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HomeMy WebLinkAboutItem 04 Approval to Proceed with Contract with Raftelis for Municipal Impact Fee Study City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: December 17, 2024 Item #: 4 Contact Name: Brett McFarlane Department Director: Ginger Corless Contact Number: Ext. 7145 City Manager: Craig Shadrix Subject: Approval to Proceed with a Contract with Raftelis Financial Consultants, Inc. for a Municipal Impact Fee Study. (Concurrency & Commitment Coordinator McFarlane) Background Summary: The City charges Police, Fire, and Recreational Park Impact Fees for new development. Police and Fire Impact Fees are charged for both new commercial and residential development, while Recreational Park Impact Fees are charged solely for new residential development. Funds from these impact fees are critical in providing new infrastructure and maintaining existing infrastructure to serve new development in the City. The City last updated its Police, Fire, and Recreational Park Impact Fees in March 2005. In the last 20 years, there have been significant increases in costs related to maintaining, purchasing, and constructing infrastructure and equipment necessary to provide Police, Fire, and Parks & Recreation services. Staff have contacted Raftelis Financial Consultants, Inc. for their services in conducting a Municipal Impact Fee Study and Raftelis has submitted the attached proposal to perform the study. If approved, the proposal would allow for Raftelis to perform an analysis of the Police, Fire, and Recreational Park Impact Fees and provide the City with a full report detailing their findings and suggestions, which would require future action of the City Commission in order to effect. A comprehensive description of all (6) tasks, (2) deliverables, and project schedule can be found in the attached proposal. Staff is requesting authorization to move forward with the proposal. Issue: Should the Honorable Mayor and City Commissioners approve the proposal submitted by Raftelis Financial Consultants, Inc. to perform a Municipal Impact Fee Study for the City's Police, Fire, and Recreational Park Impact Fees? Recommendations: Staff recommends the Honorable Mayor and City Commissioners approve the proposal submitted by Raftelis Financial Consultants, Inc. to perform a Municipal Impact Fee Study for the City's Police, Fire, and Recreational Park Impact Fees. Attachments: 1. Raftelis Proposal City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Financial Impacts: The total cost for the proposal's Scope of Services is $49,650. Payment for the proposal will come from Development Services's budget for professional services (GL Code 001-515-00-3128). Type of Item: Consent 341 N. Maitland Avenue, Suite 300 Maitland, FL 32751 www.raftelis.com November 15, 2024 Mr. Michael Rumer Development Services Director City of Ocoee 1 N. Bluford Ave Ocoee, FL 34761 Subject: City of Ocoee, Florida – Proposal to Perform a 2025 Municipal Impact Fee Study Dear Mr. Rumer: Attached for your consideration is a proposal to the City of Ocoee, Florida (the “City”) to perform a municipal impact fee study to update the fees for Police, Fire, and Parks & Recreation services in consideration of F.S. 163.31801 (the “Proposed Authorization”). These fees have not been updated in many years and the City is actively making upgrades, expansions, and improvements to facilities necessary to service continued development in the City . In order to have growth pay its fair share of the cost, it is necessary to update the fees based on the most recent and local data available. This proposal is intended to: i) present the proposed direct labor rate and indirect cost fee schedule (Attachment A); ii) set forth the scope of services to be performed by Raftelis (Attachment B); and iii) present the estimated project schedule based on our discussions to date and understanding of the scope to perform such services and other supporting attachments for consideration by the City. This Proposed Authorization provides services as detailed in Attachment C for a total compensation of forty-nine thousand six hundred fifty dollars ($49,650). It is proposed that this project be set up as a lump sum contract amount with monthly billing to be based on the percentage complete. The issuance of a Purchase Order by the City will serve as notice to Raftelis of the City’s acceptance of our proposal to provide municipal impact fee consulting services to the City. We appreciate the opportunity to assist the City. If you should have any questions regarding the proposal, please do not hesitate to contact us. Respectfully submitted, RAFTELIS FINANCIAL CONSULTANTS, INC. Joe Williams Senior Manager A-1 ATTACHMENT A RAFTELIS FINANCIAL CONSULTANTS, INC. SCHEDULE OF DIRECT LABOR HOURLY RATES AND STANDARD COST RATES DIRECT LABOR HOURLY RATES Project Team Title Direct Labor Hourly Rates Vice President $360.00 Senior Manager $320.00 Manager $285.00 Senior Consultant $250.00 Consultant $220.00 Associate Consultant $185.00 Administrative $100.00 STANDARD COST RATES Expense Description Standard Rates Mileage Allowance – Personal Car Use Only IRS Standard Mileage Rate Reproduction (Black and White) (In-House) $0.05 per Page Reproduction (Color) (In-House) $0.25 per Page Reproduction (Contracted) Actual Cost Computer Time $0.00 per Hour Telephone Charges Actual Cost Delivery Charges Actual Cost Lodging/Other Travel Costs Actual Cost Subconsultant Services Actual Cost Other Costs for Services Rendered Actual Cost B-1 ATTACHMENT B CITY OF OCOEE, FLORIDA PROPOSAL FOR 2025 MUNICIPAL IMPACT FEE STUDY SCOPE OF SERVICES The following represents the scope of services to be performed by Raftelis Financial Consultants, Inc. (“Raftelis”) as it