GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 1-20-26 Page 1 of 3 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on January 20, 2025, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.
You may view using the following link, ID, and passcode:
https://us06web.zoom.us/j/87964267091?pwd=Fm7XE9vW1Srswf0gGfb6aj9aaCSqtX.1 Webinar ID: 879 6426 7091
Passcode: 619286
CALL TO ORDER - Mayor Farr
ROLL CALL
PLEDGE OF ALLEGIANCE – Mayor Farr
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
• Jason Dyer, Cal Fire Division Chief
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA
1. City Council Minutes
City Council to review and approve regular City Council minutes Recommended Action(s):
a. Approve regular City Council meeting minutes dated December 15th, 2025 b. Approve special City Council meeting minutes dated November 3rd and December 15th, 2025, and January 5th, 2026
Gridley City Council – Regular Meeting Agenda
Tuesday, January 20, 2026; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 1-20-26 Page 2 of 3
2. Volunteer Fire Assistance Grant
City Council to review and approve the Cal Fire Cooperative Fire Protection Grant Agreement #7FG25022
Recommended Action(s):
a. Approve Resolution 2025-R-001: a Resolution approving the Cal Fire Cooperative Fire Protection Grant Agreement #7FG25022
b. Authorize Mayor to execute necessary documents
ITEMS FOR CONSIDERATION –
3. Comprehensive Cost Allocation, and Master Fee Study Contract Award City Council to review and consider award of contract for the Comprehensive Cost Allocation, and Master Fee Study to Matrix Consulting Group.
Recommended Action(s):
a. Award the Comprehensive Cost Allocation, and Master Fee Study to Matrix in the amount of $34,000
b. Authorize City Administrator to execute any necessary agreements
4. On-Call Professional Planning Services
City Council consideration of approval of Professional Services Agreements with seven qualified firms to provide on-call planning and related professional services as needed.
Recommended Action(s):
a. Authorize the City Administrator to execute the professional agreements with each firm, and
b. Authorize the City Administrator to issue task orders in accordance with their terms and applicable procurement policies as needed
5. Gridley Vierra Park – Snack Bar Building HVAC Replacement City Council to review attached HVAC proposals to replace the unit at the Gridley Vierra Park Snack Bar Building
Recommended Action(s):
a. Approve the replacement of the HVAC system at the Gridley Vierra Park snack bar building and authorize staff to proceed with Dake Bros Heating and Air LLC in the amount of $8,240
b. Authorize Public Works Director to execute any necessary documents GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 1-20-26 Page 3 of 3 COUNCIL COMMITTEE REPORTS - Brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.
CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.
DEPARTMENT UPDATE REPORTS
6. Update to Litigation Regarding 110 and 390 Virginia St. – Deputy City Attorney Landon Little
7. Quarterly Investment Update – Finance Director Martin Pineda, Business Services Supervisor Miguel Chavez
8. Police Department Quarterly Report – Police Chief Todd Farr POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Energy Efficiency Contract Review 2/2/2025
Randolph Lot Use Agreement - GUSD 2/2/2025
Public Works – Sewer Grinder Repair 2/2/2025
Engineering – City Standards 2/2/2025
CLOSED SESSION –
9. Closed session discussion with legal counsel pursuant to Government Code 54956.95 – Liability Claim of Joseph Martin
10. Pursuant to Government Code 54957.6: Conference with Labor Negotiator, Elisa Arteaga, City Administrator, for discussion of progress of collective bargaining discussions with City Employee represented classes – IBEW
ADJOURNMENT – adjourning to a regular meeting on February 2, 2026 NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., January 17th, 2026. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.
NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.
GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 11-3-2025 Page 1 of 2 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”
CALL TO ORDER
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA - None
STUDY SESSION - ITEMS FOR DISCUSSION
1. Draft Sidewalk and Tree Ordinance Update
Staff recommends the City Council review and provide feedback on both the draft sidewalk ordinance and tree ordinance update during this study session Recommended Action(s):
a. provide feedback on the draft sidewalk ordinance and draft tree ordinance City Administrator Elisa Arteaga opened the item and stated that, due to a missing exhibit in the draft tree ordinance, the Council would instead review the draft sidewalk ordinance update.
Arteaga explained that the meeting was a study session intended to receive Council direction on potential revisions to the ordinance. She reiterated, as discussed at a prior study session, that the proposed changes are based on recommendations from the City’s liability carrier, NCCSIF, and are intended to clarify liability by assigning responsibility for sidewalk maintenance and repair to the adjacent property owner. She also noted that the Council may consider establishing a hardship assistance program for qualifying property owners.
The Council discussed several key issues, including the desire to avoid aggressive enforcement following adoption of the ordinance, clarification of property owner responsibility and liability when purchasing property with existing sidewalk damage, and the cost recovery process, including the City’s authority to place liens on properties for unpaid repair costs.
Gridley City Council – Special City Council Meeting Minutes Study Session
Monday, November 3, 2025; 5:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 11-3-2025 Page 2 of 2 Arteaga stated that all Council comments were noted and that a revised ordinance would be brought back to the Council for consideration.
CLOSED SESSION - None
ADJOURNMENT
With no further items left to discuss, Mayor Farr adjourned to the next regular meeting on November 3rd, 2025.
Approve: ___________________________
Elisa Arteaga, City Clerk
GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 12-15-2025 Page 1 of 1 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, andmeaningful objectives.”
CALL TO ORDER
Mayor Farr called the meeting to order at 5:30 pm.
ROLL CALL
Present: Johnson, Roberts, Farr, Calderon, Sanchez
Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Landon Little, Deputy City Attorney
Martin Pineda, Finance Director
Dave Harden, City Engineer
Jerry Cox, Public Works Director
Todd Farr, Police Chief
Christopher Smith, Principal Planner
Carmen Santana, Deputy City Clerk
COMMUNITY PARTICIPATION FORUM
The forum was opened, and seeing as no on was present to speak was closed.
PROCLAMATION – Proclamation and Special Recognition Honoring the Retirement of Fire Chief Chip Fowler
Mayor Farr read a proclamation honoring retiring Fire Chief Chip Fowler and personally thanked Chief Fowler for his dedicated service to the city.
Councilmember Sanchez also expressed appreciation for Chief Fowler’s contributions.
Gridley City Council – Special City Council Meeting Agenda Monday, December 15, 2025; 5:30 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 12-15-2025 Page 1 of 1 Representatives from Cal Fire along with City staff, addressed the Council to commend Chief Fowler for his leadership, mentorship, and years of service.
ADJOURNMENT
Mayor Farr adjourned to the next regular meeting on December 15th, 2025.
Approve:___________________________________
Elisa Arteaga, City Clerk
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 12-15-25 Page 1 of 5 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”
CALL TO ORDER
Mayor Farr called the meeting to order at 6:00 pm.
ROLL CALL
Present: Johnson, Roberts, Farr, Calderon, Sanchez
Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Landon Little, Deputy City Attorney
Martin Pineda, Finance Director
Dave Harden, City Engineer
Jerry Cox, Public Works Director
Todd Farr, Police Chief
Christopher Smith, Principal Planner
Carmen Santana, Deputy City Clerk
PLEDGE OF ALLEGIANCE
Councilmember Roberts led the Pledge of Allegiance.
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None
COMMUNITY PARTICIPATION FORUM
Jose Santana, 982 Fairview Dr., Gridley, read his letter that addressed the Council regarding concerns shared by himself and neighboring residents about high school students parking along nearby streets and leaving trash behind, among other issues. He presented the Council with signatures from neighbors who share these concerns, as well as correspondence from the Gridley High School principal.
Dave Garner, 375 Hazel St., Gridley, addressed the Council to express his concerns regarding the upcoming PG&E power shutoffs and the Caltrans highway improvement project.
