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HomeMy WebLinkAbout2002 07 22 Regular F GSG Appropriation 072202 Regular F GSG Appropriation COMMISSION AGENDA ITEM F Consent Informational Public Hearin Re ular X July 22, 2002 Meeting M r. / De t. Authorization . REQUEST: City Manager requesting the City Commission to authorize the City Manager to enter into a contract with Government Services Group, Inc. to perform an Overhead Cost Allocation Plan, User Fee Analysis of Building Code, Planning, and Development Review fees and to provide a supplemental appropriation of $33,000 to fund the study. PURPOSE: This agenda item is needed to provide an independent review of building code, planning and development review fees to ensure that they fully fund the respective function on a full cost basis, and that fees are appropriately allocated to the respective cost centers. CONSIDERATIONS: On December 10,2001 the City Commission revised the city's building, planning, and development review fees. These fee schedules have been challenged by the development community and local citizens. Additionally, staff developed its recommendations for the revised fee schedule on a direct cost basis. The fee schedule should incorporate both direct cost and legitimate overhead. The study will identify overhead and allocate appropriate overhead to all fee based services, and evaluate and adjust direct cost of community development fee based services if indicated. FUNDING: G.S.G. proposed a fee schedule of $33,000 to perform the study as described below. This will be the first attempt of the city to establish a full cost allocation system. Therefore, the amount of work will be extensive. Funding will come from General Reserves generated by increased development fees. Overhead Cost Allocation Building Code Fees Planning and Development Review Fee Total $ 9,000 $12,000 $12.000 $33,000 Ample funds are available from new personnel revenues to fund the study. 072202 Regular F GSG Appropriation RECOMMENDATION: It is recommended that the City Commission authorize the City Manager to enter into a contract with G.S.G. to perform a full cost and fee analysis of Building Code, Planning, and Development Review fees and approve a supplemental appropriation of $33,000 from General Fund Reserves to fund the study. ATTACHMENTS: Government Services Group, Inc. Proposal COMMISSION ACTION: GSG Government Services Group, Inc. Dedicated to solving funding and service delivery issues in the pUblic sector Government Services Group, Inc. 1500 Mahan Drive, Suite 250' Tallahassee, FL 32308 . Phone (850) 681-3717 . Fax (850) 224-7206' Email: gsg@govserv.com March 1, 2002 VIA FEDERAL EXPRESS Mr. Ronald W. McLemore City Manager City of Winter Springs 1126 East State Rd. 434 Winter Springs, FL 32708-2799 Re: City of Winter Springs -- Work Plans to Conduct (1) a Central Service Cost Allocation Plan, (2) a User Fee Analysis of the Building-Code Enforcement. Department, and (3) a Us@!: ~ee Analysis of the Planning and: Development Review Departments. Dear Ron: Government Services Group, Inc. (GSG) is pleased to present the City of 'Ninter Springs (City) the enclosed work plans. to conduct a Central Service cost allocation plan, a user fee analysis of the Building-CodE! Enforcement Department, and a user fee. analysis of the Planning and Development Review Departments. First, GSG will analyze all necessary and relevant cost data in order to develop a Central Service Allocation Plan. This plan will determine the share of Central Service costs assignable to each Central Service client, including the Building-Code Enforcement Department and the Planning and Development Review Departments. Next, GSG will determine the full cost for the delivery of fee related services for the Building-Code Enforcement and Planning and Development Review' Departments. Services provided by the Building-Code Enforcement Department include services such as electrical permits, plumbing permits, and plan reviews. Services provided by the Planning and Development Review departments include services such as site plan reviews, comp plan amendments, and lot splits. Once the costs are determined, then GSG will make recommendations to update the current .fee schedules for these departments utilizing a methodology that is both fair and equitable, but also provides for full cost recovery. This includes the addition of new fee areas where