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Home My WebLink AboutReso 2000-259 RESOLUTION NO. 2000 - ~ 5 9 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING AN IMPACT FEE STUDY FOR THE CITY IN AN AMOUNT NOT TO EXCEED $38,600.00, AND PREPARATION OF AN IMPACT FEE ORDINANCE AS SET FORTH IN THE CONTRACT BY AND BETWEEN THE CITY OF SUNNY ISLES BEACH AND TISCHLER & ASSOCIATES, INC., ATTACHED HERETO AS EXHIBIT "A"; FURTHER APPROVING THE EXPENDITURE OF $5,300.00 FOR A SPECIAL ASSESSMENT STUDY; AUTHORIZING THE CITY MANAGER TO EXECUTE AND EFFECTUATE SAID CONTRACT; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach is currently experiencing a period of rapid growth and there is need to conduct several studies to determine the impact that such growth has on the services provided by the City; and WHEREAS, City staff has selected the firm of Tischler & Associates, Inc. as the most qualified firm to conduct an impact fee study and a special assessment study; and WHEREAS, Tischler & Associates, Inc. has agreed to discuss the findings of the special assessment study with all interested parties at a public meeting before a regular commission meeting; and WHEREAS, Tischler & Associates, Inc. has submitted a contract to perform the impact fee study for the City, attached hereto as Exhibit "A" for the City's approval, and the City wishes to enter into contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Contract. The contract by and between the City of Sunny Isles Beach and Tischler & Associates, Inc. in an amount not to exceed Thirty-Eight Thousand Six Hundred Dollars ($38,600.00) for an impact fee study and for the preparation of an impact fee ordinance for a specified fee attached hereto as Exhibit "A," be, and the same, is hereby approved. Section 2. Authorization of City Manager. The City Manager is hereby authorized to execute said contract and do all things necessary to effectuate the agreement. The City Manager is further authorized to expend up to Five Thousand Three Hundred Dollars ($5,300) for a special assessment study for Collins Avenue. Section 3. Effective Date. This Resolution shall become effective upon adoption R2000-Impact Fee & Special Assessment Studies - Tischler.res - 1 - PASSED AND ADOPTED this 20th day of July, ~, C:j"/ \,"', . ,.. : ) .' ~,./ : ...... . ( , " '\",/ I j: .r... ~ A TrrESI:~. " ' t,,-.i->-'~f ~,~ ' . '. '. l:, <"'1 :.. \ r.' j''' I "c .. ~~~'tt~ . RJcp,fu-d BtoWI?-::M:~rilla, City Clerk ....' .....\ .. ,. ....,~ . . -.J " .,.1 ~ II '.... Moved by: Seconded by: ~~\ONm~~FAn~ <: ffiA'-loe. ~~uJ Vote: 5-0 Mayor Samson Vice Mayor Morrow Commissioner Iglesias Commissioner Kauffman Commissioner Turetsky V(Y es) V(Y es) V(Yes) --iL- (Yes) ~Yes) _(No) _(No) _(No) _(No) _(No) R2000-Impact Fee & Special Assessment Studies - Tischler.res -2- EXIBIl "A" M,' '""". , .,;:~:t~0i~ IMPACT FEE FEASIBILITY REPORT for ..' ,.,:;,. < ,"..". . Sljiruy Isles Beach, Florida 'uly 14,2000 ~'-~'>';'-~~-'/. ~ ':.. c ,> )~- . <t' "''-;;'''~'~ .,:~~. '"_:z .."; .,_....-.:'<::...j.:':.:. . . < . '.:-~.~~'~i':4. ., ~"'.. ".-' . ',':Prepare(:(~y: /-.,,: .;,'.'.'~' :..'. :-~-"c;:~~.:..~ ..' --,-\ ~~.. . ".. -.....;--~f ... '::..-0 '. l' -.T.-. '''''-'''. 'I.~:-S:> .t:," ,cL ~. ~" ft"l.-. II ~~' z.).7~ '-O;;V ~~~-: ~i '7f~ :r1~' ~\ .~ -'-5':,~:'_"':::':,: . .-i(j~n..~.; ~ ~~:~~' ....<.)-:':[.:~: .....::-:~.r;. '~.i. - ."\.,;,.'~ ,'':''--.~~ TABLES OF CONTENTS I. EXEC UTIVE S m'I~I...~R y ....................................................................................... 1 II. NATURE OF ASSIGN1\tIENT .................................................................................2 III. ~'IETH 0 DO LOG IES ................................................................................................ 2 I \r . PARKS........................................................... .......................................... .................. 2 V. PO LICE....... ..... ........ ...... .............. ............ ... ......... ......... .... ..... ............ ..... ........ ...... ..... 3 VI. CITY FA CILITIES AND EQUIPl\tIENT ...............................................................3 VII. TRANSPORT A TIONI TRAFFIC .......................................................................3 VIII. OT HE R ...................... ...................... ...................................................................... 4 IX. G UESSTIMA TES OF REVENUES ........................................................................4 x. \V 0 RK S COPE ....... .............. ......... ..... ............. .......... ... ...... .......... .............. .............. 5 TASK 1. Confirm Relevant Land Use Assumptions................................................... 5 TASK 2. Ascertain Demand Factors and Level of Service for Relevant Public Facilities........ ........... .......................... .......... ............................... ..... .......................... 5 TASK 3. Review Capital Needs and Costs and Allocate to Growth.......................... 5 TASK 4. Evaluate Credits...... ............... ........ ...... .... ....................................... ............ 6 TASK 5. Complete Impact Fee Methodology and Calculations................................ 6 TASK 6. Preparation of Impact Fee Report ..............................................................6 TASK 7. Prepare Draft Impact Fee Ordinances and Related Procedures (Optional)... ........................ ............ ...................... ...................................... .......... ....... 7 TASK 8. Liaison Committee (Optional)................................................................. 7 XI. D ELIVERAB LES .... ................................................... .............. ................................ 8 XI. C OS T ........... ........................................ ..... ................................. .............................. 8 XII. Q U ALIFI CATIONS............ ............................................. ... ....... ........................... 8 31 Tischler & Associates, Inc. ~ TISCHLER & AssocIATEs, 1Nc. 4701 Sangamore Road Suite N210 Bethesda. MO 20816 (301) 320-6900 Fax: (301) 32D-4860 80. Annandale Road Pasadena. CA 91105-1404 (818) 790-6170 Fax: (818) 79D-6235 (800) 424-4318 tischlerassociates,com Fiscallmpacl Analysis . Capital Facility Analysis . Impact Fee Systems . Growth POlicy Planning . Economic and Market Analysis MUNIES. FISCAlS & CRIM Fiscal impact systems tailored for each community I. EXECUTIVE S~[~[ARY Tischler & Associates. Inc. (T A) has evaluated the feasibility of calculating impact fees for several infrastructure categories. Impact fees can be defined as new growth's proportionate share of the cost of capital facilities. The impact fee would apply only against new growth, and is a one-time fee that is applied for capital facilities, not operating expenses. T A recommends the calculation and implementation of various impact fees for new growth to pay its fair share. To the extent the maximum supportable impact fees for each category are not implemented, higher revenue rates or new revenue sources will be necessary, or the level of service for existing and new residents will continue to decline. Impact fees will enable the City and its existing residents to maintain its current level of service for the provision of capital facilities for those categories evaluated. T A recommends that the impact fees the City currently collects for parks and recreation be recalibrated to reflect revised levels of service, costs and other factors. T A recommends that the impact fees the City currently collects for police, be recalibrated to reflect revised levels of service, costs and other factors. The City has plans to build a new City Hall to allow additional space which will provide a more reasonable level service to serve both existing population as well as new population. New growth should pay its fair share of the cost that will be incurred by the City for this new facility. Also City equipment which is not reflected in the Police, Park and Recreation categories noted above, should be reflected in this category, which will be called municipal facilities and equipment. T A recommends against the preparation of impact fees for roads. The City has built very little of its current road infrastructure using local funds. Other reasons for this recommendation are noted in the report. In discussing the desirability and mechanism for financing roadway projects, including the under-grounding of utility lines and landscaping along roadways, T A recommends that a special assessment district be pursued. All property owners will benefit from these improvements. This subject is further discussed in the report. 32 1 Based on a preliminaty review of the information, it is possible that the impact fees could generate $75,000-$125,000 yearly, assuming about 100 new housing units. The impact fee revenues would range from about $110,000 - $185,000 annually if there were about 150 new housing units annually. The cost for the impact fees study totals $43,300. II. NA TURE OF ASSIGNMENT Tischler & Associates, Inc. (T A) is a fiscal, economic and planning consulting firm that specializes in fiscal impact analysis, impact fees and other revenue exactions. T A has prepared over 400 impact fees, none of which has been challenged. On the other hand, T A has worked on behalf of the private sector to critique impact fees. In all cases, the impact fees have either been eliminated or reduced. III. lVIETHODOLOGIES There are three usual impact fee methodologies that can be applied in the calculation of impact fees. These are the plan-based, incremental and buy-in approaches. The plan- based approach is usually based on a master plan or facility study that indicates the future facility needs over a certain time frame to service certain population thresholds. The incremental approach reflects the methodology in which capital items are added incrementally to meet growth. The buy-in methodology is a third approach. This occurs when the City has already oversized capital facilities from which new growth will benefit. This approach can be utilized with either of the first two approaches. IV. PARKS The Parks category has two components, parks and equipment. These are discussed in turn. The City currently has five park locations. These include Gilbert Samson Memorial Park, a passive park, an active park, and a tot-lot, which will be expanded. It is anticipated that the expenditure of local funds (past and current) could approximate $3.5 million. There is also a component for park equipment. This relates to the transit buses utilized within the City. New growth should pay its fair share for the demands of these buses. TA recommends that the impact fee methodology be recalibrated in order to . reflect updated information pertaining to methodologies, levels of service, costs and other factors. The expansion of these parks will benefit both new and existing residents. Accordingly new growth will pay its fair share of the capital assets from which it benefits. The methodologies are likely to include both the buy-in as well as plan-based approaches. It is likely that the plan-based approach would reflect improvements to parks over a six-year span. During this time the City would be able to utilize funding, other 33 2 Tischler & Associates. Inc. than impact fees, to pay for the increase in park plan assets benefiting the eXlstmg residents. For transit buses, the methodology would be either incremental or buy in. V. POLICE The major police asset is equipment. The City currently has twenty-five vehicles, four motorcycles, two boats and other equipment. As