on munic i pal revenue s and expendi-
ture s is of part icular conce r n . Thi s section of th e proposal outl i nes key
backg roun d i ssues, de sc r i be~ the general ap pr oach to fiscal flows ana lysis and
surrmarizes f i r m qu al i fi cat ions .
An alysis of the fisc al interactions between Denver and Arapahoe County
jurisdictions is t imel y and potentially very impo rtant. A comprehen si ve analy-
s is of f i sc al flows --i nc l uding r even ue effects and the impact of funds transfers
thr oug n the State --•11 1 provide a mor e valid and defens ib l e basis for drawing
con clus i ons t han t he pi ecemeal analyses of ind i vidual serv i ces (such as cul t ura l
fac ili t i es and ho s p·tals ) whi ch have bee n conducted thus far by the Ci ty and
Count y of De nve r . !t may als o sugge st an enti re ly different picture as to who is
be n~f 1tt rn9 ond who l s be i ng S1Jbs i di zed .
Back groun d . Co ns i derable analysis has bee n accomp l i shed to analyze
tne costs as soc i ate d with non -res i dent use of Denver's publ ic facil i t ies and
services . To aat e, ve ry li lt l e effor t has been exte nd ed towar d evaluat i ng the
ot he r s id e oi the i ssue , nam e ly the posit i ve fiscal impacts on Denver from non -
res i dents ar.o t ne costs borne by suburban comm unities serv ing Denve r r esiaents .
l,rap anoe County Mayors and Managers are concerned about the flow of
be nefi ts ana rev e nues between Arap ahoe County jurisdict i ons and the Ci t y and
Couni/ of Qa r.ve.'. I nsigh t i s needed to det ermine the extent to wh ich Arapa hoe
Coun t y r e:s i ut nls con tr ib ut e revenue s to the City and County of Denver in s upport
of Je nver se r v·,:e s an d fa ci l i t i es and , conversely, the extent to which Denver
re s 1oe nt s ut 1l1 ze Arapaho e Coun ty service s and facili t ie s and correspo nd i ng ly
co nt ri but e r e ve nJe t o Arapahoe County jurisdictions.
A car e fu l anal ys i s of the sources of demand placed on psbli c ly pro vided
ser vi ces , ~lu s ; t ho rou gh study of the rev e nu e s tr uc ture of a l l re l ate d ju r i s-
a·,c t i ons ;•, ne:::ss ary t o acni eve an understan !,n; cf these muni c ipal f iscal
r elut i onsh1ps . Tran s lat ;n t he compl ex i nterre !,t Jnshi ps tha t exist amon g
reg ion al ju r i s:1c t i ons in t o easi_l : understood s tat i stical measures i s t he under-
ying a im oi l is study.
~...:22..~-The, no L1on t ha t the Cit / and Co unt y of Denver i s sub -
sia i z i ng ne i gnoo r i ng subu rb an areas by pr oviding u,,reimbu rsed servi ces to com-
;nuler,, ,i,v~µe r s a,,d use,·, of cultural an d medical facili t ies is a lengsland 111 9
po li ti ca l is su e . The i ss ue has grown with th e Ci ty an d County's su ccess in
ga1n 1ng l e g·,1at1ve at tr:nt1 O11 to th e,e issues , und with its recent dec 1s1on t o
r es t ri ct li bra r y serv i ce~ and impose charges for non-reside nts . Th ere 1s eve r y
reason t o oel;eve t hat the issue will continue to grow. Ongo i ng Denver Cn y
:ocr.c ,1 uisc .1s1o ns of pote nt ial De nver Water Board actions , incl udin g curta ,1-
i r,.J ~.;n.:1.:.1,1.:· ·., :u si::r ;l: ni: .. '..JLurb .rn jreas .lnd i nc reasing suburban drt:.l COd f9t:' •.
.l l°C .... uL u rn.: 1.,°A w ,ljJ H,:'. Th~ dlc rayc Jcn vcr vo Ler 0r policyma ... er app!!ar":> t u t..clh•\.'I,.'
Page 4 or IY
unequ i voca 11 y that Denver is being exploited . The respon se hJ s L~"" both to see,
counterv ai 1 i ng payments from the state or the suburban jurisd i ct i ons an d t o
create clas s d i sti nct i0 .,s between central city and suburban u~er s of services .
A 11 of this has occurred without· the benefit of an objective, co,npr c -
hens i ve analysis of what the fiscal flows really are. A comprehensive analys i s
will determ i ne the value of those services which Denver prov ides to Arapaho e
Count y residents (and for which it is not already reimbursed) aga i nst (l) tho se
unre imb ursed services which Arapahoe County jurisdictions provide t o De nv er
res i den ts, (2 ) the net contributions which Arapahoe County residents mak e t o
Den ve r's reven ue bas e thr_ough sales taxes, property taxes, the head tax and other
sour ces , and (3) th e net flow of funds from Arapahoe County t o Denv e r through th "
state (primar il y via income , sales and excise taxes ).
It i s important that this analysis be objective, rigorous, and defens-
i bl e. Should the study f i nd th at the f i scal flows are in favo r of Arapah oe
Cou nty, it wi ll be reviewed closel y and critically by Denver's Planning Depart -
ment , Off i ce of Pol i cy Ana lys is and other Colorado pol icy makers. Our exper ie nce
is th at, i f done we l l , the analysis can also provide useful ins i ght s about
ex i st i ng revenue structures in d their responsiveness to growth or decl i ne for
t ho se jur i sdicti on s bei ng studied.
Q£jectives . The pr incipal object iv e of the study is to determine
,he t her the benefits Arapahoe County res i dents recei ve fr om pub 1 i c goods and
s e -r,c~s pt on ded by the Ci t y and County of Denver are proport i onate with t he
rr:,er,ues paid to Denver. There i s some concern th at a dispropor t io nate r ela -
:·o n~h1 p .;i•yn t ex i ':it b2 tw ee n use of ~erv i ces an d re venue flows betw ee n thL' tw o
e l": i t ie s .
Ar ap ahc e County juri sd i ctions are specifically interested in determin-
i ng whether County res idents are adequately compensat i ng Denv er for th e library
ar.~ cultural fac il i ty benefit s pro vi ded by the central city. Add i tionally, a
var i ety of di rect and i ndi rect revenue generating inst r uments ava il able to t he
t•O ent i t i es .i ll be exa mi ned for comparis on with service and fac ilit y use by
r esiden t s and no n-res idents.
