2009-27008 ResoRESOLUTION NO. 2009-2~oos
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO
THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 10-
08/09, FOR A BUILDING DEVELOPMENT PROCESS FEES STUDY; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED PROPOSER,
MAXIMUS CONSULTING SERVICES; AND SHOULD THE ADMINISTRATION NOT BE
SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE TOP-RANKED PROPOSER,
AUTHORIZING NEGOTIATIONS WITH THE SECOND-RANKED PROPOSER, MATRIX
CONSULTING GROUP; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION TO NOT EXCEED $42,260, AND APPROPRIATING FUNDS FROM FY 2007-
08 YEAR-END SET ASIDE FOR BUILDING DEPARTMENT USES.
WHEREAS, Request for Proposals (RFP) No. 10-08/09 for a building development process
fees study was issued on December 11, 2008 with an opening date of January 28, 2009; and
WHEREAS, the objective of this RFP is to update all of the fees related to the Building
Development Process and provide staff support for their adoption as an ordinance prior to the start
of the FY 09-10 budget; and
WHEREAS, apre-proposal conference to provide information to the consultants submitting
a response was held on January 9, 2009; and
WHEREAS, BidNet issued bid notices to 105 prospective proposers, BidSync (Formerly
known as RFP Depot) issued bid notices to 33 prospective pooposers, and 37 proposers were
notified via mail, a-mail, and fax circulation, which resulted in the receipt of five (5) proposals; and
WHEREAS, during the review process performed by the Procurement Office and with the
approval of the City's legal department, the proposal submitted by KPMG LLP was deemed non-
responsive since it failed to provide the requested cost related information relative to the Building
Development Process Fees Study; and
WHEREAS, the City Manager via Letter to Commission (LTC) No. 027-2009, appointed an
Evaluation Committee ("the Committee") consisting of the following individuals:
• Kathie Brooks, Director, Budget and Performance Improvement Department (OBPI);
• Ira Giller, Resident, Giller and Giller Architects;
• Ken Nichols, Vice President, G.T. Construction and Development, Inc;
• Chris Puentes, Project Executive, Turnberry Ltd;
• Sonni Moore, Chief Fire Protection Analyst, Fire Prevention Department;
• Richard Lorber, Planning and Zoning Manager, Planning Department;
• Grace Escalante, Assistant Director, Building Department; and
WHEREAS, on January 12, 2009, the Committee convened and a quorum was attained;
and
WHEREAS, Kathie Brooks, Budget and Performance Improvement Department's Director,
addressed the Committee and provided general information on the scope of services; the
Committee members were also provided with presentations and Performance Evaluation Surveys
from all proposers; and
WHEREAS, the Committee discussed their individual perceptions of the proposers'
qualifications, experience, price and competence, and ranked the proposers being evaluated
accordingly; and
WHEREAS, a motion was presented by Richard Lorber, seconded by Grace Escalante and
unanimously approved by all Committee members to recommend the first ranked proposer,
Maximus Consulting Services and second ranked proposer, Matrix Consulting Group for potential
award for the Building Development Process Fees Study; and
WHEREAS, in addition to concurring with the Committee's recommendation, the City
Manager would recommend that the City Commission authorize the Administration to negotiate
and, if successful, further authorize the Mayor and City Clerk to execute of an Agreement with
Maximus Consulting Services.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission of the City of Miami
Beach, Florida accepting the recommendation of the City Manager pertaining to the ranking of
proposals pursuant to Request for Proposals (RFP) No. 10-08/09, for a Building Development
Process Fees Study; Authorizing the Administration to enter into negotiations with the top-ranked
proposer, Maximus Consulting Services; and should the Administration not be successful in
negotiating an Agreement with the top-ranked proposer, authorizing negotiations with the second-
ranked proposer, Matrix Consulting Group; and further Authorizing the Mayor and City Clerk to
execute an agreement upon conclusion of successful negotiation by the Administration to not
exceed $42,260, and appropriating funds from FY 2007-08 year-end set aside for Building
Department uses.