development continues, there will be an increase cost for service and an increase for police personnel. This will have a resulting impact of creating additional demand for police vehicles. A building component is normally reflected in a police impact fee. At the present time the City leases this space. However this will be changing with the construction of the police facilities in the City's new Municipal Facility. T A recommends that the impact fee the City collects for Police be recalibrated. This is due to changes in methodology, levels of service, cost assumptions and other factors. The methodology for the police equipment is likely to be the incremental approach. The methodology for the police station area is likely to be a plan-based approach in which new growth would pay its fair share of the City's additional space devoted to police services. The demand for police services will be allocated on a residential and a non- residential basis. VI. CITY FACILITIES AND EQUIPMENT The major city facility is the space leased for the use of City offices. However this situation will be changing with the planned construction of a new City Hall. The new City Hall will relieve the overcrowded condition of the current City activities and also be able to accommodate the demands due to new development. New growth should pay its fair share of this level of service, which will be reflected with the opening of a new City Hall. Another component of the City facilities and equipment fee is the inclusion of relevant City equipment. This will include the various trucks and other equipment. The methodology for the City Hall will be a plan-based approach in which the level of service will be increased to reflect the opening of the new City Hall. New growth will pay its proportional share. The methodology for the equipment will be on an incremental basis. VII. TRANSPORT A TION/ TRAFFIC The major roads utilized within the City were built by other entities, primarily the state. The other streets were built by developers, since they were part of new subdivisions. Since the City has not expended local dollars for the current street infrastructure, impact fees would not be appropriate. 34 3 Tischler & Associates. Inc. The City is going to need to resurface and improve the street network. This will benefit all users of the roadway system. However, if one considers new traffic as well as existing local trips, new growth would be a minor percentage of this new cost. If impact fees were to be pursued, the impact fee amount would be from 5 to 15 percent of the total cost, and would necessitate the City to adhere to a road repaving program on which the City's impact fees are based. For these reasons, T A does not recommend impact fees be pursued for transportation or traffic. VIII. OTHER The City plans to improve the level of service for existing and new residents by undergrounding utilities, adding amenities for pedestrian and traffic movement, improving crosswalks and signage, resurfacing sidewalks, improve landscaping and street structure, implementing a new irrigation system, as well as other activities. These improvements will not only improve services, but will also enhance the visual appearance of the City. Both new as well as existing residents will benefit from this activity. Given the probable magnitude of the expenditures and the fact that the enhancement will improve both the capital infrastructure and lessen the operating expenses, T A recommends that the City seriously consider an assessment district in which all property owners would pay for these improvements on a monthly or other timely basis. A specific methodology would need to be determined. Impact fees would not be appropriate for this activity since a major cause of the expenses is the existing deficiencies that would primarily benefit existing residents. IX. GUESSTIl\t1A TES OF REVENUES For purposes of this report, T A is utilizing housing as a proxy for the possible increase in variation of different activities. At the present time there are approximately 10,000 existing housing units. At build out, assuming no redevelopment, it is likely that there will be an increase of about 3,000 net new units, or a total of 13,000 housing units. The major impact fee is likely to be Municipal facilities and equipment because of the cost of the new City Hall. The second greatest cost is likely to be the Parks, reflecting the proposed improvements to the park system. Police is likely to have the lowest capital related costs, with the lowest impact fees. Given the total number of housing units and the total costs that may be included. T A estimates that the impact fee, using a housing unit as a proxy, could range from $800 to $1,200. If one assumed a proxy of lQO new units a year, and a midpoint of $1,000, the amount would be $100,000 annually from impact fees. The impact fee amount would approximate $150,000 if there were 150 new units annually. 35 4 Tischler & Associates. Inc. X. \VORK SCOPE The following are suggested tasks that will lead to a comprehensive and defensible work product. TASK 1. Confirm Relevant Land Use Assumptions T A will issue a memorandum which summarizes the relevant land use assumptions under trends growth so that the likely capital facility needs due to growth and the need for impact fees can be clearly shown when calculated. This will reflect population, households, housing units by type, employment and nonresidential square footage by type. This will be for at least 10 years. Work Product: Memorandum Projecting Population, Housing, Employment and Nonresidential Square Footage TASK 2. Facilities Ascertain Demand Factors and Level of Service for Relevant Public There are several important components to this task. The first is ascertaining the actual demand that generates the need for new capital