I t i s intende d that stra i ght-forward, mean i ngful measure s of fisca l
re l at i onsn 1ps will be developed. In addition to the use of secondary indicato rs
of f i sca l in t eractio n, pr im ary re search (surveys and personal in ter views) will
oe appli ed t o assess the f ull scope of jur i sdictional interdependence. Results
of t ne propose d r esearch wil l provid e a well documenteq yet eas i ly understooo
oesc r i ;it ion of the econo mi c re 1 at i onsh i p between Denver and Arapahoe Count i es.
Fi scal Flows Met hodolo gy
Af ter more t han a deca de of trial, err0r an d appl i cat i on , t he genera l
me thodology for conductin g f i sca l f lows analys is is now well established. Tne
r eco ,m1enJec oi;: approach reflec t s the suc cesses and fa i lur es ~i past r esear ch
~:f f0 rt S .
~ese ar ch . In i t ia lly i nt ere sted i n the topic because of tn ei r
t hec -y tr,at cen tral cit i es •ere bein g exploited, resea rchers soon found t hot
tne ir r csu l:1 often did not su pport t he theory. Us ing secondary source data on a
cross se:.ion of commun i t i es dur i ng the late l950's and early 1960',, Ju lia s
I
Attachment I
Page 5 of 19
Ma rgoli s found that "It is clear that the greater the outside pop ula ti on r e lat i ve
to the s i ze of the cent r al city, the greater will be th e central city's lo cal
public expend i ture1." However, "th e argument that central cit il·• Jre exp l oi t ~d
by· 1uburb1 is not well established. I f anything, central cities may be re la -
tive l y better off."(!)
Simil arly, Harvey Braz ier found · that "con ceivab l y the s uburb arntt•,
thro ugh his con tacts with the city, contributed as much or more t o the latter's
tax bases as it requ ired to finance the additional expend it~res he imposes up on
i t."(2 ) In one of the first analyses with i n a specific city, R.F. Smith found
that in 1967, corrrnut ers to San Francisco contributed some 18 to 50 perc en t more
i n re venues than the city required . to at tract and to service them.
To be certain, not all early result s were in favor of the suburbs.
However , those which found most dee is i ve ly for the centra 1 city included
in appropriate or highly controversial methodologies. Sam uel Book's study of New
Yo r k Cit y COITTTI~ters was faulted for its f a i1 ure to include many relevant revenue
categ ori es , i ncluding sales taxes.(4) William Neenan's study of selected ser -
vice categories i n Detroit introd uced a controver s ial argument th at , because
sub urban residents had higher incomes , the value of central city serv ices to the m
shou ld be cal cu lated at a higher rate.(5)
Recent metho dology. Confronted with a maze of part i al , often bia se d
ana l yses and n,a l izi ng that a more ba la nce d , comprehensiv e approach was requ i red
t o answer f i scal f lows quest i ons , The Urban Institute began a multi-yea r pr oject
in :ne ear l y 19 70 ', to develop and apply appro pr iate techniques. The f i rst
proJoct, ap;,li eo in t he Washin gton rne trop il itan area, f ound that wh en t he bene -
f ·,t s o f ,er.,,ce s t o no rthern Virgin ia and eastern Mar yla nd r esi dents wer e calcu -
lalta t.,o~eo on tnt: cos t s of pr ovidin g se r vices, Wash i ngt on, D.C. received J ll L'l
f ,s ~a l be nefa fro rr i ts ne ig hbor ing subur ban counties.(6)
Wnen Ne enan's approach for attributing a higher rat e of bene fi ts to
hi gher i nco me residents (the "willingess to pa," argument) was applied t o the
arban Jnst it ,te's Wash i ngton data , the results turned around to show ad ve r se
effects on t he cent ra l city. Th is approach has been rejected by bot h the
Urban In s tllute ano BBC as over ly academic and i nternally inconsistent . For
:xa.r,;i l ;;, i t coc_l d show Greenwoo d Village receiving more in benef i ts from a
Denv er ser vi ce t na it wou ld cost to replicate the service in Gr eenwood
Vi 11 age . The "w i 11 i ngness t o pay argument " has al so been ignored by t he
cou r t s (see be l ow ).
Since the Was hi ngton study, The Urban Inst i tute's compreh ensive
met ho d~logy has been refined and streamlined . It has been applied in Fa i r
Coun t •, Virginia and in the Richmond, Virgin i a Metropolitan Area. The
F.i cnmc,,.a an aly s i s, wh i ch founo that the central city be nef itted fr om it s
fi scal in teract i ons ·a ith surrounding cou nt ies , ha s bee n reviewed in deta i l Dy
t ne ju d i c i a l process ano has _s erved as a major ba s i s for an an nexat ion
de cis io n .()'. I t nas been r eviewed and cited by th e U.S. Supreme Co ur t.(8 )
p,c,Ject appr oach. Many of the elements o f this ..efinea; streamlin ed
metnc,ao los·1 ar e clo sely re latea to th ose which have been empl oyed in fiscal
,m "o :t or,o1 ;,;, JnO for ec asting, .. oteably on defens e es tablishments by th (: Urb an
!n s t·tJ t (: ;n o on en e rgy pr ojec ts by the Un i ve rs i ty of Denve r Research In s titu t e
Page 6 of 19
(ORI) an d Browne, Bortz & Coddington (BBC). (9) A large number of proj ects of
this type ha ve been con duct ed by BBC beginning i n 1974 with a d1;tJ i led an a lysis
of projected f i s ca l flow s i n Sweetwater County, Wyoming and cont i nui ng to t he
pr es ent ti me .
The genera l methodolog i cal structure used for this project wi 11 be
essent i ally the same as that employed in Fairfax County and Richmond, Virgin ia.
C The data collection and analytical approach will closely follow procedure s
deve l oped by BBC in pr evious Co1orado work on f iscal flows .
" Qua l if icat i ons
,.
As outl i ne c in ·th i s propo sa l, BBC is uniquely qual ifi ed for the Denver-
Arapa ho e County Fi s cal Flow s Study :
t The firm br i ngs to the project cons i derab le l oca l exper i -
enc e and farniliarity with Denver and Arapahoe Count y f i s-
ca l sys tem s . In the lust year alon e , ove r a dozen s tud ie s
have been completed i ., the area, focus i ng on f i seal
im pacts, gr owt h manage :ne nt and e<:on nmi c feas i bility.
Recent proj ects have bee n comple ted i n ,urora, Littleton ,
Engl ewood , Ch erry Hi lls Vi llag~., Gr oenwood Vi llage and
unincor porated Arapaho ~ County .
