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HomeMy WebLinkAboutCity of Bozeman Impact Fee Cost of Service Studies_Tindale Oliver ResponseCITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies Ms. Robin Crough, City Clerk City of Bozeman PO Box 1230 121 North Rouse Avenue, Suite 202 Bozeman, MT 59771 Dear Ms. Crough: Tindale-Oliver & Associates, Inc., dba Tindale Oliver, is pleased to submit this proposal as an expression of interest in the City of Bozeman Impact Fee Study. Included on our team are Public Resources Management Group (utility impact fees) and White & Smith (legal analysis). Our team of professionals has extensive experience and knowledge in preparing impact fee studies for all program areas specified in your RFP, as well as several other public infrastructure areas. We understand that the City of Bozeman continues to experience significant growth. To address funding needs associated with new growth, the City established an impact fee program 1996 in four service areas: water, sewer, fire/EMS and transportation. The City regularly updates these fees. Given that the last updated was in 2012-2013, the City requested proposals from qualified firms for an update study. Throughout our history, Tindale Oliver has earned a national reputation as a leader in impact fee studies and, more importantly, in their acceptance and implementation. We are a firm that has successfully completed more than 300 impact fee studies, including those for the City of Bozeman. It is important to note that no impact fee study conducted by Tindale Oliver has ever been successfully challenged in any court system. The founders and subsequent leaders of the firm come from public sector backgrounds and have operated multiple departments, with experience that translates into a practical understanding of issues that government officials face in planning, designing, financing and implementing projects. The Tindale Oliver Team includes engineers, economists, planners, attorneys, and GIS specialists. This substantial experience ensures the dedication of resources that will result in a project that is completed on time and supported by reliable and accurate information. Tindale Oliver recently developed a method that enables local governments to reduce fees by targeted land use and/or area while ensuring that the level of service standards are continued to be met. With this method, local governments are able to better align their impact fee program with their economic development and growth management goals. We would like to emphasize the personal commitment of our team. The study will address your objectives and focus on impact fee strategies that result in accurate and equitable impact fee programs that fulfill all the legal requirements and will be completed within the City’s target time frame. We look forward to the opportunity to continue to provide our services to the City of Bozeman. Sincerely, Steven A. Tindale, P.E., AICP Nilgün Kamp, AICP President Director of Public Finance RFP TITLE Professional Services to Conduct an Update to Water, Sewer, Fire/EMS and Transportation Impact Fee Cost of Service Studies CONSULTANT NAME & ADDRESS Tindale Oliver 1000 N. Ashley Drive Suite 400 Tampa, FL 33602 DESIGNATED CONTACTS Nilgün Kamp, AICP Director of Public Finance Role: Project Manager (813) 224-8862 NKamp@tindaleoliver.com Steven A. Tindale, P.E., AICP President Role: Principal-in-Charge (813) 224-8862 STindale@tindaleoliver.com SUBCONSULTANTS Public Resources Management Group, Inc. (PRMG) White & Smith, LLC (W&S) Cover Letter CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies i www.tindaleoliver.com Table of Contents City of Bozeman Update to Water, Sewer, Fire/EMS and Transportation Impact Fee Cost of Service Studies Cover Letter Tab 1: Project Summary ............................................................................................... 1-1 Preliminary Project Schedule ................................................................................................ 1-1 Tab 2: Company Description/Capability ......................................................................... 2-1 Tindale Oliver Team Profile ................................................................................................... 2-1 Tindale Oliver Team National Impact Fee Experience Map .................................................. 2-3 Tab 3: Project Team ..................................................................................................... 3-1 Tindale Oliver Management Team ........................................................................................ 3-1 Tindale Oliver Team Organization Chart ............................................................................... 3-2 Key Support Personnel .......................................................................................................... 3-3 Tab 4: References ......................................................................................................... 4-1 Tab 5: Outline of Services ............................................................................................. 5-1 Project Approach ................................................................................................................... 