HomeMy WebLinkAbout25D - DEVELOPMENT USER FEE STUDY
CITY COUNCIL MEETING DATE:
REQUEST FOR
COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
MAY 7, 2007
TITLE
AGREEMENT WITH PUBLIC RESOURCES
MANAGEMENT GROUP FOR DEVELOPMENT
USER FEE STUDY, WATER AND SEWER
FUND STUDY, AND FULL COST
ALLOCATION PLAN
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APPROVED
o As Recommended
o As Amended
D Ordinance on 1 sl Reading
D Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
CONTINUED TO
a
FILE NUMBER
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute an agreement with Public Resources
Management Group for a study of the City's general fund development user
fees, water fund, and sewer fund, and for a full cost allocation plan in
an amount not to exceed $116,000.
DISCUSSION
Best practices require that cities from time to time study development
related fees in order to ensure appropriate cost recovery and guard
against potential legal challenges concerning the nexus between the amount
of development-related fees and the services provided. California law
provides that any development fee charged by a local agency shall not
exceed the estimated reasonable cost of providing the service. However,
the law authorizes agencies to recover all costs associated with
development processing.
In addition to a comprehensive analysis of the city's development fees, a
study also is recommended of the City's sewer and water enterprise funds,
as well as a thorough study of all indirect costs of other agencies in
the support of these services. The purpose of this recommendation is to
assess the true cost to provide related services to our customers in order
to update the city's development fees, realize potential revenue to offset
general fund expenditures and to ensure that proper legal requirements are
met.
On December 20, 2006, requests for proposals were sent to ten consulting
firms specializing in municipal financial consulting and cost recovery.
Four proposals were received. A review team from the various City
agencies evaluated the proposals and recommend Public Resources Management
Group as the consulting firm ranking highest in experience, professional
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Agreement with Public Resources
Management Group
May 7, 2007
Page 2
staff, and methodology, as well as reasonableness of cost and City staff
time required. The total proposal cost is $116,000, which includes a
$10,000 contingency budget for any additional work effort the City deems
desirable.
FISCAL IMPACT
Funds in the amount of $91,000 are available in the Planning and Building
Agency's account for other contractual services (account no. 11-503-6291),
and funds in the amount of $25.000 are available in the Finance and
Management Services Agency's account for other contractual services
(account no. 11-170-6291).
APPROVAL AS TO FUNDS AND ACCOUNTS:
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J M. Trevino
"
Executive Director
Planning & Building Agency
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l~ancisco Gutierrez
'D Executive Director
Finance & Management Services Agenc~
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