Attachment C
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CITY OF SANTA MARIA
AB 1600 DEVELOPMENT IMPACT FEE STUDY UPDATE
SEPTEMBER 22, 2025
Prepared for:
City of Santa Maria
P
ublic Works Department
110 S. Pine Street, Suite 221
Santa Maria, CA 93458
Attention: Mark Mueller, Principal Civil Engineer
Project Contact:
Kuda Wekwete
Managing Director, DTA
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
Phone: (800) 969-4DTA x204
Attachment C
TABLE
OF CONTENTS
SECTION PAGE
I SCOPE OF WORK ................................................................ 1 II COST PROPOSAL ................................................................ 3 A Disclaimer ................................................................................ 3 B Limitations............................................................................... 4
Attachment C
1 SECTION I
SCOPE OF WORK
City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update
www.FinanceDTA.com
I SCOPE OF WORK
DTA Public Finance, Inc. (“DTA”), formerly David Taussig & Associates, is pleased to submit this proposal to the City of Santa Maria (the “City”). It is our understanding that the City is seeking a proposal to update the previously provided Assembly Bill (“AB”) 1600 Development Impact Fee (“DIF”) Nexus Study (“Fee Study”) by evaluating all departments using a Plan-Based Methodology. This updated study would recommend the appropriate fee justification methodology and fee levels to support specific types of City-selected capital facilities needed to serve new growth. Work products stemming from the work plan described in this section will include a memorandum (“memo”) summarizing the fee methodology and rewriting the Nexus Study to accommodate the Plan-Based Methodology.
Task 1 – Review Facility/Capital Needs and Levels of Service T
his task entails the review of the facilities and capital needs required to serve new development pursuant to the City’s inventory list provided September 5, 2025 (‘Inventory List”). DTA will consider updates to the City’s current impact fees related to Police Facilities, Fire Facilities, Library Facilities, Traffic Facilities, Utilities Administration, Park Recreation Facilities, Storm Drain Facilities, Consolidated Corporate Yard, Water Facilities, and Wastewater Facilities.
1A Facilities List:
Based on the Inventory List provided by the City, DTA shall prepare a facilities needs list that details the new facilities and equipment to serve new development in the City. 1B Review Cost Estimates : DTA’s engineering and technical staff will, as necessary, apply inflation and cost-of-living escalators to the City’s inventory to determine future costs, review and/or refine existing cost data, examine major sources of revenue to fund the construction of new public facilities, and provide a proportional estimate between projected costs for new facilities and estimated revenue from mitigation fees and other sources.
Task 2 – Determine Fee Levels
T
his task entails calculating the fee amounts based upon the dwelling unit and commercial/industrial development projections, facilities needs, and costs determined by applying the Plan-Based Methodology.
2A Calculate Recommended Fee Amounts :
DTA shall calculate fees for the City by computing
each fee to be levied. This work will be done in a spreadsheet format. DTA will also evaluate this data in comparison to surrounding cities so as to arrive at comparable and palatable fee levels.
2B Document Fee Derivation : DTA shall document the methodology utilized for the fee calculation model in such a way that can be understood by the City and public. DTA shall prepare written statements documenting the validity of the methodology for deriving each of the fees for the City. These statements will be made to meet the requirements of AB 1600 and documented in the Final Report discussed below.
Deliverables:
Proposed Fee Levels; Brief Report on Similar Jurisdictions’ DIFs, Including a Summary Table
Attachment C
2 SECTION I
SCOPE OF WORK
City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update
www.FinanceDTA.com
Task 3 – Prepare Draft and Final Reports
T
his task entails the preparation of the Draft and Final Reports for consideration by the City Council and City staff.
3A Prepare Draft Report for Comments : DTA will prepare the Draft Report for review and consideration by City staff. The Draft Report will be prepared under the standards of AB 1600 and is expected to include an executive summary, population projections, the facilities and improvements list, fee calculations, recommended fee levels, and the suggested process for keeping fees current.