5-1 Project Deliverables ............................................................................................................... 5-4 Optional Services ................................................................................................................... 5-4 Tab 6: Cost and Expenses ............................................................................................. 6-1 Tab 7: Affirmation of Non-discrimination ...................................................................... 7-1 Attachment 1: Statement of Non-Discrimination Form CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 1 - 1 www.tindaleoliver.com Task Description Schedule Receipt of Signed Contract Months 1 & 2 Submittal of the Data Needs Memo Facilitate Introductory Workshops/Meetings Obtain requested data Update Fire/EMS Impact Fee Study Months 2 & 3 Submit Fire/EMS Impact Fee Draft Report & Presentations Month 4 Update Transportation Impact Fee Study Months 3 through 5 Submit Transportation Draft Report & Presentations Month 6 Update Water Impact Fee Months 5 & 6 Submit Water Impact Fee Draft Report & Presentations Month 7 Update Wastewater Impact Fee Months 6 & 7 Submit Wastewater Impact Fee Draft Report & Presenta- tions Month 8 Submit Final Reports Month 9 Presentation(s) of the Final Reports Months 10 & 11 Formal presentation and adoption hearings Months 11 & 12 Tab 1 Project Summary Bozeman is a rapidly growing community of 43,000. The city experienced an average annual population growth rate of 2.5 percent since 2010 and residential permitting in 2015 was at 2006/2007 levels prior to economic downturn. The city is the county seat and central place for one of the fastest growing micropolitan areas in the U.S. It has a multi-county trade service area, is home of Montana State University and a gateway to Yellowstone National Park. To address infrastructure cost associated with new growth, the City of Bozeman implemented water, sewer, fire/EMS and transportation impact fees since 1996. Given the continuing growth rate, impact fees will continue to be an important revenue source for the City. The City updates its impact fee program regularly, which was last updated in 2012-2013. The City asked for proposals from qualified firms to update its impact fee program. The Tindale Oliver Team includes planners, engineers, economists, GIS specialists and attorneys with in-depth experience in planning and impact fee studies for a wide range of program areas, including those are included in the City’s impact fee program. In addition, Tindale Oliver staff have prepared Parks and Fire Master Plans, Long Range Transportation Plans, and other planning studies and understand the relationship between impact fees, master plans, and economic development and growth management goals. Proposed Plan of Implementation Tindale Oliver’s ability to complete work on-time and on budget has been confirmed by our track record over the past 27 years. As part of our implementation plan, in the beginning of the study, we will work with the City staff to clearly establish the goals of the project. The following goals are stated in the RFP: > Establish service areas for each facility type > Develop a legally and technically sound methodology > Establish the maximum dollar amount that can be collected for each unit of increased service demand For a successful implementation process, the Tindale Oliver study will conform to all requirements of the state law, and provide the following: > Clear, concise documents that provide the necessary knowledge, insight and transparency to the City, stakeholders, and general public > Meetings and workshops using materials and techniques that ensure active participation and critical feedback. > Final documentation of not only the technical issues and approach but the consensus building process and results. > Outcomes that ensure the established goals. Our team of planners, engineers, and economists have shown a 27-year track record of using this implementation process to successfully provide the outcomes you have asked for. The management team will communicate with the City’s project manager and other staff members regularly to ensure that the City is aware of the study progress. We understand that the City is targeting a 12-month period for the completion of the study. The following preliminary schedule will be discussed with the City and revised if needed to better meet the City’s needs. CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 2 - 1 www.tindaleoliver.com Tab 2 Company Description/ Capability TINDALE OLIVER TEAM PROFILE Tindale Oliver Tindale Oliver (TO) is a firm with a reputation as a leader in providing quality, innovative finance and planning services to its government clients. Tindale Oliver has grown from a firm of 3 employees in 1989 to a firm of 80+ employees in 2017, with staff certifications including professional engineers, certified planners, LEED and GIS professionals, and accessibility inspectors, as well as numerous planners, economists, and GIS analysts. Individuals with extensive public management experience formed Tindale Oliver to provide innovative financing programs, comprehensive planning, and infrastructure planning services to local government entities. The principals of Tindale Oliver have invested more than 80 years of