Gridley City Council – Regular Meeting Minutes
Monday, December 15, 2025; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 12-15-25 Page 2 of 5
CONSENT AGENDA
1. City Council Minutes
City Council to review and approve regular City Council minutes Recommended Action(s):
a. Approve regular City Council meeting minutes dated December 1st, 2025 b. Approve special City Council meeting minutes dated December 2nd, 2025 c. Approve emergency City Council meeting minutes dated December 2nd, 2025
2. Expenditure Reports
City Council to review and approve the expenditure reports for September, October and November 2025
Recommended Action(s):
a. Approve expenditure reports for September, October and November 2025
3. Power Content Label
City Council to review and approve the 2024 Power Content Label Recommended Action(s):
a. Approve Resolution 2025-R-032: a Resolution of the City Council of the City of Gridley Approving the Attestation of Veracity of the 2024 Power Source Disclosure Report, the 2024 Power Content Label and Submission of The Report to The California Energy Commission the attached 2024 Power Content Label as required by NCPA
ROLL CALL
Motion: Roberts
Second: Johnson
Action: approve consent agenda as presented
Ayes: Roberts, Farr, Johnson, Sanchez
Noes: None
Absent: Calderon
Abstain: None
Motion passed, 4-0
ITEMS FOR CONSIDERATION –
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 12-15-25 Page 3 of 5
4. Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan City Council to review to award contract for the ADA Self Evaluation and Transition Plan to Disability Access Consultants, LLC (DAC) in the amount of $89,960 Recommended Action(s):
a. Award the ADA Self-Evaluation and Transition Plan to DAC, LLC in the amount of $89,960
b. Authorize City Administrator to execute any necessary agreements c. Approve Resolution 2025-R-033: a resolution approving the supplemental appropriation for the ADA Self-Evaluation and Transition Plan City Engineer Dave Harden presented the item and recommended that the City award the contract for the development of an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan to Disability Access Consultants, LLC (DAC), in the amount of $89,960. Harden explained that the ADA requires public agencies to evaluate their programs, services, and facilities to ensure compliance with federal accessibility standards. Under Title II of the ADA, cities are required to prepare and maintain an ADA Self-Evaluation and Transition Plan to identify physical and programmatic barriers and to establish a prioritized schedule for their removal.
ROLL CALL
Motion: Johnson
Second: Roberts
Action: Motion to award the contract for the ADA Self-Evaluation and Transition Plan to Disability Access Consultants, LLC (DAC) in the amount of $89,960; authorize the City Administrator to execute all necessary agreements; and approve the supplemental appropriation through Resolution No. 2025-R-033.
Ayes: Roberts, Farr, Johnson, Sanchez
Noes: None
Absent: Calderon
Abstain: None
Motion passed, 4-0
5. Gridley Feather River Sewer Crossing – Contract Amendment City Council to authorize the City Administrator to execute a no cost amendment to task order 16-607-206 with Bennett Engineering Services (BENEN) to adjust budget allocation to tasks within the contract and submission of an amendment for grant extension and scope reallocation to California Water Boards Department of Financial Assistance.
Recommended Action(s):
a. Authorize City Administrator to execute the no cost amendment task order 16- 607-206 with BENEN
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 12-15-25 Page 4 of 5 City Engineer Dave Harden presented a PowerPoint highlighting the item and requested that the City Council authorize the City Administrator to execute a no-cost amendment to Task Order No. 16-607-206 with Bennett Engineering. The amendment would adjust the allocation of the budget among tasks within the contract and authorize the submittal of an amendment to the California Water Boards Department of Financial Assistance for a grant extension and scope reallocation.
Harden explained that recent geotechnical borings yielded unfavorable results, requiring Bennett Engineering to explore alternative options for the proposed sewer crossing replacement. Approval of the amendment would reallocate grant-funded dollars back to the planning and design phase in order to further evaluate feasible alternatives.
Councilmember Sanchez expressed concern regarding the amount of funding that has already been expended on the project.
ROLL CALL
Motion: Johnson
Second: Roberts
Action: Authorize City Administrator to execute the no cost amendment task order 16-607-206 with BENEN
Ayes: Roberts, Farr, Johnson, Sanchez
Noes: None
Absent: Calderon
Abstain: None
Motion passed, 4-0
COUNCIL COMMITTEE REPORTS
Councilmember Roberts reported that the recent Winter Wonderland Parade was a success.
Mayor Farr reported on his attendance at the NCPA Commission Meeting.
Vice Mayor Johnson reported on his attendance at the Flood Control Agency and Mosquito and Vector Control District meetings.
CITY ADMINISTRATOR REPORTS
City Administrator Elisa Arteaga reported that the Code Enforcement Department hosted a booth at the Winter Wonderland Parade, coordinated by Pamela Roberts, and she thanked Roberts for her efforts. Arteaga also reported on recent meetings with the City’s auditors, representatives from PG&E and IBEW, as well as her participation in an Emergency Operations Center (EOC) training workshop conducted by Fire Chief Chip Fowler.
DEPARTMENT UPDATE REPORTS
Police Chief Todd Farr stated that, in preparation for the upcoming PG&E scheduled shutoff, the Police Department will be double-staffed during that period.
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 12-15-25 Page 5 of 5 Fire Chief Chip Fowler provided an update on the most recent Emergency Operations Center (EOC) training, which was conducted by himself and Battalion Chief Mike Conaty.
Finance Director Martin Pineda shared highlights from a meeting he attended with the City’s auditors and City Administrator Elisa Arteaga. Pineda also provided an overview of the Recreation Department’s activities for the month of December.
Public Works Director Jerry Cox advised the Council that the Public Works Department has ensured all department infrastructure is prepared for the upcoming PG&E shutoff.
Electric Director Ryan Carlson discussed preparations for the scheduled PG&E shutoff and noted that the City’s contracted electrical engineer will be on site to perform testing that can only be completed while power is off.
Principal Planner Christopher Smith updated Council about the Housing Element review.
POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Energy Efficiency Contract Review 1/20/2025
Randolph Lot Use Agreement - GUSD 1/20/2025
Public Works – Sewer Grinder Repair 1/20/2025
Engineering – City Standards 1/20/2025
CLOSED SESSION –
6. Pursuant to Government Code 54957.6: Conference with Labor Negotiator, Elisa Arteaga, City Administrator, for discussion of progress of collective bargaining discussions with City Employee represented classes – IBEW
Council went into closed session at 7:18 pm.
Closed Session Roll Call:
Present: Sanchez, Johnson
Recused: Farr, Roberts
Absent: Calderon
Although a quorum was not present for voting in Closed Session, the City Administrator provided an informational update to those in attendance. No reportable action was taken.
ADJOURNMENT
With no further items left to discuss, the meeting was adjourned to the next regular meeting on January 20, 2026.
Approve: _______________________________
Elisa Arteaga, City Clerk
GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 1-5-2026 Page 1 of 1 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”
CALL TO ORDER
Vice Mayor Johnson called the meeting to order at 4:00 pm.
ROLL CALL
Present: Johnson, Calderon, Sanchez
Absent: Roberts (recused himself), Farr (recused himself) Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Landon Little, Deputy City Attorney
COMMUNITY PARTICIPATION FORUM
The forum was opened, and seeing as no one was present to speak, was closed.
CONSENT AGENDA - None
ITEMS FOR CONSIDERATION - None
CLOSED SESSION
1. Pursuant to Government Code 54957.6: Conference with Labor Negotiator, Elisa Arteaga, City Administrator, for discussion of progress of collective bargaining discussions with City Employee represented classes – IBEW
Council went into closed session at 4:00 pm and came out at 4:38 with no reportable action.
ADJOURNMENT
Vice Mayor Johnson adjourned to the next regular meeting on January 20, 2026.
Approve: ___________________________
Elisa Arteaga, City Clerk
Gridley City Council – Special City Council Meeting Minutes Monday, January 5, 2026; 4:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948
City Council Agenda Item #2
Staff Report
Date: January 20, 2026
To: Mayor and City Council
From: Jason Dyer, Fire Chief
Subject: Approval of Resolution No 2026-R-001: A Resolution of the City Council of the City of Gridley Authorizing the Gridley Fire Department to receive a Rural Fire Capacity Grant
Recommendation
Staff respectfully requests the City Council approve Resolution 2026-R-001 to allow the Gridley Fire Department to receive a Rural Fire Capacity Grant
Background
For several years the City of Gridley has been successful in receiving Rural Fire Capacity (RFC, previously known as Volunteer Fire Assistance, or VFA) Grants that are used to purchase Personal Protective Equipment (PPE) for its volunteer firefighters who assist career firefighters to protect and serve the City of Gridley. The funding of the grant is vital for replacement of aging and worn PPE. The grant is a cost-effective mode for replacement. The cost of outfitting a single volunteer exceeds $5,000.00. PPE has a shelf life of 10 years and due to the nature of the profession, is subject to extreme use. There are approximately 15 volunteer firefighters that protect the Gridley area and replacement of PPE is ongoing as funding comes available.
