Report Prepared by: Kim Espinosa, Planning Manager, Development Services Department
Title
SUBJECT: Approval of a Professional Services Agreement for the Preparation of the 5-Year Update of the Public Facilities Financing Plan and Impact Fee Program with Economic and Planning Systems, Inc. in the Amount of $85,000
REPORT IN BRIEF
Considers awarding a professional services agreement to Economic & Planning Systems, Inc., in the amount of $85,000 to prepare the 5-year update of the City’s Public Facilities Financing Plan and Impact Fee Program and appointing a City Council Sub-committee.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Professional Services Agreement with Economic & Planning Systems, Inc., in the amount of $85,000.00 for preparation of the 5-year update of the City’s Public Facilities Financing Plan and Impact Fee Program; and,
B. Authorizing the City Manager or the Assistant City Manager to execute the documents; and,
C. Appointing a Council sub-committee of 2-3 members to assist in the PFFP review.
Body
ALTERNATIVES
1. Approve the agreement, as recommended by staff; or,
2. Approve the agreement, subject to modifications by City Council (identify specific items to be amended in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future City Council meeting (date and time to be specified in the motion).
AUTHORITY
Government Code 66106 through 66018 establishes procedures for adoption or modification of development impact fees. Merced Municipal Code Section 17.61 provides for the City’s Public Facilities Impact Fees.
DISCUSSION
Proposed Project
The City’s Public Facilities Financing Plan was first adopted in 1998; revised in 2003, 2004, 2006, 2009, and 2010; and comprehensively updated in 2012. A 5-year update to the City’s 2012 Public Facilities Financing Plan and associated Public Facilities Impact Fee Program is now needed. This effort is expected to take approximately 1 year to complete.
This effort would include the following:
• An evaluation of the City’s public facilities needs over the next 20 years, including costs, based on population and growth projections. The public facilities included in the Plan include transportation projects (roadways, traffic signals, bridges, railroad crossings, etc.), police and fire facilities, and parks and recreation facilities, which are included in the City’s Public Facilities Impact Fee Program. (Wastewater, water, and other utility projects are not included in the Public Facilities Financing Plan as they have separate master plans and impact fees.)
• Preparation of an updated Public Facilities Financing Plan, Impact Fee Ordinance, and Administrative Policy.
• All past efforts to adopt and update the Public Facilities Financing Plan have involved a Citizens Task Force or Focus Group. City staff anticipates putting together such a group of no more than 12 to 15 individuals (plus representatives from the City Council and Planning Commission) and holding approximately 10-12 meetings with the group at project milestones.
• Study sessions, public meetings, and public hearings before the Planning Commission and City Council to review the Plan and Impact Fee Program.
Selection of the Consultant
On October 22, 2018, the City issued a Request for Proposals (RFP) to qualified consultants. A pre-proposal meeting was held on November 9, 2018. The deadline for submittals was November 30, 2018. The City received three (3) proposals: Economic and Planning Systems, Inc. (EPS) in the amount of $85,000; David Taussig & Associates in the amount of $95,000; and Harris & Associates in the amount of $92,640.
Interviews were held on December 18, 2018. The interview panel consisted of City Manager Steve Carrigan, Finance Officer Venus Rodriguez, Director of Development Services Scott McBride, (former) City Engineer Steven Son, and Kim Espinosa, Planning Manager. Although all the firms were highly qualified, it was the unanimous consensus of the interview panel that Economic and Planning Systems (EPS) was the best choice, due in part to their past experience with projects for the City, Merced County, and UC Merced, and their proposed approach to the project.
An agreement for professional services has been prepared with Economic and Planning Systems (EPS) in the amount of $85,000 (Attachment 1) for City Council consideration. Funds are available within the FY 2018-19 Budget in the Planning Division’s Professional Services Account for this effort.
During previous processes, the Council appointed a sub-committee to participate in the formation of the Facilities Financing Plan. Staff is seeking direction on continuing that practice and the appointment of a sub-committee.
IMPACT ON CITY RESOURCES
Funding is available within the 2018-19 Adopted Budget for the update of the Public Facilities Financing Plan.
ATTACHMENTS
1. Agreement for Professional Services with EPS