their professional careers working for city, county, and state agencies. This experience affords them a real-life understanding of issues government officials face in comprehensive planning, infrastructure planning, and innovative infrastructure financing alternatives, and, more importantly, how to implement selected alternatives. Tindale Oliver’s Public Finance & Infrastructure Planning Team specializes in impact fee studies, assessments, user fees, and alternative funding studies. We are very familiar with various methodologies used to prepare impact fees and know how to apply each methodology correctly to ensure that new development is not overcharged and that the fees are technically defensible. Tindale Oliver has been conducting impact fee studies in nine service areas for jurisdictions ranging in population from 3,500 to 1.3 million. With its dedicated staff for impact fee and public funding studies supported by additional staff experienced in impact fees, Tindale Oliver has the capacity to manage and complete the study for the City of Bozeman within the City’s desired time frame while still providing high quality product. The following paragraphs provide a summary of the Tindale Oliver Team’s unique qualifications, experience, and innovations upon which we will draw in preparing the impact fee study for the City of Bozeman. Impact Fee Methodology – Tindale Oliver principals have published articles on impact fees that document the correct methodology and approach to developing impact fee programs. These articles set the standard for impact fee studies and have been used by many agencies across the nation to develop impact fee programs, including work by other consultants. Tindale Oliver’s Economic Growth Impact Fee Methodology – Tindale Oliver developed a methodology that allows impact fees to be sensitive to the growth rate of various areas within a jurisdiction. This approach was used in impact fee studies completed for and adopted in New Mexico by the City of Albuquerque and in Florida by the City of Orlando, Indian River County, Pasco County, Marion County and Hernando County. Through this method, jurisdictions were able to reduce fees for select land uses and/or target areas while still maintaining the service level. Fire/EMS Impact Fee Methodologies – Tindale Oliver is very knowledgeable about different methodologies used to calculate fire/EMS impact fees, and we have used fire flow, call-based, and functional population-based approaches in our impact fee work. We have worked with incident data through our impact fee and fire assessment fee studies and are very familiar with the National Tab 2: Company Description/Capability CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 2 - 2 www.tindaleoliver.com Fire Incident Reporting System (NFIRS) as well as the National Fire Protection Association (NFPA) standards and ISO requirements and ratings that tend to influence decisions on timing and location of capital assets. Comparative Databases – Tindale Oliver compiled a cost database that includes unit costs for several impact fee program areas, including all fees that will be evaluated as part of this study. This database supplements local information, which tends to have a small sample size and serves as quality-control mechanism to determine whether the local costs are out of the range of what other jurisdictions experience. Similarly, Tindale Oliver has a revenue credit database that compares non-impact fee funding levels between jurisdictions. This database is another quality-control tool Tindale Oliver uses to ensure that the data used for impact fee calculations are accurate. Impact Fee Public Presentations – Principals of Tindale Oliver have prepared and made more than 500 presentations on impact fees during the last 27 years. As such, our staff are qualified to prepare materials for impact fee adoption hearings, respond to questions from citizens and technical committees, and develop strategies that result in the successful implementation of new and updated ordinances. We also have worked very closely with impact fee evaluation and review committees and have been successful in building consensus among people with different opinions on a variety of impact fee- related topics. Expert Testimony – Steve Tindale has provided expert testimony and research on impact fee- related matters. Tindale Oliver testimony in these cases was key to winning an across-the-board victory for governmental clients in each of these cases. Nationally Recognized – Nilgün Kamp serves on the Board of Directors of the Growth and Infrastructure Consortium (GIC) (formerly the National Impact Fee Roundtable). Along with Steve Tindale and Tyson Smith, they routinely make presentations and moderate sessions at annual GIC meetings. Infrastructure Planning/Master Plans – Tindale Oliver has prepared Parks, Fire, Transportation, and School Master Plans and Future School Location Analyses for local governments and understands the relationship between impact fees, master plans, and economic development and growth management goals. Institutional Knowledge, Insight, and Outcomes – The knowledge and insight described in this section provide our clients with outcomes that are informative. In summary, Tindale Oliver specializes in the development of impact fees