Financial Impact
This year’s Grant is in the amount of $9,102.00, which is a 50% match with the State of California. The City of Gridley’s match of this grant is $4,551.00.
Compliance with City Council Strategic Plan or Budget Goals This effort complies with the City of Gridley’s Budget Goals to reduce taxpayer’s expenses by finding grant funding to offset budget impacts.
Attachments
Resolution No. 2026-R-001
RFC Agreement 7FG25022
X Regular
Special
Closed
Emergency
RESOLUTION NO.
2026-R-001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY AUTHORIZING THE GRIDLEY
FIRE DEPARTMENT TO RECEIVE A VOLUNTEER FIRE ASSISTANCE GRANT BE IT RESOLVED by the Gridley City Council as follows:
1. The Mayor is hereby authorized and directed to execute, on behalf of the City of Gridley, and the State of California Department of Forestry and Fire Protection, a grant in the amount of $4,551.00 provided under the Cooperative Forestry Assistance Act of 1978 (7FG25022).
2. The City Clerk shall attest to the adoption of this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED by Gridley City Council to approve the supplemental appropriation from the account 060-4060-56300 of $4,551.00 for the cost associated for the equipment to be purchased with this grant. To recognize the grant revenues, approve supplement revenues of $4,551.00 to account 010-0000-46611.
I HEREBY CERTIFY that the foregoing resolution of the City Council of the City of Gridley was duly introduced passed and adopted at a regular meeting of the City Council of the City of Gridley held on January 20, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVE:
_______________________ ______________________
Elisa Arteaga, City Clerk Michael W. Farr, Mayor
City Council Agenda Item #3
Staff Report
Date: January 20, 2026
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Comprehensive Cost Allocation, and Master Fee Study RFP – Accept Matrix Consulting Group’s Proposal
Recommendation
City staff respectfully recommend Gridley City Council Staff:
1. Accept the proposal from Matrix Consulting Group in the amount not to exceed $34,000 and
2. Authorize the City Administrator to sign all agreements/contracts with Matrix Consulting Group
Background
The city of Gridley has not had a comprehensive review of its user fees, cost recovery levels, and cost allocation methodologies to ensure compliance with applicable laws, fiscal responsibility, and transparency. Due to the City’s organizational structure, service levels, and regulatory environment significantly evolving, its crucial for the city complete a comprehensive review. Additionally, recent changes in state law and court rulings underscore the importance of maintaining accurate and legally defensible fee structures, particularly for development impact fees subject to nexus requirements under the Mitigation Fee Act (Government Code §66000 et seq.).
To address these needs and with Gridley Council approval, staff issued and RFP. We received one proposal from Matrix Consulting Group “MCG”.
Experience:
- MCG has over 20 years’ experience in public sector financial and management consulting experience.
- Extensive work with Administrative Governmental functions. - Strong focus on Defensibility and Documentation.
- Broad experience in Administrative Services, Parks and Rec, Community Development, and Public Safety.
- MCG has worked with City of Chico, Town of Paradise, and City of Fort Bragg. The full list is on their proposal on pages 6 and 7.
X Regular
Special
Closed
Emergency
- The work will be done by Matrix Employees – No subcontractors will be used.
MCG focuses on transparency and data-driven decision-making. They have also prepared a plan on both the Cost Allocation and Master Fee Study. MCG will deliver excel modules and training material for City staff to use moving forward and update with council approval.
Originally, City Staff wanted to start in February 2026 and adopted by July 2026. MCG is proposing to complete the start in February 2026, projection completion in May 2026, council presentations and follow up meetings as needed in June/July 2026, and implementation in August/September 2026.
Fiscal Impact
The proposed cost is $34,000. This cost is all inclusive and includes all meetings and presentations with City staff/council. Includes City staff training and support as well as post-project support at no additional cost. A supplemental appropriation will follow if approved.
Attachments
Matrix Consulting Group Proposal
PROPOSAL TO CONDUCT A COMPREHENSIVE FEE AND RATE STUDY
PROPOSAL TO CONDUCT A COST
ALLOCATION PLAN AND MASTER
FEE STUDY
GRIDLEY, CALIFORNIA
JANUARY 9, 2026
PROPOSAL TO CONDUCT A COMPREHENSIVE FEE AND RATE STUDY
MATRIX CONSULTING GROUP
COVER LETTER 1
FIRM QUALIFICATIONS 2
EXPERIENCE AND REFERENCES 6
QUALIFICATION OF TEAM 10
PROJECT UNDERSTANDING 12
PROJECT PLAN 14
COST PROPOSAL 24
OPTIONAL SERVICES 26
TABLE OF CONTENTS
MATRIX CONSULTING GROUP 1
Martin Pineda, Finance Director
City of Gridley
685 Kentucky Street
Gridley, CA 95948
RFP Title: Cost Allocation Plan, Master Fee Study, with Optional Nexus Study Dear Mr. Pineda:
Matrix Consulting Group, Ltd. is pleased to submit our proposal to conduct a Cost Allocation Plan and Master Fee Study for the City of Gridley. Our proposal is based on our review and understanding of the issued Request for Proposal and will demonstrate the exceptional skills and experience required to meet the City’s needs. It will also establish the additional value of choosing our firm.
Our experience providing similar services, along with our understanding of impact and implementation issues, comes from working with clients across California. Recent Northern California clients include Butte County, Chico and Paradise; and Daly City, Dublin, Fort Bragg, Hercules, Los Altos Hills, Livermore, Millbrae, Milpitas, Redwood City, San Mateo, San Ramon, South San Francisco, and Sunnyvale.
At Matrix Consulting Group, we distinguish ourselves from our competitors through our commitment to delivering unparalleled value. Our staff possess a deep understanding of the service and process assumptions underlying service costs. This dual expertise allows us to provide comprehensive insights and solutions that optimize efficiency and maximize our clients' value. Matrix will perform the services and comply with the requirements set forth in the RFP, including any addenda.
I am the firm's President, authorized to represent the firm contractually. Courtney Ramos, a senior vice president and leader of the financial services practice, can provide any additional information you may need during the evaluation period. She can be reached at the address and phone number below or via email at [email protected].
ALAN D. PENNINGTON
President, Matrix Consulting Group, Ltd.
1875 S. Grant Street, Suite 960
San Mateo, CA 94402
650-858-0507 (phone) 650-397-4050 (fax)
[email protected]
www.matrixcg.net
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 2
Matrix Consulting Group, Ltd. is a management consulting firm that provides quality analytical assistance to local and state governments. Our history and composition are summarized below:
• Our headquarters are in California (with headquarters in San Mateo and a satellite office in Irvine). We have offices and staff located throughout the country (in 17 states) and one in Canada. The project team will serve the City from its two California offices. • We are comprised of 32 full-time and seven part-time management consultants who specialize in analyzing local government functions across the entire spectrum of operational areas. We have a dedicated team of financial services professionals. Over the past 5 years, our staffing has increased by 88%.
• We will not use any subcontractors to complete this project for the City of Gridley. • Since our founding over 23 years ago, we have worked with almost 2,000 government agencies, conducting cost-of-service and management studies and providing recommendations for operational improvements and cost recovery.
The market and service focus of Matrix Consulting Group has always been financial, management, staffing, and operations analysis of local government. The following outlines the core financial services provided by our firm:
Full Cost Plans User Fee Studies
OMB 2 CFR Part 200 Cost Plans Development Impact Fee Studies Indirect Cost Rate Proposals Fully Burdened Hourly Rates Internal Service Fund Analyses Revenue Projections
No other firm better understands how public agencies operate or how to help them thrive.
FIRM ORGANIZATION
The following chart provides an overview of our major service areas and the practice leaders for those areas.
FIRM QUALIFICATIONS
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 3
Due to the diversity of its practice areas, Matrix Consulting Group brings a comprehensive understanding of how to support jurisdictions’ operations while providing sound financial analysis. Additional firm details can be made available as needed.
