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Home My WebLink About09-13-2016 NBS Government Finance Group - Amendment No. 2 to Agreement for Citywide User & Regulatory Fee AnalysisAMENDMENT NO.2 TO AGREEMENT FOR CITYWIDE USER AND REGULATORY FEE ANALYSIS THIS AMENDMENT NO. 2 TO AGREEMENT is made and entered in the City of San Luis Obispo on SAaL a 2016, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and NBS GOVERNMENT FINANCE GROUP, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on October 15, 2012 the City entered into an Agreement with Contractor for a citywide user and regulatory fee study; and WHEREAS, on June 24, 2015 the City entered into Amendment #1 to the October 15, 2012 agreement for a scope modification to the citywide user and regulatory fee study; and WHEREAS, the City desires to replace the scope of services of Amendment #1 with this amendment to include re-initiation/completion of the 2016 citywide user and regulatory fee study and Contractor has submitted a proposal for this purpose that is acceptable to the City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: The scope of services and related compensation is hereby amended as set forth in Exhibit A attached hereto. 2. All other terms and conditions of the Agreement remain in full force and effect. 3. For providing the services as specified in Exhibit A, City will pay and Contractor shall receive compensation in a total sum not to exceed $22,500. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above, ATTEST: 1� !�4 k, " .. • Ri APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO By: 1' Purchasint rity (City Manager/Designee) CONTRACTOR (NBS Government Finance Group) B: Y (Name: C)NBS helping oommunitiee fund tomorrow 32605 Ternecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800 676 7516 nb9gov.com August 25, 2016 Marcus Carloni Special Projects Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Subject: Proposal to Update the Citywide User and Regulatory Fee Analysis Dear Mr. Carloni, NBS appreciates the opportunity to provide additional consulting services to the City of San Luis Obispo for the project referenced above. This letter serves as a confirmation to proceed with additional services as requested by the City. NBS can provide all items, or selected items, from the list of services below. We have also provided the applicable fees for your reference below. All other provisions of the existing contract between the City and NBS remain in effect. We look forward to continuing our professional relationship. Primary Scopes of Work — Citywide User Fee Study Update A. This project was close to completion, but has had no activity for approximately one year. To restart this project, NBS will need to familiarize with each department's analysis and status, including action items that may have been outstanding at the time of the project's hold. In addition, NBS will compile a data request and project schedule that meets the City's needs, and conduct one meeting with each department to re-initiate the project. Project Re-Initiation.............................................................................................. Not to Exceed $1, 500 Project Re -Initiation — with Site Visit..................................................................... Not to Exceed $2,500 B. NBS will update the existing user fee models with FY 2016-17 budget and staffing information, and Fiscal Year 2015-16 workload data. Should the City elect not to pursue this task, the fee models would be finalized "as is" based on Fiscal Year 2015-16 budget and staffing information, and Fiscal Year 2014-15 workload data. Fee Model Core Data Updates.............................................................................. Not to Exceed $4,800 C. NBS will incorporate one round of edits to time estimate information and/or annual staffing allocations, resulting from Item A, above. One Round of Fee -Level or Staff Allocation Data Updates ................................... Not to Exceed $1,700 helping communities fund tomorrow D. NBS will produce fee model drafts in PDF format for review and discussion with each Department, and incorporate one round of revisions from each Department to achieve "sign off". Draft Fee Model Results Review and Revision ..................................................... Not to Exceed $2,100 Draft Fee Model Results Review and Revision — with Site visit ........................... Not to Exceed $3,100 E. NBS will provide a draft final report describing the complete work and findings of the project and complete one iterative round of changes from City staffs feedback. Final Fee Study Report Document........................................................................ Not to Exceed $2,700 F. NBS will attend stakeholder, committee, or City Council meetings to represent the Study's outcomes, or provide discussion as needed. Includes preparation of presentation materials, and meeting attendance. Presentation of Results to Council, etc ............... Optional Scopes of Work I.......... I...... Not to Exceed $1,600 per meeting A. The City requested optional pricing for an update of the City's Building and Safety fees for service. In combination with the pacing and implementation timeline for the Primary Scopes of Work provided above, NBS would update the City's existing fee model (built in 2011/12 by NBS). Steps include: • Update the fee model with FY 16-17 budget and staffing information. • Conduct one on-site or teleconference meeting to collect feedback and suggested changes to existing fee system from City staff. Update key areas of the fee structure to accommodate suggested changes. • Update the fee model with FY 15-16 workload statistics. ■ issue a draft of results and conduct one on-site or teleconference