and other funding methods and their successful implementation, as evidenced in our previous work for many jurisdictions. Sub-consultants: Public Resources Management Group, Inc. (PRMG) Founded in April 1994, PRMG is an established financial and management consulting firm specializing in financial and strategic planning and management consulting services. The principals of PRMG have been involved in a wide variety of consulting projects for numerous public clients, including the development of utility rates, impact fees, miscellaneous service fees, preparation of financial plans, presentation of expert testimony on utility financial matters, and the acquisition and establishment of utilities. PRMG will lead the effort in the development of the water and wastewater impact fees for the City of Bozeman. White and Smith, LLC (W&S) White & Smith, LLC , Attorneys are unique in that both Mark White and Tyson Smith have advanced planning degrees in addition to their law degrees. W&S has extensive impact fee experience nationwide and has been working with Tindale Oliver since 2003. If the City desires, W&S will be available to assist with legal requirements, including the development of ordinances. The map on the following page illustrates our Team’s impact fee experience nationwide. Tab 2: Company Description/Capability CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 2 - 3 www.tindaleoliver.com Tindale Oliver Team National Impact Fee Experience Map CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 3 - 1 www.tindaleoliver.com Tab 3 Project Team TINDALE OLIVER MANAGEMENT TEAM This section demonstrates the significant experience offered by the project management team proposed for this project. Complete resumes for each team member are also included at the conclusion of this proposal. Steven A. Tindale, P.E., AICP (TO), will service as the Principal-in- Charge for this project. With more than 45 years of professional experience, his primary work activities over the last 27 years have involved public finance and growth management and concurrency systems studies and their implementation. He also has written papers on impact fee methodologies and introduced new concepts. With his background as the Public Works Director for the City of Tampa (FL), he has an in-depth understanding of operating budgets and capital infrastructure programs. He offers expertise in public facilities planning and financing, capital budgeting, local government concurrency management, and, perhaps most important, project implementation. His degrees include a BS in Engineering and an MBA from the University of South Florida. Nilgün Kamp, AICP (TO), will serve as the Project Manager for this project. She has over 23 years of experience in conducting public finance studies and has managed more than 200 impact fee, assessment, and infrastructure planning studies. She offers significant experience with annual budgets, capital improvement programs, and project expenditures to develop or update the demand, cost, and credit components for impact fees. Her degrees include an MA in Economics from the University of South Florida and a Master of International Relations and Pacific Studies from the University of California in San Diego. Nilgün has served on the Board of Directors for the Growth and Infrastructure Consortium since 2013 and is a frequent presenter at this national conference. Henry Thomas (PRMG) has over 30 years of experience in the areas of utility rates, economics, planning, and finance. He is responsible for providing a wide-range of economic, financial, and business management services including rate studies, financial planning, resource planning and customer demand forecasting, capital funding analyses, economic feasibility studies, valuations, contract negotiations, expert testimony, and preparation of feasibility studies in support of tax exempt revenue bond financing. He will serve as the task leader for utility impact fees. Tyson Smith, Esq., AICP (W&S) has a diversity of experience in local government and land use planning law, with particular focus on “facilities- based” growth management techniques, including impact fees, concurrency, adequate public facilities ordinances, and rate of growth ordinances. He has worked with Tindale Oliver on several impact fee projects since 2003 and is available to assist with legal documentation if desired. In addition to this management team, Tindale Oliver staff includes engineers, planners, economists, and individuals with extensive travel demand modeling, database and GIS analytical skills. Availability of these skills in-house also allows Tindale Oliver to provide its services in a cost effective manner. ORGANIZATION CHART An organization chart including all key personnel for this project is provided on the next page. Tab 3: Project Team CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 3 - 2 www.tindaleoliver.com City of Bozeman Update to Water, Sewer, Fire/EMS and Transportation Impact Fee Cost of Services Studies Tindale Oliver Team Organization Chart Tab 3: Project Team CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 3 - 3 www.tindaleoliver.com KEY SUPPORT PERSONNEL Robert Layton (TO) Project Role: Task Manager Robert has been involved primarily in public finance studies, including impact fee