facilities. Factors that, are likely to influence demand include land use type and intensity, demographic characteristics such as number of persons per household, trips by type of land use, etc. A second important subtask is calculating the appropriate level of service. We will determine the appropriate level of service through additional onsite interviews and analysis of local data. The level of service description will vary by activity. Work Product: See Below TASK 3. Review Capital Needs and Costs and Allocate to Growth This task will determine relevant capital needs and associated capital facility costs due to new growth. A. Long-Range Capital Needs. In this subtask, we will further review the various studies and other data germane to the relevant client capital facility activities, including the capital facility needs due to new development over the next five plus years. The discussions may include not only an understanding of the specific costs to provide public facilities and services, but also discussions pertaining to whether these capital facilities needs were due to normal replacement, catch-up or correction of existing facility deficiencies, or new demand. The issue of catch-up (deficiencies) will be evaluated in the context of whether new development should be paying for higher levels of service than those that currently exist. 3'6 5 Tischler & Associates, Inc. B. Review Cost Estimates. In this subtask we will review, as relevant, the various capital costs for public facilities. As part of this subtask, we will ascertain whether the facilities are likely to be bonded, and if so, the amortization schedule. As part of calculating the revenue mechanism, the City may include the construction contract price; the cost of acquiring land, improvements, materials and fixtures; the cost for planning, surveying, and engineering fees for services provided for and directly related to the construction system improvement, and debt service charges. C. Evaluate Development Policy Implications of Different Allocation Methodologies. As part of the interaction with the City, we will simultaneously consider different possible allocation methodologies in terms of dollars being utilized for replacement costs, versus capital costs being use for expansion of capacity as well as allocation of those costs to different types of land uses. We will calculate the level of service and allocate the future demands to new and existing needs, with the assistance of City staff. Work Product: Capital Improvement Needs Accommodating New Growth TASK 4. Evaluate Credits Once the costs attributable to new development are ascertained, there is a need to deduct appropriate credits in order to obtain the net impact fees. This task will include a review of existing fees and contributions. Once the exactions, deductions and double payment evaluations are complete, The next task wiII be pursued. Work Product: See Impact Fee Report Below TASK 5. Complete Impact Fee Methodology and Calculations The completion of this and the above tasks will enable the methodology to be appropriately and equitably determined and finalized. As part of the analysis, collection and expenditure zones will be discussed pertaining to the rational nexus requirements. (The City wiII subsequently decide what percentage of the impact fee it wants to charge.) Work Product: See Impact Fee Report Below TASK 6. Preparation of Impact Fee Report We will prepare a draft report which summarizes the need for the impact fees .for the appropriate public facility category and which provides the relevant methodology for determining the fee amount. The report will include at a minimum the following information: . Executive Summary · A detailed description of the methodologies used during the study · A detailed description of all formulas used and accompanying rationale 37 6 Tischler & Associates. Inc. . A detailed schedule of all proposed fees listed by land use type and a~tivity . Summary of capital improvement needs generated by the new development . Other information which explains and justifies the resulting recommended impact fee schedules After client review, we will make mutually agreed upon changes and produce the final report. The impact fee report will have flow diagrams clearly indicating the methodology and approach, a series of tables for each activity showing all of the data assumptions and figures, and a narrative explaining all of the data assumptions, sources and methodologies. The report will be a stand-alone document that will be clear, concise and readily understood by all interested parties. Because of our extensive experience in calculating impact fees and preparing such reports, we have developed a very succinct written product that provides the client with a well-understood paper trail. T A will make a presentation at a public hearing~ ~ .. ~ \.A..~^ CI>M..-+\u.-c... ~ Work Product: Impact Fee Report TASK 7. Prepare Draft Impact Fee Ordinances and Related Procedures (Optional) A land use legal firm will draft appropriate individual impact fee ordinances for the specific public facility categories. These individual fee ordinances will be linked closely to the applicable individual fee calculation methodology and to the applicable portion of the capital improvement program. Each ordinance will incorporate individualized and selective provisions that are unique to each public facility. Work Product: Impact Fee Ordinance TASK 8. Liaison ~ommittee (Optional) In our calculation of impac fees around the country, it been very beneficial to have a liaison committee. The pose of this commit is to allow interested parties to understand the land use, de ographic, cost, r enue, and other data and supporting documentation that is being use in the calcula. n of impact fees. Through this committee, developers, builders, and other i terested R ies as designated by the City will be able to understand the assumptions and r . se an questions about the technical information being utilized. This will not be a forum t d' cuss the political and/or philosophical use of impact fees. Rather it will be an oppo nity for these interested parties to understand the soundness and the reasonablenes of t e technical impact fee methodology. We anticipate two meetings with this group. he fir would be to discuss the initial data assumptions, after "sign-off' by the client. e secon ould be to discuss the draft report. Utilizing this forum will enable the focu of the public h . ngs to be on the political and economic issues of implementing impact es, not the technic approach Work Products: M erial and Graphics as App 7 38 Tischler & Associates, Inc, XI. DELIVER.