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Matrix Consulting Group 78-495 Calle Tampico La Quinta, CA 92253 760.777.7000 November 30, 2018 Richard Brady, President Matrix Consulting Group 201 San Antonio Circle, Suite 148 Mountain View, CA 94040 Subject: Development Impact Fee Study Update Proposal Dear Mr. Brady: Thank you for your proposal for the development impact fee study update. We are pleased to have the attention of firms with your qualifications propose on projects within the City of La Quinta. Unfortunately, another firm was selected to provide the development impact fee study update as identified on the request for proposals (RFP). We appreciate the time and effort your team invested in your proposal and encourage you to submit work proposals in the future. Sincerely, Bryan McKinney City Engineer cc: Danny Castro Design and Development Director Project File Proposal for Development Impact Fee Study Update CITY.O'F L:A ,QU-INTA,, CALIFOR,NIA matrix consulting group Table of Contents Cover Letter Statement of Qualifications Project Understanding and Approach Scope of Work Program Project Schedule 0 7 12 Cost Proposal 13 matrix consulting group October 14, 2018 Bryan McKinney, P.E., City Engineer Design and Development Department City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Dear Mr. McKinney: The Matrix Consulting Group is pleased to have this opportunity to submit a proposal for the Development Impact Fee Study Update. This proposal will not only demonstrate our exceptional skills and experience required to meet the City's needs for this study, but also establish the additional value of choosing a firm like the Matrix Consulting Group. Our firm understands the urgency and importance of maximizing revenue recovery, and is committed to helping our clients create and establish documented and defensible policies and procedures that meet current and future needs. The Matrix Consulting Group stands apart from other firms for the following reasons: Experience in Cost of Service and Nexus studies: Our firm and consulting team have extensive experience conducting cost of service and nexus analyses, with recent clients including: Novato Fire Protection District, Downey, Montebello, and Orange. Additionally, we have prior experience working with the City of La Quinta on police services studies. On -site presence and accessibility: The Matrix Consulting Group will help the City reach its goals because we understand its issues and needs, and are committed to serving our clients through a hands-on approach. This will be facilitated by the proximity of our Southern California Office. Proposed Project Team: The proposed project team are full-time permanent employees of the firm and no sub -consultants are being proposed. The proposed Project Manager, Courtney Ramos, is the leader of our Financial Services Practice and has overseen all cost of service studies for the last five years. For questions about this proposal or for contract negotiation please contact me, the firm's President, at rbrady@matrixcg.net, or at the letterhead contact points below. Matrix Consulting Group Richard Brady, President 201 San Antonio Circle, Suite 148 Mountain View, CA 94040 650.858.0507 650.917.2310 fax California, Illinois, Massachusetts, Texas, Washington Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA 12 Statement of Qualifications This section of the proposal provides an overview of the proposed project team, a brief background on the firm's experience with development impact fee studies, and a list of project references. 1 Proposed Project Team The specific roles of each proposed project team member are outlined below: • Courtney Ramos: Financial Services Vice President for the Matrix Consulting Group and will serve as the Project Manager. As the project manager, Ms. Ramos will be the primary contact for the project and will provide her expertise by leading interviews, discussing draft reviews, and presenting results. • Khushboo Hussain: A Manager with the Matrix Consulting Group and will serve as the Lead Project Analyst. Ms. Hussain will participate in interviews and coordinate necessary data collection for the impact fee analysis • Aaron Baggarly: A Manager with the Matrix Consulting Group, will serve as a Technical Expert. Mr. Baggarly will conduct the facilities assessment. • Jessica Mizenko: A Consultant with the Matrix Consulting Group, will serve as a Data Analyst. Ms. Mizenko will assist with collection and compilation of necessary data, model development, and provide analytical support. • Ryan Peterson: A Consultant with the Matrix Consulting Group, will serve as a Data / GIS Analyst. Mr. Peterson will assist with collection and development of any fire -related Maps used as support for calculation of development impact fees. The following table provides abbreviated biographical summaries for the staff who would manage, lead and conduct the project. All these project team members are full-time staff of the Matrix Consulting