HomeMy WebLinkAbout584342 MGT OF AMERICA CONSULTING LLC - CONTRACT - RFP - 8525 DEVELOPMENT REVIEW FEE STUDYFirst Amendment to the Services Agreement
between The City of Fort Collins
and MGT of America Consulting, LLC # 8525
This First Amendment (the “First Amendment”) to the Services Agreement between the CITY
OF FORT COLLINS and MGT of AMERICA CONSULTING, LLC is entered into by and
between MGT of America Consulting, LLC, (the “Service Provider”) and the City of Fort
Collins, Colorado (the “City”).
WHEREAS, the Service Provider and the City mutually entered into a Services Agreement
#8525 for consulting services to conduct a review of existing development review fees with an
effective date of June 14, 2017 (the “Agreement”); and
WHEREAS, the Service Provider and the City desire to amend the Agreement to expand upon
the Scope of Services and to revise the compensation provision for work performed under the
Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises herein
contained, the parties agree as follows:
1. Section 6, Contract Sum, is deleted in its entirety and replaced with the following:
“a. The City shall pay the Service Provider for the performance of this Agreement,
subject to additions and deletions provided herein, a fixed, all-inclusive fee of $74,245.
The fee includes all direct and indirect costs including meetings, interviews,
documentation production, travel, etc.”
“b. A breakdown of the work including estimated hours by task and associated rates is
attached hereto as Attachment 1.”
“c. The fee will be paid in accordance with the following milestone payments:
i. Initiation of project $24,748.33
ii. Submittal of Initial Draft Report $24,748.33
iii. Final Report Accepted & Presentation Completed $24,748.33”
“d. The pay terms for all undisputed invoices shall be Net 30 days from the date of the
invoice.”
2. Exhibit A, Scope of Services, is deleted in its entirety and replaced with the attached
new Exhibit A. Changes incorporated into the new Scope of Services are highlighted in
red.
IN WITNESS WHEREOF, the parties have executed this First Amendment the day and year
shown.
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CITY OF FORT COLLINS:
By:
Gerry Paul
Purchasing Director
DATE:
MGT OF AMERICA CONSULTING, LLC
By:
J Bradley Burgess
Executive Vice President
Date:
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1/30/2018 1/25/2018
EXHIBIT A
SCOPE OF SERVICES
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SCOPE OF SERVICES
OVERVIEW
The City of Fort Collins is requesting proposals from qualified firms and teams to conduct a
review of its existing development review fees. The awarded firm will evaluate whether these
fees are set at appropriate levels, to discover if the method of calculating the fee is up-to-
date, inclusive for all costs, and consistent with the City’s goals for percent of cost to recover,
and how fees compare to other communities regionally.
PURPOSE
The study will include:
• Development Review fee structure comparison to include:
o Fee comparison for single family residential detached, multifamily, commercial office
and retail, industrial warehouse and mixed-use building permits of varying square
footage.
o Fee overview – Analysis of fees the City of Fort Collins assesses that our benchmark
cities do/don’t assess including the financial impact.
o Fees comparison to include all fees collected at time of building permit including but
not limited to development review fees.
o Fee comparison to include comparison on a fee to fee basis as well as an aggregate
comparison of all fees.
o Fee comparison to include an analysis of inflation indices with peer Colorado cities
including up to 10 peer cities and 5 national cities of like size and demographics.
o Assessment of inflation indices that reflect the local cost of construction in Fort
Collins.
o Analysis of all possible methodologies for assessing building permit fees.
o Complete user fee study including considerations for adopting changes to existing
user fee services and for adopting new user fee services
SCOPE
The Study should include a review of development related fees charged by the City, including
current amounts, purpose, methodology, and basis for the fee. The City’s development
related fees currently include:
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Development Review Fees
• Building Permit fees
• Development Review Fees
• Transportation Development Review Fees
• Others?
Exclude - Capital Expansion fees
Professional shall use a collaborative approach in each of its engagements. For this Study,
this means there will be a project kick off workshop with City staff to further define study
objectives, to clearly lay out a mutually developed work plan, and to outline the project
deliverable. This will ensure that this engagement will be completed in a timely manner and
meet the City’s objectives.
Professional will compare development related fees and structures of the City with 15 of the
City’s Colorado Benchmark entities. These entities will be specified by City staff. The fees will
include residential and commercial building permits, plan review, development review, utility
and all other fees related to developments. Fees will be compared on a fee by fee basis. The
aggregate of all fees will also be compared.
Professional will conduct a complete user fee study to include: Meetings with relevant
personnel, financial data collection, identification of all existing for-fee services, identification
of potential new user fee services, identify all areas providing user fee services, review the
relationship between user fee services and recipients, conduct interviews with areas
providing user fee, calculate user fee schedules, develop recovery recommendation options,
calculate projected revenues and revenue increases, deliver reports and materials to
stakeholders.
