Newport SDC Update RFP_Final.pdf

CITY OF NEWPORT, OREGON

REQUEST FOR PROPOSALS

for

CONSULTING SERVICES TO

UPDATE THE CITY OF NEWPORT’S

SYSTEM DEVELOPMENT CHARGE METHODOLOGY,

ORDINANCE, AND IMPLEMENTATION TOOLS

PROPOSALS DUE: April 30, 2026, by 5:00 pm

SUBMIT PROPOSAL TO:

Derrick I. Tokos, AICP Community Development Director City of Newport 169 SW Coast Highway Newport, Oregon 97365

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1. INTRODUCTION

The City of Newport is seeking proposals from qualified individuals, firms, teams (hereinafter referred to as Consultant), with demonstrated experience in evaluating and updating municipal System Development Charge (SDC) methodologies and performing fee studies.

Key Dates and Submission Information

Item Detail

Proposal Due April 30, 2026, by 5:00 pm

Project Budget $85,000

Project Completion December 31, 2026

Selection Anticipated No later than May 15, 2026

Submit To Derrick I. Tokos, AICP – d.tokos@newportoregon.gov / 541-574-0626

2. PROJECT OVERVIEW

The purpose of this project is to update the City of Newport’s 2017 System Development Charge Methodology and Ordinance to accomplish the following objectives:

1. Ensure that formulas used to establish SDC fees accurately account for the impact new development has on capital systems and are proportional to the scale of a project.

2. Update capital project lists to align with current facilities plans and confirm that projects listed are likely to be needed in a 20-year planning period.

3. Promote affordable housing.

4. Gauge the impact of proposed SDC rate adjustments, in conjunction with other upfront costs, to ensure that they are in line with other similarly situated communities.

5. Assess options and changes needed to adjust the timing of SDC collections to assist developers with project cashflow.

The work and resulting recommendations are to be consistent with industry standards and best practices and adhere to statutes and case law governing the collection of SDCs.

With this project, the Consultant will develop a web-based tool that individuals can use to estimate upfront development costs, including SDC, CET and building permit fees, and update or replace the City’s existing Excel-based SDC calculator. Both tools must be designed such that they can be maintained and updated by City staff.

3. DRAFT SCOPE OF WORK

This draft scope of work represents the City’s best estimate of the work needed to accomplish the objectives for this project. The City is open to alternative approaches that may deviate from this scope to better meet project objectives.

A. Project Initiation and Kick-off. Staff will provide Consultant with relevant background information in an electronic format, where available. This may include, but is not limited to:

1. 2017 System Development Charge Methodology

2. SDC Rate Adjustment Resolutions and Worksheets

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3. Construction Excise Tax Resolutions and Worksheets

4. Historical Permit Data

5. Transportation System Plan (2022)

6. Water System Master Plan (2026 draft)

7. Wastewater System Master Plan – Collections (2018)

8. Wastewater System Master Plan – Treatment Plant (2024)

9. Stormwater Master Plan (2026 draft)

10. Airport Master Plan (2018)

11. Newport Northside Urban Renewal Plan

12. McLean Point Urban Renewal Plan

Consultant shall review the background materials and meet with City staff to clarify study objectives, discuss existing SDC issues and methodology alternatives, and confirm key policy considerations that could inform the work.

Deliverable: Meeting notes summarizing agreed upon outcomes.

B. Overview of SDC Laws and Methodology Alternatives. Consultant will prepare a technical memorandum which provides an overview of the Oregon SDC legal requirements per ORS 223.297-223.314, and current City of Newport SDC Methodology, ordinance, and related assumptions used for its cost basis, growth basis, credit policies, exemptions and other features.

The memorandum will further outline approaches the City may consider when updating its SDC methodology, considering best practices and innovative initiatives being undertaken by other communities. Consultant will hold a video-conference call with City staff to discuss methodology alternatives. Once the product is finalized, Consultant will prepare a PowerPoint summarizing the key points and present the information to the Newport Planning Commission and City Council.

Feedback received from the Commission and Council would be used to inform future tasks.

