COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Amending Professional Services Agreement with Finance DTA for the Growth Mitigation Nexus Fee Update
Description:
The City Council will consider approving an amendment to the professional services agreement with Finance DTA.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution amending professional services agreement K-PW-2023-052 with Finance DTA extending the term and approving an additional amount of $30,990 for the Growth Mitigation Nexus Fee Update; and
2. Authorize the City Manager, or designee, to execute agreement.
BACKGROUND:
City of Santa Maria awarded a professional services agreement to Finance DTA on January 15, 2024, following a formal request for proposals process. The purpose of the agreement is to update the Growth Mitigation Fee Nexus Study. The study is nearing completion, but additional time and scope is needed due to comments received at public engagement workshops.
DISCUSSION:
The original agreement, K-PW-2023-052, needs to be amended , to extend the term to December 31, 2025. Furthermore, the original not-to-exceed amount of the agreement is $68,890 and needs to be increased by an additional $30,990 in order to perform additional analysis and public engagement that was not included in the original scope of the agreement.
The original agreement contemplated six in -person meetings with City s taff and the public. These six meetings have already been held. Additionally, as a result of the meetings, the public has requested additional analysis to calculate the fees on a project list basis. These lists are being refined and will require at least o ne additional public 2 engagement session, and a presentation to City Council. Staff anticipates bringing a final document to Council by the end of the year.
Alternative(s)
City Council may direct staff to terminate the contract or re -advertise the request for proposals to complete the study with the consultant chosen through that process. Each of these alternatives would require additional time and funds to complete the fee update.
This would maintain growth mitigation fee rates at the rate adopted in 2019, which have not been updated for inflation, construction cost increases, and the project lists have not been updated.
Fiscal Considerations
The approved budget for this study update was $120,000; these funds have not been reallocated to other projects. Approval of this amendment would still complete the study under the approved $120,000 amount previously budgeted.
Impact on the Community
Completion of the Growth Mitigation Fee Nexus Study will ensure that new development pays its way for capital improvements necessary to maintain existing levels of service as the City grows.
ATTACHMENT(S)
A. Resolution
B. Amended Professional Services Agreement
C. Finance DTA Scope and Fee Proposal
D. Original Professional Services Ag, K-PW-2023-052