TO: Board of Supervisors
FROM: Becky Craig, Assistant County Executive Officer
REPORT BY: Celeste Gonzalez, Management Analyst
SUBJECT: Amendment No. 2 to Agreement No. 230373B with MGT of America Consulting, LLC.
RECOMMENDATION
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Approve and authorize Amendment No. 2 to Agreement No. 230373B with MGT of America Consulting, LLC., to extend the agreement term through June 30th, 2025 for preparation of a fee study. (No Fiscal Impact)
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BACKGROUND
State law allows government agencies to establish fees to recover the cost of providing services. Napa County has a long history of reviewing and revising fee schedules to reflect changes in the actual cost of providing services.
In April 2015, the County contracted with MGT of America Consulting LLC. (MGT) to perform a comprehensive analysis of fees. MGT used the adopted FY16 budget, staffing and operational information to determine appropriate fees. Phase 1 of the study was completed with fee changes effective in July 2016. Phase 1 included a review of fee-for service activities within the following departments: Agricultural Commissioner, Assessor, Recorder-County Clerk, Clerk of the Board, County Counsel, Fire Marshal, Housing and Intergovernmental Affairs, Public Works, and Treasurer-Tax Collector. In FY19, Phase 2 of the fee study was completed by MGT for the Planning Building and Environmental Services Department (PBES) as well as smaller targeted reviews of Public Works, Agricultural Commissioner, and Recorder-County Clerk fees. The service study utilized hourly rates of staff providing service and time spent to provide specific services. As a result, updated fees for these departments were adopted at the July 31, 2018, meeting. Certain fees were inadvertently not included in the July 2018 fee update, or in the case of fees related to the services of weight and measures, were delayed pending the passage of AB 347, which set certain weights and measures charges and extended authority to county boards of supervisors to charge annual registration fees.
In October 2022, the County Executive Office issued a Request for Proposal (RFP) for a qualified consultant or consultant team to conduct a fee study consistent with the California Government Code Section 66014 and related statutes, focusing on user fees in Planning, Building & Environmental Services, County Counsel, Public Works, and County Fire Marshal.
Fees in these departments were last studied comprehensively in 2019. At the conclusion of the 2019 study, the Board of Supervisors maintained the goal adopted in 2003 to obtain full cost recovery for the Building Division, and for other building permit related functions of the Fire Marshal, Public Works, County Counsel and Environmental Health and an 80% cost recovery for all other Planning and Public Works related applications and activities.
The purpose of the fee study is to support the adjustment and simplification of the County’s fee schedule as necessary to enhance fairness, equity, and transparency. The study may demonstrate that some fees are currently high, some are low, and some require no change. The selected consultant will be asked to review the current fee schedule and analyze the full cost (direct and indirect) of providing services in specific County departments as follows:
1. Planning, Building and Environmental Services - Building Division: building permit, plan check, and other fees presumable based on the current valuation methodology;
2. Planning, Building and Environmental Services - Planning-related fees including flat fees and hourly fees based on time and materials for use permits, variances, erosion control plans, certificates of compliance, lot line adjustments, post construction storm water inspections engineering applications, monitoring and other applications;
3. Planning, Building and Environmental Services - Environmental Health - permit related services for building, retail foods facilities, well and septic system permits, hazardous materials and underground storage tanks, and other related licenses and inspections as shown in the current fee schedule;
4. Public Works - County Surveyor functions including Records of Survey, Lot Line Adjustments, Certificates of Compliance, etc., and Roads Division functions including Encroachment Permits, Special Events on Public Roadways, etc.;
5. County Fire Marshal - building permit related services, including plan check and inspections, fuel management and fire prevention activities;
6. County Counsel - Review of planning-related applications, including major and minor modifications of use permit applications, variances, lot line adjustments, review of well and septic system permits when applicable, enforcement activities, and certificates of compliance; and
7. Other departmental fees as requested.
Following their review and analysis, the consultant will be asked to provide recommendations regarding fee adjustments assuming that the Board’s policies regarding cost-recovery remain unchanged. Consultant recommendations should also address simplification and administration of the fee schedule to the extent feasible.
The County Executive Office received responses from five firms. After reviewing each proposal based upon pre-established evaluation criteria the County Executive Office recommends MGT, for the county-wide fee study based on both qualifications and cost. MGT is a highly qualified firm who specializes in user fee studies to governmental jurisdictions. MGT previously prepared the County’s fee study in FY19, and recently provided the analysis for the County’s solid waste fees which the Board of Supervisors adopted in September 2022. Additionally, MGT was previously selected to prepare the County’s SB90 reimbursement claims and the annual Indirect Cost Allocation Plan. MGT’s previous work with the County gives them extensive knowledge and insight into the County’s structure and existing fee schedules.
On April 18, 2022, the Board approved Agreement No. 230373B with MGT for a maximum amount of $51,635 for the term of April 18, 2023, through June 30, 2024, to prepare a fee study for Planning, Building, and Environmental Services, County Counsel, Public Works, and County Fire Marshal.
On August 22, 2023, the Board approved Amendment No. 1 to Agreement No. 230373B with MGT for a new maximum amount of $107,335, to include the Agricultural Commissioner’s Office/Weights & Measures in the County fee study, add peer comparisons, and evaluate the County’s Internal Service Funds, with no change to the agreement term.
MGT of America Consulting, LLC has nearly completed drafting the fee study. Today’s request is to approve and authorize Amendment 2 to Agreement 230373B to extend the agreement term through June 30th, 2025 to complete the scope of services at the agreed upon cost.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
With approval of the proposed amendment, the scope of services would be complete. |
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Future fiscal impact: |
This fee study could impact various departments charges and revenues based on Board action once findings and recommendations are presented. |
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Consequences if not approved: |
Without approval of the proposed amendment, the scope of services will not be complete. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.