Deliverable: SDC law and methodology alternatives memo, PowerPoint presentation, notes summarizing feedback from the Planning Commission and City Council.

C. Confirmation of Eligible Capital Projects. Consultant shall prepare a detailed list of capital projects identified to date in City’s adopted and draft facility plans that are eligible for improvement system development charges. Planning level cost estimates for eligible projects are to be escalated as appropriate. From that list, a recommended set of projects will be identified considering alternative funding sources and the likelihood that the work will be performed in a 20-year planning period. Lists will identify the percentage eligibility of a project with assumptions used to establish the percentages outlined in narrative form. Consultant to present the information to city staff to confirm or adjust the recommendations. City’s existing SDC Methodology is not structured to collect reimbursement fees, and the City does not anticipate adding a reimbursement fee component to its SDC Methodology as part of this project.

Deliverable: Capital project eligibility lists with text descriptions and/or maps sufficient to accurately describe the location and extent of the public improvements.

D. SDC Methodology Alternatives Analysis. Consultant shall prepare a memo that summarizes and evaluates alternative approaches to Newport’s SDC methodology, and identify a recommended methodology for each public facility type. Key issues may include SDC improvement fee cost basis, selection of eligible projects, units of growth, and collection and credit policies. Specific consideration shall be given to steps that can be taken to promote affordable housing, and ensure that fees charged are proportional to the scale of a project.

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When determining an appropriate cost basis for SDC assessments, Consultant shall consider the full scope of upfront development fees assessed by the City, including CETs, and building fees. Consultant to present the information in memo format to City staff, and as a PowerPoint presentation to the Newport Planning Commission and City Council.

Deliverable: Alternatives analysis memo and PowerPoint presentation outlining key findings and recommendations for potential changes to the City’s SDC Methodology and ordinance.

E. System Development Charge Online Tool and Calculator. Consultant will develop a web-based fee estimation tool that individuals can use to calculate anticipated upfront development charges attributed to their development project. This includes System Development Charges, Construction Excise Taxes, and building plan review and permit fees. Additionally, Consultant will update or develop a new SDC fee calculator for use by City staff. Both the online tool and calculator are to be structured so that they can be readily edited and updated by City staff.

Deliverable: Web based fee estimation tool and SDC calculator.

F. Draft Report. Consultant to prepare a draft update to the City’s System Development Charge

Methodology and recommended set of ordinance updates that incorporates the information and recommendations derived from the previous tasks. City staff will circulate the document to the Planning Commission and City Council, and Consultant will attend those meetings to obtain feedback on the draft document. Video-conference participation at these meetings is an option.

Deliverable: Draft update to the City’s System Development Charge Methodology.

G. Final Reports. Consultant shall prepare a final draft of the updated System Development Charge Methodology. The report must summarize the public engagement process, alternatives considered, and the rationale for recommended revisions. The report shall also be formatted such that the graphics and text can be readily incorporated by the City into other planning documents. City staff will prepare documents related to the adoption of the methodology;

however, Consultant shall be available to provide at least one round of edits to address feedback received from the Newport Planning Commission and City Council.

Deliverable: Final draft of the updated System Development Charge methodology, with recommended ordinance changes.

Consultant shall coordinate as needed with City staff throughout the process. Unless otherwise specified, it is the City’s preference that work product be delivered in an electronic format. It is the City’s expectation that Consultant will be able to utilize technical data from the City’s existing facility plans, where available, to inform the development of planning level cost estimates.

4. PROJECT SCHEDULE

It is the City’s desire that the project be completed by December 31, 2026, so that the recommendations can be considered as part of the FY 26/27 budget process.

5. TASKS TO BE PERFORMED BY CITY

City staff will coordinate the scheduling of Planning Commission and City Council meetings, and will prepare implementing ordinance or resolution, as applicable. Staff will also provide Consultant with technical assistance at all stages of the project.

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6. BUDGET

The City has budgeted $85,000 for this project and is looking for proposals that are structured such that they can be implemented with available funds. Proposals for work items that are beyond the available budget should be framed as alternative, add items.