Group. Matrix Consulting Group Page 1 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Courtney Ramos Since joining the firm in 2004, Ms. Ramos has managed and assisted with numerous cost allocation plan, user fee, management, operations, and Vice President, staffing analyses for our California and national clients. Project Manager Most recently, Ms. Ramos managed cost of service studies for the following jurisdictions: Downey, Long Beach, Pasadena, San Bernardino County, South El Monte, Suisun, and Winters (CA) as well as the Contra Costa County Sanitary District; Ft. Lauderdale, Kissimmee, and Cape Coral (FL); Asheville, (NC) Austin and Dallas (TX). In addition to her analytical work on client projects, Ms. Ramos developed the Technical Models used by the Matrix Consulting Group. All of the references included have Ms. Ramos as the Proposed Project Manager. Khushboo Ms. Hussain has been a part of the Matrix Consulting Group for more than Hussain five years. While the primary focus of Ms. Hussain's tenure has been on Financial Services studies including Cost Allocation Plans and User Fee Manager, Studies, she is also highly knowledgeable with Management Consulting, Lead Project specializing in Development Services processes and policies. She leads Analyst our new Southern California office. Most recently, Ms. Hussain has lead or assisted with financial management studies for the following jurisdictions: South El Monte, Livermore, Downey, Vacaville, Fairfield, Long Beach, Elk Grove, Pasadena, San Bernardino County, Suisun, and Winters (CA) as well as the Contra Costa County Sanitary District; Ft. Lauderdale and Kissimmee (FL); Asheville, (NC) Austin and Dallas (TX). Aaron Baggarly Mr. Baggarly is a Manager with the Matrix Consulting Group and is part of our General Consulting and Public Safety Divisions. Mr. Baggarly has Manager, extensive experience in organizational, operational, and planning studies Technical Expert for local, state and national agencies. Mr. Baggarly most recently worked for the City of Stillwater, OK and another consulting firm prior to coming to Matrix Consulting Group. Mr. Baggarly has a performed a wide array of analysis for public sector clients. Recent clients involving inspectional service evaluations include: Blacksburg (VA), Boston (MA), Burlington (VT), Downey (CA), East Point (GA), and Tinley Park (IL), Analytical skills include data and workload analysis, needs assessments, visioning, organizational and staffing studies, best management practices and master planning. Matrix Consulting Group Page 2 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Jessica Mizenko A Consultant who has recently joined the firm and supported senior staff with cost allocation and user fee studies in Hercules (CA), Pacific Grove Senior Consultant, (CA), Montebello (CA), Orange (CA), Redwood City (CA), and San Data Analyst Bernardino County (CA). She is assigned to support our senior staff in all service areas with a focus on Financial and Development services. Prior to joining the Matrix Consulting Group, Ms. Deshong worked in Data Analytics for various Silicon Valley firms. Ryan Peterson Mr. Peterson specializes in GIS and data analytics. He has over five years of experience in conducting geospatial analysis for local and regional Consultant governments, having previously worked for the City of Portland and City Data / GIS Analyst of Beaverton, as well as the Tri-County Metropolitan Transportation District of Oregon (TriMet). He holds a BS in Geography/GIS from University of Oregon, as well as a GIS Graduate Certificate from Portland State University, and a certificate in programming from the Epicodus School. Each member of our proposed project team has successfully managed or participated in similar studies to the City's requested scope of work. 2 Development Impact Fee Study Qualifications The Matrix Consulting Group has experience conducting a variety of cost of service and nexus -based analyses. The primary focus of a Development Impact Fee Study or In -Lieu Fee Study is to ensure that there is a nexus between the fee being assessed and the impact being observed. Additionally, the fee must be in compliance with AB1600 and the Mitigation Fee Act. The Matrix Consulting Group is unique in that it has both the operational and financial expertise as it relates to Impact Fees. The following points highlight some of our key qualifications as it relates to Development Impact Fee Studies: AB 1600 Technical Expertise: The proposed project team has received training from Government Finance Officers Association (GFOA) as it relates to Best Management Practices for User Fee and Development Impact Fees. Additionally, the project team has conducted both Fire specific and Citywide Comprehensive Impact Fee studies to ensure compliance with AB1600 reporting requirements. • Management Services Technical Expertise: The Matrix Consulting Group is unique in that it contains in-house expertise as it relates to service and facility needs