COST ALLOCATION PLAN EXPERIENCE
Our firm has over 23 years of experience developing Full Cost and OMB-compliant Cost Allocation Plans and Indirect Cost Rate Proposals for various municipal organizations across the United States. Our goal is to document and define the services being provided and allocate costs to all beneficiaries. The following points highlight our experience developing cost allocation plans and metrics:
• Administrative Functions: Our firm has extensive experience evaluating processes and functions across Finance, Human Resources, Purchasing, and related areas, from basic tasks and responsibilities to process improvement and oversight controls. Our project teams understand the core administrative services and the time required to complete processes. They are adept at helping staff determine the time spent on a task at the daily, weekly, monthly, or annual level. • Governmental Functions: Matrix Consulting Group has worked with and participated in hundreds of management studies. Additionally, we have extensive experience working with and presenting to various boards, councils, subcommittees, and the public. Our understanding of the different service types enables our project teams to assess the optimal allocation of services. Our team understands how these costs should be treated in both a Full Cost Plan and an OMB-compliant plan, and we make staff aware of standard practices and aggressive allocation options. • Internal Services: Matrix Consulting Group has significant experience evaluating services and functions associated with facilities maintenance, fleet services, and information technology. While these services can be part of the general fund or internal services, their allocation is essential when understanding the indirect costs associated with any fund, department, or program.
Richard Brady
Chair
Alan Pennington
President
General
Consulting
Alan Pennington
President
Financial
Services
Courtney Ramos
Sr. Vice President
Public
Safety
Ian Brady
Sr. Vice President
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 4
• Indirect Cost Rate Proposals: Our firm’s experience ranges from developing citywide proposals to developing departmental and divisional rates. We review all indirect costs related to the service and program areas, determine whether they are allowable, and then set up the indirect cost rate calculation. We are versed in provisional, final fixed, and carry-forward fixed rates. We work with our clients to review rates, outline appropriate applications, and customize templates in accordance with cognizant agency guidelines.
Our project team members are well-versed in the Office of Management and Budget (OMB) costallocation guidelines, Generally Accepted Accounting Principles (GAAP), and best practices outlined by the Governmental Finance Officers Association (GFOA) regarding cost allocation and cost recovery. We are committed to ensuring that all allocated cost centers comply with state and local laws, use fair and equitable allocation metrics, and have their allocations documented and defensible.
FEE STUDY EXPERIENCE
Our firm has extensive experience conducting comprehensive user fee studies for various municipal organizations and departments. When conducting comprehensive user fee studies, the focus is often on Community Development (building, planning, and engineering) and Parks and Recreation services. The following points highlight our experience in these areas:
• Community Development: Our firm has extensive experience evaluating development review permitting functions for Building, Planning, Engineering, and Fire Prevention. From the basic process steps for submitting, reviewing, inspecting, and approving applications and permits to the development of processes, procedures, and cost recovery goals, our project teams can address topics such as:
– The best metrics for assessing fees are building valuation, square footage, construction estimate, or the number of fixtures.
– Appropriate deposit amounts, guidelines, and processes to ensure actual cost recovery is achieved.
– Setting fees at levels that both recover costs and are not cost-prohibitive. – Cost recovery and implementation options for support services, including General Plan Updates, Technology Fees, GIS, and other related services.
Beyond understanding processes and assessing time estimates, our project teams are aware of the cross-departmental support associated with application and permit services. These costs are included in the full cost calculation and can be expressed separately as part of the established fees. • Parks and Recreation: Matrix Consulting Group has worked with all types of recreation functions, including traditional parks and recreation, libraries, and open-space preserves. Our experience spans master and strategic planning, park condition assessments, program staffing, and cost recovery. Our project teams are well-versed in the areas that most impact cost recovery, including:
– The best use of a tiered recovery approach, such as resident versus non-resident, or profit versus non-profit.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 5
– Setting fees according to the cost recovery pyramid ensures that premium services have a higher cost recovery.
The goal of reviewing parks and recreation service costs is to ensure that fees and rates are set at a level that allows the City to continue serving the community in a manner consistent with current goals and commitments.
Our firm also has extensive experience calculating the cost of administrative services, such as Finance and City Clerk, as well as public safety services, including Police, Animal Control, Fire Prevention, and EMS. All our cost of service and user fee studies are developed in compliance with California State regulations, including Propositions 218 and 26, as well as government codes 66014 and 66016, which stipulate that user fees charged by local agencies “…may not exceed the estimated reasonable cost of providing the service for which the fee is charged”.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 6
The following sections outline recent clients for whom we have provided similar services, including specific references.
RECENT COST ALLOCATION CLIENTS
The following table provides a sampling of California jurisdictions for which we have provided similar services within the last five (5) years, including the types of services provided to each jurisdiction:
Jurisdiction Full Cost OMB Indirect Rates Annual Plan
Citrus Heights, CA X X
Cupertino, CA X X
Daly City, CA X
Dixon, CA X X
Downey, CA X X
Dublin, CA X X
Elk Grove, CA X X X
Fairfield, CA X X
Fort Bragg, CA X X X X
Hercules, CA X X
Livermore, CA X X X
Millbrae, CA X X
Paradise, CA X X
Pacific Grove, CA X X
Palo Alto, CA X
Redwood City, CA X X
Richmond, CA X X X
Sacramento Regional Transit, CA X X X
San Mateo, CA X X X
San Ramon, CA X
South San Francisco, CA X X
Sunnyvale, CA X X X
Thousand Oaks, CA X X X
We are happy to provide additional project details upon request.
RECENT FEE STUDY CLIENTS
The following table includes a sampling of California clients over the last five (5) years for whom we have provided similar scopes of service:
EXPERIENCE AND REFERENCES
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 7
Jurisdiction
Planning
Fees
Building
Fees
Engineering
Fees
Fire
Fees
Admin
Fees
Police
Fees
Recreation
Fees
Butte County, CA X X X X X X
Capitola, CA X X X X
Chico, CA X X X X
Citrus Heights, CA X X X X X X
Cupertino, CA X X X X
Dixon, CA X X X X X X
Downey, CA X X X X X X X
Dublin, CA X X X X X X X
Elk Grove, CA X X X
Livermore, CA X X X X
Los Altos Hills, CA X X X X
Menifee, CA X X X X X X X
Millbrae, CA X X X X X
Mill Valley, CA X X X X X
Pacific Grove, CA X X X X X
Palo Alto, CA X X X X X X X
Paradise, CA X X X X X X
Redwood City, CA X X X X X X X
San Mateo, CA X X X
San Ramon, CA X X X X X
Santa Clara, CA X X X X X X X
South Pasadena, CA X X X X X X
So. San Francisco, CA X X X X X X X
Stockton, CA X X X X
Vacaville, CA X X X X X X
Winters, CA X X X X X X
Details about any project above are available upon request.
REFERENCES
The following table provides references for three recent clients for whom similar services were provided and managed by the Project Team.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 8
CHICO, CA
Brendan Vieg
Community Development
Director
530-879-6806
[email protected]
Matrix Consulting Group worked with the Development Services Department of the City of Chico to conduct a department-wide user fee study covering Building, Fire, Engineering, and Planning services. In addition to recalculating the General Plan Maintenance and Technology surcharges administered by the Department, the project team assisted the City in transitioning from squarefootage- and occupancy-based building fees to a valuation-based fee structure.
The study also expanded on-site and off-site improvement tiers for Engineering fees and adjusted Planning deposit amounts to better recover the initial cost of services. In advance of the City Council meeting, the project team met with the Chico Builders Association to address questions from the development community regarding proposed fee increases, the methodology used, and other related concerns.
FORT BRAGG, CA
Isaac Whippy
City Manager
707-961-2829 ext. 103
[email protected]
Matrix Consulting Group has provided ongoing support to the City of Fort Bragg, including a review and update of their Cost Allocation Plan and Indirect Cost Rate Proposal, development of an OMB-compliant cost allocation plan, and a review of internal service fund allocations for facilities, information technology, and fleet. While reviewing the plans, the project team identified opportunities for improvement and provided recommendations to better align the City’s methodologies with best management practices. The City recently engaged Matrix Consulting Group to complete an annual update to the Cost Allocation Plan, including a true up based on actual expenditures.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 9
PARADISE, CA
Aimee Beleu
Finance Director
530-872-6291
[email protected]
Matrix Consulting Group was contracted by the Town of Paradise to conduct a town-wide user fee study and to develop two Cost Allocation Plans: a full-cost plan and an OMB-compliant plan. Results from the full-cost plan were layered into overhead calculations to establish fully burdened hourly rates used in the user fee analysis, while the OMB-compliant plan was prepared for grant and reimbursement purposes.