appropriate. Our technical approach has been developed over an 11-year period and reflects our experience on similar projects. This lends credibility to our recommendations and subsequently, increases the probability of achieving management objectives. The user fee cost analyses will accomplish the following objectives for the City: . Develop an overall approach that will provide both a consistent costing methodology, as well as an emphasis on the implementation of specific recommended fees; . Identify opportunities for increased revenues based on reducing subsidies for services where charges are currently levied and establishing new charges in other services where appropriate; and, · Develop a better understanding of the City's cost structure and position as an operating organization. Traditional budgetary and reporting systems generally focus on funding operations, rather than the cost of such services. Attached, as appendices are the following: · Appendix A - Scope of Services work plan to develop the City's Central Service Cost Allocation Plan; · Appendix B - Scope of Services work plan to conduct a user fee analysis of the City's Building-Code Enforcement Department; · Appendix C - Scope of Services work plan to conduct a user fee analysis of the City's Planning and Development Review Departments; · Appendix D - .Hours and fees matrix for the scope of services outlined in all three work plans; and, . Appendix E - List of project deliverables, a delivery schedule, and a payment schedule. GSG appreciates the opportunity to work with the staff and management of the City of Winter Springs. The results of these projects will provide ongoing benefits to the citizens of Winter Springs and direction to City management in obtaining long-term goals and objectives related to.growth management. Please do not hesitate to call if you have any questions. . Sincerely, VL---- Robert E. Sheets RES/mm Enclosures APPENDIX A - SCOPE OF SERVICES WORK PLAN TO DEVELOP THE CITY'S CENTRAL SERVICE COST ALLOCATION PLAN "', ,r; PEN I IX A>' SeOPE: CES ' , '.;,' ' , ,~,,'rl~ !:' 2: ,;r/~}",'Y(.rl~:,~::: ":'r:r:;?,~,,: :? ,1' : ,:~'::; >\ . ::, : ":: :,:i~".,i :~(,j(';'!'WdR~!~LAN:tO o"EVEtOP'TffE;CITI('S ;CENTiR:A:t ',' ,." >~~: ;'.:J;.: . . '/::_':, :.,--<,:.:',' f$~I;~VIC~ C~ST'~LLOGAtlhN~PLAN . /.:,~,." , :'. ':,:~,':(: , The following scope of services provides the major tasks required to prepare a central service cost allocation plan for the City of Winter Springs: Task 1. Data request and project initiation Prepare data request letter identifying the expenditure, allocation statistical and organizational data in an automated format needed to prepare the costs allocation plan. Conduct meeting with City staff to develop a consensus on project tasks to be performed, data to be provided, project time frames and cost plan documents to be provided. Deliver the data request letter to City staff at the meeting. Task 2. Receive and review automated data and import into software worksheets The expenditure, allocation statistical and organizational data received in an automated format will be reviewed and reformatted as necessary and imported into the software worksheets to be used for performing the allocations. Task 3. Perform calculations resulting in allocations The allocation statistical data will be applied to the expenditure data resulting. in allocated costs. Task 4. Prepare draft report and provide to the City for review and comment A description of the City's central service entities and organization will be provided along with summary explanations of the effect of the application of the statistical data to the expenditure data and resulting allocations will be prepared and compiled in to a draft cost plan and provided to the City for review and comment. Task 5. Prepare final cost plan Upon receipt of any comments from the City in response to review of the draft plan, revisions will be made as appropriate and a final cost plan will be published and transmitted to the City. Fees and Costs For professional consulting services provided and printing of the cost plan document pursuant to the proposed scope of services, a fixed fee professional services fee of $9.000 is proposed. A fixed fee method of compensation eliminates uncertainty in the total fee. The hours and fees matrix provided as Appendix D describes the level of work effort for each task. APPENDIX B - SCOPE