HomeMy WebLinkAbout18 - Traffic Impact Fairshare Fee UpdateCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
October 14, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Stephen G. Badum
949 - 644 -3311 orsbadum @city.newport- beach.ca.us
SUBJECT: TRAFFIC IMPACT (FAIRSHARE) FEE UPDATE — APPROVAL OF
BUDGET AMENDMENT TO FUND FEE NEXUS STUDY
RECOMMENDATION:
Approve a budget amendment appropriating $16,750 from the unappropriated General
Fund balance to Account No. 7014- C5200975 (Traffic Impact Fee Study).
DISCUSSION:
The City's Fairshare Fee program was originally adopted in 1984, updated in 1994, and
adjusted periodically based upon the consumer price index. The purpose of the
Fairshare Fee program is to equitably distribute the cost of traffic congestion reduction
improvements to the future development that generates the need for such projects.
In November 2006, voters approved a new General Plan for the City. As a result, the
City's Fairshare Fee program needed to be updated to be consistent with the New
General Plan. The General Plan Implementation Committee considered this update to
be a top priority. On April 10, 2007, the City Council approved an agreement with RBF
Consulting to update the City's traffic impact fee to be consistent with the newly
adopted City General Plan. This work has been completed at a cost of $113,832.
In October 2007, the City entered into an agreement with Revenue & Cost Specialists
to develop a fee structure and nexus report based on the work performed by RBF
Consulting. The purpose of the nexus study is to match future infrastructure demands
of anticipated new development with the cost of that new infrastructure. This Council
item provides funding for Revenue & Cost Specialists to prepare the Fee Nexus Study
for a cost not to exceed $16,750.00. The draft nexus study report has been completed
and the final report is expected to be completed in the near future.
Environmental Review:
Not applicable at this time
Traffic Impact Fee Update — Approval of Budget Amendment for Fee Nexus Study
October 14. 2008
Page 2
Fundinq Availability:
Upon approval of the budget amendment, sufficient funds will be available in the
following account for the work:
Account Description
General Plan Traffic Impact Fee Study
Submitted
Badum
s Director
Account Number Amount
7014- C5200975 $16,750
Total: $16,760
ment: Professional Services Agreement with Revenue & Cost Specialists, dated
December 10, 2007
REVENUE & COST SPECIALISTS, LLC
FOR FAIR SHARE FEE NEXUS STUDY
THIS AGREEMENT is made and entered into.as of this /Ofd day of ',7>cc_e n er
2007, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation
( "City "), and REVENUE & COST SPECIALISTS, LLC a California Corporation whose
address is 2545 E. Chapman Avenue, Suite 103, Fullerton, California, 92831
( "Consultant "), and is made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now
being conducted under the statutes of the State of California and the Charter of
City.
B. City is planning to update and revise its transportation impact fee known as the
Fair Share Fee.
C. City desires to engage Consultant to prepare the Nexus Study demonstrating
that future development -will pay a Fair Share Fee proportional to the impact of
such development. ( "Project').
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Consultant for purposes of Project, shall be Scott
Thorpe.
F. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 31st day of March, 2008, unless terminated earlier as set forth
herein.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Scope of
Services attached hereto as Exhibit A and incorporated herein by reference. The
i
discretion.
3. Time is of the essence in the performance of services under this
Agreement and the services shall be performed to completion in a diligent and
timely manner. The failure by Consultant to perform the services in a diligent
and timely manner may result in termination of this Agreement by City.
Notwithstanding the foregoing, Consultant shall not be responsible for delays
due to causes beyond Consultant's reasonable control. However, in the case of
any such delay in the services to be provided for the Project, each party hereby
agrees to provide notice to the other party so that all delays can be addressed.
3.1 Consultant shall submit all requests for extensions of time for
performance in writing to the Project Administrator not later than ten (10)
calendar days after the start of the condition that purportedly causes a
delay. The Project Administrator shall review all such requests and may
grant reasonable time extensions for unforeseeable delays that are
beyond Consultant's control.
3.2 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the
circumstances, by either telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CONSULTANT
City shall pay Consultant for the services on a flat fee basis. Consultant's
compensation for all work performed in accordance with this Agreement,
including all reimbursable items and subconsultant fees, shall not exceed
sixteen thousand seven hundred fifty Dollars and no /100 ($16,750) without
prior written authorization from City. No billing rate changes shall be made
during the term of this Agreement without the prior written approval of City.
.4.1 Consultant shall submit monthly invoices to City describing the work
performed the preceding month. Consultant's bills shall include the name
of the person who performed the work, a brief description of the services
performed and /or the specific task in the Scope of Services to which it
relates, the date the services were performed, the percentage of the total
project work effort, and a description of any reimbursable expenditures.
City shall pay Consultant no later than thirty (30) days after approval of
the monthly invoice by City staff.
4.2 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing
in advance by City. Unless otherwise approved, such costs shall be
limited and include nothing more than the following costs incurred by
Consultant:
the day and year first written above.
APPROVED AS TO FORM:
City Attorney
for the City of Newport Beach
ATTEST:
CITY OF NEWPORT BEACH,
A Municip I Corporation
By:`�
(it Ma n wport Beach
a
for the Cdy oq e
CONSULTANT:
tCa •
Title: a�. 0-'?