The Town last completed a fee study in 2017. The updated user fee study evaluated fee-based services for Business Licensing, Animal Control, Building, Fire, Police, Public Works, and Onsite Sanitation. The project team ensured that Business Licensing, Animal Control, and Police fees aligned with applicable municipal code requirements. For development-related services, the team expanded Building fees to accommodate new development activity, added higher valuation-based tiers for Engineering projects, and updated Planning and Onsite Sanitation fees to reflect the Town’s current service offerings.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 10
The project team assigned to this project all have substantial experience developing cost allocation plans and user fee studies for local government clients. All project team members are full-time employees of Matrix Consulting Group; we will not be using any subcontractors. The following chart outlines our project team and reporting structure.
Our proposed project team will be available to the City throughout the engagement. Additional internal staff can be made available if needed to meet City workloads and timelines. The following provides brief resumes for each proposed project team member.
Khushboo Ingle
Vice President
Ms. Ingle is a Vice President with 13 years of experience who manages cost allocation plans, user fees, development impact fees, and cost of service engagements. Her experience with the firm includes participation in operational audit engagements focusing on organization, staffing, and internal processes.
Khushboo has completed over 250 costs of service studies. Recent California clients include Burlingame, Redwood City, Elk Grove, South San Francisco, West Sacramento, Daly City, Fairfield, Citrus Heights, Dixon, San Ramon, Dublin, San Mateo, Mountain View, Sunnyvale, and Cupertino.
Khushboo received a B.A. in International Economics and an M.A. in International Affairs from the University of California – San Diego and is certified in Revenue Enhancement Best Practices.
Her role on this project would be to serve as the Project Manager, involved in leading meetings, developing draft results, and reviewing results. Mrs. Ingle is located out of the Irvine, CA office.
Khushboo Ingle
Vice President
Project Manager
Madison Dixson
Senior Consultant
Sr. Analyst
Shawn Chadwick -
Leone Consultant
Analyst
QUALIFICATION OF TEAM
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 11
Madison Dixon
Senior Consultant
Ms. Dixson is an analyst who assists our senior staff with cost allocation plans, user fees, development impact fees, and cost of service engagements. Madison has participated in numerous cost allocation and cost of service studies.
Madison has been with the firm for four years. Northern California clients include Burlingame, Daly City, Los Altos Hills, Millbrae, Elk Grove, Milpitas, Orange, Menifee, Redwood City, San Mateo, San Ramon, Saratoga, South San Francisco, Sunnyvale, and West Sacramento.
Madison has a B.A. in Anthropology from the University of California – Irvine. She is also certified in Revenue Enhancement Best Practices.
Her role on this project would be to serve as Senior Analyst, involved in attending meetings, data input, and developing models. Ms. Dixson is located out of the Irvine, CA office.
Shawn Chadwick - Leone
Consultant
Mr. Leone is an analyst who has recently joined our firm to assist our staff on cost-of-service engagements, including cost allocation plans, user fees, and development impact fee studies.
Shawn has recently assisted with projects in California including Butte County, Fort Bragg, Chico, and Belmont.
Shawn has B.S. in Business Administration and Accounting from the University of California - Riverside.
His role on this project would be to serve as an Analyst, involved in attending meetings, data input, and comparative survey support. Mr. Leone is located out of the Irvine, CA office.
Additional detailed information regarding team qualifications can be provided upon request.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 12
Given the ongoing challenges of balancing service delivery with fiscal responsibility, ensuring equitable cost distribution among residents, businesses, and developers is paramount. This balance is achieved through the development of Cost Allocation Plans and User Fee Studies, which provide the foundation for transparent, legally defensible, and financially sound municipal operations. The process and purpose associated with each of these studies include:
• Cost Allocation Plan: Analytically identify and allocate indirect costs across city departments to ensure accurate financial reporting and federal/state compliance. This plan will document the proper distribution of overhead costs, ensure eligibility for federal grants through compliant cost accounting practices, and create transparency in cost sharing while adhering to fiscal best practices. • User Fee Study: Examine the relationship between service costs and user fees to ensure those benefiting from specific services pay their proportionate share. This study will determine whether current fees adequately cover service delivery costs, thereby establishing a baseline for achieving cost recovery goals while balancing accessibility with fiscal sustainability.
Together, these studies form a comprehensive framework for financial management that promotes transparency, equity, and sustainability. They enable decision-makers to make data-driven decisions about service delivery and ensure that costs are fairly distributed among those who benefit from municipal services. These studies allow jurisdictions to adapt to changing conditions while maintaining the fiscal health necessary to serve their communities effectively.
GENERAL PROJECT APPROACH
Our firm’s approach to project management and quality control is grounded in proven practices that balance technical objectivity with client collaboration. By combining data-driven analysis, interactive engagement, and subject matter expertise, we ensure each project is both accurate and responsive to organizational needs. While every project is unique, each is managed according to the following values:
Jurisdiction-specific Data-Driven analysis providing objective, transparent foundations for decision-making.
Collaborative Interactions ensure that staff expertise is reflected in process assumptions and that stakeholder input is appropriately recognized.
Over 20 years of Technical Expertise relating to federal and state regulations associated with cost analysis, as well as best management practices for cost recovery.
Quality Control is paramount, ensured through detailed project planning, defined responsibilities, and regular client reviews. This is achieved by validating financial analyses by tying expenditure data to budget documents and cross-checking metric workloads with published reports.
PROJECT UNDERSTANDING
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 13
Knowledge Transfer is a critical component of our methodology, ensuring that staff gain a clear understanding of the study’s process, outcomes, and impacts, while also building the capacity to evaluate options and implement recommendations effectively.
Our integrated approach combines analytical rigor, collaborative practices, and technical excellence to create a comprehensive framework that delivers trustworthy outcomes, enhances team capabilities, and facilitates the translation of study results into actionable implementations—all while maintaining strict adherence to project schedules and budgets.
MAJOR CHALLENGES AND SPECIAL CONSIDERATIONS
While the methodology for these engagements is standardized, certain factors may require special consideration, as they can affect the project schedule and the level of refinement achievable during specific phases of the analysis.
Requested data may vary in availability, format, or level of detail. Additional coordination may be required to reconcile information across reports and files in order to confirm assumptions and ensure the analysis accurately reflects current activities.
These studies require staff time for data collection, participation in interviews, and review of interim and final deliverables. Matrix makes every effort to minimize impacts on City staff and to remain respectful of their time and competing responsibilities.
Various parts of these studies rely on historical cost structures or established workflows that may no longer fully align with current service models. Confirming and updating these assumptions may require additional review and discussion to ensure results appropriately reflect present-day operations.
Differences in staffing structures, operational workflows, and service delivery approaches across departments may necessitate tailored analytical considerations to maintain consistency and comparability across the study.
Our approach accounts for these considerations through proactive coordination, structured data validation, and flexible scheduling. By recognizing these considerations early in the process, we maintain project momentum while delivering accurate, defensible results.
SAMPLE REPORT
The Matrix approach has been successfully applied to similar cost allocation and user fee study engagements, enabling our clients to implement results confidently, respond to audit and community questions, and apply updates efficiently. The following link provides the final Cost Allocation and User Fee Study reports Matrix developed for the Town of Paradise. https://drive.google.com/drive/folders/1u5GgQi-B0Kvz0oC2Gjj90yGv-FSpQlj0 We would be happy to provide additional samples upon request.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 14
The City has requested a Full Cost Allocation and User Fee Study. The following tasks outline how we will conduct the two studies requested by the City.
PROJECT-WIDE TASKS
Two (2) key tasks would initiate this project. The following tasks are related to both the cost plan and the user fee study scopes of work.
