CITY COUNCIL STAFF REPORT
Meeting Date: January 23, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH WILLDAN TO
PERFORM A COMPREHENSIVE USER FEE STUDY
SYNOPSIS
The proposed resolution authorizes the City Manager to execute an agreement with Willdan Financial Services to perform a comprehensive user fee study for the City, as recommended by the Budget Committee at its meeting of November 13, 2019. Willdan Financial Services will review and provide recommendations to update the City’s Master Fee Schedule.
DISCUSSION
Background
The comprehensive user fee study process began in 2019 by issuing a Request for Proposal to review and update the user fees and cost allocation plan for the City. At its November 13, 2019 meeting, the Budget Committee approved forwarding a recommendation to the City Council to award the contract to Willdan Financial Services (Willdan). The City’s priorities and focus changed in 2020 due to the impacts from the Coronavirus (COVID-19) and this project was delayed. The comprehensive user fee study still needs to be updated and Willdan has agreed to do these services based on their 2019 proposal.
Analysis
On July 2019, the City issued a Request for Proposal (RFP) to find a consultant to assist with performing a comprehensive user fee study. The study will review the current fees and charges for services that the City is providing and make recommendations on changes based on best practices, economic changes, neighboring cities, and the consultant’s professional expertise. The City received four responses to the RFP (in alphabetical order) from the following firms:
a. Clear Source Financial Consulting
b. Matrix Consulting Group
c. Revenue & Cost Specialists, LLC
d. Willdan Financial Services
Staff reviewed the proposals, conducted interviews, and determined that Willdan was the firm best qualified to perform the services requested. Willdan has been in business for over twenty years and one of its primary lines of business is performing financial analyses for local governments, specifically comprehensive user fee studies, full cost allocation plans, and Federal Office of Management and Budget (OMB) compliant cost allocation plans. They have provided financial consulting services to over 1,200 public agencies, including the Cities of El Cerrito, Pittsburg and Hayward.
Willdan assigned an experienced team to the City. The proposed team includes the Vice President and Group Manager of Willdan's Financial Consulting group with over twenty years of experience, a technical project manager with fourteen years of experience, analytical support staff with ten years of experience and a quality assurance/technical advisor with over thirty-five years of experience. The work will take approximately four to five months to complete and the final report will include Willdan’s recommendations to the City.
This project was delayed due to COVID-19, but City staff and Willdan have been in contact to restart the process. Willdan has also informed the City there are no changes to the proposed team or fee contained in its 2019 RFP.
FISCAL IMPACT
The proposed project and agreement will result in an amount not-to-exceed proposed fee for this professional services agreement for $35,395 with Willdan Financial Services.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution authorization for the City Manager to execute an agreement with Willdan Financial Services to perform a user fee study and cost allocation plan for the City as recommended by the Budget Committee.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 – Willdan Financial Services Agreement
Willdan Financial Services Proposal
Prepared by: Erick Cheung, Finance Manager
Approved by: June Catalano, City Manager