for all major local government functions, including Parks and Recreation, Matrix Consulting Group Page 3 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Public Safety, and Utilities. This enables us to evaluate the service level standards associated with these services as part of the Impact fee process. Industry Standards: The Matrix Consulting Group is aware of the industry standards as it relates to development and implementation of impact fees, including the creation of two separate fee components (cost + admin) as well as utilization of different cost factors (Sq. Ft. vs. Equivalent Dwelling Units). Policy Development and Reporting Requirements: The project team has worked with clients to develop specific policies as it relates to Development Impact Fees including the option to annually update the fees utilizing the Construction Cost Index (CCI). These policies also include the reporting requirements as it relates to collection of impact fees in a separate fund and disbursement of impact fee funds. As the points above highlight, the Matrix Consulting Group is very familiar with public sector and local government impact fee programs. Our familiarity ranges from conducting the cost analysis to developing and evaluating the policies and procedures behind the impact fee program. This makes us uniquely qualified to provide the best impact fee product to the City. 3 References The following table provides relevant project references for three recent clients, for whom similar services were provided, managed and conducted by our proposed Project Manager and project team. Client Contact Description Novato Fire Protection Bill Tyler User Fee Study District, California Fire Marshal Development Impact Fee 96 Rowland Way, (415) 878-2690 Study Novato, CA 94945 btyler@novatofire.org FY16-17 Downey, California 11111 Brookshire Ave. Downey, CA 90241 Dinuba, California 405 E. El Monte Way Dinuba, CA 93618 Anil Gandhy Finance Director (562) 904-7265 as and by @downevca. orq Chad Thompson Fire Chief Ph: 559-591-5931 cthompson@dinuba.ca.gov Full Cost Allocation Plan Citywide User Fee Study Development Impact Fee Analysis FY15-17 Update to the Fire Master Plan Matrix Consulting Group Page 4 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA The following points provide further project descriptions for these references: Novato Fire Protection District: The Matrix Consulting Group conducted a Fee Study and Development Impact Fee Study for the Novato Fire Protection District. The User Fee Study evaluated current and new service areas as it relates to development activity. The Impact Fee Study focused on evaluating the nexus for the existing impact fees, and the potential to update the impact fees based upon projected growth. Due to limited growth in the area, there was no nexus for the continuation of the impact fees. The project team worked with District staff to present the updated nexus report to the Board and identify other alternative revenue options in lieu of impact fees. Downey: The Matrix Consulting Group conducted a Cost Allocation Plan, Comprehensive Fee Study (including Fire Services) and Development Impact Fee Study for the City. As it related to the Development Impact Fee Study, the project team reviewed the City's existing documentation to determine the nexus for current impact fees. Based upon review of documentation, the project team recommended alternatives to Development Impact Fees to better capture the support associated with development impacts. Dinuba: In this project, the Matrix Consulting Group conducted an update to the Fire Department Master Plan which was originally developed ten years ago for the Department by our firm. Several changes in the city had occurred since the plan including population growth, annexation and a focus on attracting large distribution centers. Additionally, a review of development impact fees, which were created during the initial study developed by the Matrix Consulting Group were reviewed to ensure current relevancy and accuracy. We would be pleased to provide reference information for any other study listed as our experience. Matrix Consulting Group Page 5 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA 13 Project Understanding and Approach The City of La Quinta is interested in conducting an update to its Development Impact Fee Study. The City previously had an external agency develop an Impact Fee Study in 1997, which was updated internally by City staff, with the last update in 2013. Per Best Management Practices, due to the significant length of time, the City is interested in a more comprehensive evaluation of its current impact fees. The scope of this study will enable the City to account for all new and projected costs associated with City facilities and infrastructure as a result of anticipated development and growth. The following points provide an overview of our understanding of the scope of work desired by the City. • Identify the appropriate portion of costs that should be shared