7. PROJECT PROPOSAL REQUIREMENTS

Proposals should be organized in the following format:

A. Cover Letter. Provide a cover letter, signed by a duly constituted official legally authorized to bind the proposer to both its proposal and cost estimate. The cover letter must include the name, address, and telephone number of the proposer submitting the proposal, and the name, title, address, telephone number, fax number, and email address of the person or persons authorized to represent the proposer and to whom correspondence should be directed.

B. Project Approach and Understanding. Provide a detailed description of the Consultant’s proposed approach demonstrating how the City’s objectives will be accomplished as outlined in the above draft Scope of Work. Clearly describe and explain the reason for any proposed modifications to the methods, tasks and products identified in the draft Scope of Work outlined in Section 3 of this RFP.

C. Project Organization and Team Qualifications. Identification of all services to be provided by the principal firm and those proposed to be provided by subcontractors and information regarding the firm(s) assigned to the project including size of firm(s) and overall capabilities of each as considered relevant to this project. Provide information regarding all personnel assigned as team members to this project including names, prior experience, position, role and level of responsibility in the project. The City reserves the right to reject any proposed firm or team member or to request their reassignment. The project manager shall be identified by name and shall not be changed without written approval by the City. The principal consulting firm must assume responsibility for any sub-consultant work and shall be responsible for the day to day management and direction of the project.

D. Project Timeline. Proposed timeline for accomplishing the project, including critical paths and milestones, and specific consulting staff by task based on the draft Scope of Work.

E. Project Coordination and Monitoring. Describe the process for ensuring effective communication between the Consultant and the City, and for monitoring progress to ensure compliance with approved timeline, budget, staffing and deliverables.

F. Proposed Cost of Services. Provide a budget summary broken down by task, time, personnel, and hourly rate, number of hours and cost for each team member including those employed by subcontractors. Fee information should be formatted to correspond to tasks identified in this RFP;

however, this format may be modified to suit the consultant’s approach to this project. The summary shall include a budget for reimbursable expenses. The final cost of consulting services may be based on a negotiated detailed scope of work. The budget summary shall also include all required materials and other direct costs, administrative support, overhead and profit that will apply.

G. Similar Project Experience. Specific examples of comparable work which best demonstrate the qualifications and ability of the team to accomplish the overall goals of the project under financial and time constraints. Provide names, addresses and telephone numbers of clients associated

System Development Charge Methodology Update Page 6 of 6 with each of these projects. Through submission of a proposal, all respondents specifically agree to and release the City of Newport to solicit, secure and confirm information provided.

8. SELECTION OF PROPOSALS

Proposals will be evaluated based on the following criteria:

Thoroughness, quality and conciseness of submittal. 20 pts.

Project understanding and approach for accomplishing the City’s objectives.

20 pts.

Qualifications of the project manager and project team, and proven ability to successfully complete projects of similar scope.

20 pts.

Proposed cost of services. 15 pts.

Ability to complete the Scope of Work within six (6) months of when the consulting contract is signed.

10 pts.

References from past and present clients. 15 pts.

Total

100 pts.

9. SUBMISSION PROCESS AND EVALUATION TIMELINE

For questions regarding this RFP, please contact Derrick I. Tokos, AICP, Community Development Director, City of Newport, at d.tokos@newportoregon.gov or 541-574-0626.

Interested parties should contact Derrick Tokos, Newport Community Development Director, to indicate their interest in submitting a proposal and specify the manner to receive any amendments to the RFP. Any amendments to this RFP will be in writing and will be issued to all persons or businesses that have indicated an interest in receiving RFP amendments. No proposal will be considered if it is not responsive to any issued amendments.

Proposals may be submitted electronically by email to Community Development Director, or they may be submitted in hard copy form to the attention of the Community Development Director at Newport City Hall (169 SW Coast Hwy, Newport, Oregon 97365). Responses to this RFP are due no later than 5:00 pm, April 30, 2026.

Responders may be invited to present their proposal to the City. This may be in person or a video-conference format. A final selection is anticipated to occur no later than May 15, 2026.