\BLES The specific deIiverables are summarized and shown by task below: Task 1: Task 2: Task 3: Task 4: Task 5: Task 6: Task 7: Task 8: XI. Tasks Confirm Relevant Land Use Assumptions Deliverables Memorandum Reflecting Population, Housing, Employment and Nonresidential S uare Foota e Forecasts See Below Ascertain Demand Factors and Level of Service for Relevant Public Facilities Review Capital Needs and Costs and Allocate to Growth Determine Need for and Calculate "Credits" to be A lied Aoainst Ca ital Costs Complete Impact Fee Methodology and See Impact Fee Report Below Calculations Pre aration of 1m t Fee Re ort Prepare Draft Impac RelatedJ~roc s Liaison Committee Capital Improvement Accommodatin New Growth See Impact Fee Report Below Needs and Material and Graphics as Appropriate COST The cost for each impact fee is shown in the table below. This includes all of the tasks discussed earlier except optional Task 7 (Prepare Draft Impact Fee Ordinances and Related Program Procedures), .aHa Task 8 (Liai;:)ulI CUUllUlttee). The additional cost for th~ ~activities kte estiMatea to be $5,700Land $3,2QO, re3tKctively. The cost for establishing an assessment district is discussed under a separate coverC .. ~ 80 V '-".v...~' L.~ , ~~ r . \ c..~SJ u;:;.. '^"~ ~ -+\- ~~) ACTIVITY 1m act Fees Parks and Recreation Police Munici al Facilities and COST Ul ment TOTAL .:11, ,~ XII. QUALIFICA TIONS T A, in business for over 20 years, is a fiscal, economic and planning consulting firm with offices in Bethesda, Maryland and Pasadena, California. The firm has a national practice and a particular niche in fiscal impact evaluations and impact fee analysis. TA has prepared over 300 fiscal impact evaluations of comprehensive plans, annexations, specific projects, etc. One of these assignments includes the market and fiscal impact evaluations for the Howard County, Maryland General Plan, which won the prestigious 8 39 Tischler & Associates, Inc. APA award for Best Comprehensive Plan. It has prepared over 400 impact fees for communities throughout the country. None of T A's public sector impact fees have ever been challenged. The firm has also critiqued impact fees on behalf of homebuilders associations. In all cases, the fees have been reduced after T A's critique. In November, a court ordered the City of West Des Moines, Iowa to refund over $2 million in park and recreation fees. T A worked on behalf of the plaintiff, the Des Moines Homebuilders Association. 40 9 Tischler & Associates. Inc, TISCHLER & ASSOCIATES, INC. CONSULTANT AGREEMENT THIS AGREEMENT, entered into this L6~ day of ~. 2000, by and between the CITY OF SUNNY ISLES BEACH (hereinafter referred as to the "City") and TISCHLER & ASSOCIATES, INC. (hereinafter referred to as the "Consultant"). RECIT ALS WHEREAS, the City is in need of certain consultant services; and WHEREAS, the Consultant represents that it has expertise in impact fee preparation and related activities; and WHEREAS, Consultant desires to enter into an agreement with the City in accordance with Resolution No. 2000-259; NOW THEREFORE, in consideration of the foregoing and for the mutual covenants, representations and warranties and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. RECITALS. The Recitals set forth above are hereby incorporated into this agreement and made a part hereof for reference. 2. CONSULTING SERVICES, Consultant shall provide to the City, consulting services advice in connection with the services as more particularly described in Attachment "A" attached hereto and made a part hereof. 3. TERM. Subject to the provisions relating to the termination of this Agreement as set forth in Paragraph 8 hereunder, the term of this Agreement shall begin upon the execution of this agreement and shall end upon the completion of services described in Attachment "A", and may be extended as necessary, in writing by the parties hereto. 4. COMPENSATION. As the entire compensation to the Consultant for its services to the City under and during the term of this Agreement, in whatever capacity rendered, the City shall pay to the Consultant the sums of FORTY NINE THOUSAND SIX HUNDRED DOLLARS ($49,600.00). Payment of said compensation shall be made pursuant to the "Fee for Services" as set forth on "Attachment A" which is attached hereto and incorporated herein by reference. 5. INDEPENDENT CONTRACTOR RELATIONSHIP The Consultant is an independent contractor and shall be treated as such for all purposes. Nothing contained in this agreement or any action of the parties shall be construed to constitute or to render the consultant an employee, partner, agent, shareholder, officer or in any other capacity other than as an independent contractor other than those obligations which have been or shall have been undertaken by the Page I of9 Impact Fee Study - Tischler & Associates,agr City, Consultant shall be responsible for any and all of its own expenses in performing its duties as contemplated under this agreement. The City shall not be responsible for any expense incurred by the Consultant. The City shall have no duty to withhold any Federal income taxes or pay Social Security services and that such obligations shall be that of the Consultant, other than those set forth in this agreement. Consultant shall furnish its own transportation, office and other supplies as it determines necessary in carrying out its duties under this agreement. 