City Council Minutes 2014 06 17 - Laserfiche WebLink

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City Council Meeting Minutes June 17, 2014 Page 4 of 7 Planner II Robinson explained the City issued a request for proposals (RFP) for the creation of a new marginal cost fiscal impact model to replace the City's current average cost fiscal model. The fiscal model is used by City staff and potential developers to estimate the fiscal impacts of proposed development. Staff intends to use the updated fiscal model to evaluate development scenarios in the upcoming small area plan process to ensure the plans meet the fiscal goals established by the City. The fiscal model takes proposed development by land use type (retail, office, residential, etc.) and other inputs and computes projected tax and other revenues and projected operational and capital costs. Two proposals were received; one from TischlerBise, Inc. and the second from Development Planning & Financing Group, Inc. (DPFG). A selection committee consisting of Malcolm Fleming, City Manager; Heather Balser, Deputy City Manager; Kevin Watson, Finance Director; Aaron DeJong, Economic Development Director; Troy Russ, Planning and Building Safety Director; and Scott Robinson, Planner II reviewed the proposals. The selection committee unanimously agreed to pursue contract negotiations with TischlerBise. The selection committee determined TischlerBise had superior experience and project understanding, and would be able to create a marginal cost fiscal model to meet the City's needs. TischlerBise had a higher cost, at $48,580 compared to $45,000 for DPFG, but was still under the $50,000 available in the 2014 City Budget. The selection committee believed, for the price, TischlerBise can produce a marginal cost fiscal model that will more accurately reflect the costs and benefits of proposed development and development scenarios for the City of Louisville. Staff believes the City should create a new marginal cost model for four reasons. 1) A marginal cost model would more accurately reflect the costs and benefits to the City of Louisville future development, particularly for infill development, than an average cost model. 2) The City's current model is several years old, and it would benefit the City to reevaluate the revenue and cost assumptions embedded in the model to reflect changes in the City and the market. 3) The model proposed by TichlerBise would be more detailed and flexible than the existing model, including data and be able to model scenarios not contemplated by the existing model. 4) Developing a new model will involve clarifying the City's levels of service and that information could be helpful to the City Council in setting goals and priorities: Staff believes if the City is going to create a new model, it should be a marginal cost model because it will more accurately reflect the costs and benefits to the City of future development. Staff recommended the City Council approve the contract with TischlerBise, Inc. for the creation of a new marginal cost fiscal model for a fixed fee of $48,580. COUNCIL COMMENT