studies for fire, EMS, transportation, schools, law enforcement, correctional facilities, government buildings, solid waste, libraries, and parks and recreational facilities. His background in economics enables him to work effectively with economic/demographic variables, capital improvement programs, expenditure and revenue figures, and other financial material. He also has an extensive experience with property appraiser databases. Robert also has been involved in the preparation of administrative manuals for several jurisdictions. Project Experience: > City of Sarasota (2016) > City of St. Cloud (2016) > Hillsborough County (2016) > City of Tampa (2009, 2014) > City of Lakeland (2013) Ethan Hamilton (TO) Project Role: Planning Support Since joining Tindale Oliver in 2014, Ethan has primarily been involved with public infrastructure financing and alternative revenue funding studies. Ethan has worked on on various impact fee, assessment, and user fee studies for fire, EMS, schools, parks and recreation, government buildings, libraries, and correctional facilities. Ethan has experience in demographic and population projections, valuations of capital infrastructure and equipment, estimation of land value, enrollment trends/ projections, and fire incident demand calculations, among other impact fee and assessment support activities. Project Experience: > Orange County (2017) > Village of Royal Palm (2016) > City of Largo (2016) > City of Sarasota (2016) > Collier County (2015) Chris Keller, AICP (TO) Project Role: GIS/Planning Support Chris applies a broad GIS and transportation planning skill-set to solve various transportation and general planning issues. He has experience in a wide-variety of projects ranging in topics including transportation and urban-development/redevelopment- oriented studies, safety and data management projects, transit, and public finance studies. Project Experience: > City of Oviedo (2013) > City of Orlando (2012) > City of Helena (MT) Impact Fee Study (2008, 2009) > Sumter County (2009) Steve Infanti, AICP (TO) Project Role: Travel Demand Model Support Steve is a certified planning professional with experience in Transportation Planning and GIS applications including travel demand modeling using Cube Voyager models and mapping, geodatabase design and geospatial analysis using ESRI ArcGIS. Steve has conducted numerous traffic impact studies, general traffic analysis, freight corridor screenings, crash data analysis and other similar projects. Project Experience: > St. Lucie County (2007, 2016) > Pasco County (2014) > City of Lakeland (2014) > Indian River County date (2013) > Sumter County (2009) CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 4 - 1 www.tindaleoliver.com Tab 4 References RELATED PROJECTS AND REFERENCES Successful performance on similar jobs is best demonstrated through a sampling of projects requiring similar services. Tindale Oliver is dedicated to serving our clients, and we encourage you to contact any of our references. Impact Fee Studies, Collier County, FL - Collier County has had a significant population growth for many decades. During the same growth period, land values and construction costs increased rapidly. Tindale Oliver has been contracted by Collier County repeatedly since 1992 to develop or update impact fees in nine program areas and currently is updating several of the County’s impact fees. Client Contact Information: Amy Patterson, Director of Capital Projects Planning, Impact Fees, and Program Management, Collier County; 2800 N. Horseshoe Drive, Naples, FL 33942; P: (239) 252-2400; AmyPatterson@colliergov.net Project Start/Completion dates: 1/08/2014 to 11/30/2016 (most recent update) Population of Jurisdiction: 321,520 Number of Employees: 3,650 (FY 2017) Impact Fee Studies, City of Oviedo, FL - Oviedo has been experiencing significant growth since 1980. The City retained Tindale Oliver in 2004 to update its fire/EMS, transportation, police, and parks and recreation facilities impact fees, as well as to develop a new government buildings impact fee. Since then, Tindale Oliver continued to work with the City and provided various impact fee support services. The City retained Tindale Oliver again in 2013 to update the 2004 Technical Study for all five program areas, develop a multimodal transportation impact fee, incorporate Economic Growth application, and develop an Administrative Manual. Client Contact Information: Debra Pierre, Planning Manager, City of Oviedo;400 Alexandria Boulevard, Oviedo, FL 32765; P: (407) 971-5776; dpierre@ci.oviedo.fl.us Project Start/Completion dates: June 1, 2012 to October 29, 2013 Population of Jurisdiction: 33,342 Number of Employees: 315 (FY 2016-2017) Fire, Law Enforcement, and Parks Impact Fee Update, City of Lakeland, FL - The City of Lakeland has been experiencing high population growth over the last several years, and more development is expected in the future. Tindale Oliver was originally retained by the City in 1991 to update its transportation impact fee. In 2006, 2008, 2009, and 2014, the City contracted Tindale Oliver to update several impact fee programs, including parks and recreation, fire protection, and law enforcement, as well as indexing studies. The 2014 update included converting the City’s Roadway Transportation