6. OWNERSHIP OF DOCUMENTS AND EQUIPMENT. All documents prepared by the Consultant pursuant to this agreement and related services to this agreement are intended and represented for the ownership of the City only. Any other use by Consultant or other parties shall be approved in writing by the City. 7. INDEMNIFICATION. Consultant agrees to indemnify and hold harmless, the City, its officers, agents, employees from, and against any and all claims, actions, liabilities, losses and expenses including, but not limited to, attorney's fees for personal, economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or may be alleged to have risen from the negligent acts, errors, omissions or other wrongful conduct of the consultant, agents or other personal entity acting under Consultant's control in connection with the Consultant's performance of services pursuant to that agreement and to that extent the Consultant shall pay such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses and shall pay all costs and attorneys' fees expended by the City in defense of such claims and losses including appeals. The parties agree that ten percent (10%) of the total compensation is a specific consideration from the City to the Consultant for this indemnity. 8. TERMINATION. A. If, through any cause within the reasonable control the Consultant shall fail to fulfill in a timely manner or otherwise violate any of the covenants, agreements or stipulations material to this agreement, the City shall have the right to terminate the services then remaining to be performed. Prior to the exercise of its option to terminate for cause, the City shall notify the Consultant of its violation of the particular terms of the agreement and grant Consultant ten (10) days to cure such default. If the default remains uncured after ten (10) days the City may terminate this agreement (i.) In the event of termination, all finished and unfinished documents, data and other work product prepared by Consultant (and sub consultant(s)) shall be delivered to the City and the City shall compensate the Consultant for all services satisfactorily performed prior to the date of termination, as provided in Paragraph 4 herein. (ii.) Notwithstanding the foregoing, the Consultant shall not be relieved of liability to the City for damages sustained by it by virtue of a breach of the agreement by Consultant and the City may reasonably withhold payments to Consultant for the purposes of set-off until such time as the exact amount of damages due the City from the Consultant is determined. Page 2 of9 Impact Fee Study - Tischler & Associates,agr B. Termination for Convenience of City. The City may, for its convenience and without cause terminate the services then remaining to be performed at any time by given written notice which shall become effective seven (7) days following receipt by Consultant. The terms of Paragraphs A(i) and (ii) shall be applicable hereunder. C. Termination for Insolvency. The City also reserves the right to terminate the remaining services to be performed in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes any assignment for the benefit of creditors. 9. ASSIGNMENTS. TRANSFERS. SUBCONTRACTING. The Consultant shall not subcontract, assign or transfer any work under this agreement with the prior written consent of the City. Should the Consultant subcontract any services under this agreement, it shall be done with continued liability for the Consultant. The Consultant shall remain responsible for services, responsibilities and liabilities of the subcontractor or any person or entity acting under Consultant. 10. TIME OF COMPLETION. The services to be rendered by the Consultant shall be commenced upon execution of this contract and shall be completed within the time specified in this agreement. A reasonable extension of time shall be granted in the event the work of the Consultant is delayed or prevented by the City or by circumstances beyond the reasonable control of the Consultant including weather conditions of acts of God which render the performance of the Consultant's duty impracticable. 11. INSURANCE REQUIREMENTS. The Consultant also shall secure and maintain during the life of this Agreement, general liability insurance coverage in the amount of $1,000,000.00 per occurrence, and Workers' Compensation Insurance to cover obligations imposed by federal and state statutes having jurisdiction of consultant's employees engaged in the performance of work under this contract. Consultant shall also maintain errors and omissions insurance in the amount of at least $500,000.00 for the duration of the contract and a period of two years after completion of the contract. Consultant shall provide with proof of such insurance in a form acceptable to the City upon request. 12. WAIVER OF RIGHT TO JURY TRIAL. Each of the parties hereto hereby knowingly, voluntarily and intentionally, waive the right which any may have to a jury trial in respect of any action, proceeding, litigation or counterclaim based hereon or arising out of, under, on or in connection with this agreement or any course of conduct, course of dealing, statements (whether verbal or written) or actions of either of party. 