Report to Mayor and City Council
Tuesday, February 4, 2020
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH REVENUE AND COST SPECIALISTS TO PREPARE A COMPREHENSIVE USER FEE STUDY AND OVERHEAD COST ANALYSIS (CITY COUNCIL)
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I. SUMMARY
City Council is being asked to approve a professional services agreement with a consulting firm based in Fullerton, California. The scope of the project is to provide a detailed analysis of the costs the City incurs from providing services and provide directions to staff prior to bringing forward an updated fee structure for adoption (City Council).
II. RECOMMENDATION
Recommendation
Approve the proposed professional services agreement with Revenue and Costs Specialists to provide comprehensive fee study and overhead analysis for a not-to-exceed price of $67,940.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
The City of Carson charges user fees for a variety of specific services provided on behalf of private citizens or groups. The underlying assumption for the user fee is that costs of services benefiting individuals and not the entire community should be borne by the individuals receiving the services, and that the user of the service should pay a fee that bears a relationship to the cost of the service. Therefore, setting user fees is equivalent to establishing prices for services. Unlike private organizations, making a profit in providing services to the public is not a legally allowable objective for local governments. The City may only set fees at a level to recover the full cost of providing the service. However, in certain circumstances it is reasonable for Council to set policies in establishing fees for certain services at a level that does not recover the full costs, resulting in a General Fund subsidy.
The General Fee Study is a key initiative that will help the City in developing a fiscally sustainable course for the long term by t...
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