As a Denver area firm wit h over 10 ye ar s of ex pe r i ence ,
BBC has an exten s ive data base on the ar e a, and a pra c -
tical understa nding of colll1lu n i ty i nte rrel at io nships i n
the metropolitan area.
, Work in progress , in cludi ng a st ud y of t he impact of
ener gy devel op ment on t he econo my of the Denver Area for
th e ORCDG and an ana lys i s of th e fiscal im pac t s of
dev e 1 op ment fo r th e Ci ty of Aurora, will provide a unique
and valu ab le per spec tiv e for th i s effort. Additiona l
examp les are i nclud ed in t he Qual i f i cations section.
e BBC has a long -standi ng credi bi l i ty i n the area of fi nan-
ci al ana l ys is and a prov en ability to wor k effect i vely in
politically se ns i ti ve situ ations. Exam pl es are prov i ded
in our qualif icat io ns s t atement . We have a strong veste d
inte r e s t in mainta i ning th i s tr ack re cor d.
1 BBC is a re r.ogni ze d aut ho r i ty on r egi ona l · econ omi c an d
puo lic f inance mo de ling , havi ng co mpl eted numerou s fiscal
im pact as sessments and si mi la r ev a luat io ns throug ho ut the
Rocky Mountain Reg ion and e l s ewh ere across th e coun t ry .
Expe r t t estimony has been pr ovi ded before a vari et y of
planni ng organizations , poli t i cal as semblie s an d cou rts
of law . Pas l resea rch ef fo rt s have included growt h
manag eme nt plann i ng , soc i oecon omic i mp ac t as se s sment
deve l opm ent fea s :bili ty stud ies and analyse s of new
revenue gene rat ion po t en t ial.
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Page 7 of 19
Evaluat i ons of future publ ic cost and revenue streams att ribu ta bl e to
alter nat ive deve lopm_ent proposals have been prepared for a large nu<l'b er of publ 1c
an d pr il ate agencies. BB C has assisted . various local gover nm ents wi t h the
pro jec t i on of f isc al impac ts. Projects have range d in s i ze from mulli-111il l 1on
do ll.r i ndust ria l de velopments to small residential subd ivisi ons.
BBC has dev eloped various computer -a ssis te d fiscal impact ass essme nt,.
A co mpr ehens ive eva 1 uat ion of alternativ e mode 1 i ng procedure s was ac comp 1 i shed
in a recent proj ect designed to· e valua t e th e state-of-the-ar t in compu t er-
ass i sted fiscal impact asse s sment. Th e ab i l i ty of th e firm t o pr oduce time l y and
thor oug h analy ses of mu nicir al fi nancial ,hara c ter is l ic~ through compu t e r-
ass isted analyt i cal techniques has been amply demonstrated , and the di stinguish -
i ng fea t ure i n every i nstance has been th e clar i t y and us efulness of t he result-
in s s t at i stics.
~H.t Team
BBC brings t o the pr ojec t a pro fessional te am with cons i de ra ble
e,perience in the Denver Met r opolitan Are a. The team i s well -suited to )ro v1d e
"' excellent product and to def end its conclus i ons .
Ke itn Mo ore wi 11 serve as Project Director. For merl y He ad of the
Indus tr ial Ec ono mi c and Mana geme nt Divis i on of the Den ver Re search Irs:itute ,
Mo ore has ext ens i ve expe r i en ce i n urban an d r egi onal economics, pu bl ic f i nan ce ,
,ocioeconom1c impact analys i s and r eal esta te econo mi cs. As As sist ant Proje c t
D',rector . John Gu nyou br i ngs to th e tea m a s trong public f i nanc ia l ba c,g,·ou nJ .
"" ,~ i;ortic,lu ly knowledgeable about Qenv er Metrop ol itan Are a financ 1Jl i""°'
aMi I.a.~ µo~L ,,._,.,: 11~; ·~!alionships wi t h numerou s loc11l mu n1c ipa\i ti1:s .
Jee ,, :.::c, ,9 1vn i s widel y res pec ted as an ex pert on t he Denver Me tro -
po lit an Area !·. ,no11 .l' dnd has been i nvolved with ove r 100 econo mi c base and f i scal
ana ly s i s pro j ects in the Denver area duri ng the past 20 years . A form er Pres i -
dent of t he In ternat i onal City Man ag ers As so c i ation, Bob Turner has part i cular
ex pertise ,n t he plann i ng, ma nage ment and f i na nci ng of pub lic serv i ces ano
fac ili t ie s . Tu r ner s pe ciali ze s i n .th e arrangement i n pu bli c and priva t e par t ner -
sh ip s for t ne so l ution of communi t y ser vice problems.
The proj ect team also in c lud es To m Mull er, Di recto r of Commu nlly
Impa c t Stud ies at the Urban I ns titu te. He is a nation ally recogn i zed expe rt in
ur ban f i sca l an a l ys is , es pec i ally int erju ri sdict i ona l fj sca l f l ow s e valuation.
Dr . Mull er i s respons i bl e f or deve lopi ng the most widel y used meth od ology in the
cou ntr y f" analy zi ng fi scal flow s betwe en jur i sdictions . His wor k has bee n
s i t ed by var.au; congressio na l comm i ttee s and by the U.S. Sup reme Court.
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( 2)
SECT! ON I. REFERENCES
Attachment I
Pag e 8 of 19
Julius Ma rgoli s, "Metropolitan Finance Problems: Territori es, Funct ions ,
and Growth," in James M. Buchanan (ed.), Public Finances : Needs Sources,
and Utilizat i on (Princeton, N.J.: Princeton University Press, i966), ~p.
258-259.
Ha r vey E. Br azier , Cit y Expendi tu res in the Un ited States (New York:
National Bureau of Economic Re sear.:h, 1959), p . 58.
(3) R.F. Smi th, "Are Nonresidents Cc.ntribut in g t he i r Share to Core City
Revenues," Land Economics, 1972, p. 242.
(4) Samue l H. Bo ok, "Costs of ColT'llluter to the Cen tral Cily as a Oasis for
Commu te r Taxation," (Ph.O. dissertation, Columbia University, 1970). This
cr iti cism of Book 's work is cited i n Kenneth V. Gree ne, Neenan, William B.,
and Scott, Cl au dia D. (The Urban Institute), Fiscal Interactions in a
Metr opolitan Are a (Lexi ngton , MA : Lexi ngton Boors-;-f9'1 ,\), p . 19.