13. ARBITRATION. It is the intention of the parties that whenever possible, if a dispute or controversy arises hereunder then such dispute or controversy shall be settled by arbitration in accordance with the procedures, rules and regulations of the American Arbitration Association. The decision rendered by the Arbitrator shall be final and binding upon the parties and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. Page 3 of9 Impact Fee Study - Tischler & Associates,agr Arbitration shall be held in Miami-Dade County, Florida. All costs of arbitration and attorneys' fees incurred by the parties shall be paid by the non-prevailing party or, if neither party prevails on the whole, each party shall be responsible for a portion of the costs of arbitration. And their respective attorneys' fees as may be determined by the court on confirmation. 14. CONFIDENTIAL INFORMATION. The Consultant shall not, either during the term of this Agreement or any time for a period of TEN (10) years subsequent to that date upon which the Consultant shall leave the employment of the City for any reason whatsoever, disclose to any person or entity, other than in the discharge of the duties of the Consultant under this Agreement, any information which the City designates in writing as "confidential." As a violation by the Consultant of the provisions of this Section could cause irreparable injury to the City and there is no adequate remedy at law for such violation, the City shall have the right, in addition to any other remedies available to it at law or in equity, to enjoin the Consultant in a court of equity for violating such provisions. 15. NOTICES. All notices and communications hereunder shall be in writing and shall be deemed given when sent postage prepaid by registered or certified mail, return receipt requested and, if intended for City, shall be addressed to it, to the attention of the Marla Sherman Dumas, Community Planning and Development Director, City of Sunny Isles Beach, 17070 Collins Avenue, Suite 250, Sunny Isles Beach, Florida 33160, Facsimile number (305) 949-3113, and if intended for the Consultant, shall be addressed to Paul S. Tischler, Tischler & Associates, Inc., 4701 Sangamore Road, Suite N210, Bethesda, Maryland, 20816, Facsimile number (301) 320-4860. 16. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 17. AUDIT. The Consultant shall make available to the City or its representative all required financial records associated with the Agreement for a period of THREE (3) years. 18. NON-DISCRIMINATION. The Consultant agrees to comply with all local and state civil rights ordinances and with Title VI of the Civil Rights Act of 1984 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Title 1 of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11248 as amended by Executive Orders 11375 and 12086. The Consultant will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. The Consultant will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of payor other forms of compensation, and selection for training, including apprenticeship. The Page 4 of9 Impact Fee Study - Tischler & Associates,agr Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this non- discrimination clause. The Consultant agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 708), which prohibits discrimination against the handicapped in any Federally assisted program. 19. CONFLICT OF INTEREST. The Consultant agrees to adhere to and be governed by the Miami-Dade County Conflict of Interest Ordinance Section 2-11.1, as amended; and by the City of Sunny Isles Beach Ordinance No. 99-82, which are incorporated by reference herein as if fully set forth herein, in connection with the Agreement conditions hereunder. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should conflict in any manner or degree with the performance of the services. The Consultant further covenants that in the performance of this agreement, no person having any such interest shall knowingly be employed by the Consultant. No member of, or delegate to the Congress of the United States shall be admitted to any share or part of this agreement or to any benefits arising therefrom. 20. MISCELLANEOUS. The Consultant shall provide the City with a copy of all of its finished work-product(s), including the finished report, on an IBM-compatible operating system computer disk(s). 21. ENTIRE AGREEMENT. This Agreement and Attachment "A", which is expressly incorporated herein by reference, contain the entire agreement of the parties, and may be amended, waived, changed, modified, extended or rescinded only by a writing signed by the party against whom any such amendment, waiver, change, modification, extension and/or rescission is sought. Page 5 of9 Impact Fee Study - Tischler & Associates,agr IN WITNESS WHEREOF, the parties hereto have executed this Agreement In duplicate on the day and year first written above. WITNESSES: ~~~---- ~- ~ BY: AND ASSOCIATES, INC.: >, J .... ~.....' .', :~~~~ , I : i I / BY: .. . '-' ~ APPROVED AS TO FORM AND :~~:~ltrAttom~ ,- i ~ ..- ... ~ . Page 6 of9 Impact Fee Study - Tischler & Associates.agr "EXHIBIT A" SCOPE OF WORK TASK 1. Confirm Relevant Land Use Assumptions T A will issue a memorandum which summarizes the relevant land use assumptions under trends growth so that the likely capital facility needs due to growth and the need for impact fees can be clearly shown when calculated. This will reflect population, households, housing units by type, employment and nomesidential square footage by type. This will be for at least 10 years. Work Product: Memorandum Projecting Population, Housing, Employment and Nonresidential Square Footage TASK 2. Ascertain Demand Factors and Level of Service for Relevant Public Facilities There are several important components to this task. The first is ascertaining the actual demand that generates the need for new capital facilities. Factors that are likely to influence. demand include land use type and intensity, demographic characteristics such as number of persons per household, trips by