relates to providing consulting services associated with the municipal impact fee study for police, fire, and parks & recreation related facilities. The tasks included in the scope of services are described below: Task 1: Project Management, Initiation and Kick-off Meeting – This task will involve working with City staff to establish the objectives, project schedule, and overall data needs and constraints. Responsibilities for data collection, project deliverables, and ongoing communication will be established and assigned as part of this task. This task will include a meeting onsite with City staff in order to initiate the project. Raftelis will provide the City with a data request identifying relevant study information and data including but not limited to existing and projected: i) population and land use estimates; ii) level of service standards for each service; iii) police and fire call data by land use; iv) equipment and facility inventory; v) capital improvement plans and cost estimates for each service; vi) grant and other funding sources; and vii) loan agreements, interlocal agreements, developer agreements, or other similar obligations of the City for relevant services. Task 2: Review of Population and Level of Service – This task includes an evaluation of the current service area demographics as well as a forecast of the service area needs. A review of the population projections and other service area demographics as contained in such documents as any comprehensive plans; Orange County population forecasts, Bureau of Economic and Business Research (BEBR); and other available data sources. The purpose of this task is to identify the future service area demands for each service and to estimate the capital requirements (level of service relationship) required for the fair share cost apportionment of such costs to future growth. Other sources will be review including the Institute of Transportation Engineers (ITE) trip generation manual to review functional population projections should a multi-land use approach be warranted, and any available recent and localized call data. This task also includes a review and update to level of service criteria for each impact fee. Typical level of service analysis are identified in terms of service levels per population. Any existing deficiencies will be identified with appropriate adjustments to apportionment of capital improvement costs to growth (identified in next task). This task also includes consideration of level of service dynamics and interaction with population growth. Task 3: Police, Fire, and Parks and Recreation Impact Fee Analysis – Raftelis will review the City’s recreation standards, open space requirements, and associated facilities as set forth in any comprehensive plans for providing adequate park & recreation facilities. The police and fire impact fees will be developed recognizing the cost to provide the necessary facilities, vehicles, and equipment where appropriate and equating such costs on an equivalent residential unit (e.g., single-family residential) basis as the standard unit of measurement. In addition to this background information, this task will consider the following: B-2 • Review of and recommended changes to the current impact fee application methodology (land use, residential/commercial/industrial, etc.); • Analysis of equipment/vehicle costs, existing facility costs, and incremental costs to provide service to future service area needs or build-out population; • Identification of appropriate impact fee credits, if any; • Design police, fire, and recreation impact fee unit cost; • Develop impact fee schedules; • Provide impact fee comparisons; and • Meeting with City staff to review preliminary results. Task 4: Impact Fee Report and Presentation – A draft impact fee study report will be prepared for staff review. The draft report will include a description of the existing assets and planned future investment for each of the impact fee components. The assumptions utilized in the analysis will be docu mented in the report. The draft report will be provided to staff in electronic format for staff review and comment. After receiving comments, a final report will be prepared in electronic format. In addition, this task includes a presentation to the Commission facilitated through development of a briefing document. Subtasks as listed in our cost proposal are as follows: • Draft rate study report. • Final rate study report. • Preparation of presentation materials. • Presentation to City Commission. Task 5: Ordinance Review – Raftelis will review the City’s impact fee ordinance(s) and recommend adjustments based on the impact fee report and other City policy directives. This task assumes the City attorney will draft the impact fee ordinance for Raftelis’ review. Task 6: Meetings – During the course of the Project, Raftelis has assumed the attendance of a few meetings with City staff to i) perform a kick-off meeting including each City department that will be involved in the study; ii) present the analyses and preliminary findings; and iii) present the findings to the City management and the City Commission. The meetings identified in the development of this scope of services and the corresponding project budget include: Description Number of Meetings On-site Meetings Kick-Off / Data Compilation Review Meeting 1 Meeting with City Staff and City Administration During Project Analysis to Review Results 2 Presentation of Recommendations to the City Commission at a Public Hearing 1 Total Number of On-site Meetings 4 Off-site Virtual Meetings Review of Assumptions, Preliminary Findings, Presentations to Staff 2 For the purposes of determining the contract budget, the scope recognizes the following: i) an allowance of three (3) hours per on-site meeting, which would include preparation, travel, and attendance, and ii) an allowance of two (2) B-3 hours per virtual or teleconference meeting. The attendance of any additional on-site or virtual meetings may be considered as an additional service to this scope of services. Two specific deliverables will be provided: Deliverable 1 – A technical report detailing the approach, findings, and recommendations of the impact fee analysis and corresponding fee calculations. Deliverable 2 – A presentation or briefing document to present the results of the study to the City Commission. Project Schedule Raftelis will complete tasks 1-3 within 120 days of notice-to-proceed, except for delays beyond the Consultants control. The draft report will be completed withing 30 days of completion of tasks 1 -3 and the remaining of Task 4 and Task 5 will be completed as mutually agreed. The completion of the analysis will be subject to the availability of information provided to Raftelis from the City that will be necessary to conduct the financial evaluation. Additional Services During the course of the study, the City may request additional services from Raftelis. Such services will not be conducted until authorized by the City as mutually agreed between the City, and Raftelis. Billing for such additional services based on the hourly rate schedule of Raftelis members as shown in this proposal or some other basis as mutually agreed between the City and Raftelis. Although no additional services are anticipated for this engagement, examples of additional services may include the following: 1. Attendance of on-site and virtual meetings in addition to what is contemplated in the scope of services. 2. Delays in the project schedule that are no fault of Raftelis, which may have impacts on analyses performed, and which would affect the budget for the scope of services reflected herein. (Remainder of page intentionally left blank) B-4 MUNICIPAL ADVISOR DISCLOSURE As a registered Municipal Advisor under the Dodd-Frank Act, Raftelis is required to inform our clients of any existing or potential conflicts of interest that may be relevant to any proposed scope of services that may include providing “advice” as that term is defined in the Dodd-Frank Act. As of the date of this engagement letter, no conflicts of interest are known to exist. Under the Dodd-Frank Act the definition of “advice” includes providing any opinion, information or assumptions related to the size, timing and terms of possible future debt issues or borrowing. This type of information may be integrated into the capital and financial planning components of a rate model update. This definition is applicable regardless of whether this information is developed and used solely for planning and decision-making purposes. For the services addressed in the scope of work identified for this engagement, any information that is developed by Raftelis that falls under this definition of municipal advice is not intended to represent a recommendation that the City should issue debt based on the terms and assumptions used to develop the financial evaluation, or that the City will, in fact, be able to issue debt under the exact terms and conditions assumed and used to develop the financial plan or forecast. The information developed as part of this rate model update, including any related mun icipal advice, is intended only to provide information useful in evaluating the potential impact on the utility and future rate adjustments of a potential course of action for the City. If the City decides at some future date to issue debt, then at that time the City will need to engage an independent, registered Financial Advisor to assist in evaluating the availability of different types of debt, and the specific terms and conditions for issuing debt, which will be affected by market conditions and the City’s credit rating at the time of issuance. At that time, as a registered Municipal Advisor, Raftelis can also provide additional assistance related to a specific bond or debt issue, such as preparing a bond feasibility report or financial forecast for inclusion in bond documents, without requiring additional oversight or supervision by the Financial Advisor. By issuing a purchase order that includes the terms of this proposal, the City is indicating its approval and acceptance of the of the proposed scope of work and fees, the City is also explicitly acknowledging that Raftelis has provided the necessary disclosures addressing conflicts of interest and any limitations on the scope of Municipal Advisory services to be provided by Raftelis as part of this engagement. The Municipal Securities Rulemaking Board (“MSRB”) provides significant protections for municipal entities and obligated persons that are clients of a municipal advisor. To understand the protections provided and how to file a complaint with an appropriate regulatory authority, visit the MSRB web site at www.msrb.org. Attachment C - Cost Estimate City of Ocoee 2025 Municipal Impact Fee Study SM JW TT DV Total 1. Project Kick-off Meeting and Data Acquisition 1 0 8 8 2 18 $4,770 2. Review of Population and Level of Service 1 0 12 16 20 48 $11,060 3. Parks and Recreation, Police, and Fire Protection Impact Fee Analysis 1 2 0 12 35 40 87 $19,100 4. Impact Fee Report and Presentation 1 0 16 20 16 52 $12,560 5. Ordinance Review 0 4 4 0 8 $2,160 2 4 0 52 83 78 213 $320 $320 $220 $185 $0 $16,640 $18,260 $14,430 $49,330 Total Fees $49,330 Total Other/Expenses $320 Total Fees & Expenses $49,650 Tasks Web Meetings In-person Meetings SM - Steven McDonald JW - Joe Williams TT - Tristen Townsend DV - Devarsh Vaghela Hours Total Fees & Expenses Total Meetings / Hours Hourly Billing Rate Total Professional Fees