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HomeMy WebLinkAbout127796 BBC RESEARCH - PURCHASE ORDER - 4408412 (2)PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and BBC Research & Consulting, hereinafter referred to as "Professional'. WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of three (3) pages, and incorporated herein by this reference. 2. The Work Schedule. The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B", consisting of one (1) page, and incorporated herein by this reference. 3. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within five (5) days following execution of this Agreement. Services shall be completed no later than July 31, 2005. Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in writing by the parties hereto. 4. Early Termination by City. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. EXHIBIT "C" Cost Proposal BBC: could complete the Fart Collins RAl project for a not -to -exceed fee of $22,450. This includes all indirect expenses (travel, report production, phone ells). The exhibit belcnv details the components of the project cost: Exhibit III-1. Cost Proposal — fort Collins M Project t 1SO Is 4 24 8 a A- 16 72 t 100 0 16 24 24 12 A 12 NA S SO 0 0 4 A a O 15 34 12 20 52 40 M 16 44 1M S t,SOO S z2M S 6.Ze0 t 4,M S U00 S 2,e0O 1 4,400 1 21,440 S So S W S 50O S 1,060 t 1,1S4 S Z, w 16,200 14,000 t 2,✓e0O $ 216M $ 404 M SOURc sec RR34 wh a omjwq, This cost proposal is valid for 90 days From December 1.7, 2004. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: City: With Copy to: BBC Research & Consulting City of Fort Collins City of Fort Collins Attn: Heidi Aggeler Attn: Maurice Head Attn: Purchasing 3773 Cherry Creek North Drive Ste 850 281 N. College Ave. PO Box 580 Denver, CO 80209-3827 Fort Collins, CO 80524 Fort Collins, CO 80522 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall be the Professional's sole right and remedy for such termination. 5. Design, Project Indemnity and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of N/A. 6. Compensation. In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis according to the following schedule: Hourly billing rates: Directors $150 per hour Research Associates $100 per hour Support Staff $ 50 per hour Reimbursable direct costs: as billed with maximum compensation (for both Professional's time and reimbursable direct costs) not to exceed Twenty Two Thousand Four Hundred Fifty Dollars ($22,450) in accordance with the cost proposal attached hereto as Exhibit "C", consisting of one (1) page, and incorporated herein by this reference. Monthly partial payments based upon the Professional's billings and itemized statements of reimbursable direct costs are permissible. The amounts of all such partial payments shall be based upon the Professional's City -verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable direct costs. Final payment shall be made following acceptance of the work by the City. Upon final payment, all designs, plans, reports, specifications, drawings and other services rendered by the Professional shall become the sole property of the City. 7. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. 8. Monthly Report. Commencing thirty (30) days after the date of execution of this Agreement and every thirty (30) days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services, Work Schedule, and other material information. Failure to provide any required monthly report may, at the option of the City, suspend the processing of any partial payment request. 9. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 10. Personal Services. It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City. 11. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 12. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 13. Remedies. In the event a parry has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting parry, the defaulting party shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 14. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 15. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. THE CITY OF FORT COLLINS, COLORADO By: J es . O'Neill II, CPPO, FNIGP Director f Pu h�7asin& Risk Management DATE: 4 / / 9/0 0 M 0 Title: CORPORATE PRESIDENT OR VICE R ID NT Date: a/ I61US ATTEST: dWV-0, J ��' (Corporate Corporate Secretary EXHIBIT "A" P969 Housing Affordability Index SCOPE SECTION I. This section of BBC's proposal describes our understanding of the Housing Affordability Index (HAI) project and describes the workscope we propose for completing the study. Project Understanding In 1996, the City of Fort Collins retained BBC to create a computerized model that allowed the City to evaluate and test the impacts of certain variables on housing affordability in Fort Collins. Since this model was created, housing costs have continued to increase at a very rapid pace in the City, as well as in surrounding areas and throughout most of the Front Range. Discussions with developers in the City reveal differing opinions about the significance of certain development variables (e.g., land prices, construction costs/materials, development fees, interest rates) in affecting housing affordability. The City would like to better understand what roles these variables play in changing affordability, in addition to quantifying how housing affordability has changed in the past five years. To accomplish this, the City of Fort Collins is seeking a contractor to develop a new Housing Affordability Index (HAI) model and analyze the model results. The City has three objectives for the HAI project: 1. To quantify how single family and multifamily housing affordability has changed in Fort Collins during the past five years (1999 to 2004). 