PASSED AND ADOPTED THIS 25th DAY OF February 2009.
ATTEST:
~~
~~
CITY CLERK OR
Robert Parcher Matti Herrera Bower
T:IAGENDA\2009\February 25\Consent\RFP-10-08-09 Fees Study - Resolution.doc
APPROVED AS TO
FORM ~ LANGUAGE
& FOR ~CUTION
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ets
C;UMMISSIUN I I tM SUMMAKY
Condensed Title:
Accept the City's Manager's Recommendation Pertaining To The Ranking of Proposals Pursuant To
Request for Proposals (RFP) No. 10-08/09, For a Building Development Process Fees Study; Authorizing
the Administration to Enter Into Negotiations With The Top-Ranked Proposer, Maximus Consulting
Services, Inc; And Should The Administration Not Be Successful In Negotiating An Agreement With The
Top-Ranked Proposer, Authorizing Negotiations With The Second-Ranked Proposer, Matrix Consulting
Group; And Further Authorizing The Mayor and City Clerk To Execute An Agreement Upon Conclusion Of
Successful Negotiation By The Administration To Not Exceed $42,260, And Appropriating Funds from FY
07-08 Year-End Set Aside For Building Department Uses.
Intended Outcome Su
Improve the City's Overall Financial Health and Maintain Overall Bond Rating; Make City More
Business Friend) .
Supporting Data (Surveys, Environmental Scan, etc.): The July 2008 Internal Aud'R Report of Building
Permit Fees included a finding related to the "Department's complex fee schedule and lack of regular
revisions". The finding included that the fee schedule consists of numerous fees for specific scope of works.
This complexity leads to inefficiencies and inconsistencies in charging customers. In addition, one of the
recommendations ofthe Watson & Rice Building Department draft report recommends thatthe City pursue
a sim Iced ermit fee calculation methodolo
Issue:
Shall the City Commisson approve the City Manager's recommendation?
Item Summa /Recommendation:
On December 10, 2008, the Mayor and City Commission approved the issuance of Request for Proposals
(RFP) No. 10-08/09 for a Building Development Process Fees Study. The objective of this RFP is to update
all of the fees related to the Building Development Process and provide stafFsupport fortheir adoption as an
ordinance prior to the start of the FY 09-10 budget year.
RFP No. 10-08/09 was issued on December 11, 2008 with an opening date of January 28, 2009. Apre-
proposal conference was held on January 9, 2009. BidNet issued bid notices to 105 prospective proposers,
BidSync issued bid notices to 33 prospective proposers, and 37 proposers were notified via mail, a-mail, and
fax circulation, which resulted in the receipt of five (5) proposals. During the review process performed by
the Procurement Office and with the approval of the Cites legal department, the proposal submitted by
KPMG LLP was deemed non-responsive since it failed to provide the requested cost related information.
Therefore, only four (4) proposals were presented to the Evaluation Committee members forfurther review.
The City Manager via Letter to Commission (LTC) No.027-2009, appointed an Evaluation Committee ("the
Committee")which convened on February 12, 2009. The Committee discussed their individual perceptions
of the proposers' qualifications, experience, price and competence, and ranked the proposers accordingly.
A motion was presented by Richard Lorber, seconded by Grace Escalante, and unanimously approved by
all Committee members to recommend the first ranked proposer, Maxmus Consulting Services for potential
award for the Building Development Process Fees Study.
ACCEPT THE CITY MANAGER'S RECOMMENDATION.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
F 8~ 1 $42,260 To be appropriated from Building Funds set aside
from FY 07-08 ar end.