between existing residents and new development within the community. • Incorporate assumptions from the General Plan, Master Plans, and CIP lists to ensure that any infrastructure improvements required due to new development are paid for through new development. • Ensure compliance with AB1600 and the Mitigation Fee Act as it relates to development and implementation of impact fees. • Discuss implementation options of impact fees, including any possible policy or ordinance changes as well as the need to update reporting requirements. The results of this study will provide the City with the knowledge and tools to ensure that current cost recovery practices are compliant with local and state laws, and develop cost recovery policies that balance the needs of the City against subsidies to promote growth and development. The following table outlines the major tasks and goals for the project. Tasks 1. Project Initiation 2. Data Collection Goals 3. Assess Facilities and Services • Identification of Future Growth 4. Develop Draft Facilities Analysis • Documented and Defensible Nexus Calculation 5. Calculate Draft Impact Fees • Implementation support for fees 6. Final Report and Implementation Plan 7. Presentation of Impact Fees The Matrix Consulting Group has a unique understanding as it relates to Impact Fees, as we not only understand the cost of service assumptions and legal requirements for an Impact Fee Study, but also the management and operations within fees. Matrix Consulting Group Page 6 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA 1 4 Scope of Work Program The City of La Quinta is interested in updating its current Development Impact Fees. The City's current Impact Fees were last updated in 2013. The Development Impact Fees established by the City must be in compliance with AB1600 and Government Section Code 66000 of the Mitigation Fee Act. Conducting a Development Impact Fee Study will help the City ensure that the nexus for charging the current Development Impact Fees still exists. The project team will work with City staff to review existing General Plan and growth projection assumptions, as well as other data to ensure that any development impact fees calculated are legally defensible and allowable. The following tasks describe the approach the project team would undertake along with a brief narrative and expected City Staff support for each task. Project Initiation The project team will meet with City staff to clarify the intended goals and purpose of the engagement. The purpose of this task is to develop an initial understanding of the City's current fee structure, the projected growth levels, and any future developments that will impact that population growth. During this meeting, the project team will provide City staff with an overview of the scope, methodology, and detailed timeline for the project. The project team will review the City's specific needs and critical issues surrounding development and implementation of the Impact Fee Study. There will be an assessment of the City's current infrastructure and capital facility financing issues, potential discussion of streamlining existing fee structure, identification of different impact fee approaches, such as residential impact fees based on number of dwelling units, and commercial fees based on square footage. Based on the results of these discussions, the project team will have a greater understanding of the goals and objectives of the City in conducting this impact fee study and will provide the City with a detailed data collection list and project management plan. Project Deliverable — MCG City Services Required • List of basic data requirements for the Study Basic data requirements for the study • On -site initial meeting with staff to review Designate Cty project management goals, and project management plans representative Estimated City Staff Hours: 2 hours for Finance, and 30 minutes for each attendee at kick-off meeting Matrix Consulting Group Page 7 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Task 2 � Data Collection The project team will develop a data collection list that will include the following elements: • Copy of City's current impact fees • Copy of any existing ordinances related to impact fees • Copy of City's previous Nexus Study completed in 2013 • Copy of City's General Plan, Facilities Master Plan, and other Master Plans • Total Revenues collected by Impact Fees since 2013 • Total Expenses associated with Impact Fees since 2013 The points above represent a sample of the type of information that would be collected by the project. The project team would collect this information and review it along with other information such as population projections, employment, housing units, and square footage of commercial, industrial, and other non-residential development to assess the potential demand that could be generated by new development. Where possible, we would like to use City -specific data and will ask City staff for access to Facilities