BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Approve the Agreement with NBS Government Finance Group for Water Supply and Flood Protection Development Impact Fee Analyses, CAS File 5150, For a Not-To-Exceed Fee of $357,660.
End
RECOMMENDATION:
Recommendation
Approve the Agreement with NBS Government Finance Group for Water Supply and Flood Protection Development Impact Fee Analyses (Project) for a not-to-exceed fee of $357,660.
Body
SUMMARY:
In November 2017, Santa Clara Valley Water District (Valley Water) received a report from financial consultant, William C. Statler analyzing available revenue options that could potentially offset water rate increases. The report concluded that while there are fewer non-rate options for special districts compared with cities and counties, there was nonetheless a broad range of reasonable revenue options available to Valley Water. However, the ones with the greatest revenue potential would require either majority property owner approval (property-related fees or assessments) or two-thirds voter approval for special taxes.
The report further concluded that there is only one significant revenue option available to Valley Water that could be implemented by the Board without some form of voter approval: development impact fees.
A portion of the Valley Water Capital Improvement Plan (CIP) will likely benefit new development for both water supply and flood protection projects. With this agreement, a comprehensive development impact fee analysis (one analysis for water supply, and one analysis for flood protection) would be prepared to assess new development’s share of cost, and the estimated potential development impact fee revenue and charges. The consultant would coordinate with other agencies and the development community, and should the Board decide to implement development impact fees, assist with implementation.
It should be noted that typically, this type of fee is collected by cities and counties along with building permits fees. However, wholesale agencies like Valley Water do not issue building permits. In these cases, wholesale agencies often enter into agreements with their retailers to collect these fees on the agency’s behalf and remit them monthly. Accordingly, Valley Water’s ability to charge and collect such fees is contingent in part on the cooperation of its customers, or other strategies that would be identified by the Consultant.
This consultant contract is needed as Valley Water does not have the expertise to do this type of work in-house.
Consultant Selection Process
On October 1, 2020, a Request for Proposal (RFP) for Water Supply and Flood Protection Development Impact Fee Analyses was published on Valley Water’s Contract Administration System (CAS). The RFP notification was sent to firms that are registered in CAS, under expertise code FS10 - Financial Services. Valley Water received a proposal from one consultant firm, NBS Government Finance Group, despite outreach to approximately 140 firms. Based on staff follow up with non-proposers, the primary reasons for not submitting a proposal were: 1) lack of bandwidth, too busy; and 2) business decision, didn’t feel price competitive.
An Evaluation Committee (EC), consisting of four subject matter experts within Valley Water, ranked the written proposals. NBS Government Finance Group, was invited to participate in the subsequent virtual oral interview conducted on December 9, 2020.
Based on the combined (written and oral) rating scores, the EC recommended staff to proceed with the highest ranked firm, NBS Government Finance Group., for contract negotiations. NBS Government Finance Group is a certified small business.
FINANCIAL IMPACT:
The Agreement with NBS Government Finance Group for Water Supply and Flood Protection Development Impact Fee Analyses has a not-to-exceed amount of $357,660. A portion of the funding for this item is included in the Fiscal Year 2021 budget under Project 60131014, Continual Improvement, with the remainder included in the proposed Fiscal Year 2022 budget.
CEQA:
The recommended action to approve the Agreement does not constitute a project under the California Environmental Quality Act (CEQA) because it does not have the potential to result in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Agreement
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068