2
Total
Financial Im act Summa :NIA
Ci Clerk's Office Le islative Trackin
Gus Lo ez, Ext: 6641
Sign-Offs:
De ment Director Assistant Ci Mana er C' Man er
AR KB PDW JMG
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T:\AGENDA\20091February 25\Consent\RFP-10-08-09 Fees Study- Summary.doc
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members oft City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 25, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 10-08/09, FOR A BUILDING
DEVELOPMENT PROCESS FEES STUDY; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED
PROPOSER, MAXIMUS CONSULTING SERVICES; AND SHOULD THE
ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT
WITH THE TOP-RANKED PROPOSER, AUTHORIZING NEGOTIATIONS WITH
THE SECOND-RANKED PROPOSER, MATRIX CONSULTING GROUP; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION TO NOT EXCEED $42,260, AND APPROPRIATING FUNDS
FROM FY 2007108 YEAR-END SET ASIDE FOR BUILDING DEPARTMENT USES.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funds to be appropriated from Building funds set aside from FY 2007-08 year end.
KEY INTENDED OUTCOME SUPPORTED
Improve the City's overall financial health and maintain overall bond rating.
Make City more business friendly.
ANALYSIS
The Administration proposed that the City issue a Request for Proposals (RFP) to select a
qualified consulting firm to conduct an analysis of building development fees in the City of
Miami Beach. The study should have distinct recommendations for fees in the various
departments involved in the building development process, including the Building, Public
Works/Engineering, Fire Prevention, and Planning/Zoning Departments
The fees must be set by establishing a direct relationship between the services
provided and the fees charge to permit holder.
Commission Memorandum - RFP#10-08-09 For Building Development Process Fees Study
February 25, 2009
Page 2
The Building Department provides process intake, routing, billing, and computer support for all
construction activities, issuance of all building and trade permits, verification of compliance
with the Florida Building Code and enforcement of codes promulgated by regulatory agencies
such as the Hotel and Restaurant Commission, Miami-Dade Environmental Resources
Management, State Department of Health and Professional Regulation, Board of Adjustment
and the U.S. Army Corp of Engineers. The Building Department staff conducts plans review
and inspections for plumbing, structural, building, electrical, engineering, elevator and
mechanical trades as required by the different permit types. Additionally, the Department
oversees building re-certification, elevators and boiler inspections and FEMA flood regulations.
In addition to the Building Department, the Prevention Services Division of the Fire
Department, the Public Works Engineering Division, and the Planning and Zoning Department
participate in the building development process including plan reviews and inspections.
The Fire Department is involved in the majority of building permits issued by the City. Afire
fee is collected for each building permit corresponding to the Fire Department review and
inspection. The Public Works Department Engineering Division staff conducts plan reviews
and inspections for all construction activities that occur within the public right-of-way (streets,
roadways, waterways, alleys and sidewalks), public property and easements.
The Public Works Department also performs plan review activities supporting a variety of
Building Department permits in private property that will connect and/or will have potential
impacts to City owned utilities, right-of-way and/or easements. The department also
determines the level of traffic analysis required for compliance with City regulations, including
review and approval of traffic impact studies. In addition, the department conducts technical
review of applications that are to be submitted to County and State regulatory agencies as part
of the building development process.
The Planning Department serves as staff to the City's Planning Board, Board of Adjustment,
Design Review Board, Historic Preservation Board, and Single Family Residential Review
Panel. Depending on the scope of the project, new development is required to receive
approval from one or more of these Boards. The Planning Department processes the
applications, reviews and prepares recommendations to all of the above Boards. Fees are
assessed for the various Planning applications according to a fee schedule contained within
the City Code. The fees have been evaluated from time to time, and compared with other
similar municipalities.
The Planning Department also reviews all building permits for compliance with the land
development regulations and consistency with architectural review guidelines and preservation
appropriateness criteria. This zoning review is required to ensure compliance with existing
legislation, zoning requirements, and state growth management requirements. However, this
function is not fee-based, as Section 553.80(7) of the Florida Statutes precludes building
permit fees to be used for Planning and zoning or other general government activities.
Alternative means of funding such functions should be explored,
A fee for each permit is required to be paid, in accordance with the fee schedule established
and approved by City Commission, on all buildings, electrical, elevators, mechanical,
plumbing, and fire protection new systems or alterations requiring a permit. In addition, fees
are collected for Miami-Dade Building Code Compliance, sanitation, zoning, and radon fees.