OF SERVICES WORK PLAN TO CONDUCT A USER FEE ANALYSIS OF THE CITY'S BUilDING-CODE ENFORCEMENT DEPARTMENT The following scope of services provides the major tasks required conduct a user fee analysis of the Building-Code Enforcement department for the City of Winter Springs: Task 1. Project Initiation There will be an initial project kick off meeting involving all key staff from the Building- Code Enforcement Department to include cross over staff from the Stormwater, Engineering Inspections, Utility/Meter Services and Fire Department as appropriate. . This will provide an opportunity both for the staff and GSG to clearly outline the project's goals and objectives and, just as important, what the project is not intended to accomplish. ,We will develop this initial understanding of key study issues by conducting interviews with staff on-site to determine time per task involvement in all fee areas, the determination of new fees where appropriate and the provision and discussion of budget, organizational, level of service and volume of service issues. This on-site information developed by GSG and City representatives will form the basis for data input into a fee analysis database, resulting in a spreadsheet analysis of all fee areas to include direct, indirect, administrative and cross-over costs. Task 2. Data Inventory, Gathering and Evaluation This task will be conducted in Tallahassee. GSG will organize and analyze the entire budget, permit volume by category, time per task information and organizational information. This data will then be input into a user fee software model and full cost fee recommendations will be developed. This information will be provided at the individual permit/fee area level, however, aggregate revenue and budget impacts will be determined as well. Please note that GSG will utilize the results of the cost allocation plan and the user fee study for Planning and Development Review, which have been included as separate work plans. Task 3. Prepare Draft Report and Provide to City for review and comment The data analysis developed in Task 2 and a corresponding written narrative will be provided to the City in draft form for review. This procedure provides an opportunity to discuss individual recommendations in detail prior to report finalization. Task 4. Prepare Final User Fee Report Upon receipt of any comments from the City in response to review of the draft report, revisions will be made as appropriate and a final report will be published and transmitted to the City. Task 5. Present Final Report After transmission of the fina~ report to the City, GSG will perform the following: 1. An in-depth presentation to staff/department analysts of the methodology underlying the cost and revenue analysis; and, 2. An engagement presentation to the leadership to provide an overview of the project and its findings. Any questions concerning the project would be answered at this time. Fees and Costs For professional consulting services provided and printing of the user fee analysis report pursuant to the proposed scope of services, a fixed fee professional services fee of $12,000 is proposed. A fixed fee method of compensation eliminates uncertainty in the total fee. The hours and fees matrix provided as Appendix D describes the level of work effort for each task. APPENDIX C - SCOPE OF SERVICES WORK PLAN TO CONDUCT A USER FEE ANALYSIS OF THE CITY'S PLANNING AND DEVELOPMENT REVIEW DEPARTMENTS The following scope of services provides the major tasks required conduct a user fee analysis of the Planning and Development Review departments for the City of Winter Springs: Task 1. Data Request and Project Initiation There will be an initial project kick off meeting involving all key staff from the Planning and Development Review Departments to include cross over staff from the Stormwater, Engineering Inspections, Utility/Meter Services and Fire Department as appropriate. This will provide an opportunity both for the staff and GSG to clearly outline the project's goals and objectives and, just as important, what the project is not intended to accomplish. We will develop this initial understanding of key study issues by conducting interviews with staff on-site to determine time per task involvement in all fee areas, the determination of, new fees where appropriate and the provision and discussion of budget, organizational, level of service and volume