(5) Neena n , Wil iam B., Political Economy of Urban Area s , (Lh i cago: Mankham
Publ ,shing Com pany , 1972).
l 6, Gr een , Neenan, and Scott, ~.
(71 City of Rich mond vs . U.S., 37 6F. Supp/344(B.O.C . 1974 ).
(8 ) City of Richmond vs. U.S ., 95 S.Ct. ,296 (19 75 ).
(9) For e xample , see Thomas Muller, et. al., "The Fiscal Impac t of l r ident on
St at e and Loca 1 Government" (W ash in gton : The Urban Institute, 197 8);
Ke itn D. Moore, et.al ., Socioeconomic Im acts of Western Ener Oeve lo •
men t, (ha ,n,ng ton: Pres id ent 's Council on Env i ronme ntal Quality, 197 ,
G, lmore , John S., Moore , Ke i th O., HalT'lllo nd, Diane M., and Codd i ngton, De~n
C., Ana l sis of Financin Problems in Coa l and Oil Shale Boom Towns (,'as h-
ingtor., Feaera l Energy Administr atio n , 9
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SECT :ON I I. METHODOLOGY
Atlachmen t I
Page 9 of 19
Th i s sect i en out 1 i nes the proposed research approach, inc 1 ud i ng pr e-
1 i mi nary ind i cations of data sources, The general proces s is described an d
specific ta sks detailed for the Denver-Arapahoe Co nty Fiscal Flows Study .
Prop osed ;,pproac h
The propo sed methodology reflects the approach taken in pr ev io us
analys e s conduc ted by Browne , Bortz & Codd i ngton, and Th e Urban Institute.
General process. The general flow of t he analys is is to (1) de ve lo p a
consis t ent revenue and exp a.nditure base across the jurisdi c tion s being analyzed ,
(2) es t imate th e key eco no mic variables (such as colTITiuting patterns and shopp i ng
pattern s ) which are requ i red throughout the analysis, (3) ana l yze th e reven ues o f
eac h local ju r is di ction , trac i ng bac k appropr i ate portions of thes e rev enues t o
r esident s of ot her jurisdic t io ns, (4 ) analyze the ex penditures of each juri sdic -
t io n, t rac ing bac k portions to res i,r.n ts of other jur is dictions, (5) analyz e net
flows from one jurisdic tion t o anoth er thor ugh intermed i aries (such as th e s tat e
and rnetropolltan serv ice dis tr i cts ). and (6) integrate results and e s ti ma te net
f i scal flows .
i,nal ysis det ail . There is a fundamen t al , strategi c cho ice wh ich rnust
:e ·;aoe at the outse t . There ar e three logical l evels of deta il at which th e
anal 1s 1s ca n be conducteo:
(!) A manager i al an alysis --prov i d i ng an efficient answer t o
the question within reasonable confidence limits. This
leve l entails structuring the problem, investigating
key variables in detail and evaluating less crit i cal
-vari ab'es i n a mor e surrrnary fashi on with limited use of
pr ima r1 data collect ion .
(2 1 Detailed coun ty -to-c ounty f i scal flows analys i s--
prov i d i ng a well-documented analys i s of the flows
between t he two counties which can be readily defended
aga i ns t expert criticism and is suitable for use in
legis lative or judicial procee din gs . This will inv olve
some primary dat a gathe ri ng, as well as deta i led docu-
men tat ion. I n some ins tances, mo re t han one techniq ue
will be used to .estimate key var i ables and report the
sensi t h ity of the r es ult s to t he choice of
methodo 1 ogy .
(3 1 Individual jur i sdictio nal analys is --provi ding a we11-
doc urnen ted def er s .bl e study of th e f lows among maj o'r
individual t axing jur i sdicti ons as well as betwee n the
two coun t ies as a ;,11".:,le.
Oov iov1l1 co1t ,s, fac tor in det ,,rmi ng th e appro priate le vel . Sect ion V of t ne
prc~c,,"; :.,ea ,1 p,·01ec t tas,s an d cos t s i nt o t hree phases wh i ch rou ghly cor -
r<:1,,ono t _ U,e three: le ve l s of po,1ib le analy1 is detailed i n t hi s s~c t ion.
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Phase 1: Ma na gement Analysis of Fiscal Flows
Ph ase 1 tasks ar e designed t o provide close co nrnun ic at ion durin g t he
f or mat i ve st age s of _the project ,ind to giv e a reasonable e s t i!llate of th~ d irec-
ti on of fiscal f lo ws as qui ck ly as possible .• As the Phase is outlirred her e, so me
tas ks are initiated wh i ch will nut be completed unt i l Pha se 11. Should t he
dee is ion be mad e to proceed with Phase I only , the approach could be adjus ted to
provide an i ndepend en t analysis for roughly the same budge t and a 1 ittle mor e
time .
!.l. Work pl an development. An initial me eting with the rnanagcm c nL
gro up wi ll be held t o (l} gain a better understanding of ex pe ctations for th e
;i ro jec t , (2) i de ntify ssgg es tion s for impr oving th e proposed procedures, (3 )
i dentify lea d, fo r other potential l y useful data sources and (4 ) identify coor-
oin at ion po in ts wit h agency st aff. Following this 'll eeting, a det ailed wor k plan
wi 11 be ne velo ped and submited for approval.
I.2 . Budg e t ana l ysis and cost standardizat ion. Budg e t s from al l
to<" 9 jurisdicti ons in the two counties will be obta ined and a conrnon f orma t
e st ,.,'l s.he d for the purpos e of th is analysis. Revenues and ex pen di ture s will be
,i l r,c ated t o those categorie s for which procedur es are be i ng developed to dete r -
·ri r,e fisc a l f lo ws. Ta ble 1 illustrates an initial list of categories . More
ca·.egor i es are often added as the analys is pro ce eds in order to develop more
eas il y est im ated f i scal flows equations. Other steps i n the standard i zat i on
pr ocess incl ude:
• Amorti zin g capital costs and allocat ing them to the
approp ria te categor ies .
, Allocati ng oth er cost s (su ch as re tirement fund s , contin-
genc ies and planned cas h accumulation).
Table 2 i nd ·,c at es the budgets cur rently ant 'ci pated to be included i n
the ana lysis . Ot her,; may subseq uent ly be added to the ~!st. Al l jurisdict ion s
wi 11 not be comp leted du r i ng Phase I. For Ph ase I, two o-thr ee representat iv e
lo c at ions wit hin Arapanoe Co unty wi ll be selected and a combination of jur i sdic -
t ions (count/, mcn1c i µal , sch ool district , and major special districts ) wh ich
ap;i l y t o tnose locations anal yz ed .
