HomeMy WebLinkAboutRFP - P969 HOUSING AFFORDABILITY INDEX (2)_ ___ _____ _ ______.. REQUEST FOR PROPOSAL
P969
Written proposals, six (6) will be received at the City of Fort Collins' Purchasing Division, 215
North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before
3:00 p.m. (our clock), December 17, 2004. Proposal No. P969. If delivered, they are to be
sent to 215 North Mason Street, 2"d Floor, Fort Collins, Colorado 80524. If mailed, the address
is P.O. Box 580, Fort Collins, 80522-0580.
Questions concerning the scope of the project should be directed to Project Manager, Maurice
Head, (970) 221-6342.
Questions regarding proposals submittal or process should be directed to James B. O'Neill, Il,
CPPO, FNIGP (970) 221-6775.
A copy of the Proposal may be obtained as follows:
1. Call the Purchasing Fax -line, 970-416-2033 and follow the verbal instruction to
request document #30969
2. Download the Proposal/Bid from the BuySpeed Webpage,
www.fcqov.com/purchasing
3. Come by Purchasing at 215 North Mason St., 2Id floor, Fort Collins, and request
a copy of the Bid.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall
have a financial interest in the sale to the City of any real or personal property, equipment,
material, supplies or services where such officer or employee exercises directly or indirectly
any decision -making authority concerning such sale or any supervisory authority over the
services to be rendered. This rule also applies to subcontracts with the City. Soliciting or
accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from
any person who has or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal
assures that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Sincerely,
J es B. O'Neill II, CPPO, FNIGP
ire tor
of Purchasing & Risk Management
215 North Mason Street • 2no Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax
(970)22t-6707
www.fcgov.com
6. Compensation. [Use this paragraph or Option 1 below.] In consideration
of the services to be performed pursuant to this Agreement, the City agrees to pay
Professional a fixed fee in the amount of
All such fees and costs shall not exceed
($ ) plus reimbursable direct costs.
($ ). Monthly partial payments
based upon the Professional's billings and itemized statements 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 actual reimbursable expenses. 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.
6. Compensation. [Option 1] 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:
Reimbursable direct costs:
with maximum compensation (for both Professional's time and reimbursable direct costs)
not to exceed ($ ). 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. Project Drawings. [Optional] Upon conclusion of the project and before
final payment, the Professional shall provide the City with reproducible drawings of the
project containing accurate information on the project as constructed. Drawings shall be
of archival quality, prepared on stable mylar base material using a non -fading process to
prove for long storage and high quality reproduction.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. Remedies. In the event a party 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 party, 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.
15. 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.
16. 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.
17. Special Provisions. [Optional] Special provisions or conditions relating to
the services to be performed pursuant to this Agreement are set forth in Exhibit "_"
consisting of ( ) page[s], attached hereto and incorporated herein by this
reference.
THE CITY OF FORT COLLINS, COLORADO
M
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as [insert name of business]
By:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
(Corporate Seal)
P969
Housing Affordability Index
I. Backaround
It has also been expressed by many developers that development fees in Fort Collins
are the single most significant cost affecting housing affordability. Conversely, other
developers believe that land prices are the driving factor affecting housing costs. Still
others have said that rising prices for steel, wood and other materials have made it
difficult to build affordable housing. With respect to the different opinions regarding
housing costs, the City would like to better understand the impacts of land prices,
construction costs, development fees, and interest rates in shaping the affordable
housing environment of Fort Collins.
In order to accomplish this task, the City is requesting consultant services to develop a
computerized model capable of measuring the major components (land costs, hard
costs, development fees, interest rates and profit and overhead) that contributed to
housing costs for the period from 1999-2004. The model would also measure the rise of
income for low -income family households during this period. A comparison of household
income and housing costs in Fort Collins would build a framework to develop the
Housing Affordability Index for starter homes and multi -family housing in Fort Collins.
The City would also require the model to compare Fort Collins with other Front Range
communities, by using the same housing cost factors to determine their affordability
index with respect to family household income. This would enable the City to better
understand the significance of regional housing cost factors, and specifically the burden
of development fees, on residential development in Fort Collins compared to other Front
Range communities.