TASK 1: KICKOFF - STUDY OBJECTIVES AND PROJECT SCHEDULE Once the data has been collected, the project team will meet with City staff to discuss the identified issues and clarify any City concerns regarding the current cost allocation and fee study methodology.
Discussions will include:
• Review the City’s specific needs and critical issues surrounding the development and implementation of the cost plan and fee studies.
• Discuss concerns or issues that should be addressed during the development of the study. • Discussions will be held regarding the current fee structure and any potential changes. • Review and identify existing cost recovery policies or established subsidies.
At the conclusion of the meeting, the project team and the designated City staff will better understand the overall approach and methodology the team will use to conduct the Cost Plan and Comprehensive Fee study.
TASK 2: DATA COLLECTION
Before any initial meetings, Matrix Consulting Group will provide the City with a list of initial data requirements for the study. This will allow our project team to review this information thoroughly in preparation for initial discussions with staff. A typical list of data collection items includes:
• Budgeted expenditures on a fund, department, and line-item basis. • Copy of any prior studies
• List of all budgeted personnel by fund, department, and division. • Organizational chart.
PROJECT PLAN
TASK RESULT
We will present the City with a project schedule.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 15
• Chart of accounts.
• Most recently completed Fiscal Year revenue reports
• A list of all current fees being charged will be included in the analysis. • A list of comparative jurisdictions is to be included in the analysis.
The above list is just a sampling of the type of information that will be requested. Providing these items enables our project team to become familiar with the City's structure and current financial practices.
COST ALLOCATION PLAN TASKS
The City is looking to update its Cost Allocation Plan to ensure appropriate capture of indirect costs associated with programs and services. The plan's results will provide the city with direct and indirect costs for its service operations, facilitating the development of fully burdened hourly rates for staff positions. The following outlines the tasks and deliverables for developing a full cost allocation plan.
TASK 1: INTERVIEW STAFF AND GATHER ALLOCATION METRICS
The project team would review the City’s budget and financial structure to identify which City departments and services to allocate. To structure a custom cost allocation model, our project team would perform the following:
v Review and discuss the accounting structure (at both the fund and organizational levels) based on budgeted expenditures to identify any anomalies relative to prior years. v Identify and meet specific central services departments to develop allocation bases and ensure that the plan reflects the following aspects:
Ø All services provided by the City are identified and documented in the Cost Allocation Plan.
Ø The allocation bases discussed for use reflect the current level of effort and are most relatable to the service being performed.
The following is a sample flowchart visually representing the discussion outcome; the first level is the central services department, the second level is the identified service category, and the third level is the basis by which costs will be allocated:
TASK RESULT
We will provide the City a data collection list.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 16
The points above provide examples of detailed, in-depth discussions the project team will have with City departments involved in the cost allocation process. At this point, the team would contact each department and request specific allocation metrics, such as purchase orders, invoices, and square footage per facility.
TASK 2: REVIEW OF DRAFT COST ALLOCATION PLAN METRICS
Based on the units of service identified in Task 1 and the allocation metrics collected, the project team will compile allocation statistic workbooks for review with specific central service departments. The purpose of these workbooks is to review the initial results of the allocation metrics gathered by the project team. The following graphic shows an example of the allocation workbook:
Fund Dept Desc # of AR Transactions Allocation %
1 10 City Manager 3 0.87%
1 16 Human Resources 30 8.75%
1 20 City Attorney 30 8.75%
1 30 Police 68 19.83%
1 35 Fire 1 0.29%
1 40 Development Services 7 2.04%
1 50 Public Works Streets 5 1.46%
1 50 Public Works Facilities 1 0.29%
1 50 Community Services 185 53.94%
10 Water 1 0.29%
14 Sewer 8 2.33%
29 Self-Insured Liability Fund 4 1.17%
TOTAL 343 100.00%
In the sample graphic, based on the number of AR Transactions, the primary support is for Community Services (54%) across all Parks and Recreation transactions, followed by Police (20%). Based on the results of this sample, the project team will verify with Finance that the statistics have been allocated to Finance
Payroll
# of
Employees
per Division
Accounts
Payable
# of Invoices
per Division
Financial
Reporting
Actual
Expenses per
Division
TASK RESULT
Allocation metric requests from support departments.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 17
the appropriate fund/department and that the resulting percentage accurately reflects the support being provided by the accounts receivable staff and function.
This type of detailed review is critical for developing a defensible cost allocation plan. It also ensures that departmental and City staff are comfortable using the allocation metrics and the support provided.
TASK 3: STRUCTURE AND PREPARE A DRAFT FULL COST ALLOCATION PLAN Once the central service departments and administrative functional areas agree on the appropriate allocation metrics for services and allowable administrative or other indirect costs, those costs are allocated to each benefiting department, operating unit, or fund.
At this point, the project team will begin customizing the cost plan to ensure that the methodologies and assumptions comply with federal regulations and general accounting principles. The draft cost allocation plan results will be provided to staff in Excel format, with numerical data, before developing a draft report, along with a comparison to existing cost allocation results.
TASK 4: FINALIZE COST ALLOCATION PLAN
The project team will finalize the Cost Allocation Plan and report upon its review and approval by the central service departments and the Finance Department. The final deliverables for the Cost Allocation Plan will include a report that includes all detailed allocation schedules, cost schedules, summary schedules, and narrative information on the central services covered.
COMPREHENSIVE USER FEE STUDY TASKS
The City intends to conduct a comprehensive fee study to align fees with current services and costs and ensure compliance with existing state rules and regulations. The following tasks provide an overview of the level of detail utilized in the study.
TASK RESULT
Draft cost allocation (Excel results) comparison to existing cost allocation results.
TASK RESULT
Final cost allocation report.
TASK RESULT
Draft allocation workbooks.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 18
TASK 1: DEVELOP A SCHEDULE OF CURRENT AND POTENTIAL FEES FOR SERVICE The scope of this effort will be all user fees charged by the City. Current and potential fees will be identified and documented. The project team will work with staff to review current fee schedules in detail, line by line. This meeting is critical to ensuring staff can incorporate updates or changes to the fee study in response to code changes, regulatory updates, staffing, processes, or technological changes. The focus of this meeting will be the following:
• Renaming fees: Rewording or renaming services to clarify their identity. • Eliminating fees: Removing any outdated services or fees. • Adding new fees: Capturing any new services or breaking out existing fee categories to identify all the services being provided and potential fees for services that could be provided. • Recategorization of fees: Collapsing or expanding multiple fee ranges to more accurately capture the services being provided.
It is important to note that this meeting occurs first to ensure that any significant proposed structural changes are captured before collecting time estimate information or developing draft fee results.
However, adjustments can be made throughout the study.
TASK 2: CONDUCT TIME DATA GATHERING WORKSHOPS
The project team will conduct workshops to gather time estimates for each service included in the study, interview key fire personnel, and analyze the various activities being performed. The flowchart illustrates the steps involved in permit processing and the time required for each step.
As shown in the flowchart, the application/permit processing steps will be documented in detail. Staff will be provided a copy of the time estimate workbook for review and completion as needed.
Intake
Permit Tech:
15 mins
Routing
Permit Tech:
10 mins
Initial Review
Plan Checker:
1 hour
Final Review
Plan Checker:
30 mins
Issue Permit
Permit Tech:
15 mins
TASK RESULT
Our team will develop a proposed fee structure.
TASK RESULT
We will create and provide time estimate workbooks.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 19
TASK 3: DEVELOP FULLY BURDENED HOURLY RATES
Based on the City's staffing and budget information, the project team will calculate fully burdened hourly rates, which include both direct and indirect costs. The following points highlight the cost components and factors included in fully burdened rates:
• Direct costs: This component includes the salary and benefits for each employee or position, as reflected in City staffing and salary reports.
• Indirect costs—Departmental: This component covers administrative and management support for line-level staff, as well as operational services and supplies used to execute job duties. It is developed through staff interviews and budget analysis.
• Indirect costs—Citywide: This component encompasses citywide support, including finance and HR support provided by other departments or staff.
Once the cost components have been documented and developed, the project team will review the MOUs and discuss them with staff to determine appropriate productive-hour calculations. Focusing on available hours will ensure that fully burdened hourly rates account for leave accruals (including holidays, vacation, and sick leave) and any meetings or training. The project team will utilize the results of this task and Task 2 to calculate the full cost of services.
