To: MAYOR AND CITY COUNCIL
From: MARC WIENER, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
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APPROVE AN AGREEMENT WITH REVENUE & COST SPECIALISTS, LLC TO PREPARE A COMPREHENSIVE DEVELOPMENT IMPACT FEE STUDY AND NEXUS REPORT FOR AN AMOUNT NOT TO EXCEED $52,500
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EXECUTIVE SUMMARY
The proposed Agreement would engage Revenue & Cost Specialists (RCS) to assess and provide recommendations on the City's development impact fees and provide a legal nexus between fees and community impacts. The results are expected to provide the City with the knowledge and tools needed to ensure that it can recover future costs for services and infrastructure associated with new housing and commercial development. RCS recently completed a comprehensive application fee study for the Community Development Department which was used to inform the Department's proposed FY 2026-27 service fee adjustments.
BACKGROUND
Several jurisdictions throughout California, including the neighboring cities of Manhattan Beach and Hermosa Beach, are making adjustments to their development impact fees in response to State housing mandates to address potential costs associated with supporting the production of new housing units. The scope of the original agreement with RCS only supported the evaluation of application fees and existing development impact fees. At the March 17, 2026 meeting, staff presented the results of the Application Fee Study to the City Council, with staff being directed to move forward with a Development Impact Fee Study, completed through a new Agreement with RCS. The second study would evaluate the potential for adding new development impacts fees to further close the gap between costs required, and fees collected, to support development of new housing and commercial properties.
The City currently collects the following Development Impact Fees:
1. Park In-Lieu
2. Park Land Acquisition, Open Space & Park Improvements
3. Public Art
4. Wastewater System
The Development ...
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