of service issues. This on-site information developed by GSG and City representatives will form the basis for data input into a fee analysis database, resulting in a spreadsheet analysis of all fee areas to include direct, indirect, administrative and cross-over costs. Task 2. Data Inventory, Gathering and Evaluation This task will be conducted in Tallahassee. GSG will organize and analyze the entire budget, permit volume by category, time per task information and organizational information. This data will then be input into a user fee software model and full cost fee recommendations will be developed. This information will be provided at the individual permiUfee area level, however, aggregate revenue and budget impacts will be determined as well. Please note that GSG will utilize the results of the cost allocation plan and the user fee study for Building-Code Enforcement, which have been included as separate work plans. Task 3. Prepare Draft Report and Provide to City for review and comment The data analysis developed in Task 2 and a corresponding written narrative will be provided to the City in draft form for review. This procedure provides an opportunity to discuss individual recommendations in detail prior to report finalization. Task 4. Prepare Fin;:; Usor Fe:~ !'{Gpcri Upon receipt of any comments from the City in response to review of the draft report, revisions will be n18de ~.:.. :'~l".-"-j".j_.\o-, Ltl~ (" i111-~1 JepOrl vviii be published and transmitted to the Cit)', Task 5. Present F;,r J '"1"r;,..,.....~. After transmission o~ ,;, ' 1. An in-depth presentr: ~ the cost and reve:.~' ' , Jilowing: , 3ology underlying 2. An engagemen~ :', and its findings. hny '-..... v' time. ':'~w of the project ~,;nswered at this Fees and Co::.::: For professional con:: ~':;; pursuant to the prop02 $12.000 is proposed. /. ' total fee. The hours G';',:. : effort for each task. ,. " 'f ~e analysis report , '!al services fee of , ,: ~: uncertainty in the '" : ..~' the level of work , ::~~~Mr~~rr,;'. '\'\r7';~~'~f'.:i ;;::.;~,;~. I,:., '~:._ ~':.. ;,~;"';:.' )",,"1'0' COSTA[LOCAt~IO~BPLAr-j , ;_F'(. 20Q'6-0;1 Task 1 - Data request and project initiation 9 $1,125 Task 2 - Receive and review automated data and import into software worksheets 9 $1,125 Task 3 - Perform calculations resulting in allocations 25 $3,125 Task 4 -Prepare draft report and provide to the City for review and comment 21 $2,625 Task 5 - Prepare final cost plan 5 $625 Note: (1) A maximum of one meeting will be conducted on site at the City within the professional service fees provided. Any additional meetings required will be subject to reimbursement by the City in accordance with section 112.061, Florida Statutes. The estimated cost of publishing and transmitting the draft and final cost plan documents has been included. Task 1 - Data request and project initiation 12 $1,500 Task 2 - Data inventory, gathering and evaluation 28 $3,500 Task 3 - Prepare Draft Report & Receive City Comments 31 $3,875 Task 4 - Prepare Final User Fee Report 10 $1,250 Task 5 - Present Final Report 8 $1,000 . :~,~:_,.>,:FY200Q~01 ' P~Npl~:Qa+-5eOPE:@J;::r:SE:gMI~ES::, "'i',J}.,j:j:>".::HJ;:" :. -t.',"" ::~;:", . 1,..1;.. ::.;H@URS?& FEES'MA:tRliii." i' '~:,(1,;j..;,J[(r .' '..'.., ,. : :.t',~:,'1;' .' ,,' ',;~; ~:~t=~Pt~~L'(SIS,' Of:1JHE,:~.IJY'$j~:"- ." fj:(j'EVELOPMENTREVIEW1t)EP )(RTMENJ;S ,',;"',-:' ':~:_X '. -- .-;" "" ".(",-';'~" ~, ~,'.""' --, ': Task 1 - Data request and project initiation 12 $1,500 Task 2 - Data inventory, gathering and evaluation 28 $3,500 Task 3 ~ Prepare Draft Report & Receive City Comments 31 $3,875 Task 4 - Prepare Final User Fee Report 10 $1,250 Task 5 - Present Final Report 8 $1,000 r---- Ii . _ h_..._______~,_._ -. -._~ - .-- . _.._- " ,; "?El,:D1X; '~~SCOPE OF S,ER'lICES ' , ' " " . .:(~~.>.:\, .':~!' . ,,,.' . . r:;-:r).J:=:CT DEL"~,E:, ,,:B~~S;DEL!IVER)rSCHEDutE ' J.n,~PA~IVIE'NtscREDuL~: ' \. .._I.... .".1.....-..:...,:'........ '.. ,-' "_'.':' IL- ~ j"(:: ~ l t -;. ~ ~ .. t .... Finsl:- , , "_ ~: . ~ C:SSU! ding nOd. the b2Sis of t" . - . ~. , . Schedule . , ,. Uty By March 31, 2002 By Apri/15, 2002 By June 30, 2002 Within 15 days of Receipt of City Comments . ;..dc; , '(L::!! lump sum fee each month beginning May 1, 2002, L ~:;;(;d occurs in August 2001. Payment will be pro-rated on ",- }:~ip(~.fed number of months included in the project if notice to . ;.1 k:arch 2002.