Logo courtesy of the City of Gridley

GRIDLEY, CA (MPG) - The Gridley City Council on Nov. 3 unanimously approved issuing a Request for Proposals for professional consulting services to conduct a comprehensive cost allocation plan, master fee study and an optional nexus study.

Finance Director Martin Pineda made the request, noting that Gridley does not appear to have conducted a full review of its master fee schedule or cost allocation practices in recent years. 

“I don’t know if it’s ever been done,” Pineda said. “I couldn’t find anything in our network.”

The studies, if conducted, will evaluate the city’s current fees, identify potential revenue opportunities and assess cost recovery for services such as weed abatement.

“Right now we’re charging exactly what the employee is costing the city,” Pineda said. “But if there’s something more that we can do, maybe to gain a little bit of revenue, they will let us know.”

The master fee study will compare Gridley’s rates to those of similar cities and recommend adjustments. Pineda said the analysis may show that certain fees, such as business licenses, are underpriced, with other jurisdictions charging significantly more for comparable permits.

The Request for Proposals also includes an optional nexus study to evaluate whether Gridley’s development impact fees, which are charges applied to new construction for infrastructure and public services, are legally justified and aligned with comparable cities. Because not all consulting firms offer nexus studies, the city is not specifically requiring it to allow flexibility in vendor selection.

“Some firms don’t do nexus studies,” Pineda said. “So, we made it optional.”

Pineda said the consultant would analyze fees for services such as police, electric, water and streets, and present findings to the council along with comparisons to other jurisdictions. He noted the study would include documentation to explain the basis for any recommended changes.

In response to the council’s questions about affordability and demographics, Pineda said vendors typically outline their methodology in their proposals, allowing the city to evaluate how each firm approaches the analysis. The Request for Proposals also requires the consultant to provide a spreadsheet tool for future updates.

“They will show us how to use it, so that for the next couple years we can just update it," Pineda said.

Cost estimates for the study range from $60,000 to $130,000, depending on scope. There is no cost to issue the Request for Proposals beyond staff time, city officials said.

The council authorized Pineda and City Administrator Elisa Arteaga to make minor modifications to the Request for Proposals, if needed, and execute all related documents. Proposals will be reviewed and brought back to the council for final selection.