The Public Works Department collects fees associated with right-of-way (ROW) construction
activities. Concurrency fees are charged by the Planning Department.
Commission Memorandum -RFP#10-08-09 For Building Development Process Fees Study
February 25, 2009
Page 3
The objective of this RFP is to update all of the fees related to the Building Development
Process and provide staff support for their adoption as an ordinance prior to the start of the FY
2009/10 budget.
The consultant will work closely with a staff committee to be comprised of representatives from
the Office of Budget and Performance Improvement, Finance, Building, Public
Works/Engineering, Fire Prevention, and Planning/Zoning Departments ("Departments"). The
consultant should develop recommendations that help ensure that fees are set at a level and
in a manner to cover the direct and indirect costs of the building development process, are
implementable, are understandable, easily updated in response to change, provide for a long
range financially stable system and ensure the integrity of the permitting process and
collection of fees.
On December 10, 2008, the Mayor and City Commission approved the issuance of Request
for Proposals (RFP) No. 10-08/09 for a Building Development Process Fees Study.
RFP No. 10-08/09 was issued on December 11, 2008 with an opening date of January 28,
2009. Apre-proposal conference to provide information to the consultants submitting a
response was held on January 9, 2009.
BidNet issued bid notices to 105 prospective proposers, BidSync (Formerly known as RFP
Depot) issued bid notices to 33 prospective proposers, and 37 proposers were notified via
mail, a-mail, and fax circulation, which resulted in the receipt of following five (5) proposals:
1. MAXIMUS CONSULTING SERVICES, INC
2. KPMG LLP
3. PMG ASSICATES, INC
4. MATRIX CONSULTING GROUP
5. WILLDAN FINANCIAL SERVICES
During the review process performed by the Procurement Office and with the approval of the
City's legal department, the proposal submitted by KPMG LLP was deemed non-responsive
since it failed to provide the requested cost related information relative to the Building
Development Process Fees Study. Therefore, only four (4) proposals were presented to the
Evaluation Committee members for further review.
The City Manager via Letter to Commission (LTC) No. 027-2009, appointed an Evaluation
Committee ("the Committee") consisting of the following individuals:
• Kathie Brooks, Director, Budget and Performance Improvement Department (OBPI)
• Ira Giller, Resident, Giller and Giller Architects
• Ken Nichols, Vice President, G.T. Construction and Development, Inc
• Chris Puentes, Project Executive, Turnberry Ltd
• Sonni Moore, Chief Fire Protection Analyst, Fire Prevention Department
• Richard Lorber, Planning and Zoning Manager, Planning Department
• Grace Escalante, Assistant Director, Building Department
Commission Memorandum - RFP#10-08-09 For Building Development Process Fees Study
February 25, 2009
Page 4
On January 12, 2009, the Committee convened and a quorum was attained. Kathie Brooks,
Budget and Performance Improvement Department's Director, addressed the Committee and
provided general information on the scope of services. The Committee members were also
provided with presentations and Performance Evaluation Surveys from all proposers:
The following Evaluation Criteria was used to evaluate and rank the groups or individuals
• Qualifications of Individuals assigned to work with the City 35 points
• Consultant(s) experience and past performance with similar projects 20 points
• Proposed Fees 35 points
• Methodology and Approach 10 points
The Committee discussed their individual perceptions of the proposers' qualifications,
experience, price and competence, and ranked the proposers being evaluated accordingly.
A motion was presented by Richard Lorber, seconded by Grace Escalante and unanimously
approved by all Committee members to recommend the first ranked proposer, Maximus
Consulting Services for potential award for the Building Development Process Fees Study.
_i
.+ r ;'.
..
