CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
6/13/2023
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GRISSEL CHAVEZ
DEPUTY CITY MANAGER
SHARON DEL ROSARIO
ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR
SUBJECT:
CONTRACT SERVICES AGREEMENT WITH CLEARSOURCE FINANCIAL
CONSULTING FOR PREPARATION OF A COMPREHENSIVE FEE SCHEDULE,
DEVELOPMENT IMPACT FEE STUDY, AND COST ALLOCATION PLAN
Summary:
The City Council will consider approving a Contract Services Agreement with Clearsource Financial Consulting (Clearsource) for preparation of a comprehensive fee schedule, development impact fee study, and a cost allocation plan. The City released an RFP for these services on March 1, 2023, with a proposal due date of March 31, 2023. The City received four proposals by the deadline. Following staff review of proposals and interviews, Clearsource was the highest ranked firm. If approved by City Council, the work can be completed within a five-month period from the start date.
Recommendation:
Authorize the City Manager to enter into a Contract Services Agreement with Clearsource for preparation of a comprehensive fee schedule, development impact fee study, and a cost allocation plan, in the amount of $86,570, in a form approved by the City Attorney.
Fiscal Impact:
Sufficient funds have been included in the proposed Fiscal Year 2023-24 budget (Account No. 100- 51-5400) scheduled for City Council adoption on June 27, 2023.
Strategic Plan Objectives:
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Goal No. 1: Ensure long-term fiscal stability.
Goal No. 6: Promote a transparent and open government.
Background and Analysis:
In 2018, the City worked with a consultant to develop a comprehensive fee study and a cost allocation plan. Since that time, all City fees have been updated annually based on the Consumer Price Index (CPI). To staff’s knowledge, the City has not undertaken a development impact fee study which are fees assessed on new residential developments to provide funding for City’s parks and water infrastructure. On March 1, 2023, the City solicited responses through a Request for Proposals (RFP) for preparation of a comprehensive fee schedule, development impact fee study, and a cost allocation plan (Attachment A). The Scope of Work in the RFP included the following tasks:
· The consultant will ensure that all project documents are both accurate and appropriate for the City’s current needs, and work with City staff on strategies to maximize cost recovery. · Work with staff to define the purpose, uses, and goals of each Study or Plan. · Meet with staff and conduct interviews to gain an understanding of the City’s practices and operations.
· Review any existing documentation related to fees or the cost allocation plan, including but not limited to the City’s various master plans and other planning documents. · Provide any suggestions or strategies to improve cost recovery levels, and recommend any new fees, if necessary.
· Offer assisting in developing fee modification strategies that incentivize local policy goals. · Develop and present draft a final report for City staff to review. · Provide staff with worksheets to support the components in the final plan in an excel or editable format, as well as any training on how to update any schedules that need to be revisited annually or until the next study.
· Produce a final written report based on specific project needs, which could include comparison with similar organizations.
· Present the information related to the User Fee Study and the Development Impact Fee to the City Council at a City Council Meeting. Additional specifics related to individual plans will be listed in the Performance Specifications of this document.
The RFP Scope of Services includes additional performance requirements for each of the components: user fee study; development impact fee study; and cost allocation plan.
Proposals Review and Evaluation:
In response to the RFP, the City received four proposals by the deadline date of March 31, 2023, from the following firms: Clearsource, Willdan, Matrix and DTA. The City’s selection committee evaluated the proposals on responsiveness to the RFP using the below listed criteria to determine whether the proposer possesses the qualifications necessary for the satisfactory performance of the services required. The selection committee consisted of the Administrative Services Officer/Finance Director, Planning Manager, Community Development Director, Deputy City Manager, and City Manager.
Evaluation Criteria for Proposals
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· The qualifications (including education, training, licenses, experience and past performance) of the proposer and its agents, employees and sub-consultants in completing projects of a similar type, size and complexity.
· The feasibility of the proposal based upon the methodology of the proposed scope of services to meet the City’s needs, the quality of services proposed, and the reasonableness of the total project costs and of the proposed time period over which the work will be completed. · Understanding of the work to be completed based upon the clarity of the proposal and responsiveness to this RFP.
· Quality, clarity, completeness, and responsiveness of proposal. · Demonstrated ability to work in a cooperative and collaborative manner with clients. Proposed timeline.
· Anticipated value and price.
· Perceived risk or lack of risk
· Company financial stability.
· References for each of the primary product(s) and service(s) proposed. · Reasonableness of any proposed adjustments to the City’s contracts. · Ability to negotiate and execute a contract in a timely manner.
Following the selection committee’s initial evaluation of the written proposals, the City invited all four firms to an interview. The committee conducted the interviews and evaluated each firm based on the following criteria:
· The firm’s presentation on background, and experience of assigned project staff. · Approach and understanding of project and support of City staff. · Methodology utilized; method for providing updates to fee schedule. · Added value to City.
· Training of staff.
The final scores for each firm following the RFP evaluation process are displayed below in Table 2.
As a result of the evaluation process, staff recommends Clearsource as the firm most responsive to the City’s needs. Clearsource has extensive experience in similar scope services in the governmental sector. Clearsource is a California-based consulting firm working exclusively for a diverse array of nearly 60 California public agencies on fee schedules and cost allocation plans, including projects for cities such as Azusa, Bell Gardens, Costa Mesa, Huntington Beach, Lake CITY OF SIGNAL HILL Page 3 of 4 Printed on 6/8/2023
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Forest, Lawndale, Long Beach, Moorpark, Placentia, Santa Ana, Torrance, and Ventura.
Services to the City will be provided out of the company’s Santa Cruz office. Clearsource will engage a subconsultant (Harris & Associates) for the development impact fee scope. Harris & Associates has 48 years in business with over 250 employees. The proposed project team assigned to the City has extensive experience managing programming and financing of infrastructure improvements; preparing impact fee studies and user fee studies; and conducting cost recovery and fee analysis.
Staff respectfully requests authorization for the City Manager to enter into a Contract Services Agreement for the preparation of a comprehensive fee schedule, development impact fee study, and a cost allocation plan, subject to City Attorney approval as to form, with Clearsource in the amount of $86,570.
If approved by City Council, the work can be completed within a five-month period from the start date.
The updated fee schedule, development impact fees, and cost allocation plan would be brought back to the City Council for approval during Fiscal Year 2023-2024.
Approved:
_________________________
Carlo Tomaino
Attachments:
A. RFP
B. Agreement
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