Finance committee recommends DTA to update Kingsburg developer impact fee nexus study

The Kingsburg Finance Committee on Oct. 6 voted to recommend the City Council hire DTA to update the city’s developer impact fee nexus study, citing state law requirements and a significant cost difference between proposers.

Member Lehi Henderson told the committee that California Government Code section 66001 (as cited in the presentation) requires local agencies to conduct nexus studies that establish a reasonable relationship between development impact fees and the public improvements those fees will fund. Henderson said Assembly Bill 602 (2021) changed reporting requirements and the update frequency; the committee noted the city’s last study was completed in 2016 and state law requires periodic updates beginning Jan. 1, 2022.

Staff issued a request for proposals on Aug. 1, 2025, with responses due Aug. 22, 2025, and received two qualified proposals. The firms were DTA (the firm that performed Kingsburg’s 2016 study and which currently administers some of the city’s fee collection) and Willdan Financial Services. Both firms proposed a roughly six-month timeline to complete the update, but DTA proposed a not-to-exceed price of $49,210 while Willdan’s proposed price was $87,300. Staff recommended DTA based on the lower cost and prior experience working with both firms.

Henderson said staff intends to incorporate any proposed fee changes into FY2027 budget development; any new fees would be considered by council to take effect July 1, 2026. He also stated that, as dictated by state law, existing projects that already have development entitlements would be grandfathered and would pay current rates.

A committee motion recommending that City Council approve an agreement with DTA passed on a voice vote. The recommendation will be forwarded to the City Council for approval of the consultant agreement and any subsequent fee changes following the nexus study.

No public comment was recorded on the item during the meeting.