TASK 4: PERFORM A TOTAL COST ANALYSIS
Matrix Consulting Group's costing model is built based on the City's operations, budget details, and intended uses for the results. This method is a jurisdiction-specific approach for cost analysis of user-fee services. It is a "bottom-up" approach, the most defensible methodology for calculating user fees. The methodology incorporates time-estimate and fully burdened hourly-rate information. The following graphic shows the cost calculation:
This costing method uses time and annual activity data to establish the cost of providing services on a unit and annual basis. Once the time spent on a fee activity is determined for each individual or position, the team uses its fee and rate software to apply the fully burdened hourly rates from the previous task.
Time
Estimate
Fully
Burdened
Rate
Full Cost
Fee
TASK RESULT
Calculated fully burdened hourly rates.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 20
The resulting costs are presented at both the unit and annual levels and compared to the existing fee schedule and revenue reports. The City will receive detailed information regarding cost recovery surpluses and deficits on both a detailed (per unit) and global (annualized) level, as well as an understanding of cost components for each service.
TASK 5: REVIEW/REVISE FEE STUDY RESULTS
Because the analysis of service fees is based on estimates and information provided by City staff, all participants must be comfortable with our methodology and the data they have provided.
During this phase, the project team would provide staff with copies of draft results workbooks outlining time estimates and per-unit results calculated during the study. We would review these results and make adjustments as needed to ensure they are defensible and reflect staff time and effort spent providing services.
TASK 6: CONDUCT A MARKET RATE SURVEY OF SIMILAR JURISDICTIONS The project team will work with the City to identify comparable jurisdictions in Butte County and across the Northern Sacramento Valley, depending on the services under review. This survey activity will be conducted utilizing the following:
• Developing fee scenarios for the City to compare with other jurisdictions. • Graphing the results of the fee analysis for easy visual comparison purposes. • Collecting contextual information such as population size, budget, staffing, the last time a fee study was done, and the last fee schedule update.
As market surveys do not adequately inform about the relationship between a jurisdiction's costs and fees, these steps ensure we provide the City with the most information possible.
TASK RESULT
Per unit and annual fee study results.
TASK RESULT
Draft Result fee workbooks.
TASK RESULT
Comparative graphs included in the draft report.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 21
TASK 7: PREPARE A DRAFT FEE STUDY REPORT
Upon completion of the fee study, we will prepare a detailed report summarizing the results of each task described above. This report will include:
• A succinct executive summary discussing the study, methodology, and results. • A narrative describing the services included in the study. • By department, sections on proposed modifications to the current fee schedule, including the addition or removal of new fees for services.
• By department, sections on each fee's per-unit and annual results. • A comparative survey section outlines key fees and compares them to those of other local jurisdictions. The section also provides contextual information regarding budget and staffing.
The draft report will be provided to City staff for review and comments.
TASK 8: FINALIZE FEE STUDY REPORT
Any edits or revisions to the draft user fee study report will be incorporated into the finalized report. This final report will incorporate all elements of the draft fee study report, along with any additional costrecovery and policy considerations.
TASK 9: MASTER FEE SCHEDULE
Once the fee report has been finalized, the project team will develop a master fee schedule for the City.
This document outlines all citywide fees, including the current fee amount, the full cost, and the City’s proposed fee. In addition to the Master Fee Schedule, the project team will set up a separate tab with linked formulas that allow staff to enter an annual CPI factor and generate updated fees.
TASK RESULT
Draft fee study report.
TASK RESULT
Final fee study report.
TASK RESULT
Master Fee Schedule
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 22
TASK 10: PRESENTATION OF RESULTS
Presenting results to City officials and/or stakeholders is crucial to the engagement's overall success.
Because the study's product is often controversial, this final step aims to present a succinct summary to decision-makers that provides key information. We will attend and present the study at least three (3) meetings, including those of the City Council, appropriate subcommittees, or outside stakeholders.
TASK 11: EXCEL-BASED MODEL AND TRAINING
The City wishes to update the final version of the study to reflect additions, revisions, or deletions to costs or service types. Our technical model would enable the City to adapt and continuously update the study annually as the organization evolves.
While the models are structured in Excel, the technical models are proprietary and for internal use only by City staff. With our model based on Excel, the requirements for software training, new software products, updates, licensing, and other support would be minimized.
After the final draft of the cost allocation study is approved, the project team will meet with and train designated City employees on how to use the model.
TIMELINE
Studies of this nature typically take approximately five months (20 weeks) to complete. For the City to implement the fees by July 1, 2026, they would need to be adopted by May 1, 2026. This would mean that the project would need to conclude at the end of March, with presentations in April. The City does not intend to commence the project until February 2026, resulting in a timeline of less than 8 weeks to complete it. This is not feasible. As such, we recommend that the City set a completion date of May 2026 for presentations in June / July 2026 and for fee implementation by August / September 2026.
The following chart provides a week-by-week outline of the proposed schedule for completing the project:
TASK RESULT
Matrix will attend City Council and Sub-Committee meetings and present the study to stakeholders.
TASK RESULT
Model, backup documentation, and user guide.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 23
Tasks 1 2 3 4 5 5+
Project-Wide
Data Collection
Study Objectives/Schedule
Cost Allocation Plan
Interview Staff/Gather Metrics
Review Draft Metrics
Structure/Prepare Draft CAP
Finalize Cost Allocation Plan
User Fee Study
Current and Potential Fees
Data Gathering Workshops
Fully Burdened Hr. Rates
Total Cost Analysis
Comparative Survey
Review/Revise Results
Draft Report
Final Report
Master Fee Schedule
Stakeholder Presentations
Excel-Based Model & Training
This timeline includes a typical two-week turnaround for City staff to review materials and information, and can be adjusted based on City staff priorities.
STAFF ASSIGNMENTS
All project team members will be involved in all tasks, except for the presentations, which the Project Manager will conduct. A detailed projection of hours by staff classification is included in our Cost Proposal.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 24
Matrix Consulting Group proposes to conduct a Cost Allocation Plan and Master Fee Study for the City of Gridley, all for a fixed fee of $34,000. The table below outlines our proposed study costs, including time allocations and hourly rates for each staff category.
Task Project Manager
Analysts
(2)
Total
Cost
Project-Wide
Data Collection 2 4 $1,100
Study Objectives/Schedule 2 2 $800
Cost Allocation Plan
Interview Staff / Gather Metrics 2 6 $1,400
Review Draft Metrics 0 6 $900
Structure/Prepare Draft CAP 2 18 $3,200
Finalize Cost Allocation Plan 2 6 $1,400
Master Fee Study
Current and Potential Fees 2 6 $1,400
Data Gathering Workshops 2 8 $1,700
Fully Burdened Hr. Rates 2 10 $2,000
Total Cost Analysis 2 24 $4,100
Comparative Survey 0 12 $1,800
Review/Revise Results 4 18 $3,700
Draft Report 8 20 $5,000
Final Report 2 6 $1,400
Master Fee Schedule 0 4 $600
Stakeholder Presentations 8 0 $2,000
Model & Training 0 10 $1,500
Total Hours 40 160
Hourly Rate $250 $150
Total Professional Fees $10,000 $24,000 $34,000
Total Project Cost $34,000
This cost is all-inclusive and includes a fixed fee for any additional costs that may arise. Our typical practice is to bill for hours worked every month, up to the contract amount.
COST PROPOSAL
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 25
Matrix Consulting Group is committed to helping our clients develop accurate, defensible cost-of-service methodologies, ensuring they can effectively implement the study results. Our project team will work with City staff to clarify the results and help incorporate them into the final materials.
Our client support continues after the final report is issued. We understand that questions may arise well after project completion and are committed to working with our clients to answer any questions about methodologies and the application of results. This support is provided to our clients at no extra cost.
GRIDLEY, CA – PROPOSAL FOR A COST ALLOCATION PLAN AND MASTER FEE STUDY MATRIX CONSULTING GROUP 26
Matrix Consulting Group understands the optional request for a Nexus Study, but is not bidding on the additional scope in this proposal.