2. To determine what role land costs, impact fees, construction costs, overhead costs and required profits have played in changing housing affordability; and 3. To compare the housing affordability in Fort Collins with that of five peer cities, with focus on their development fee structures. The following section describes the scope of work BBC proposes to develop a new HAI model and how the model would accomplish the three objectives outlined above. Project Workscope Task 1. Project initiation meeting. Heidi Aggeler and Tom Pippin would travel to Fort Collins to meet with the City and discuss the HAI project. We would discuss how the new model will differ from the past model we built for the City — in terms of usefulness, number and type of variables modeled, role in meeting project objectives as well as user -friendliness and ease of use by City staff. We would also talk about the City's concerns about housing affordability and how the HAI project intersects with other housing affordability work (e.g., the City's recent Priority Affordable Housing Needs and Strategies report). Task 2. Data collection. In this task, BBC would collect all of the variables and data needed to construct the HAI model and analyze housing affordability in Fort Collins and peer cities. These would include: ■ Household income distributions; ■ Interest rates; ■ Land costs; ■ Costs of construction materials and labor; ■ Home sales and rental market data; ■ Development fees; and ■ Mortgage products and terms. Builder cost data will be gathered from a combination of personal and telephone interviews using a research template developed by BBC, and approved by the City. Task 3. Development of Housing Affordability Model and Index (HAI). In this task, BBC would build a prototype computerized model to measure the effect of development variables on housing affordability in Fort Collins. The model would be developed using Microsoft Excel® software. The model would begin with an "input" worksheet that would allow the user to easily change the development variables that feed the model (e.g., move interest rates on a FHA loan up or down). The model would also contain links to sources for updating the development cost variables. We would ensure that City staff could easily manipulate these variables individually and collectively to determine their effect(s) on housing affordability. The "output' of the model would be a measure of the number and percentage of households in the City that could afford to buy a starter home or rent a housing unit — given changes in certain variables. The "guts" of the model would process the "input' variables, analyze development costs for a typical starter home in Fort Collins and peer cities, and analyze development and operating costs for an average rental unit in Fort Collins and peer cities'. Ultimately, the model would determine to what extent various variables affect single- family home prices and rental rates in Fort Collins and peer cities. For example, the model would allow the user to see how a 10 percent increase in development fees would reduce the number of households who could afford a starter home. BBC will also conduct a "reality check" on the Fort Collins housing market to assess whether or not these hypothetically affordable starter units exist. We will seek to quantify their numbers and specify their locations as MLS and other data allows. Task 4. HAI variables analysis. This task would consist of a more in-depth analysis of various inputs into the HAI model. We would analyze and compare data on household income distributions; changes in City development fees; changes in interest rates; changes in construction costs (materials/labor); and changes in profit and overhead costs for 1999 and 2004. We would create graphics showing the changes in these variables over time, and seek to include data from the original 1990-1995 study period. For the rental housing development model, we would follow the methodology suggested in Section IV.2. of the RFP. Task 5. Peer cities comparison. We will create an HAI for the following five cities and compare these cities' HAI with Fort Collins': Longmont, Loveland, Greeley, Windsor and Colorado Springs. The City will take the lead in gathering builder cost data for Longmont, while BBC focuses on the other four cities. Task 6. Development fees analysis. This task would consist of a more in-depth analysis of how the City's development fees have affected affordability from 1999 to 2004. We would compare the changes in fees and the effects on affordability with those of peer cities. These data would be presented in various charts and graphs comparing the data among the cities. Task 7. Report and presentation of data. BBC would prepare a report that would explain the HAI model and present key findings from the analysis. The data would be presented in a non -technical format to the extent possible and incorporate charts and graphs. (If needed, we would provide City staff with a separate, technical manual of how to manipulate the model.) The report would include the following: ■ A presentation of how household income distributions, development costs, housing costs (single family and rental), and affordability have changed from 1999 to 2004; ■ A discussion of how these results compare to findings from the original 1990-1995 study period; ■ The number of single-family units currently on the market in Fort Collins that would be affordable to the City's renters. In addition, we would include summary characteristics of these units and maps showing the location of the affordable units; ■ A quantification of how the various components of residential development affect housing affordability in Fort Collins and how changes in such components affect the number of renter households who can afford starter homes and their cost burden; ■ An analysis of how Fort Collins' HAI and development fees compare to peer cities; and ■ An identification of the most effective strategies to positively impact housing affordability for owner and renter households. Compared to the original study, this report will be presented in color and contain more graphics. BBC will also produce a PowerPoint summary for future use by the City. EXHIBIT "B" Schedule BBC could complete the scope of work outlined above within 150 days from the date of project execution. Based on an early February start date, this suggests project completion by the end of June 2005 with a City Council presentation in July. Exhibit 1-1 below contains several study mileposts. Exhibit 1-1. i^ Stud Mile osts q� Y p �a,_y , �0 r ,,`�. Week of March 71h, 2005 Week of April 18'h, 2005 Week of June 61h, 2005 Week of June 271h, 2005 July 2005 TBD Status report to City on data gathering Meeting with City to review draft model Production of draft report Presentation at Affordable Housing Board Production of final report Presentation to City Council