Fee to a Multimodal Transportation Fee, providing the City with more flexibility in its program expenditures. In addition, the study incorporated libraries into the parks and recreation impact fee. Tab 4: References CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 4 - 2 www.tindaleoliver.com Client Contact Information: Celeste Deardorff, Long Range Planning Manager, City of Lakeland; 228 S. Massachusetts Avenue, Lakeland, FL 33801; P: (863) 834-8432; celeste.deardorff@lakelandgov Project Start/Completion dates: October 1, 2009 to July 7, 2010 Population of Jurisdiction: 97,422 Number of Employees: 2,731 (FY 2017) Impact Fee and Assessment Studies, City of Bartow, Florida - The City retained Tindale Oliver to update the City’s parks, public buildings, water and wastewater impact fee programs, convert its roadway-based transportation impact fee to a multimodal transportation impact fee, update fire assessment program and stormwater assessment program, develop a roadway maintenance assessment program, and prepare a fire location study. Client Contact Information: Robert Wiegers, Director of Planning Department, City of Bartow; 450 N. Wilson Ave., Bartow, FL 33830; P: (863) 534-0100; 6814; Bwiegers.planning@cityofbartow.net Project Start/Completion dates: 3/10/2014 to 12/31/2014 (most recent update) Population of Jurisdiction: 17,298 Number of Employees: 280 (FY 2016-2017) Comprehensive Impact Fee Study, Indian River County, FL - In 1998 and 2004, Tindale Oliver updated the Fair Share Roadway Impact Fee Ordinance for Indian River County (IRC) and developed studies for eight impact fee program areas, including law enforcement, correctional facilities, schools, fire & EMS, libraries, public buildings, parks, and solid waste impact fee programs. IRC retained Tindale Oliver again in 2014 to update the studies. The new study was used to adopt Tindale Oliver’s Economic Growth Strategy with a reduced fee schedule for non-residential development. Client Contact Information: Stan Boling, Director, Community Development Department, Indian River County ; 1801 27th St., Vero Beach, FL 32960; P: (772) 226-1253; sboling@ircgov.com Project Start/Completion dates: July 2, 2013 to October 14, 2014 Population of Jurisdiction: 138,028 Number of Employees: 1,488 (FY 2016-2017) CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 5 - 1 www.tindaleoliver.com Tab 5 Outline of Services PROJECT APPROACH The scope of services requested by the City of Bozeman includes updating impact fees for four service areas and is organized in four primary tasks. The work will reflect changes in the City area, capital improvement projects completed since the last update, changes in funding levels and sources, updated facility plans, and changes in bidding conditions, among other variables. TASK 1: Background and Methodology Review Immediately upon receipt of the Notice to Proceed, Tindale Oliver will coordinate with the City for the identification and collection of specific studies, data, any technical reports, Comprehensive Plan, Capital Improvement Plan, Water and Wastewater Facilities Plans, Transportation Plan, Fire/EMS Master Plan (as available), existing conditions of the facilities and future needs, current policies and procedures/ standards, and other related information necessary to complete the impact fee study. Tindale Oliver will review the background information and facilitate a kickoff meeting with key City staff to confirm study objectives, identify and discuss major technical, legal, and policy issues, coordinate staff/Consultant responsibilities, and refine the project schedule as necessary. Some of the technical and policy issues that will be discussed include the following: > Inventory and current conditions of the facilities > Capital improvement plans, master plans, and projects and associated funding sources and levels > The City’s growth patterns and levels, including rate of growth in population and tax base and diversity of tax base > Impact fee variables that need to be updated/developed > Consumption-based vs. recoupment/needs- based methodologies and Tindale Oliver’s Economic Growth method that creates a link between these methods > Recent trends in land and construction costs experienced by the City and other jurisdictions in Montana > Level of service (LOS) analysis > Methodology used to measure demand for each impact fee program area > Review of land uses included in the current fee schedule and potential changes, if necessary > Other related issues, as applicable The input received during this meeting will be incorporated into the remaining tasks. TASK 2: Impact Fee Technical Analysis Based on the results of the Task 1 review, this task will update impact fee calculations for each service area. This work effort will include development of the inventory of existing facilities, preparation of a demand component, and a review of the construction, land, equipment, and other related costs, identification of costs associated with new development, and credits. Subtask 2.1: Inventory of Existing and Planned Facilities The City will provide information on the inventory of the existing capital facilities within the city as well as their existing conditions. Planned facilities will be documented based on the information in the Capital Improvement