1.3. Und~r l ying ec ono mic variables . Several key factors wh i ch are
required by the co s ',/re ven ue flows analysis wi ll be an a lyzed in this ta sk :
o Corrinut in g patterns--A s with man y tasks, th i s will require
recon c i l ing sev er al dat a sou rces . Data on net flows of
emp lo yees and earn in gs between the two count i es will be
deri ved from the U.S. Department of Convnerce, Bureau of
Economic Analys i s (BEA) Small Area Income Statist i cs
serie s. The lates t data ava i lable are for 978 and 1979;
these wil 1 be updat ed based on overal l emplo)ii,ent levels
1n t he tw o co unties as derived fr om Colorado Department
of Labor and Employment stati s tics. Conrnuter fl ow s wil'l
be e s ti mated fro m t hese data and fr om unpublish ed SE A
s tatistics . The res ulting estimates of comut ing from
Denver wi ll be checked against tl1e results of the sur ve y
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At ~achll'~nt I
P1,\1e ·,1 of 19
TAB LE l. ST ANDARD LOCAL REVENUE AND EXPENDITURE CATEGORI ES
Revenues ·Expend i t ures
Proper ty tax
Res i dential
Corrrnerc i a 1
ln dustr i a 1
Loc a l sales and use tax
Househol ds
Bus i ness -corrrnerc i a 1
Cig arette ta x
Li cense s and permits rt her bus i ness P.s taxes
,ntergovernmenta l tr ansfer s
~ser ch ange s
!li see 11 aneo us
General administrat i on
Public safety
Fire pr otection
Courts and correct i on s
Libraries and cultur al facilitie s
Par ks and recreat ion
Health care and ho spitals
Hous i ng and urban red evel opment
Social services
Water ser fices
Sewer and flood cor.t ro l
Educ at io n
Attachment I 10 ·
Pag~ 12 of lY
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TAB E 2. TAXING JURISDICTIONS AND SERVICE UNITS INCLUD ED IN
DENVER -AR APAHOE COUNTY FISCAL FLOW ANALYSIS
Ar apahoe County
Arapahoe County
Auror a
Che r ry Hills Village
Englew ood
Glend ale
Gree m,ood vi 11 age
Lit tle t on
Sher id an
Aroi,ar oe Coun y La w En for cemen t Aut hori ty
Arapa lie,~ Reg i onal Library District
Ca st lewood fi re Dis t ric t
Ch~rcv Hill•. l'i re Di s t rict
Cc 0 1ngham 'ire Di st r i ct
L·t ~ltton F1re Dis t ric t
Sout n Arapa ho e Sanitation Distric t
So..it n<:a~t En911:wooo Water Dist r ic t
Soutr En,le woo d Sonitation Dis tr i ct RI
Su .. ·.r i]C:lt: nCter Ois tnct
SoJi.11 SutH.r!:.i ,-:n Metrop oli t an Recreat io n
anG ?ar-.. Dis tr ict
Eng l t:rlCJ Od ~c nooi 1~tr1c t
Cher ry Cre ek Schoo l Di str ic t
c i tt iE:t on Scnoo l Di s t rict
Aaa.'1\s -Arapahoe (Auro r a) School Dist ric t
Den ver
Den ver (City and County )
Denver School District
Denver Water De r,ar tm ent I
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Atiachment I 11
Page 13 of 19
of Denver re s idents conducted by the Denver Off i ce of
Policy Analysis i n 1978.(1) Should place-of -w ork data
from tlie 1980 Census become available during the course
of the study, an unreliable 'possibi l ity, they will be
incorpora ted.
t Shoppin g ~atterns--lnitial estimates will be der ived
us i ng tne977 Cens us of Retail Trade . BBC has developed
an upd oting proce dure using cu rrent sales ta x rec eip t s
an d income da t a on the tw o counties. Th ese estimates
will be · cro s s-checked wi th metrop oli tan ar ea
shoppin~/corrrnercial area files (including check cashing
surveys) developed and mainta ined by BBC for its real
estate and fi nancial insti t uti ons wo rk. They will also
be cro ss -che cked for reas onable ness aga i nst estimates of
dollar s spend on taxable purch ases , deri"ed by combin111g
i ncome data with consumer behavior dat o from the U.S.
Dep artment of Labor, Bureau of Labor St atistics (BLS)
Survey of Consumer Expenditu res .
, lacomes --The BEA Reg i ona l Economics lnformat ion System
data wi 11 be update~ based on Colorado Departm en t of
[mplo yment Se cu rity data. The estimates will also be
che cked for consistency wi th BBC's latest Co lor ado income
tax ret ur ns sample (see tas k ! .6. Tra ns fers through
in Lermed 1ari es ) and wi th the 19B0 Colorado "nergy util ity
surv~y data bas e .(2)
1.4. Loca l revenues ana ly sis . Re venues in each categ ory will be
a lloca t ed between Denver and Arapahoe Counties:
1 Pr operty taxes fro m res i dential, commercia l and i ndus-
t r i al cla ss es will be analyzed separat ely . Res i dent i al
ta·,es will be alloc ated bas ed on jurisdiction of owner-
sc i p . Corrrnerci al an d industrial prope rty will be
a lloc ated based on a combinat i on of employment and owner-
ship data . Fo r t he key jurisdictions, BBC will devel op
ownersh i p data from a random sample of assessor's
re-:o r ds. The extent to which proper t y taxes are ulti -
matel y pa i d by bus i ness owners, shared by a)l fa ctors of
product i on includi ng employees or paid by consumers has
been stuaied in deta i l. During Phas e 11 , BBC will use
more tha n one tec hni que for this part of th e analysis.
o Sal es and use taxes wil l be allocated based in part on the
shopp i ng patterns analysis described pr eviously. Bu.si-
ness purchases wi ll be estimated and then-allocated
accor ding t o the bu si ness ownership data obtained fr om
t he assessor's records sample.
, Ci gar ette t axes wi 11 be al located b_ased on estimates of
cig arette ex penditures by Jurisdic tions. These will be
derived by co mbi nin g income est im ates wit h Survey of Con-
1ume r [;pend i tures estimates of the propo rtion of i ncom e
' .,
Attd chmenl I
Page 14 of 19
1ent on tobacco, reconciled again s t cigarellt LJ>
rec eipts.