3B Prepare Final Report:
Based on the incorporation of City staff comments and concerns on the Draft Report, DTA will prepare the Final Report for presentation to the City Council and City staff.
Deliverables:
Draft and Final Reports
Task 4 – Attend Meetings and Public Outreach
D
TA will attend up to two (2) virtual meetings to meet with City staff, two (2) virtual meetings to meet with the development community, and one (1) in-person meeting to meet with the City Council.
Attachment C
3 SECTION II
COST PROPOSAL
City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update
www.FinanceDTA.com
II COST PROPOSAL
Fees for services shall be charged on an hourly basis according to the rates set forth in the fee schedule below, with invoices being submitted to the City monthly. The estimated fee for the Fee Study shall not exceed $28,990 f or the Scope of Work, plus $2,000 i n out-of-pocket expenses. Fees for services shall be charged according to the professional services fee schedule identified in Table 1.
For your reference, DTA’s hourly rate schedule is provided in the table below.
Table 1: DTA’s Fee Schedule
Labor Category Labor Rate
President/Managing Director $325/Hour
Senior Vice President $300/Hour
Vice President $275/Hour
Senior Manager $230/Hour
Manager $215/Hour
Senior Associate $195/Hour
Associate III $185/Hour
Associate II $175/Hour
Associate I $160/Hour
Research Associate II $150/Hour
Research Associate I $135/Hour
Out-of-pocket and administrative expenses shall be equal to 3% of DTA’s billings for labor, plus travel expenses and any outside vendor payments, not to exceed $2,000.
All hourly rates for services apply
through June 30, 2026, and are subject to a cost-of-living increase at that time. On or about the first two weeks of each month during which consulting services are rendered hereunder, DTA shall present to the City an invoice covering the current consulting services performed and reimbursable expenses incurred pursuant to this Notice of Authorization. Each invoice submitted for payment shall contain a brief description of the work billed on that invoice, total billed to date, total paid to date, and amount remaining. Invoices shall be paid by the City within 30 days of the date of each invoice. A 1.2% charge may be imposed monthly against accounts that are not paid within 45 days of the date of each invoice. The prevailing party in any legal action brought by one party against the other and arising out of this Consultant Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorneys’ fees.
A Disclaimer
W
hile DTA has a fiduciary responsibility as a licensed Municipal Advisor, DTA is not, unless otherwise stipulated, acting as the City’s Municipal Advisor. The services discussed herein do not constitute any financial advice or fall under the category of municipal advisory services as defined by the SEC.
Attachment C
4 SECTION II
COST PROPOSAL
City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update
www.FinanceDTA.com
B Limitations
T
he labor costs in the table above include up to two (2) virtual meetings to meet with City staff, two (2) virtual meetings to meet with the development community, and one (1) in-person meeting to meet with City Council. Attendance at more than one (1) in-person meeting, detailed written responses to resolve disputes, or the preparation of more than one set of major revisions to the Draft Report will be classified as additional work and may require further billing at the hourly rates identified in Table 1 if the maximum
fee level has been exceeded. Other examples of additional work shall include:
Additional analyses based on revised assumptions req uested by the City, including possible changes in the needs list, infrastructure costs, population projections, future land uses, and related data once the preparation of the Draft Report has been initiated, as well as adjustments to assumptions once the Draft Report has been approved; Additional meetings or lengthy negotiations with sta keholders, including representatives of the Building Industry Association (“BIA”);
Tasks related to litigation by stakeholders should i t occur once the Fee Study has been completed; Any work related to litigation or any claim or liabi lity arising out of or incident to the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado asking the California courts to reevaluate impact fees adopted under the California Mitigation Act to ensure they do not violate the U.S. Constitution’s Fifth Amendment Takings Clause, including but not limited to expert witness services; and
Actual implementation of the fee program(s); and
The maximum fee listed above assumes the review and implementation of the fee program with a schedule between initiation of services and public outreach that is within the proposed time frame according to the City’s specifications.
Attachment C
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE : (800) 969-4DTA
www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
Attachment C