Plan, master plans, and other documents collected as part of the Task 1 effort, as well as discussions with City staff. We understand that the City Tab 5: Outline of Services CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 5 - 2 www.tindaleoliver.com recently adopted a new facility plan for wastewater, and that plans for transportation and water are expected to be adopted in spring 2017, and a new facility plan for fire/EMS is expected to be completed in June 2017. The fire/EMS facility inventories will include all stations/buildings, land, vehicles and equipment. The transportation impact fee will include the roadway inventory and the utilities will include supply, treatment, distribution and other plants, as well as other related capital infrastructure. A summary of the capital asset inventory as well as planned facilities for each program area will be developed. Subtask 2.2: Level-of-Service (LOS) Analysis and Population Projections The City’s current, achieved LOS and its established LOS standards will be used to determine the appropriate LOS that can be used in the impact fee calculations. The City’s population projections will be updated using data available from the Census, permitting and available development data and information. Using estimated population growth and the appropriate LOS, future facility needs will be determined. Subtask 2.3: Demand Component Tindale Oliver will calculate the demand component for each impact fee program area. In the case of fire/EMS facilities, Tindale Oliver typically uses functional population per unit of land use. Functional population measures the benefit to each land use based on the presence of people at that land use throughout the day. In other words, land uses are charged for the availability of these services based on full-time equivalent persons present at each land use throughout the day. Tindale Oliver has also used call data for both impact fee studies and fire funding and facility planning studies. Both approaches will be discussed with the City as part of Task 1. Transportation demand is measured in terms of vehicle miles of travel (VMT) for roadway-based fees. Tindale Oliver has an extensive database that includes trip characteristics studies for more than 40 land uses, including those completed in Bozeman, which are used for transportation impact fee studies. In addition, if the City desires, this information can be supplemented with local trip characteristics. Otherwise, the demand component will be developed based on secondary data sources, such as the latest ITE Trip Generation Handbook (9th Edition), Tindale Oliver’s trip characteristics database, and any alternative studies that may have been conducted in the City of Bozeman. In the case of transportation impact fee, an analysis of reduction in travel generated by certain land uses, such as the mixed use developments, can be incorporated further refine the demand component. In the case of utilities, the demand is measured in terms of equivalent residential unit (ERU)s. Number of ERU’s will be identified. As part of the demand estimation, the existing and future available capacity at each facility type will be converted into units of service demand. Subtask 2.4: Cost Component The cost component for each impact fee program area will be calculated to reflect the current cost of adding capacity in the City of Bozeman for each program area. Cost elements reviewed will include design and engineering inspection, construction, land/right-of -way purchase, equipment purchase and other related costs. Tindale Oliver will review the Capital Improvement Program, annual budgets/reports, recent bids, recently-completed local projects (past five years), recent land purchases or appraisals, and other relevant documents to identify capital service improvement costs that may be considered in the calculation of the cost component of the impact fee formula for the City. This unit cost information will be compared to and/or supplemented with Tindale Oliver’s cost databases that include information from other jurisdictions. Based on the City’s planned facilities, costs of future projects associated with new development vs. existing deficiencies, operations and maintenance will be identified. Subtask 2.5: Credit Component Tindale Oliver will review historical and projected capital improvement funding sources and Tab 5: Outline of Services CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 5 - 3 www.tindaleoliver.com expenditures for land, construction, design, and engineering inspection and other related costs in the City of Bozeman. Funding sources may include taxes, grants, user fees, among others. Debt service for any bond proceeds used for capacity expansion projects will be reviewed and documented as appropriate. These calculations will reflect any recent and/or anticipated changes in how the capital assets are funded. This information will be used to prepare the credit component of the impact fee formula to avoid “double recovery” of costs as part of the impact fees and user fees and/or taxes. Subtask 2.6: Economic Growth Application The City is interested in exploring alternative methods when a superior outcome will result. Tindale Oliver has developed Economic Growth application, which evaluates the projected growth