type of land use, etc. A second important subtask is calculating the appropriate level of service. We will determine the appropriate level of service through additional onsite interviews and analysis of local data. The level of service description will vary by activity. Work Product: See Below TASK 3. Review Capital Needs and Costs and Allocate to Growth This task will determine relevant capital needs and associated capital facility costs due to new growth. A. Long-Range Capital Needs. In this subtask, we will further review the various studies and other data germane to the relevant client capital facility activities, including the capital facility needs due to new development over the next five plus years. The discussions may include not only an understanding of the specific costs to provide public facilities and services, but also discussions pertaining to whether these capital facilities needs were due to normal replacement, catch-up or correction of existing facility deficiencies, or new demand. The issue of catch-up ( deficiencies) will be evaluated in the context of whether new development should be paying for higher levels of service than those that currently exist. B. Review Cost Estimates. In this subtask we will review, as relevant, the various capital costs for public facilities. As part of this subtask, we will ascertain whether the facilities are likely to be bonded, and if so, the amortization schedule. Page 7 of9 Impact Fee Study - Tischler & Associates.agr As part of calculating the revenue mechanism, the City may include the construction contract price; the cost of acquiring land, improvements, materials and fixtures; the cost for planning, surveying, and engineering fees for services provided for and directly related to the construction system improvement, and debt service charges. C. Evaluate Development Policy Implications of Different Allocation Methodologies. As part of the interaction with the City, we will simultaneously consider different possible allocation methodologies in terms of dollars being utilized for replacement costs, versus capital costs being used for expansion of capacity as well as allocation of those costs to different types of land uses. We will calculate the level of service and allocate the future demands to new and existing needs, with the assistance of City staff. Work Product: Capital Improvement Needs Accommodating New Growth TASK 4. Evaluate Credits Once the costs attributable to new development are ascertained, there is a need to deduct appropriate credits in order to obtain the net impact fees. This task will include a review of existing fees and contributions. Once the exactions, deductions and double payment evaluations are complete, the next task will be pursued. Work Product: See Impact Fee Report Below TASK 5. Complete Impact Fee Methodology and Calculations The completion of this and the above tasks will enable the methodology to be appropriately and equitably determined and finalized. As part of the analysis, collection and expenditure zones will be discussed pertaining to the rational nexus requirements. (The City will subsequently decide what percentage ofthe impact fee it wants to charge.) Work Product: See Impact Fee Report Below TASK 6. Preparation of Impact Fee Report We will prepare a draft report which summarizes the need for the impact fees for the appropriate public facility category and which provides the relevant methodology for determining the fee amount. The report will include at a minimum the following information: · Executive Summary · A detailed description of the methodologies used during the study · A detailed description of all formulas used and accompanying rationale · A detailed schedule of all proposed fees listed by land use type and activity · Summary of capital improvement needs generated by the new development Page 8 of9 Impact Fee Study - Tischler & Associates.agr · Other information which explains and justifies the resulting recommended impact fee schedules After client review, we will make mutually agreed upon changes and produce the final report. The impact fee report will have flow diagrams clearly indicating the methodology and approach, a series of tables for each activity showing all of the data assumptions and figures, and a narrative explaining all of the data assumptions, sources and methodologies. The report will be a stand-alone document that will be clear, concise and readily understood by all interested parties. Because of our extensive experience in calculating impact fees and preparing such reports, we have developed a very succinct written product that provides the client with a well-understood paper trail. T A will make a presentation at a public hearing and attend one (1) liaison committee meeting. Work Product: Impact Fee Report TASK 7. Prepare Draft Impact Fee Ordinances and Related Procedures A land use legal firm will draft appropriate individual impact fee ordinances for the specific public facility categories. These individual fee ordinances will be linked closely to the applicable individual fee calculation methodology and to the applicable portion of the capital improvement program. Each ordinance will incorporate individualized and selective provisions that are unique to each public facility. Work Product: Impact Fee Ordinance COST The cost for each impact fee is shown in the table below. The cost for recommending the appropriate assessment district is also reflected below. ($5,300, which includes one committee meeting and one Commission meeting on the same day.) ACTIVITY COST Impact Fees Parks and Recreation Police Municipal Facilities and Equipment Prepare Draft Impact Fee Ordinances and Related Procedures Prepare a Special Assessment Report TOTAL $12,700 14,700 11,200 5,700 5.300 $49,600 Page 9 of9 Impact Fee Study - Tischler & Associates.agr