Consulting Services Agreement NBS Fee Study.docx

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Consulting Services Agreement between City of San Leandro and Last revised November 8, 2022 NBS for Cost Allocation Plan, Comprehensive User Fee Study, & Development Impact Fee Study Exhibit A – Page 4 of 9 Fully burdened hourly rates will be multiplied by the time estimates gathered in Task 3.3 to compute the full cost of each individual fee for service activity. The full cost of service defined by NBS serves as the analytically justified maximum amount that may be recovered through a user/regulatory fee adopted by the City Council. All data metrics in the fee model will be cross checked to ensure the fee program is structured to recover 100% of costs considered. TASK 3.5. DRAFT REVIEW AND REVISION We will meet with each Department to review the outcomes of the analysis. Drafts will detail all the assumptions and data utilized to calculate results as well as a comparison of each fee’s cost recovery performance. We will determine any necessary refinements to core assumptions, revise the fee model, and finalize the cost-of-service analysis. This task represents one planned iteration of the analytical work products. Next, we will obtain each Department’s final sign off on the fee models. TASK 3.6. FEE COMPARISON Policy makers often desire a comparison of fee amounts to neighboring jurisdictions. Presence of a comparison will ensure a smoother implementation process and provide a sense of the “market” rate for various services. We will utilize our expertise to compare similar user fees and charges in up to five (5) neighboring and comparable communities. A list of communities will be selected and approved by City staff. We will download the respective fee schedules from the Internet or make a reasonable attempt to contact each agency for a copy of their current fee schedules as needed. We will complete a comparison of the fee categories and amounts, for the most readily comparable fee items that match the City’s fee structure. TASK 3.7. RECOMMENDED PRICING REVIEW Pricing objectives from the City’s perspective, i.e., comfort with full cost recovery or some alternative level of cost recovery will be discussed. We will facilitate this conversation by discussing public/private benefits or causation of each activity, potential market sensitivity, interaction with established City goals or policies, behavior modification influence, and other considerations. We will collect data from the City regarding recommended fees, either at or below the 100% full cost recovery fee amount calculated by NBS. Then, we’ll model the recommended cost recovery performance per fee item, and annually for the City as a whole. TASK 3.8. FINAL REPORT A written report will be prepared describing the complete work and findings of the project. Next, a review session with City staff and members of the executive team will be conducted to review the findings issued in the draft report. Edits will be incorporated and the final report issued. The City will be provided with a digital file copy in PDF format of the final report, as well as the fee model’s cost of service tables in Excel. Should the need to defend the Study as a result of challenge, we are available to assist in answering questions and explaining results for up to four (4) hours of professional time. DocuSign Envelope ID: 7A84F803-3528-4F56-945D-63F8DD36D0C6