TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
Haritha Narra |
Finance Manager |
|
Finance |
Kelly Hsi |
Senior Financial Analyst |
TITLE:
title
Approval of the FCS Group Contract, for the 2023 Development Services User Fee Study, in the Amount of $203,790
OVERVIEW STATEMENT:
recommendation
The City conducts a comprehensive Development Services User Fee Study on a regular basis. If the fees are not examined, the existing rates will remain in effect but would no longer meet cost recovery policies and operational objectives. This contract also includes other analysis needed to inform the 2025-2026 budget process.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
Relevant Plans/Policies:
• Revenue Fiscal Policy 3h: In each odd numbered year, the City will review user fees to adjust for the effects of inflation and other factors as appropriate. The City will set fees for user activities, such as recreational services, at a level to support the direct and indirect costs of the activities in accordance with cost recovery policies adopted by the City Council.
• Required:
Council approval is required for contracts over $50,000.
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
The scope of the development services user fee study will include, but is not limited to the following elements:
• Public sector development plan review, inspection and permitting
• Policy development and implementation
• Cost of service methodology
• Update direct hours, indirect hours and overhead for development review services
• Fee structures
o Review and update all fees
o Consolidation of fees
o Deletion of fees
o Development of New fees
• Develop tool/model and process for tracking development revenues/expenditures year over year
Other Analysis
• Credit Card Fee Policy Analysis
• Parks User and Operating Fees Update
• B&O Tax versus Head Tax Analysis
• Technology Fee Update
• Extended use of Right-of-Way and Excise Tax
The City solicited proposals from qualified financial consultants to conduct this comprehensive update and was seeking firms that could demonstrate successful experience in providing development service user fee analysis, particularly in the public sector. Criteria included policy development and implementation, cost of service methodology and fee structures, and public sector development plan review, inspection and permitting. Through this process, FCS Group has been selected as the most qualified consultant.
Fire Impacted fees analysis was also included in the request for proposals. NBS Gov was selected to perform the study that will provide a comprehensive analysis of fire impact fees and identify the most appropriate method to be used in calculating the impact fees. This work will be done under a separate contract. The amount of the contract does not require City Council approval. Council will be updated on this work in the Fall.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
Late Summer/Early Fall 2023
• Outreach Methods and Results:
Stakeholder meetings and engagement: OneRedmond and Master Builders Association
• Feedback Summary:
To be provided with recommendations informed by the study
BUDGET IMPACT:
Total Cost: $203,790
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
0000021 Fiscal Accountability and 0000137 Service Enhancements
Budget Priority:
Strategic & Responsive
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
General Fund
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
4/11/2023 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
9/26/2023 |
Study Session |
Receive Information |
Time Constraints:
Much of this work will be completed in 2023 and recommended changes in fees, fee structures, or policies will be implemented in 2024.
ANTICIPATED RESULT IF NOT APPROVED:
Council could choose not to approve the contract. However, analysis of the fees is recommended to ensure that they meet the requirements of the City’s fiscal policies and operational objectives.
ATTACHMENTS:
1. Consulting Services Agreement
2. Consultant Scope, Schedule, and Fee