Professional will provide up to three iterations of a draft report summarizing the Study’s
findings and recommendations for review by City staff. Professional will provide a final Study
report that incorporates the staff’s comments on the draft report and will present Study
findings to City staff.
DELIVERABLES
• Project kick-off workshop
• Up to 3 Preliminary study reports for City review/input
• Final study report
• Presentation of findings to City staff
RFP RESPONSE
* In the event of a conflict between the Scope of Work (above) and the RFP Response, the
Scope of Work shall take precedence over the RFP Response.
The City of Fort Collins (City) is requesting expertise to conduct a review of its development
review fees. This review includes the following three four (4) primary components.
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1. Evaluate whether these fees are set at appropriate levels.
2. Discover if the method of calculating the fee is up-to-date, inclusive for all costs, and
consistent with the City’s goals for percent of cost to recover.
3. Analyze how fees compare to other communities regionally.
4. Complete user fee study.
MGT of America Consulting, LLC (MGT) has an available project team, with two members
in Colorado, with current relevant experience providing user fee study calculation,
comparisons, analysis and recommendations for cities in Colorado, and across the U.S.
Our work plan is aligned to the City’s project objectives in the following phases. Tasks within
phases two through five may be completed concurrently.
Phase 1 – Meet. A meeting of the proposed project consultants and key City personnel.
This meeting will refine project objectives, scheduling issues, and potential pitfalls. We will
review our process and data requirements to make sure that the project participants
fully understand how the engagement is structured, segmented and planned, as well as
the end results and outcomes. Additionally, we will establish joint responsibilities, milestones
and deadlines.
Phase 2 – Evaluate. Calculations comparing current fees to current costs will be
prepared. These calculations, based on grouped fees within a division/department (logical
grouping based on type of project or type of user) or the sum of fees within a
division/department, will determine if fee revenue is recovering costs, over recovering costs,
or under recovering costs. Identify existing and potential user fee services, review
relationship between user fess services and recipients, calculate and user fee schedules.
Phase 3 – Discover. A thorough review of the City’s current fee calculations or
schedule(s) will be completed. The review will include the date of the last internal
calculations, the methodology used for the calculations and documentation of the service
delivery processes in place when the fees were last calculated. This phase includes
reviewing the current calculation methodology to determine if all costs-- direct, division
indirect, department indirect, city-wide indirect and cross-departmental support--are
included. Lastly, this phase will compare the City’s goals for cost recovery with calculated
costs at the level of the City’s policies (ideally), such as fee category or divisions/department.
If the City does not have written policies for fee cost recovery, then the comparisons will
be based on the City’s goals for cost recovery.
Phase 4 – Analyze. Using the City’s benchmark cities, fee data will be collected and a set of
comparison tables will be prepared. The tables will be formatted by division/department or
by fee category, and will compare individual fees to the extent possible, and/or by
aggregated fees by fee category or division/department.
Phase 5 – Report. A comprehensive project report of detail data and summarized
information will be prepared and presented to City personnel. Accumulated data from
benchmark cities as well as calculations from Phases 2, 3 and 4 will be included in the
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report’s detail section. The report’s summary section will include an Executive Summary
narrative overviewing the purpose and scope of the report along with findings and
meaningful highlights.
Up to three draft reports will be provided for review and editing by City personnel prior to a final
report.
Phase 6 – Present. After the study is complete, we will present study results to City
personnel or elected officials. We will also deliver the agreed-to number of printed, bound
reports as well as copies of all supporting documentation such as project work papers. We
may also have a close-out meeting with staff to discuss any unresolved implementation or
update issues.
Understanding of Project Objectives, Methodology and Results/Outcomes
Objective/Purpose
1. Fee comparison for single family residential detached, multifamily, commercial
office and retail, industrial warehouse and mixed-use building permits of varying
square footage.
2. Fee overview – Analysis of fees the City of Fort Collins assesses that our benchmark
cities do/don’t assess including the financial impact.
3. Fees comparison to include all fees collected at time of building permit
including but not limited to development review fees.
4. Fee comparison to include comparison on a fee to fee basis as well as an
aggregate comparison of all fees.
5. Fee comparison to include an analysis of inflation indices with peer Colorado
cities including up to 10 peer cities and 5 national cities of like size and
demographics.
6. Assessment of inflation indices that reflect the local cost of construction in Fort Collins.
7. Analysis of all possible methodologies for assessing building permit fees.
8. Complete user fee study.
Methodology for Objective/Purpose #1 and #3
Through data collection methods including, but not limited to, surveys, phone calls, email, on-
site requests and on-line research, we will gather data from the City’s selected benchmark
cities to prepare detailed comparison schedules.
Methodology for Objective/Purpose #2
Based on the data collected for Purpose #1 and #3, we will crosswalk and document the
fees the City does or does not assess. This data will then be used to prepare an estimated
annual financial impact, with noted assumptions, for the fees the City does, or does not,
collect compared to the benchmark cities.