meeting to review updated fee model draft with City staff. Complete up to two iterations of the fee model to incorporate City staff discussions and edits. • Incorporate results into the NBS Citywide User and Regulatory Fee Study Final Report. Building and Safety Fee Model Update.......................................................... ... Not to Exceed $5,600 B. Policy makers often desire a comparison of current, full cost recovery, and recommended fee amounts to neighboring jurisdictions. Although an "apples to apples" comparison of cost recovery policy and fee structures between agencies is challenging, presence of a comparison will ensure a smoother implementation process and a sense of the "market" rate for various services. NBS will utilize their industry expertise compare similar user and regulatory fees in up to five (5) neighboring and comparable communities. A list of communities will be selected and approved by City staff. In general, NBS will download the respective fee schedules from the Internet. If schedules are not available on the Internet, NBS will make a reasonable attempt contact the agency to obtain a copy of their current fee schedules. NBS will then compile a comparison of fee categories and amounts, for the most readily comparable fee items that match the City's existing fee structure, and make a reasonable attempt to contact each agency for clarification regarding fee categories and amounts. The City may also provide contact information to individuals known in each agency that may be available to assist NBS in confirming information regarding fee schedules and amounts. ADN BS Page 2 Citywide Comparative Fee Survey... .......... ................................... ......... ........ ........... ... Not to Exceed $2,500 C. The work product proposed includes a comparison of current fee amounts to full cost recovery fee amounts. However, there are many reasons why an agency would choose to implement fees at less than 100% cost recovery levels. NBS will collect recommended fee amounts from City staff, or model the impact of current Council -adopted fee policies on each individual fee as well as the annual impacts to projected revenues. Recommended Fee Analysis....................................................................................... Not to Exceed $2,000 Project Timeline Considerations The City's goal for this engagement is have all selected scopes of work completed by the end of the 2016 calendar year. The following is a preliminary timeline as provided by the City's project manager, Marcus Carloni. At the time of project commencement, this project plan would be refined and mutually agreed upon. Status updates can occur on a regular basis to ensure the project is tracking to meet each key milestone required for completion by the end of December, 2016. Task Who When 1. Prepare Project Plan Carloni 2. Kickoff with Consultant (Nicole @ NBS) Carloni Early August 2016 3. Update Scope from Consultant NBS 8-10-16 to 8-16-16 a. Possible City Manager Report Carloni End August 2016 b. Initiate new scope NBS/Carloni End August 2016 4. Final Project Plan Carloni End August 2016 a. DH Memo or Review at DH Meeting Carloni Begin September 2016 b. Kickoff with Project Team Carloni Begin September 2016 5. Update Financial Model NBS September 2016 a. Provide information for consultant to update staffing and budget info Team 6. Review initial financial models with staff NBS/Team Begin October 2016 7. Review second iteration of financial models with staff NBS/Team End October 2016 8. Final financial model NBS Early November 2016 9. Final narrative report NBS Early November 2016 10. Advisory Body Input NBS/Carloni December 2016 a. Parks and Rec Commission - b. Jack House Committee - c. ?? - 11. Council Study Session NBS/Carloni End December 2016 12. Council Final Review NBS/Carloni End January 2016 4Z)N BS Page 3 Project Price Proposal NBS is willing to commit to the fees noted above as a not -to -exceed amount for the services described, as the City has expressed desire to choose between optional services available. A not -to -exceed amount enables the City to have more flexibility in determining the timing, scope of review, number of site visits or remote interactions required to complete the project. The project budget would be billed for funds required as needed for proposed tasks. Our professional fees are based on our understanding of the City's needs and the effort we believe is necessary to complete the scope of services/task plan described. NBS will complete the scope of services as described in this proposal, for an estimated total cost of shown above for each scope of work item. NBS applies the following hourly rates to derive the overall pricing for the requested scope of services. These hourly rates will apply for the duration of our contract, are inclusive of all costs for expenses such as printing, travel, etc. • Director, $205 per hour • Associate Director, $190 per hour • Senior Consultant, $160 per hour • Analyst, $120 per hour NBS invoices on a monthly basis, following recorded consultant time on the project, paralleling our completion of the work. At no time will we invoice for charges in excess of the fee to which the City of San Luis Obispo and NBS mutually agree. Should the City specifically request additional services beyond those described in this document, we will discuss those requests and associated costs at that later time and only invoice for additional fees upon separate written authorization from the City. Please feel free to contact your NBS Project Manager, Nicole Kissam, should you have any questions or need further information. Best regards, NBS Government Finance Group, City of San Luis Obispo DBA NBS Mike kenWer President / CEO !2h //h Title Date ONBS Title Date Page 4