Development Impact Fee Nexus Study Fee Updates and Consulting Services

The vendor is required to provide development impact fee (DIF) nexus study, fee updates and consulting services to begin collections with an effective date of July 1st, on a biennial basis.
- Requirement:
•    The consultant shall meet with city staff to refine the project scope, clarify, and define the purpose, uses, and goals of the previous development impact fee study to ensure its accuracy and appropriateness to the city’s needs. 
•    There are some impact fees involving law enforcement, fire suppression services, refuse, aquatics, general city, public meeting use, and library that need to be modernized based on the city’s current goals and operations. 
•    Whereas other impact fees such as stets, storm drain, water, sewer, and fiber will require a more thorough review for the remaining scope of work required as we complete development in the agency.
•    The consultant shall conduct a comprehensive review of the city’s current fee structure with the goal of establishing a consistent and objectively based fee structure that meets the needs of the city and community. 
•    The review shall include:
o    Meetings or interviews with staff as needed to gain an understanding of the services the city provides and the city’s processes and operations. 
o    Review current fee schedules for related departments and services. 
o    Collect and document comments and concerns from various stakeholders and incorporate those comments as directed. 
o    Review the current application of the DIF program and how the city finances the acquisition of facilities.
•    The consultant shall identify the total cost of providing city services at the appropriate level and in a manner that is consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to the mitigation fee act, Quimby act, proposition 26, proposition 218, assembly bill 602, and any other current or future state or federal legislation requirements.
•    The consultant shall review all applicable city documents that includes but not limited to current development impact fees, 5-year capital improvement program recently adopted by city council, general plan, municipal code, development code, ab1600, and other relevant city documents.
•    The consultant shall evaluate the city’s current system of fee accounting and administration and recommend an improved approach, if necessary, consistent with the mitigation fee act and standard accounting principles.
- Comprehensive biennial basis development impact fee study:
•    The development impact fee study update shall include fee schedules separated by different categories and funds. 
•    The development impact fee study update shall identify each fee at full cost, recommended cost, and current cost recovery levels. 
•    The report shall also identify the direct cost, indirect cost, and the overhead cost for each service. 
•    The development impact fee study update shall identify the current fees, recommended fees, percentage of change, cost recovery percentage, and fee comparison with surrounding cities. 
•    A comparison survey of rates and fees of similar cities shall be included. 
•    The development impact fee study update and subsequent fee schedules shall include an option for an annual inflator based on the application of a generally accepted measure, such as the building construction index, consumer price index, or any other methodology as determined by the consultant.
•    The development impact fee study update shall include any other matters that are identified during the implementation of the consultant’s work plan that the city should consider. 
•    The consultant shall prepare and deliver development impact fee study update presentation(s) to the city council to further facilitate their understanding of the development impact fee study update and its implications for the city and the community and make necessary adjustments as requested. 
•    The consultant shall prepare a final development impact fee study update and provide the following: the model shall provide for “what” sensitivity analysis that would easily determine how cost allocations are charged to a department and how a department would be impacted as costs, allocation methods, and services are modified, added, or removed from the plan.
- Budget: $427 million

- Contract Period/Term: 1 year
- Questions/Inquires Deadline: October 01, 2025