rates, available funding sources and levels for capacity projects and develops a policy discount/ buydown by land use and geographic area without affecting the adopted LOS standards. This methodology creates a bridge between the consumption-based and needs-based methods and provide the jurisdiction with the flexibility to provide discounts to target industries/land uses and/or targeted areas. Using this approach, the City will be able to evaluate the projected level of service given different growth rates and adjust the fee so that revenues generated could still fund the needs identified by the adopted LOS standards. Subtask 2.7 – Analysis of Benefit Districts Tindale Oliver will review the existing benefit district structure and evaluate if there is a need to change the current structure. As part of this analysis, natural/man-made boundaries or physical features, variations in rates of growth/ urban form, revenue collection levels, and other similar factors will be evaluated. This work effort will be documented in the technical report. Subtask 2.8: Calculated Impact Fee Schedules Based on the analysis conducted in previous tasks, this task will develop a fee schedule for each program area. The analysis will establish the necessary nexus of fees for different property use types. As part of the analysis, a phasing schedule will be provided that includes full recovery costs vs. partial recovery alternatives along with sample calculations for various properties under each scenario. A comparison of fees implemented in surrounding jurisdictions will also be shown. TASK 3: Technical Report Results of Tasks 1 and 2 will be summarized in a draft technical report along with resulting fee schedule for each program area. The technical report will include all information, estimates, projections, and data analysis as well as any assumptions made and methodologies employed to complete these tasks. Upon receipt of comments from the City staff, Impact Fee Advisory Committee, and City Commission, Tindale Oliver will make the necessary revisions to the draft report and submit the final report. The technical reports and work conducted will be in compliance with the documentation required by Montana statute, transparent, clearly documented and communicated, using a sound and understandable methodology. TASK 4: Meetings and Presentations The City of Bozeman has established a nine-person Impact Fee Advisory Committee comprised of citizens and employees to work with the consultant to develop the updated impact fee studies. The City of Bozeman is committed to meaningful public access to public processes and intends the fee study update process to be transparent and understandable to participating parties. As part of this task, Tindale Oliver will participate the following meetings: > General workshop — An introductory workshop, open to public, but primarily oriented to the Impact Fee Advisory Committee, appointed and elected officials. This workshop will provide an overview of the process. > Impact Fee Advisory Committee meetings: Three (3) meetings will be held with the Committee to introduce/discuss the assumptions, methodology and service area; review draft results; and present final draft fees for each service area. > City Commission meetings/presentations: Four (4) meetings will be held to introduce the update process; provide initial estimates; Tab 5: Outline of Services CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 5 - 4 www.tindaleoliver.com present final draft of each fee study; and formal presentation and adoption for each fee. > City Staff meetings/conference calls will be held to discuss data for each fee area, facility plan overview, funding availability and structure overview, and legal and procedural framework. PROJECT DELIVERABLES Throughout the project, the following will be provided: > Two hard copies and 1 PDF version of all preliminary and final drafts. > All documents will be provided at least 14 working days prior to any public hearing or meeting with the City Commission in an electronic format approved by the City. > All deliverables will be screen-reader friendly to comply with the Americans with Disabilities Act (ADA). > Bi-weekly progress reports will be submitted via e-mail, addressing Recently Performed Work, Upcoming Tasks, Upcoming Milestones, Scope & Schedule Issues, and Issues to be Aware of. OPTIONAL SERVICES If requested by the City, the Tindale Oliver Team includes White & Smith who can provide legal review and assist with the update of the impact fee ordinances and other legal documents. The budget associated with these services is not included in the study cost, and can be provided separately upon request by the City. CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 6 - 1 www.tindaleoliver.com Tab 6 Cost and Expenses COST AND EXPENSES The professional fees and expenses for services outlined in Tab 5 is estimated $143,355. This cost includes six trips to Bozeman, and includes all costs associated with the study. CITY OF BOZEMAN | Update to Water, Sewer, Fire/EMS & Transportation Impact Fee Cost of Services Studies 7 - 1 www.tindaleoliver.com Tab 7 Affirmation of Nondiscrimination Per the requirements of the RFP, the following is included in this section: > Attachment 1: Statement of Non- Discrimination Form