City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION
Staff recommends the City Council approve and authorize release of the Request for
Proposal (RFP) for a Comprehensive Citywide User Fees and Charges Rate Study
(“Fee Study”).
BACKGROUND
The City assesses fees and charges for provision of certain services. These
services range from plan checks for new construction projects to ensure they comply
with zoning ordinances, to providing swim lessons, to issuing citations for parking
infractions. During preparation of the 2006-07 proposed budget, a cooperative effort
between Budget & Finance and the City Attorney’s Office was initiated to review fees
and charges for the entire City.
The goals for the fees and charges project are:
1. Consolidate all fees and charges, wherever possible, into one resolution – this
will increase customer service by providing a quick and easy reference for the
public and City staff;
2. Equitably recuperate costs associated with providing the various services;
3. Review fees and charges annually as part of the budget process; and
4. Post the schedule of consolidated fees and charges on the City’s website.
The first goal (consolidate all fees and charges into one resolution) is being
completed in two phases. On June 26, 2006, City Council completed Phase I by
adopting a resolution consolidating all fees previously set forth by various resolutions
into one resolution.
Meeting Date: 07/24/06 Item Number: A-3
AGENDA ITEM: Consideration of a Request for Proposal for a Comprehensive
Citywide User Fees and Charges Rate Study.
Contact Person/Dept.: Nick Kimball,
Budget & Finance
Phone Number: (310) 253-6013
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (07/19/06)
Department Approval: Marlee Chang
(07/19/06)
City Manager Approval: Jerry B. Fulwood
(07/19/06)
City Controller Approval: Marlee Chang
(07/19/06)City of Culver City, California
City Council Agenda Item Report
Originally, staff had intended to implement Phase II of the fees and charges project
(i.e. extract fees set forth in the Municipal Code) within 120 days after adoption of
the 2006-07 budget. However, in light of the fact that the Council has directed staff
to pursue a consultant to conduct the Fee Study, there are components of the Fee
Study that should be completed prior to staff moving forward with Phase II.
Therefore, in order to more efficiently utilize staff time and resources, it is
recommended that implementation of Phase II be delayed until after the Fee Study
is complete.
Once the final report is complete (January 2007), staff will incorporate any of the
report’s recommendations that the City Council chooses to accept into Phase II of
the fees and charges project. This effort will culminate in the adoption of one single
fees and charges resolution during the 2007-08 budget process to centralize a wider
array of fees and charges into one document.
In the Fiscal Year 2006-07 Adopted Budget, funds have been included to pursue a
consultant to complete the Fee Study. This will assist staff in completing Phase II
and accomplishing project goals 2 and 3 outlined above. To that end, staff has
developed a Request for Proposal for professional consulting services for the Fee
Study (Attachment 1).
DISCUSSION
A comprehensive citywide study of fees and charges by an outside consultant has
not been conducted in more than 15 years. As a matter of best management
practices, many southern California cities have engaged in comprehensive fee
studies over the past few years. The expertise and resources required to perform
such a comprehensive, in-depth study in a reasonable time period necessitate the
skills of an outside firm that specializes in this type of analysis.
The proposed scope of the study includes:
Conducting a comprehensive review of the City’s existing fees, rates, and
charges;
Meeting with staff and conducting interviews to gain an understanding of the
City’s processes and operations;
Identifying the total cost of providing each City service/program and
comparing service costs with existing recovery levels;
Recommending appropriate fees and charges based on analysis and any
appropriate subsidy level where full cost recovery may be unrealistic;City of Culver City, California
City Council Agenda Item Report
Preparation of a final report that identifies each service, its full cost, current
and recommended cost recovery levels, revenue impacts, and fee
comparisons with other LA County cities or other California cities comparable
to Culver City; and
Implementation of a computer based model for adjusting fees and charges for
the City’s current and future needs, including related schedules and cost
documentation in a format that can be edited and updated by City staff to
accommodate changes in the organization or changes in costs.
As part of this project, staff also proposes to develop and present a policy for
Council’s consideration related to reviewing the procedures for a fee and charge
update on an ongoing, periodic (annual) basis.
Should the City Council approve the release of the RFP, the following table includes
the timeline for the project:
Task Time Frame
RFP Approval by City Council July 24, 2006
Release of Notice Inviting Proposals July 27, 2006
Publish Notice Inviting Proposals
*
July 27, 2006
Deadline for Receipt of Proposals August 24, 2006 at 3:00 PM
Consideration of Award of Contract September 11, 2006
Data Gathering and Study Preparation Sep. 2006 – Dec. 2006
Presentation of Study to Council January 22, 2007
* Publication will occur in the Culver City News.
FISCAL ANALYSIS:
Funding for the Fee Study, including RFP preparation, publishing and mailing, is
included in the Adopted Budget for Fiscal Year 2006/2007.
Approval of the Request for Proposals will create a negligible fiscal impact as the
costs at this point are limited to City staff time, office supplies (paper, etc.) and
postage. The major fiscal impact may be created by the City Council at the time it
considers the award of contract (expected on September 11, 2006).
ATTACHMENTS:
1. RFP for the Comprehensive Citywide User Fees and Charges Rate Study.
2. List of firms to receive the RFP.City of Culver City, California
City Council Agenda Item Report
OPTIONS
The Adopted Budget for Fiscal Year 2006/2007 provides funding to issue the RFP
and conduct a Fee Study. However, the following options are available to the City
Council:
1. Approve the Request for Proposal for a Comprehensive Citywide User Fee
and Charges Rate Study and authorize its release (recommended option);
2. Direct staff to conduct a User Fee and Charges Rate Study in house; or,
3. Determine a Citywide User Fee and Charges Rate Study is not needed at this
time.
MOTION:
That the City Council:
Approve the Request for Proposal (RFP) for a Comprehensive Citywide User Fees
and Charges Rate Study and authorize publication and mailing of the Notice Inviting
Bids.