TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Financial Services Manager
John Albi, Management Analyst
SUBJECT:Title
Consideration of: (1) Adopting Resolution No. 26-0013 Approving Amendment No. 2 to the Professional Services Agreement with Harris and Associates, Inc. for $20,150 Related to Additional Services Required for the Development Impact Fee Nexus Study, for a Total Not-to-Exceed Amount of $95,050; and (2) Appropriating $24,725 from the General Fund (Partially Budgeted) (Finance Director Bretthauer).
A) ADOPT RESOLUTION NO. 26-0013
B) APPROPRIATE FUNDS
Body
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RECOMMENDATION:
Staff recommends that the City Council (1) Adopt Resolution No. 26-0013, approving Amendment No. 2 to the Professional Services Agreement with Harris and Associates, Inc. for $20,150 related to additional services needed for the Development Impact Fee Nexus Study; and (2) approve an appropriation of $24,725 from the General Fund.
FISCAL IMPLICATIONS:
An appropriation of $24,725 is needed from the General Fund to fully fund the amendments with Harris and Associates, Inc. for the Development Impact Fee Nexus Study. The initial contract amount of $70,325 was budgeted during the FY 2024-2025 Mid-Year Budget update.
BACKGROUND:
The City initiated a contract with Harris and Associates, Inc. in February 2025 for the preparation of a comprehensive Development Impact Fee Nexus Study and development of proposed Development Impact Fees (‘DIFs”). Through the year-long process, Harris and Associates, Inc. provided direct support and expertise in multiple capacities, including consistent guidance to all City staff involved with the Study and extensive participation in several key meetings. Additionally, Harris and Associates, Inc. was instrumental in presenting key findings of the Nexus Study and provided a comprehensive breakdown of the proposed impact fees through five (5) public meetings as follows:
1) December 4, 2025 - Community Meeting on Proposed DIFs
2) December 18, 2025 - Finance Subcommittee Meeting on Proposed DIFs
3) January 13, 2026 - City Council Study Session on Proposed DIFs
4) February 3, 2026 - City Council Public Hearing on Proposed DIFs
5) February 17, 2026 - City Council Second Reading of DIF Ordinance
Harris and Associates, Inc. provided services which exceeded the original Scope of Services, prompting an Amendment (Amendment No.1) to be executed in the amount of $4,575 on December 16, 2025.
Since then, additional review and revision to the Nexus Study was provided and the number of public meetings increased from the original and amended Scope, therefore, an additional Amendment No.2 in the amount of $20,150 is necessary.
Together, the two amendments total $24,725, requiring an appropriation from the General Fund.
DISCUSSION:
The contract with Harris and Associates, Inc. is being amended to reflect the additional work that was performed on the Development Impact Fee Nexus Study and additional services needed post-adoption through implementation of the DIFs. Additional funds were also included for parks-related Development Impact Fees, which require additional data collection and analysis.
Staff recommends that the City Council (1) Adopt Resolution No. 26-0013, approving Amendment No. 2 to the Professional Services Agreement with Harris and Associates, Inc. for $20,150 related to additional services needed for the Development Impact Fee Nexus Study for a Total Not-to-Exceed Amount of $95,050; and (2) Approve an Appropriation of $24,725 from the General Fund.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0013
2. Amendment No. 2 - Harris & Associates Inc.
3. Amendment No. 1 - Harris & Associates Inc.
4. Agreement - Harris & Associates Inc.