, Lic enses and pP.rmit s wi 11 b~ allocated based on actual
receipts , assumed to be entirely from residents wi t hin
the ju r i sdiction , or assumed to be fr om businesses wit hin
the jurisdiction and allocated based on business own er-
sh i p, depending on the type of license or permit.
1 Other business t axes· wi ll be based on busi ness own er sh i p
within the . jurisdicti on, unless there is reason to sus-
pe ct s ub stant i al taxes pa i d by bu si nesses ou t side the
jur is d i ct io n.
, Intergovernmen ta l t r ar.s '.c~s consist pr im arily of t r ans-
f ers through the s t ate. They are add re •,\d i n a la ter
section.
t Use fees wi ll be a ll ocated based on actual rec eip t s or
assumedtJ r ome ent i re ly from within the tax i ng juri s dic-
tion, d~pe nd i ng on th e nature of the servi ce.
Miscell aneous revenue ,; i nclude Oenv er's head tax, wh ich
wil l be apportioned b•sed on commuting pa tter ns .
ll ·
!.5. Loca expenditures analys is . Init ial app roaches for all oc J ting
c ... ~E r,d·t -,--t:s are surrtnarized :
u Gr:ntra l ao rn1ni strat 1on expenditu r es will be allocated
based on time spe nt in t~e jurisdict i on by res i dents and
non -res i dents, which will be estimated bas ed on the co m-
mu t i ng and ;hopping patterns analyses.
~ Public safe ty expenditur es will be allocated on the sa me
bos i s as general admi nistrat i on .
; Fi r e pr otect io n expend i tures will be allocated on t he
bas i s of property ownership by residents and non-r esi-
dent s .
Co urts and correc t ions wi ll be distr ibu ted ,1ccor di ng to a
combination oi ti me spent in the jurisdict i on and
proper ty owner ship.
~ Li br aries and cultural fac i lities wil l be alloca t ed base d
on surveys of actua 1 use.
c Parks and recreation wi ll be a ll oc ate d, where poss ible,
~ased an prev ious surveys of actual use.
Health care and hosp i t als wi l l be based on se l ected su r-
veys of ac tua 1 use .
Atta chment I 1:J .
Page 15 of 19
• Haus ing and urban redevelopment expenditures wHl be
assumed for Phase I to ·benefit the residents of t he
jurisdi cti on mak ing the expenditure. Oth er ph ases
i nclu de · more detailed analyses . ·
, Soc i al services will be assumed for Phase l to ben efit
only the residen ts of the jurisdiction making the expe n-
diture.
• Wa ter, sewer and f lood con tro l will be assumed to benefit
on ly th e residents of the jur i sd i ct ion ma ki ng the ex pen -
diture . ·
• Educ at ion ,ervir~s wi 11 be as sumed for Ph ase I to ben efit
only the ·,·es i dr,nts of the jurisdict i on making the expen-
diture.
! .6. Transfe rs th ro ug h i nte rmedi ar ies. The largest catego ry of
transfers i s th rou gh the s t ate. Ea rm arked revenue s, s uch as hi ghway us er funds ,
and ge neral reve nJ es, as state i nc ome and sales t axes, generated in each cou nt y
,1 ill be est im ated. Fc.r determi ning state i nco me tax rec ei pts, BBC will us e the
firm's s tat e i nco me ta x samp le . BBC 11 as prep ared a co mprehe nsive i ncom e ta,
ana l ysis biannually for t he Co l orado State Legislature. State transfer s t o the
tw c, cou ntie s ari d direc t state outlays within th e co un ties based on thes e reven ues
wil I D<: ,im il arl y est ima ted . Other i ntermediaries wh ich will be ana lyzed in t his
·c,a·,ner in cl uoe t he Reg i onal Transportation District , the Metro politan Sew er
Disc r,ct or,J the Urban Dra i nage and Fl ood Con tro l Di strict.
1.7 . llel fis cal flows . Re ven ue and expenditu r e flow s wil l be co111bi11cu
to arrive at a net flows an alysi s betw ee n the two co unt ies . Wh ere necess ar y,
such as due to lags i n da t a avai lab ility, simplifying assumptions will be moue .
leverthe l ess , the proposed analysis wi l l ide ntify the major finding s at t his
po i nt.
_Li,_;__~. A r e port indicating method a logy, results and
limita t i ons wi l l be pre pa r ed at t he conclusi on of the ana lysis.
Phase ll : Detailed Ana l ys i s of Fi sca l Fl ows
Thes e tasks are designed t o build on Phase I in order to arrive at a
mo r e thorough ano better doc um ented analys i s .
!i.l. Underl yin g economic var i ab les . BBC wil l analyze business -
re l ated revf:nue and expend i ture flows between the two coun ties i n mo r e detail.
Tnis will lea d to r efined estimates of property tax , sales use tax, busi ness
1nc::,ne tax data , as wel l as refined allocat ions of several expend i tur e ca te-
gor.cs , suc n as fire pro te c ti on .
1:.2. Loca l reven ues analy s is. BB C will calcu l ate property ta x flows
oas,:a on th-r ee differen t assumptions: (l ) that taxes are passed on t o·con,0111efS ,
. t. ,na• '"' 1;s are bor ne by proper ty own ers and ( 3) t hat a port ion oi th e bur Jen
is wGrne by emp loyees . Previousl y descr ibe d primary data col lec t ion and cross -
cnc ,,1 b!:t •cen me tnodology approachrs wil 1 oe completed.
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Attachment I 14
Page 16 of 19
II.3. Loc al exp end itures analysis . Primary data an.i)y ses on act ual
use of fa c i lities will be completed. Benef its that most econo111 i sts argue should
be sp aced over all res idents, such as publ ic housing costs, will be est imated.(3)
Seconda ry benef i ts ·as the in su r ance value of ha vi ng a fire department of d
cert ain rat ing nearby, will ai ;-~e estimated. Further, impl ic ation s of margin al
vs. aver age costs for new faci'.:· ies and serv ices will be addressee.
II.4. Transfers through intermediaries. The state income tax analy s is
and other on go in g analyses will be completed.
II.5 Net fiscal flows. ·The preliminary results will be r e -c alculat~J
i n th i s Pha se II anal ys•is. Wher e alternative sets of assumpt i ons have ber ·,
deve l ope d, the effe ct of ch oosing one methodology over the othe r ~,11 be
reported.
I I .6 . Report. Results, policy implications and research dc c umen tat i or,
wi ll be r~ported. Additional ly, an executive summary explJining th e pro j ect
fi nd i ngs in s tr ai gh t forward 1 anguage wi 11 be prepared.