~ 4 +
-10 os~os FoR a~:
LOW
'N•. Kathie Ken Chris Sonni Richard Grace AGGREGATE
~~.~PR Brooks Ira Giller Nichols Puentes Moore Lorber Escalante TOTALS TOTALS
MAXIMUS
CONSULTING
SERVICES 95 1 97 2 88 1 99 1 59 3 100 1 94 1 <~ 632 10
PMG ASSOCIATES 71 4 71 4 50 4 65 4 50 4 40 3 60 4 407 27
MATRIX ~'='~
CONSULTING `~`:~
GROUP 82 2 100 1 75 2 84 2 66 1 61 2 80 2 548 12
WILLDAN FINANCIAL -
~
1
SERVICES 79 3 78 3 55 3 70 3 62 2 33 4 66 3 ` 443 21
,, i_,.
R .P:No 1~0-08-09 ~" ~_
#'s 1
#'s 2
#'s 3
#'s 4
MAXIMUS
CONSULTING
SERVICES 5 1 1
PMG ASSOCIATES 1 6
MATRIX
CONSULTING
GROUP 2 5
WILLDAN FINANCIAL
SERVICES 1 5 1
RANKING ORDER
MAXIMUS CONSULTING SERVICES
2
3
4
PMG ASSOCIATES
Commission Memorandum -RFP#10-08-09 For Building Development Process Fees Study
February 25, 2009
Page 5
Maximus Consulting Services, Inc
Maximus Consulting Services, Inc has conducted user fee and cost allocation studies for more
than 20 years. Maximus Consulting Services Inc has recently conducted fee studies for many
Florida's communities such as Tampa, Cape Coral, Orange County, Hillsborough County and
Manatee County.
Maximus Consulting Services, Inc proposes a simpler fee structure, Nexus, which utilizes the
following three elements: the occupancy type, square footage, and construction type to
determine the fee to reimburse the City's cost. The Nexus methodology is designed to
generate cost-based building fees based on codes derived from the Florida Building Code.
The Nexus methodology is a simple formula that decreases staff time spent calculating fees.
It is cost based so that each fee matches the City's actual cost of providing service, and it can
be easily updated annually by City staff, to adjust for increases in budgeting expenditures.
Builders appreciate cost-based fees, since they view the industry in this matter. Nationally,
there is a growing trend to move away from valuation-based fees.
Maximus Consulting Services, Inc also brings a broader contextual understanding of how to
address efficiency concerns. Ensuring fees that appropriately reflect the cost involved in
providing the services is a critical and necessary step for best serving our residents.
The proposed Project Director to be assigned to the City of Miami Beach, Bruce Cowans, has
been with Maximus Consulting Services since 1991. Mr. Cowans directs a regional practice of
two dozen consultants that serves clients in seven states in the Southeast and Midwest. He
leads all work at the national level performed by Maximus Consulting Services Inc on user
fees, cost of service studies, and information technology rates and provides direction to
business process redesign projects.
Maximus Consulting Services, Inc proposed fees include all travel costs for a total of four
onsite trips, one meeting with the industry representatives, and two presentations:
Pro osed Fees Hours Fee
Phase 1: Pre- tannin and Project Kick-of 56 $10,730
Phase 2: Cost and Fee Anal sis 144 $22,520
Phase 3: Public Outreach and Recommendations 39 $9,010
TOTAL 239 $42,260
CONCLUSION
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida accepting
the recommendation of the City Manager pertaining to the ranking of proposals pursuant to
Request for Proposals (RFP) No. 10-08/09, for a Building Development Process Fees Study;
Authorizing the Administration to enter into negotiations with the top-ranked proposer,
Maximus Consulting Services, Inc; and should the Administration not be successful in
negotiating an Agreement with the top-ranked proposer, authorizing negotiations with the
second-ranked proposer, Matrix Consulting Group; and further Authorizing the Mayor and City
Clerk to execute an agreement upon conclusion of successful negotiation by the
Administration to not exceed $42,260, and appropriating funds from FY 2007/08 year-end set
aside for Building Department uses.
T:WGENDA\2009\February 25\Consent\RFP-10-08-09 Fees Study - Memo.doc