The City is also interested in monitoring and measuring the factors that affect housing
cost over several years. The proposed computerized model would need to allow for
artificial manipulation of the housing cost factors to test possible changes in the
marketplace and the impact that increasing housing costs could have on low-income
households in obtaining adequate housing. The model also needs to be easily updated
by staff overtime.
II. Project Elements
Part I - Develop a Computerized Housing Affordability Index Model
The consultant would develop a computerized model capable of analyzing current data,
as well as hypothetical data, including but not limited to artificially increasing interest
rates one -percent to determine the possible affect on low income household affordability.
The model would assess changes and should provide corresponding data on the
number of households that would no longer be able to purchase a starter home or rent
an affordable apartment due to household income limitations. The model should have
the capacity for staff to independently manipulate each variable, or several variables
together, to determine their collective impact on affordability for the following factors that
contribute to housing costs: interest rates, land costs, hard costs, development fees and
profit and overhead.
Part II — Develop a Housing Affordability Index for Starter Home Affordability
The information generated from the model should produce a report of current
affordability conditions for households seeking starter homes. The report would measure
what percentage of potential buyers could afford a hypothetical starter home. The
methodology for determining this percentage for the Housing Affordability Index would
involve the input of several factors such as residential development costs data and
household income distributions for the benchmark years 1999 and 2004. The report
would also provide a comparison with other Front Range communities regarding the
housing cost factors and household income.
Part III — Develop a Housing Affordability Index for Multi -Family Rental Affordability
The information generated from the model should produce a report of current
affordability conditions for households seeking multi -family housing affordability. The
report would identify the components that contribute towards the total cost per unit of
multi -family residential and translate these costs into rental rates for the years 1999 and
2004. In addition, the report would examine to what extent market rental rates are driven
by construction costs, land costs, impact fees, profit and overhead, etc. The report would
also provide a comparison with other Front Range communities regarding the housing
cost factors and household income.
111. Objectives
There are three project objectives that the City desires to achieve:
1. Quantify how single-family home affordability and multi -family affordability
has changed in Fort Collins for the last 5 years (1999 and 2004).
2. Determine what role the land costs, impact fees, construction costs, profit and
overhead, etc, has played in changing affordability.
3. Compare affordability in Fort Collins to several other "peer" cities, with special
focus on their fee structure (Longmont, Loveland, Greeley, Colorado Springs
and Pueblo).
IV. Scope of Services
The consultant will provide the following services in conformity with the work and
schedule approved by the City's Advance Planning Department:
Develop a Housing Affordability Index (HAI) model that would determine how
many current renters could afford a hypothetical "starter home" in 1999 as
compared to 2004. The consultant would isolate the component of change
into four factors: income change over that time period; change in hard costs;
change in development fees, change in interest rates; and changes in profit
and overhead. In addition, the consultant would identify the number of units
(detached single-family and attached housing units) currently available in the
Fort Collins market that could accommodate renters interested in moving up
to homeownership and identify any gaps and strategies needed to serve low
income households. The model would recognize changes in housing cost and
could also calculate the number of households that would be unable to afford
starter homes with the rise in any component of housing costs.
2. Develop a Housing Affordability Index (HAI) model to determine the cost per
unit for a typical rental multi -family development assuming a development of
120 dwelling units on ten acres. The consultant would use this as a baseline
figure, and cost per dwelling unit would be calculated in terms of construction
costs, land costs, City fees and other costs as compared to the profit and
overhead. The consultant would identify the developer's required return on
investment (measured in dollars per unit). This amount should represent the
profit on the project as well as the recovery of the developer's initial
investment. The consultant would determine the rental rates based on the
model and the number of rental households that could afford the rental rates
based upon model calculations. The model would recognize changes in
housing cost and could also calculate the number of households that would
be rent burdened.
