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<br />CITY COUNCIL MEETING DATE: <br /> <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />MAY 7, 2007 <br />TITLE <br />AGREEMENT WITH PUBLIC RESOURCES <br />MANAGEMENT GROUP FOR DEVELOPMENT <br />USER FEE STUDY, WATER AND SEWER <br />FUND STUDY, AND FULL COST <br />ALLOCATION PLAN <br /> <br /> <br />~{} <br /> <br />APPROVED <br /> <br />o As Recommended <br />o As Amended <br />D Ordinance on 1 sl Reading <br />D Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Public Hearing For <br /> <br />CONTINUED TO <br /> <br />a <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Direct the City Attorney to prepare and authorize the City Manager and <br />the Clerk of the Council to execute an agreement with Public Resources <br />Management Group for a study of the City's general fund development user <br />fees, water fund, and sewer fund, and for a full cost allocation plan in <br />an amount not to exceed $116,000. <br /> <br />DISCUSSION <br /> <br />Best practices require that cities from time to time study development <br />related fees in order to ensure appropriate cost recovery and guard <br />against potential legal challenges concerning the nexus between the amount <br />of development-related fees and the services provided. California law <br />provides that any development fee charged by a local agency shall not <br />exceed the estimated reasonable cost of providing the service. However, <br />the law authorizes agencies to recover all costs associated with <br />development processing. <br /> <br />In addition to a comprehensive analysis of the city's development fees, a <br />study also is recommended of the City's sewer and water enterprise funds, <br />as well as a thorough study of all indirect costs of other agencies in <br />the support of these services. The purpose of this recommendation is to <br />assess the true cost to provide related services to our customers in order <br />to update the city's development fees, realize potential revenue to offset <br />general fund expenditures and to ensure that proper legal requirements are <br />met. <br /> <br />On December 20, 2006, requests for proposals were sent to ten consulting <br />firms specializing in municipal financial consulting and cost recovery. <br />Four proposals were received. A review team from the various City <br />agencies evaluated the proposals and recommend Public Resources Management <br />Group as the consulting firm ranking highest in experience, professional <br /> <br />250-1 <br />