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CC:HA:PFA - CONSENT ITEM: (1) Approval of an Agreement with KPMG LLP for a Strategic Capital Planning Assessment in a Total Amount Not to Exceed $346,000; and (2) Other Direction to the City Manager/Executive Director as Deemed Appropriate.
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Meeting Date: September 28, 2026
Contact Person/Dept: Erin Spragan/ Finance Department
Phone Number: (310) 253-6016
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (Email) Meetings and Agendas - City Council (09/24/2026)
Department Approval: Stephen Agostini, Assistant City Manager (09/22/2026)
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RECOMMENDATION
Staff recommends the City Council and the Boards of the Housing Authority and Public Finance Authority: (1) approve an agreement with KPMG LLP for a Strategic Capital Planning Assessment in a total amount not to exceed $346,000; and (2) provide other direction to the City Manager/Executive Director as deemed appropriate.
BACKGROUND
The City of Culver City maintains a diverse portfolio of capital assets, including public buildings, parks, streets, stormwater infrastructure, fleet vehicles, and technology systems. Ensuring that these assets are properly maintained, replaced, and improved requires a comprehensive and strategically prioritized approach to capital investment. Over time, deferred maintenance and evolving community needs have created a growing gap between available resources and the capital investments necessary to sustain the City's infrastructure and deliver public services effectively.
In recent years, the City Council has emphasized the importance of long-range fiscal planning and infrastructure stewardship as part of the annual budget process and the Capital Improvement Program (CIP). Staff identified the need for an independent, enterprise-wide assessment of the City's capital investment requirements to better inform decision-making, prioritize projects, and align capital spending with the City's strategic goals and available funding sources. This assessment is intended to provide the City Council and staff with a clear, data-driven picture of the City's capital needs over a defined planning horizon, along with a framework for evaluating and sequencing investments.
On April 27, 2026, the City Council approved the creation of the Culver City Public Finance Authority (PFA). On June 8, 2026 the City Council adopted a budget for the City and the PFA that allocated, among numerous allocations, $1 million, to be funded from proceeds of the sale of bonds, for various administrative expenses, including retaining a consultant to develop a comprehensive financial plan in conjunction with an analysis of the City’s reserves.
DISCUSSION
KPMG is a nationally recognized professional services firm with extensive experience in advising public-sector entities on capital planning, asset management, and infrastructure investment strategies. The proposed agreement with KPMG will provide the City with a Strategic Capital Planning Assessment designed to evaluate the City's existing capital asset inventory, identify deferred maintenance needs, assess infrastructure risks, and develop a prioritized framework for future capital investments.
The assessment will serve as a strategic planning tool that enables the City Council and staff to make informed, data-driven decisions regarding capital expenditures. By engaging a qualified external consultant with specialized expertise in public-sector capital planning, the City will benefit from an independent and objective evaluation of its capital investment needs and the adequacy of current funding mechanisms to address those needs.
The engagement of KPMG ensures that the assessment will be conducted with the rigor and independence necessary to produce credible and actionable recommendations. The resulting Strategic Capital Planning Assessment will inform future budget deliberations, bond or financing considerations, and strategic planning efforts related to the City's capital program.
Under the proposed agreement, KPMG is expected to deliver the following core work products:
• A consolidated inventory and condition assessment of the City's major capital assets;
• An analysis of deferred maintenance backlogs and associated risks;
• A prioritization framework for capital investments based on factors such as asset condition, criticality of service, public safety, regulatory compliance, and cost-effectiveness;
• Financial modeling and scenario analysis to evaluate funding strategies and long-term capital funding sustainability; and
• A final Strategic Capital Planning Assessment report with strategic recommendations for City Council consideration.
The methodology employed by KPMG is anticipated to include stakeholder interviews with City departments, review of existing capital plans and asset data, , peer benchmarking, and financial analysis of current and projected capital funding sources.
Following an informal procurement process with outreach to three different firms, and reviewing the two proposals received, staff identified KPMG LLP (KPMG) as the most qualified firm to perform a Strategic Capital Planning Assessment. KPMG brings extensive experience in public-sector capital planning, asset management, and financial advisory services for municipalities.
The proposed agreement with KPMG is for a total amount not to exceed $346,000. Per Culver City Municipal Code Section 3.07.065.A., the City may award contracts in any amount for professional services based upon competitive quotations, whenever practical, as determined by the City Manager. Due to the importance of incorporating the strategic capital planning assessment into the long-term financial plan, it was determined that soliciting additional competitive quotations was not practical.
The Strategic Capital Planning Assessment will serve as a key input into the City’s Five-Year Financial Plan by identifying long-term capital needs and providing recommendations for prioritizing, funding, and managing capital investments in a fiscally sustainable manner. This work directly supports the City Council’s adopted priorities of Strengthening Long-Term Financial Sustainability and Investing in Public Infrastructure and Community Spaces by better integrating long-term infrastructure needs with the City’s financial planning and available resources.
FISCAL ANALYSIS
The costs for the proposed amendment are included in the Adopted Budget for Fiscal Year 2026-2027 and will be paid from the taxable bond proceeds received by the PFA in its recent sale of bonds. These funds have been budgeted in the PFA portion of the Adopted Budget for Fiscal Year 2026-2027. This allocation is referenced on page 31 of the Proposed Budget for Fiscal Year 2026-2027.
ATTACHMENTS
None.
recommended action
MOTION(S)
That the City Council, Housing Authority Board and Public Finance Authority Board:
1. Approve a professional services agreement with KPMG LLP for a Strategic Capital Planning Assessment in a total amount not to exceed $346,000;
2. Authorize the City Attorney to review/prepare the necessary documents;
3. Authorize the City Manager to execute such documents on behalf of the City; and
4. Provide other direction to the City Manager as deemed appropriate.