Master Plans, General Plan, Public Safety Master Plan, CIP lists, other infrastructure -related lists and items, and other documentation that will have either historical or projected statistics of this nature. Project Deliverable — MCG City Services Required • Data collection for the Master Plans Provide consultant with data as requested Estimated City Staff Hours: Approximately 1-2 hours for City staff to provide data Task 3 1 Assess Current Facilities and Service Levels To provide a comprehensive basis for the Impact Fee Study, the project team will develop a detailed understanding of the current organization, including evaluation of current infrastructure and service levels associated with that infrastructure. This data would include: inventory of existing apparatus, replacement cost of existing apparatus, different service level metrics — response times, calls for service, etc. This step in the process will allow the City to evaluate the philosophy behind its existing service levels and decide if it wants to continue providing the same level of service or alter them. These discussions are crucial to calculating impact fees. Matrix Consulting Group Page 8 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Project Deliverable — MCG City Services Required • Data collection of service level demands Provide additional data as requested Estimated City Staff Hours: Approximately 2 hours for City's Project Development Team. Task 4 Develop Draft Impact Fee Assumptions Utilizing the data collected in the previous task and depending upon the City's choice to either continue with or alter its existing service levels, the project team will develop service and demand standards to identify any facilities or apparatus that would be required based upon new growth and development. During the development of the Impact Fees Analysis the project team will work with City staff to identify all funding opportunities for these future facilities and land including property tax, grants, donations, and impact fee revenues. As part of this task the project team will deliver initial draft assumptions regarding service levels to the City's Project Development Team and have discussions regarding potential modifications to these assumptions. Project Deliverable — MCG City Services Required • Discussion of Draft Impact Fee Assumptions Review of Draft Impact Fee Assumptions Estimated City Staff Hours: Approximately 1 hour for City's Project Development Team Task 5 1 Calculate Draft Maximum Allowable Impact Fees There are two components to the calculation of impact fees: the total cost of facilities and their cost basis. The following points describe these components: Total Cost of the Facilities / Infrastructure: There are three different sub- components that comprise the maximum cost of the facilities that can be used for the calculation of impact fees: Cost of Facilities / Infrastructure, Administrative Cost, and Offsetting Credits / Revenues. • Cost Basis: There are several different cost bases that can be used for the calculation of impact fees, such as population, housing units, workload, etc. Impact fees will be presented in separate components: administrative and facilities. This will allow the City the flexibility to choose to recover either the full or a portion of the cost associated with implementing impact fees, allowing the City to address any economic Matrix Consulting Group Page 9 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA development barriers. The results of the impact fee analysis will be presented to City staff at the Project Development Team Meeting. The results will show the current impact fees compared to the proposed impact fees. Based upon projected development, the project team will also be able to provide estimated revenue impacts as it relates to the proposed impact fees. The goal of this meeting will be to make adjustments and any modifications as it relates to impact fees to ensure that development impact fees calculated meet the desired service levels, and goals of the City. Project Deliverable — MCG City Services Required • Draft Impact Fees Results on a Per Unit and Review of Draft Impact fees Annual Basis Estimated City Staff Support Hours: 1-2 hours for City's Project Development Team Task 6 I Final Impact Fee Report Once the Draft Impact fees have been approved by the City's Project Development Team, the project team will develop the Final Impact Fee Report. The Final Impact Fee Report will provide the legal justification for the development impact fees, ensuring compliance with state statutes, including its ability to meet the five findings required by the Mitigation Fee Act. The final report will also identify the best management practices associated with calculation and collection of impact fees. The project team will discuss different implementation options of impact fees, policy changes needed, as well as include alternatives to impact fees, if there is no nexus for an impact fee. The project team will conduct a