City Council
Report
City Council Meeting: June 9, 2026
Agenda Item: 4.I
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Architecture Services Division Subject: Award Request for Proposal #2784 and Authorization to enter into Agreement With Economic & Planning Systems, Inc. for Preparation of a Nexus Study for the Parks and Recreation Development Impact Fee
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15262 (Feasibility and Planning Studies) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award RFP SP2784 to Economic & Planning Systems, Inc. to prepare a nexus study for the Parks and Recreation Development Impact Fee for the Public Works Department;
3. Authorize the City Manager to execute an agreement with Economic & Planning Systems, Inc. in an amount not to exceed $115,450 (including a $10,505 contingency) for one year, with two-one year renewal options with future year funding contingent on Council budget approval; and
4. Authorize budget amendment as outlined in the Financial Impacts and Budget Actions section. (Requires five votes)
Summary
The purpose of the Parks and Recreation Development Impact Fee is to establish a direct funding source from new residential and commercial development to be used solely for the acquisition and development of open space, parkland, and recreation facilities needed to serve the demand generated by occupants and users of new development. Because impact fees vary based on the type of development (Attachment A), a nexus study is required to forecast future development demand and ensure that the proposed fee levels are both financially feasible for development and sufficient to contribute to improvements to the City of Santa Monica’s (City) parkland system. 2 of 5
This fee study would assist the City in establishing development impact fees that are properly aligned with the proportional share of demand created by new development.
Staff recommends awarding RFP # SP2784 to Economic and Planning Systems, Inc. to prepare the Parks and Recreation Development Impact Fee nexus study for a total amount not to exceed an amount not to exceed $115,450 (including a $10,505 contingency) for one year, with two-one year renewal options.
Discussion
Santa Monica provides annual reporting on the balance, fees collected, interest earned, and expenditures related to the Parks and Recreation Development Impact Fee to highlight project status and planned projects to be funded by the fee. Every five years, Santa Monica provides additional information in fee reporting, identifying the projects that have received funding and the projects that are proposed to receive funding in the future. The Development Impact Fee report demonstrates a reasonable relationship between the reportable fees and the purpose for which they are charged and identifies all Santa Monica funding sources and amounts available to complete financing of the projects identified by the City. A Nexus Study helps ensure fees align park expansion needs with development demand and is recommended every five years to align with five-year reporting requirements.
In the evaluation of proposals received, Economic & Planning Systems, Inc. (EPS) demonstrated past and present project experience and references with from and cities within Los Angeles County of similar scale, development potential, and parkland need.
Additionally, EPS identified a project approach that highlighted the latest legal requirements as defined by the Mitigation Fee Act; clearly acknowledged the importance of understanding plans and initiatives adopted by the City of Santa Monica including the General Plan, Housing Element, and Parks and Recreation Vision Plan; and proposed an approach to presenting the maximum fee estimates and up to two alternatives.
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The 2025 Parks and Recreation Vision Plan (PRVP) noted that Santa Monica is below the County average of park acres per 1,000 residents, providing 1.55 acres per 1,000 against the County average of 3.3 acres per 1,000. Without a consistent funding stream to improve the park network as Santa Monica grows, equitable access to open space would diminish rapidly. The PRVP established a goal of increasing park acreage to five park acres per 1,000 residents over the life of the plan and the Development Impact Fee is a vital funding source for improvements, expansion, and acquisition.
Vendor Selection
Bidder Recommendation
Best Qualified Firm Economic & Planning Systems, Inc (EPS) Evaluation Criteria
Experience, References, Work Plans/Timelines, Project
Team, Cost, and Accuracy.
Municipal Code SMCC 2.24.190
RFPs Received
NBS TischlerBise, Inc.
Economic & Planning Systems, Inc DTA Public Finance, Inc RFP Data
Posted On Posted On Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
2/24/2026
City's Online
Bidding Site
Santa Monica Daily
Press 44 4/07/2028
Justification to Award
The Evaluation committee recommends awarding the contract to Economic & Planning Systems, Inc. (EPS) as the most qualified firm. EPS presented a clear and comprehensive scope of work, demonstrated strong relevant project experience, and provided credible local and regional references that reflect a deep understanding of the data, policies, and initiatives relevant to Santa Monica’s study. Based on these factors, the evaluation committee’s, and consistent with the criteria outlined in SMMC 2.24.190, scores rates EPS as the best bidder.
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Environmental Review
Preparation of the Parks and Recreation Development Impact Fee is exempt from CEQA pursuant to Section 15252 (Feasibility and Planning Studies) which exempts feasibility and planning studies for possible future actions that the agency, board, or commission has not approved, adopted, or funded. Therefore, the fee study is exempt from CEQA.
Past Council Actions
Meeting Date Description
01/13/2026
(Attachment A)
Development Impact Fees Report 2025
Financial Impacts and Budget Actions
Staff recommends appropriation of available Park and Recreation Development Impact Fee resources to cover the costs of the nexus fee study and approval of the following budget amendment.
FY 2026-27 Budget Amendment
Release Funds Appropriate Funds
Account # Amount Account # Amount
10.370334 – Park
Impact Fee $ 115,450 10500005.532520 $ 115,450
Total $ 115,450 Total $ 115,450
If modifications or renewals are awarded, budget adjustments will be included in subsequent year budgets, contingent on Council budget approval.
Staff also seeks authority to approve available funding from the Special Revenue Source Fund to award a contract with Economic & Planning Systems, Inc. to prepare a 5 of 5
nexus study for the Parks and Recreation Development Impact Fee.
Contract Request
FY 2026-27
Request Amount Department Account # Total Contract Amount $115,450 10500005.532520 115,450
Funds will be included in the proposed Operating Budget for FY 2026-27. Future year funding is contingent on Council budget approval.
Prepared By: Tony Lopez, Senior Park Planner
Approved Forwarded to Council
Attachments:
A. January 13, 2026 Staff Report (web link)
B. Levine_Act_Disclosure_Form
C. Oaks Initiative Disclosure Form
D. Santa Monica Terms and Conditions Acceptance by Economic & Planning Systems Inc
E. Written Comments