Furthermore, if discussions with City staff indicate that an OMB-compliant Cost Allocation Plan is needed for grant purposes, the project team can discuss an additional scope of work at that time, if requested.
OPTIONAL SERVICES
City Council Item #4
Staff Report
Date: January 20, 2026
To: Mayor and City Council
From: Christopher Smith, Planning Department
Subject: Consideration of On-Call Professional Planning Services Agreements Recommendation
City staff recommends the City Council approve the Professional Services Agreements with the following seven firms for on-call planning and related professional services, and authorize the City Administrator to execute the agreements and issue task orders in accordance with their terms and applicable procurement policies:
1. ECORP Consulting, Inc.
2. LACO Associates
3. CSG Consultants, Inc.
4. PlaceWorks, Inc.
5. MNS Engineers, Inc.
6. Harris & Associates, Inc.
7. EMC Planning Group, Inc.
Summary
The City issued a Request for Qualifications (RFQ) seeking qualified professional firms to provide on-call planning and related technical services. The purpose of the RFQ was to establish a pool of qualified consultants to supplement City staff capacity and provide specialized expertise in areas including current planning, environmental review (CEQA), long-range planning, housing policy, and technical analysis.
The City received multiple Statements of Qualifications from firms with a broad range of expertise and experience. Staff reviewed and evaluated the submittals to determine which firms would best meet the City’s needs across the full range of anticipated assignments.
Discussion
Evaluation Approach
Rather than selecting firms solely based on general qualifications, staff evaluated proposals based on the following factors:
1. Demonstrated expertise in specific functional areas, including:
a. Environmental review and CEQA compliance;
X Regular
Special
Closed
Emergency
b. Long-range and policy planning (General Plan, Zoning Code, and Specific Plans); c. Current planning and entitlement processing;
d. Housing and State mandate implementation; and
e. Technical and specialty services.
2. Practical ability to provide timely service to the City, including proximity for assignments that benefit from in-person coordination and participation in public meetings and hearings.
3. Multidisciplinary value, with preference given to firms offering in-house services beyond planning (such as engineering, surveying, environmental sciences, building services, or GIS) to improve coordination and reduce reliance on subconsultants.
4. Breadth and redundancy, to avoid over-reliance on a single firm and to ensure continuity of service in the event of conflicts of interest, workload constraints, or specialized project needs.
Recommended Firms
Based on this evaluation, staff recommends establishing an on-call pool of seven firms, each selected for a distinct area of strength:
Firm Primary Strength Rationale
ECORP
Consulting
CEQA and technical
environmental
Strong environmental, permitting, and technical
analysis expertise with regional presence
LACO
Associates
Integrated planning and
engineering
Multidisciplinary services including engineering,
surveying, environmental, and grants
CSG
Consultants
Staff augmentation and
local expertise
Local leadership, familiarity with regional
agencies, and strong municipal staffing
experience
PlaceWorks Long-range and policy
planning
Extensive experience with General Plans, Specific
Plans, and zoning modernization
MNS Engineers Infrastructure-integrated
planning
Planning grounded in engineering, surveying, and
infrastructure feasibility
Harris &
Associates
Planning, CEQA, and
engineering integration
Broad interdisciplinary capacity across planning,
environmental, and infrastructure
EMC Planning
Group
Policy and CEQA
craftsmanship
High-quality long-range and environmental
planning expertise
Fiscal Impact
Approval of the recommended Professional Services Agreements does not, by itself, result in a direct fiscal impact.
All agreements will be established on an on-call, as-needed basis with not-to-exceed amounts and will be funded through existing departmental budgets or project-specific funding sources when task orders are issued.
Expenditures will occur only when specific task orders are authorized, and all task orders will be subject to budget availability and applicable procurement and authorization requirements. The on-call structure allows the City to manage costs by engaging consultants only when needed and only for defined scopes of work.
Environmental Review
Establishing a diversified on-call consultant pool will allow the City to respond efficiently to fluctuating workloads, access specialized expertise as needed, and reduce reliance on any single consultant while maintaining fiscal and operational flexibility.
Attachments
Exhibit A – Proposals (due to the size of the attachment, it can be found on the City Council page as supplemental information for the January 20th, 2026 Council meeting)
City Council Agenda Item #5
Staff Report
Date: January 20, 2026
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Gridley Vierra Park Snack Bar Building – HVAC System Replacement Recommendation
Approve the replacement of the HVAC system at the Gridley Vierra Park snack bar building and authorize staff to proceed with Dake Bros Heating and Air LLC in the amount of $8,240 for installation of a new HVAC system.
Background
The HVAC system at the Gridley Vierra Park snack bar building is no longer operational. This issue was brought to the City’s attention by Gridley Little League, who utilize the facility under a Use of Public Places Agreement currently on file with the City.
Following notification of the issue, the matter was discussed at multiple Public Works Committee meetings in 2025. Staff was directed to obtain quotes for repair and replacement options. After reviewing the available options, the Public Works Committee’s final recommendation was to bring the quotes forward to City Council for decision and direction.
Staff received the following quotes:
• Dake Bros Heating and Air LLC: $8,240 for a new HVAC system (recommended) • Other new system quotes:
Delta Air Company: $10,600
Duncan’s Heating & Air: $10,700
• Refurbished system option with Royale Aie: $7,900
While the refurbished option is slightly less expensive, staff recommends installation of a new system to ensure long-term reliability, efficiency, and reduced maintenance costs.
Financial Impact
This item was not included in the budget. We can use Carbon Credit funds to pay for the replacement. If approved, a Supplemental Appropriation will follow.
Compliance with City Council Strategic Plan or Budget Goals Replacing the HVAC system supports the City’s goals of maintaining public facilities, ensuring safe and functional amenities for community organizations, and responsibly managing City-owned assets.
Attachments
HVAC replacement quotes
X Regular
Special
Closed
Emergency
RECIPIENT:
Jerry Cox
194 Washington Street
Snack Bar
Gridley, California 95948
Quote #1
Sent on Jan 07, 2026
Total $8,240.00
Product/Service Description Qty. Unit Price Total
Little League snack bar
HVAC unit replacement
We will proceed with the removal of the old system
and ensure its disposal at an appropriate facility. A
new roof curb will be installed, along with a 2.5-ton
American Standard (Trane) package unit.
Additionally, we will install a new electrical
disconnect and breaker, as well as a new
programmable thermostat.
New return air grills and supply air registers will be
installed, as the existing ones are in very poor
condition. Our team will also inspect the ducting and
provide a quote as necessary. A system startup will
be conducted to verify that all unit operations are
within factory specifications.
Please note the following warranties:
- 10-year warranty on the compressor
- 20-year warranty on the heat exchanger.
1 $8,240.00 $8,240.00
Total $8,240.00
This quote is valid for the next 30 days. ** Payment due upon completion** Dake Bros Heating & Air LLC
2146 Spruce Street | Gridley, California 95948
530-300-2317 | [email protected]
Quarterly Council Report
City of Gridley
Todd W. Farr
Chief of Police
Arrest and Incident Summary Activity for October to December 2025:
Quarterly Year Total
• Adult Arrests
• Juvenile Arrests
• Misdemeanor Arrests
• Felony Arrests
• Felony Crimes Reported
• Misdemeanor Crimes
• Total Incidents
• Battery
• Burglary
• Deceased Person
• Vandalism
• Stolen Vehicle
• Robbery
• Public Intoxication
• Medical Aid
• Area Checks
• Pedestrian Checks
• Disturbing the Peace
• Animal Calls
• Total 911 Calls
• Total Accidents
• Total Traffic Citations
• DUI Arrest
• Traffic Stops
77 380
0 8
76 299
15 63
41 186
96 336
3,559 14,663
13 43
4 20
3 13
23 69
16 34
0 1
6 14
28 137
961 3,975
95 374
65 328
335 998
544 2,082
13 82
203 1,068
12 41
526 2,455
Response times for this month are as follows:
Priority 1- Events that involve injury and are life threatening or in progress.
Priority 2- Events that involve property loss or damage.
Priority 3-Events that do not involve injury, threat of life, property loss or damage.
Priority Times:
Priority 1: 3:13 MIN
Priority 2: 4:05 MIN
Priority 3: 4:10 MIN
Overall average response times to all calls for service:
4:13 Min.