(9)AR 111610 Wildan Financial Services First Amendment

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STAFF REPORT DATE: NOVEMBER 16, 2010 TO: HONORABLE MAYOR AND CITY COL FROM: ROD FOSTER, CITY MANAGER PREPARED BY: BONNIE J. JOHNSON, MANAGEMENT SUBJECT: CITYWIDE USER FEE STUDY ITEM NO. 09 RECOMMENDED ACTION It is recommended that the City Council approve the First Amendment to the Professional Services Agreement with Willdan Financial Services (Willdan) in the amount of $18,750 to expand the scope of services to include a citywide user fee study, as well as to recognize and officially accept the name change of Willdan Engineering, Inc to Willdan Financial Services, Inc.. GOAL STATEMENT The proposed action will support the City's goal of ensuring the cost of providing applicable services are fully recovered as provided for under the law. BACKGROUND On June 23, 2009 the City entered into an agreement with Willdan for engineering services, as well as a user fee study related to Development Services fees (planning and building). In early 2010, the City Council authorized the operational audits of three City departments; namely Police, Fire and Electric. Each of the respective audit reports for the above departments contained a recommendation to perform a user fee study to update and possibly expand the City's existing fee structure. The 2010-11 approved budget contained funding for additional departmental audits. At the September 7, 2010 City Council meeting, the Council approved reallocating a portion that funding toward a citywide user fee study that would include all City fees for all City departments (exclusive of utility rates). ISSUES/ANALYSIS With the exception of the Community Services Department, fees have not been consistently updated in many years. Based upon on a survey that included several California cities, as well as several consultants that perform this type of work, staff was able to determine that the estimated cost of a citywide user fee study is $45,000. Staff has been able to negotiate the proposed amendment to the existing contract with Willdan in the amount of $18,750, which means that the total cost of the citywide user fee study portion of their agreement will be $44,035. Staff is recommending approval of the proposed amendment inasmuch as the Development Services portion of the project is well underway and much of the information used by the consultant in that process can be applied to other departments as well. Contracting with another consultant for the other departments would likely yield a higher price than the proposed amendment. 23152.0602015743134.1