presentation on the Final Impact Fee Report to the City's Project Development Team. The presentation will go over the methodology and results of the analysis, as well as any proposed language inclusions or exclusions. Upon the request of the City, the Impact Fee Report may also include recommendations regarding revenue collection and disbursement. Project Deliverable — MCG City Services Required • Final Impact Fee Study Report Review of Final Impact Fee Analysis Estimated City Staff Support Hours: 2-6 hours for City's Project Development Team Matrix Consulting Group Page 10 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA Presentation of Final Impact Fee Report Once the City's Project Development Team has approved the Impact Fee Report, the project team will then present the results of the Impact Fee Analysis to the Financial Advisory Committee and at up two (2) City Council Meetings. This will ensure that any and all questions from internal and external stakeholders are addressed. Based upon the results of the analysis, the project team may also recommend to the City's Project Development Team presentation to the Building and Development Community to inform them of proposed impact fee changes. Project Deliverable — MCG City Services Required • Presentation at Financial Advisory Committee Attendance at Presentations and up to two (2) City Council Meetings Estimated City Staff Support Hours: 2-6 hours for City's Project Management Designee The Matrix Consulting Group, and the proposed project team, is uniquely qualified to conduct this analysis as we have experience in cost of services analyses, as well as management experience as it relates to fire facilities and infrastructure assessments. Matrix Consulting Group Page 11 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA 1 5 Project Schedule A Development Impact Fee Study Update typically takes approximately 16-20 weeks (4- 5 months) to complete. The City of La Quinta intends to begin the project December 3, 2018, with an anticipated completion date prior to July 1, 2019. The project team believes that this is a feasible goal. The following table shows by task, the duration of each task, the calendar date for the deliverable and the deliverable. Project Deliverable Task Duration Week Deliverable / Task (Weeks) Project Initiation Week 1 Dec. 3rd Kickoff meeting with City staff, Project Management Plan Data Collection Weeks 1-6 Dec. 10th Data Collection List Assess Current Facilities Weeks 2-7 Jan. 14th Facilities and Service levels data review and analysis Draft Impact Fee Weeks 6-12 Feb. 18th Draft Impact Fee Baseline Assumptions Assumptions and Options Calculate Draft Impact Fees Weeks 10-14 Mar. 41d Draft Impact Fees by Type — Per Unit and Annual Results Final Impact Fee Report Weeks 14-16 Mar. 181" Final Impact Fee Report Present Impact Fee Results Weeks 16-20 Aril 151h Presentation of Impact Fee Results Based upon the schedule, the Development Impact Fee Study would commence in December and would be projected to be complete by April, allowing the City ample time to ensure implementation of results for July 1, 2019. The deliverable weeks would be anticipated dates for when the project team would like to schedule meetings with the City's Project Development Team to review each of the interim deliverables leading up to the presentation of final results to the Financial Advisory Committee and City Council. All timelines presented in this section can be adjusted based upon City staff needs and commitments. Presentation(s) to City Council and subcommittees can occur during the study or after the study as requested by City staff. Matrix Consulting Group Page 12 Proposal for a Development Impact Fee Study Update LA QUINTA, CALIFORNIA 16 Cost Proposal Per the City's Request for Proposal, the Cost Proposal has been submitted under separate cover. Matrix Consulting Group Page 13 I, tev Qaiara -- GEM q'dr DESERT — NON -COLLUSION AFFIDAVIT FORM Must be executed by proposer and submitted with the proposal Richard Brady (name) hereby declare as follows: I am President of Matrix Consulting Group (Title) (Company) the party making the foregoing proposal, that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from proposing; that the proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the proposer or any other proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the agreement of anyone interested in the proposed agreement; that tall statements contained in the proposal are true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative hereto, or paid, and will not pay, any fee to any corporation, partnership, company, association, organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham proposal. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Proposer Signature: Proposer Name: Proposer Title: Company Name: Address: Richard P. Brady President Matrix Consulting Group 201 San Antonio Circle Suite 148 Mountain View, CA 94040 78-495 Calle Tampico La Quinta, CA 92253 760.777.7000