3. Compare housing affordability index ratings with this model (income change
over that time period; change in hard costs; change in development fees,
change in interest rates; and, changes in profit and overhead) with five other
Front Range Colorado communities (Longmont, Loveland, Greeley, Colorado
Springs and Pueblo). Overall, determine Fort Collins' affordability index
compared to these communities for 1999 as compared to 2004.
4. Analyze how development fees might have impacted housing affordability for
single-family and multi -family developments. Determine the increases in the
City's development fees from 1999 to 2004, which could affect housing
affordability. Perform this exercise with the above -cited Front Range
communities and compare the impact of development fees on affordability for
all communities.
5. Provide a tool to direct future City actions in addressing deficiencies in
housing affordability. In other words, the Housing Affordability Index model
should measure the effects on affordability due to changes in interest rates,
down payment amounts, any applicable development fees, hard costs, or
combination of the above.
6. The consultant should develop a computerized model that allows the City to
input different variables, such as interest rates, land costs, and etc., and how
these contributing housing cost variables would impact household
affordability. Design the Housing Affordability Index in a way that would allow
the City to identify any shortfalls in housing affordability and make
recommendations to address them.
V. Proposal Submittal Requirements
The following factors will be evaluated in determining the successful consultant:
The Proposer shall provide a narrative describing the elements to be
examined in the report and how the analysis will be accomplished.
2. The Proposer shall provide a description of qualifications, experience and
resources as they relate to undertaking consulting services of this type.
3. The Proposer shall provide a list of similar clients, for whom work has been
performed within the last three years, including the names of the firm or
community, contact person, name addresses and phone numbers of clients.
4. The Proposer shall provide a detailed estimate of projected expenses to
provide consulting services, signed and dated by a representative of the firm,
with the date that the quotation expires.
VI. REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the
basis for review of the written proposals and interview session. However, the City of Fort
Collins may choose to make a selection from the written proposals.
The following rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an
average rating, and 5 being an outstanding rating.
Rating Scale for consultant proposals
WEIGHTING
QUALIFICATION
STANDARD
FACTOR
2.0
Scope of Proposal
Does the proposal show an understanding of the
project objective, methodology to be used and
results that are desired from the project?
2.0
Assigned Personnel
Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0
Availability
Can the work be completed in the necessary time?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project schedule if required? Is the
project team available to attend meetings as
required by the Scope of Service?
1.0
Motivation
Is the firm interested and are they capable of doing
the work in the required time frame?
2.0
Cost and
Do the proposed cost and work hours compare
Work Hours
favorably with the Project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0
Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
The Project Manager will check references using the following criteria. The evaluation
rankings will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION
STANDARD
Overall Performance
Would you hire this Professional again? Did they
show the skills required by this project?
Timetable
Was the original Scope of Service completed
within the specified time? Were interim deadlines
met in a timely manner?
Completeness
Was the Professional responsive to client needs;
did the Professional anticipate problems? Were
problems solved quickly and effectively?
Budget
Was the original Scope of Service completed
within the project budget?
Job Knowledge
a) If a study, did it meet the Scope of Service?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly? Were
problems corrected quickly and effectively?
VII. Scheduling
Proposals should include an anticipated schedule of events. Completion of the report is
anticipated to be within 120-150 days of execution of a formal consultant agreement. In
addition, the consultant shall provide bi-monthly written and oral updates to the City
regarding project status. The successful Proposer will also schedule time to present the
findings to the Affordable Housing Board, and City staff.
Vlll. Disclaimer
The City of Fort Collins reserve the right to reject any and all proposals, to waive any
technical or formal defects in such proposals, to accept or reject any part of any
proposal, and to award a contract to other than the low bidder, according to the City's
own judgment and best interest.
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 , [insert either a corporation, a partnership
or an individual, doing business as 1, 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
( ) page[s], and incorporated herein by this reference.
2. The Work Schedule. [Optional] 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 ( ) page[s], 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 ( ) days
following execution of this Agreement. Services shall be completed no later than
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.
All notices provided under this Agreement shall be effective when mailed, postage
prepaid and sent to the following addresses:
Professional: City: With Copy to:
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