Print Name:'Sc• D t
Attachments: Exhibit A — Scope of Services
1:1
City of Newport Beach Circulation Systettt DIF Calculation/Nexus Proposal October, 2007
elements.
Develop draft an extended project list incorporating the input from the above steps and
prepare the Master Facilities Plan, consisting of a detail CIP project detail page for each
project.
Work with the designated planner, engineer, and consultant(s), to determine and concur
on the land use acreage, where applicable, for each of the following existing and planned
categories of use:
Detached Dwellings
Mobile Homes
Commercial Uses
Office Uses
■ Identify and analyze the "demand drivers" specific to each infrastructure or service area.
The "drivers" are the factors of nexus demand related to each land use and would be based
upon the project plans or City productivity records.
■ Apply the RCS - copyrighted computerized formulas for the distribution of the benefits of,
nexus for, and impact of each group of projects on each of the above categories of land
use. Undertake the proportional analysis necessary to identify the appropriate burden
to be placed upon both the existing and future infrastructure.
■ Identify any "excess capacity" provided by the existing infrastructure, the cost for which
may be recovered from future residents and businesses and develop a specific fee structure
for the previously referenced infrastructure.
■ Prepare a comprehensive report consisting of the fee- structure and the necessary relevant
nexus text and present the City with and master copy of the report and RCS cover stock
Page 3
City of Newport Beach Circulation System DIF Calculation/Nexus Proposal October, 2007-
and letterhead adequate for twenty copies. One draft report (cycle) is included in the
proposal and then the final Report. Any additional draft reports or final reports beyond
those included in this proposal will be invoiced separately at RCS hourly rates at an
amount reflecting the magnitude of the requested changes.
Attend up to four City Council study sessions or public hearings of the resultant fees, to
explain the process through which the fees were determined.
Fee for Services - The City has indicated the need for development impact fee schedule for the
City's circulation system. Based upon these requests and the proposed scope of work, the flat fee
for our services is as follows:
Travel and Commercial Delive!y Charges RCS will also invoice for mileage costs (at $0.485 per
mile), any required business license and commercial mail delivery charges as incurred to a not -to-
exceed $500.00. Additionally, if the City requires a waiver of subrogation, an additional 3.0%
($487.50) will be added to the base contract price of $16,250. These fees - for - service and the
Proposal will be honored until March 31, 2008.
Invoicing Schedule. RCS will submit two equal invoices totaling the fee for services.
First Invoice ............... Upon submission of the draft MFP /DIF document.
Final Invoice .................. Upon submission of the final MFP/DIF Report.
The RCS Staff have also contributed to the body of text of general public financial management
information through publication of articles and other writings. They are available for downloading
from our website www.revenuecost.com. Described, they are:
"Financing Capital Improvements" was published in the Journal (of the) American Water Works
Association, August, 1991, pages 50 -52. This article, written at the AWWA's request, illustrates the
continuing importance of the capital improvement planning process and simplifies its veneer of
complexity. It also demonstrates RCS's understanding of the relationship of the DIFs to the City's
Comprehensive General Plan and overall capital planning process.
Page 4
r
�
Development Impact Fee Calculation
$ 16,250
Textual Nexus Support Document (DIF Report)
Included
y fit
Travel and Commercial Delive!y Charges RCS will also invoice for mileage costs (at $0.485 per
mile), any required business license and commercial mail delivery charges as incurred to a not -to-
exceed $500.00. Additionally, if the City requires a waiver of subrogation, an additional 3.0%
($487.50) will be added to the base contract price of $16,250. These fees - for - service and the
Proposal will be honored until March 31, 2008.
Invoicing Schedule. RCS will submit two equal invoices totaling the fee for services.
First Invoice ............... Upon submission of the draft MFP /DIF document.
Final Invoice .................. Upon submission of the final MFP/DIF Report.
The RCS Staff have also contributed to the body of text of general public financial management
information through publication of articles and other writings. They are available for downloading
from our website www.revenuecost.com. Described, they are:
"Financing Capital Improvements" was published in the Journal (of the) American Water Works
Association, August, 1991, pages 50 -52. This article, written at the AWWA's request, illustrates the
continuing importance of the capital improvement planning process and simplifies its veneer of
complexity. It also demonstrates RCS's understanding of the relationship of the DIFs to the City's
Comprehensive General Plan and overall capital planning process.
Page 4
City of Newport Beach NO. BA- 09BA -015
BUDGET AMENDMENT
2008-09 AMOUNT: S1s,75o.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
�X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
qX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from General Fund unappropriated fund balance to the Traffic Impact Fee
Update account to fund the Fee Nexus Study to be performed by Revenue & Cost Specialists.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
010 3605 General Fund - Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Description
Description
Division Number 7014 Misc & Studies
Account Number C5200975 Traffic Impact Fee Update
Signed'.
Signed:
Approval:
ministrative
Services Director
City Manager
Amount
Debit Credit
$16,750.00
$16,750.00
Date
Da
Signed:
City Council Approval: City Clerk Date