Public Works Agency
https://www.santa-ana.org/pw
Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 7, 2023
TOPIC: Agreement with Revenue & Cost Specialists, LLC for a Comprehensive Development Impact Fee Study
AGENDA TITLE
Award an Agreement to Revenue & Cost Specialists, LLC for Comprehensive Impact Fee Study Consulting Services Not to Exceed $115,150 (General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a consulting services agreement with Revenue & Cost Specialists, LLC for a two-year term beginning November 7, 2023, and ending November 6, 2025 for the preparation of a Comprehensive Development Impact Fee Study, for a total amount not to exceed $115,150, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2023-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City imposes impact fees on land development projects to mitigate general impacts to City infrastructure, such as parks, library, transportation, sewer, and storm drainage systems. The primary objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Impact fees must comply with the requirements of the Mitigation Fee Act (Act) contained in California Government Code Sections 66000 et seq.
The City periodically analyzes and updates the development impact fee rates to ensure compliance with the Act and ensure future developers pay their share to mitigate impacts. The study will include rates for existing fees, possible fee adjustments, as well as consideration of new fees that may become necessary with continued development within the City. When complete, Staff will present the study recommendations to Council for adoption and inclusion in the City’s miscellaneous fee schedule.
Staff published a Request for Proposals (RFP) and received two proposals from firms specializing in local government financial analysis. A selection committee comprised of staff from the Public Works Agency, Park Services and the Planning and Building Agency, reviewed both proposals and rated each firm based on a number of criteria such as demonstrated knowledge and capabilities, experience, proposed approach,
Agreement to Prepare a Comprehensive Development Impact Fee Study November 7, 2023
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project rates, and fees. Both of the firms were interviewed by the selection committee with the results as follows:
Rank Firm Average Score
1 Revenue & Cost Specialists, LLC 90
2 David Taussig and Associates 81
Based on rating, cost, and proposal (Exhibit 1), Staff recommends that Revenue & Cost Specialists, LLC be awarded the agreement for an amount not to exceed $115,150 to develop the Development Impact Fee Study (Exhibit 2).
FISCAL IMPACT
Development fees that are charged to developers to mitigate development project impacts are utilized for Street Improvements projects, public utility improvements and Park improvements. The study will enhance the process and set clear criteria for impact fees charged to developers.
Funding is available in the FY 23-24 budget. The following table summarizes the funds budgeted and available for expenditure to deliver agreement services.
Fiscal
Year
Accounting Unit
– Account No.
Fund
Description
Accounting Unit –
Account No.
Description
Amount
FY 23-24 01117017-62300 General
Fund
PWA – Service
Enhancement, Contract
Services - Professional
$115,150
Total $115,150
EXHIBIT(S)
1. Revenue & Cost Specialist’s Proposal
2. Agreement with Revenue & Cost Specialists, LLC
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Steven Mendoza, Acting City Manager