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Methodology for Objective/Purpose #4
Based on the data collected for Purpose #1 and #3, we will prepare calculations of the City’s
designated fees compared to the benchmark cities designated fees. The calculations will
be by individual fee and in aggregate.
Not every city (1) has the same development review fees, (2) uses the same terms for the same
fees, and delivers services the same way. Therefore, these calculations may be consolidated
or combined in ways that makes comparisons less challenging and more meaningful for
decision-making purposes.
Methodology for Objective/Purpose #5
Based on the data collected for Purpose #1 and #3, we will document the inflation indices
from the benchmark cities.
Methodology for Objective/Purpose #6
Through data provided by City economic and development personnel, local, regional
and national published economic reports we will document estimate cost of construction
inflation indices in Fort Collins.
Methodology for Objective/Purpose #7
Based on the data retained from our years of experience conducting user fee studies for
cities across the U.S., and to a lesser extend data collected for Purpose #1 and #3, our
proposed project team will prepare a narrative and examples of various methods for options
for assessing building permit fees.
MGT’s collective years of user fee study experience for cities exceeds 300 combined years.
Our project team alone has over 70 years of combined user fee study experience for cities.
Therefore, the proposed narrative, and examples, will not be based on a few conversations
with benchmark cities or from internet research but from actual first-hand knowledge and
experience with hundreds of cities across the U.S.
Results/Outcomes
1. Up to three draft reports provided to City personnel for review, comment and
edits. These draft reports will include detail sections of data collected and
analyzed and associated calculations as well as a summary section of findings
and conclusions related to the seven stated Objectives/Purposes outlines
above.
2. One final report provided to City personnel for review, comment and edits.
These draft reports will include detail sections of data collected and analyzed
and associated calculations as well as a summary section of findings and
conclusions related to the seven stated Objectives/Purposes outlines above.
3. Up to five (5) printed and bound copies of the final project report and one
electronic pdf copy.
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4. A final presentation to City personnel or elected officials.
5. An introductory project kick-off meeting and training session at project initiation
in Fort Collins for included division/department, City management, and/or elected
officials, and other project stakeholders, if requested.
6. Assistance to City personnel to integrate project data into ongoing City operations.
7. Formal project status reports at intervals requested by City personnel (that is,
weekly or bimonthly).
8. Copies of project work papers as requested.
9. Continuous training, guidance, and assistance.
10. A formal project recap report.
11. A six-month post-project review.
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Task # Task Description Director
Sr. Project
Consultant
Project
Consultant
TOTAL
HOURS TOTAL ($) Timeframe
1 Conduct introductory meeting with relevant personnel 7 2 5 14 $ 2,495 Week 1
2 Collect basic financial data 8 ‐ 16 24 $ 3,880 Week 1
3 Identify all existing for‐fee services 4 ‐ 8 12 $ 1,940 Week 1
4 Gather & summarize comparitive data 4 ‐ 36 40 $ 5,860 Week 1
4b Identify potential new user fee services 1 2 18 21 $ 3,085 Week 1
5 Issue inventory memorandum 2 ‐ ‐ 2 $ 410 Week 1
6 Identify departmental divisions, sections, or units providing
user fee services 13 2 4 19 $ 3,225 Week 1
7 Review relationship between user fee services and recipients 4 2 ‐ 6 $ 1,180 Week 2‐5
8 Interview divisions, sections, or units providing user fee 32 16 16 64 $ 10,240 Week 2‐5
9 Calculate initial user fee schedules 4 8 28 40 $ 4,740 Week 6
10 Conduct initial department review 8 ‐ 18 26 $ 4,160 Week 8
11 Recalculate and review user fee schedules 2 8 12 22 $ 2,090 Week 9
12 Calculate draft user fee schedules 6 4 8 18 $ 2,350 Week 10
13 Conduct internal review of the draft fee schedules 6 4 2 12 $ 2,230 Week 10
14 Calculate final user fee schedules 6 10 10 26 $ 3,350 Week 10
15 Develop recovery recommendation options 16 8 2 26 $ 5,000 Week 12
16 Calculate projected revenues and revenue increases 4 ‐ 6 10 $ 1,660 Week 12
17 Identify considerations for adopting changes to existing user fee
services and for adopting new user fee services 11 4 4 19 $ 3,535 Week 14
18 Prepare and deliver management report 18 ‐ 16 34 $ 5,930 Week 16
19 Present results to officials/stakeholders 8 ‐ 4 12 $ 2,200 Week 18
20 Provide copies of documents and materials ‐ ‐ ‐ ‐ $ ‐
21 Provide continuous training, guidance, and assistance ‐ ‐ ‐ ‐ $ ‐
TOTAL HOURS 164 70 213 447 $ 69,560
RATE PER HOUR $ 205 $ 180 $ 140
TOTAL COST $ 33,620 $ 12,600 $ 29,820
TOTAL EXPENSES $ 3,500 $ 685 $ 500 $ 4,685
TOTAL PROJECT COST $ 74,245
Attachment 1 - Hour and Cost Breakdown by Task
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