Phase II I : Ind i vi dual Jur i sdiction Analysis of Fiscal Flows
Wi t h th e Phase Ill analysis, tht underlying variabl es Jnd
reven ue /e9 en dit ure factors will be an alyzed ant r ep orted separately fo r ~ig ht
i nd iv i dua l port i ons of the county:
(1) Au r or a
(2) Ch erry Hills Vi llag e
( 3) Englew ood
(4 ) Glend ale
(5) Gr een wood Vil lag e
(6 ) Litt l eton
(7) Sh~rid an
( 8) Un in corporated , urb an Arapa~oe County
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SECT! ON I I. REFERENCES
Attachrnent l
Page 17 of 19
(l ) Denver Office of Policy Analysis, ... D~emo ..... .,rii!a<rh.;..;i..ac""""'r->FT'i-'-''-i-=-..=-i-"-..:..;.;,.,,in-
teristics of Denver Residents (Denver:
(2 ) Colorado Energy Research Institute, "Colorado Residential Energy Consump-
t ion Dat a Base," unpublished.
(3) Th ese are often called "qua si-collective" anJ "redistributive" ben efits ;
see for example, De~ver Urban Observatory, "P r oposa l: A Fisca l Flows
Analys is of the Denver Metropolitan Area," (De nv er: Denver Urban Ob se r va-
tor y , 1976) pp. 54 -64.
SECTJ ON V. MANAGEMENT PLAN
Attach11 1cnt I
Page 18 o f 19
Thi s section of the proposal details managemen t and administrat iv e
pro visi ons relating to project sched ule, bud get, coordination and co nt ractua l
concerns .
Proje c t Coordinat i on
Because of the potent i a lly cont r overs ial natu re of t he s t ,.oy, til e
re 1 at i ve 1 y sho rt performance per io d and the necessity for a h i gt, d~gree of
invol vem ent fro m the l ocal ag en cy staffs , it is important to e xped i t i ously es tab -
li sh co mmunica t ion between all affected i nd ividuals and i de nt ify a re as of
r esponsi bili ty .
Wo r k Program. As indiuttJ i~ the methodo logy section, a deta il ed wo r k
program wi 11 be prep ared for approva 1 by the desi gnated Project Mani tor for t he
Ara paho e County Mayor s and Managers . ··he work prog r am wi 11 deta i 1 specif ic tas ks
:u bt accomp li shed , def ine responsibilities and set for t h s chedul es .
?rejec t Control. In o~der t o insu r e proper COITYllunicat ion and subse -
1u e nt ef f tesi ve imp le mentation of the study result s , BBC anticipates mai nt a i n i ng
• c i ose rep orti ng r elat ions hip with the Proj ect Mon i tor. In ad dition to ongo ins
cc,r,Lo Cl , or ,ef progre ss repor ts will be prep ared deta i l i ng work accompli shed un
eac11 oes•gnated St Jdy tas k . Mon t hly invoices wi ll also be prov i ded whic h oJtline
~crn cr:, o<.:o·npl ,she<l by per s on nel and task.
A s im p le , yet effec tive report i ng relat io nsh ip i s suggeste d . The aac
Pro j ect Di re ctor wi l l be responsible for the accompl i shment of a ll study tas ks
unoer t ne di re c tion of the Project Mo~itor . Because of t he comp l ex i ty and
s e nsi t '.,i ty of the pr oject, an Ass i stant Project Director has also been desig -
nateo to i nsur e mo r e compl ete coordination. Th is arrangement has been sat is -
factorJ or, nu ae rous othe r oc cas i on s in which BB C has worked wi th local gc,e r n-
m~nt a : age r,ci es or. pr o jects of t h is typ e.
~i z :t ion a 1 Mee ti ngs. Me etings wi 11 be or9a~i zed Jnd conducted
dur i ng va r ious s tages of the pro ject to comm u~i cate the plan.,ed study wo rk
pr og ra m ano in t e ri m study results to aff ec t e d i ndivi dua l s and ,gencies and t o
a llo . f or input i nt o t he study proces s . The me et i ngs • will b< structured t o
so l i cit co•rne nt on t hi: pr ojec t and i de ntif y goals an d expectat i ons for the study.
Wh il e BBC will orga ni ze and con duct mee t ings throughout the study , responsibili -
t ies for t nE: co nt e nt an d i nten ded pur poses wi 11 be coo~di nated with the Pr oject
Mor ·tor . .
39 .
1, p.-pose d stJdy sched ul e i! sh own in Table 3. Appro xim ate dei iv ery
dates for project repor ts are i ndicated on the sched ule. Work on the pro jec t
.,:1 r;e initi ate d fo ll ow i ng approval to proceed. As s uming a s t a rt -up date of
Feuraary 15, Phases I and II, includ i ng t he detailed pro ject report, wi ll be
co rr,p l eted with i n t he r equested 120 da y schedul e . The Phase Ill an al ys i s of
\r.~·.11 0J a l ju r i sdict i ons woul d r equ ire an add i t io nJl mont h.
Attachment I 41 Pag e 19 of 19
Budg e t
Budgeta ry cost estimates for t he prop ose d scop e of work are provided by
major stud y task and catego ry in Tab l es 4 . and 5 . Each of t he th'ree prop osed
pha~es wo u 1 d r equ ire app roximate ~y the same resources . As indi ca ted in Tab I e ~,
a relatively high degree of senior staff member involvement is included in th e
project,
Adm ini strat ive Pr ovisions
Subcon tracts. BBC agrees not to ai .sign or sublet the whol e or any part
of the contract wi tho ut ·the pr i or wr i tten consent of th e Arapah oe Ma yors an d
Managers.
Contract change order~. BBC agrees that any change of scop e in the
wor k to be performed aft er t he original co ntr act has bee n signed shal 1 be doc u-
mented as a wri tten cha ng e order, be accepted by all parties, and be mad e a part
of the original cont ract by addendum.
Eg ual oppo rtun i ty. BBC agrees not to ref use to hi re, dis charg e, pr o-
mo tE, dem ote , or t o discriminate i n matters of compensation against any per son
otherw i se qualified , solely because of race, creed, sex, color, national or igin
or ance s t ry; and further agree s to i nsert t he fo regoing in any subcontracts.
e ,owne , BorU & Coddingto n
,~s Sou1n MacliSD"
At1Jch 111en t 11
Paqe l of 3
D~•nv L-r Ct;lt11 000 OCJ~O~
\303 1 321 -21,1
February 17, 198 2
Mr . Fo rrest W. Cas on , Pl anner Ill
Pl anni ng De partment
Ci ty of Auror a
1470 Sou t h Havan a St r eet , Roo m 71 2
Auro r a, CO 800 2
Dear Forr est:
Ba seo on your f eedb ac k ,ur pro po sal an d presen t ation , th is l etter
pre sents suggested r ev i sio .. s t o t he sc ope of wor k an d budget fo r t he
De nvc r -Arap ah ce Coun t y Fi scal Flow s s tud y. \l e wou ld be happy to make
f u,·t her chon gcs based on your s u9ge stions. As we ha ve ind i ca t ed , th ere arc
s eve r al le vel s on whi ch th i s proj ~ct can be c .nducted . \le wi11 work with
you in arriv i ng al a wor k progr ~rr. whi ch refl t:t s your pr i ori ti es.
Ov eui e,1 of Sugges t ed Revi s i ons
Based on ou r di scu ss i ans , the purpos e of the suggested re v 1 s 1 ans 1 s t o
define a research progr am whir.h: (l ) is more rigorous (and, ther e f ore ,
mo r e defend able und er ou ts i de rev iew) than the "managerial " analys i s; (2)
includes as mu ch analrsis as pos s i ble of indiv i dua l jurisd i ctions wi t hin
Ar apa hc e Count y ; but 3) achiev es co st reductions by, f or example, l i mit -
i ng t ne num:ier o: j ur i s di ct i ons to be analyzed and avoid in g collecting new
data whe r e possible.
Our appr oach in sug ge s t i ng r ev i sions has bee n to s t ar t wi th th e mo st
ri gor ou s, de ta i 1 ed and ex pensi ve sc op e of wor k id en t if 1e d i n our pro po s a 1
( evel Ill ) and t hen t o make str ategic reduct i ons in that leve l of eff or t .
t he ar ea s f sug ges te d change ar e as follow;:
1 . J ur i sdi ct ion cove rag e. We wi 11 ana 1 yze ;eve nu es·
and costs for al \ relevant serv i ce s (incl uding
t ho se pr ov i de d by sc hool, par ks and recre at ion ,
fire or library districts) for e i ght locations
within t he cou nty : Aur ora , Cherry Hi lls Vi llag e ,
Eng l ewood, Glendale, Greenwood Village, Littleton,
Sher i dan and an unincorporated port ion of the
Co un t y. In all, we ant ic ipate anal yzi ng appr o,i -
ma t el y 18 to 20 Ar ~pahoe County taxing entit i es.
I
Attachment I ,
Paye i of 3
2 . Coverage of enterpr i se funds and othe•· pot ~ntial
transfers through intermed iaries. We will only
analyze those services and taxing entities · which
appe ar to have a significant effect on overall fis -
cal flows . Where enterprise funds are financed
prim arily through user fees we will usually not
include them in the analysis . Our analysis wo uld
not be complete, howeve r , i f we did not inc lude
ente rp ris e fund s whi ch have differ e ntial rate
struc tures (e.g., th P De nver Wat er Board ). Whi l e
we wi ll not conduct a detai led ana lys is of in di-
vidual wat er dist ri cts, the study will include a
sect ion which treats water distric ts as an interme-
di ary through which transfers occur (sim i lar to th e
state). We al so hope to simplify or pe rha ps elim-
inate an alysi s Jf t he Regi onal Tr ansport ation Dis -
trict , howev er, we wi ll not make a final determin -
at i on on t his unt i l part way t hrough Phase I.
3. Pri mar y Qata ga t her i ng for ind iv id ual jurisdic-
ti ons. We will make some reductions in our collec-
ti on of new data for the analysis of specific jur-
isdict io n flows to Den ver . Wh i le this will still
pr ovide a good id ea of the flows from eac h Arapah oe
County mu ni cipali ty t o Denver, not every categ ory
will rece iv e t he same l evel of detailed an al ys is as
we wi 11 prov i de for th e overall Denv er -Arapah oe
County analysi~.
4. Phasing . We wi 11 acr, i eve some economi es by redu c -
i ng the project from three to two phases. We
be l ieve that the p~oject will beneiit from
ret aining a sep arate Phase 1, ho wever , we will
sh orten our rep ort. We will co mbi ne Phases II and
111.
Prujec Struc t ure
The fo l lo wing i s a re vi se d out lin e of project tas ks :
Phase J: Man age ment Analysis of Fi sca l Flows
I .1 Wor< pl an developme nt
J.2 Bu dge t analy s is and co,t s tand ard i zat ion
I .3 Underlying economic variables
l .4 Local re venu es analysis
I .5 Local ex penditu re s ana lys is
1.6 Transfers thro ugh intermediaries
J.7 Ne: f iscal fl ows
1.8 Progre ;s rep ort
t,
Atta chm ent 11
Pag e 3 of 3
Ph as e 11 : Detailed Analysis of !nter·ounty~Fl ows an d
lo\a na 9er i a1 Ana\ysiS of Individual Jurisdict,~
l J. l Under lying econom ic vari ab 1es
!l ,2 Local revenues ana l J sis
!1,3 Local expenditures analysis
!l ,4 Transfer s through intermed i ari es
11.S Net f isca l flows
11.6 fina l report
Ph ase l is essentially the same as in our init ial proposal, with a greater
effor t de vo ted to wo rk plan de vel opment (to make tradeoffs in se lecting
jur i sd i ct ion s, enterpr ise funds, etc,) and less emp has is on th~ progress
Ph ase II i s des i gned to produce the overall report and t he i nd i vi dual
j ur i s di ct i on ana l yses at the same time,
r epo rt,
Bud get, Sched le and Co ntracti n9 Is s ues
Th e bu dget fo r t hi s rev is ed wo rk scop e i s $60,000 (SJ0 ,000 fo r eac h ph ase).
e sched u e is essent i ally t he sa me as before . We would suggest a cost of
se ,,i ces contr act wnh a "not t o ex.ee d" claus e f or ,60,000 and a pr ovis i on
c;11i ng you t he option of termi nat i ng the co ntr act bn d t he end of Phase 1,
.e are e,c i te d abo ut th e projec t, and we look f on!\•·d to work ing with yo ,
tri<: ma1 ors and manage rs , and othe r key staff , .r in the Cou nt y. Pl e ase
c.11 i f you would li ke to di sc uss these issues ,
/a
Sincere l y, µf/~
Ke i th D, lo\oore
Sen i or Partner