Comprehensive Development Impact Fee Update

The City of Watsonville (“City”) requests proposals from qualified consultants to prepare a Nexus Study for development impact fees in compliance with the requirements of the Mitigation Fee Act (also known as “AB 1600,” California Government Code Sections 66000 – 66025). The City seeks proposals to update and replace the current impact fees identified in the “City of Watsonville Annual and Five-Year Report Development Impact Fees Report for Fiscal Year Ending June 30, 2025” (“2025 Annual Report”). It is anticipated that the updated impact fees may be evaluated and completed in phases, and the City will seek recommended approaches from the successful proposer. The City will consider proposals from proposers that include either: (a) an update to the entire scope of public facilities to be funded with impact fees, or (b) an update to one or more types of public facilities for which the proposer has experience and expertise. As identified in more detail in the 2025 Annual Report, the City is planning to update and replace the following categories of development impact fees: (1) Traffic-related impacts (including citywide, vehicle miles traveled, carbon impacts, and 13 geographical areas); (2) Underground Utilities In-Lieu Fee; (3) Public Facilities (including fire impact fee); (4) Park Land and Improvement Fees (including community center facilities, public art, as well as a replacement of a “Quimby Act” land dedication in-lieu fee with an impact fee); and (5) and Affordable Housing impacts. Additionally, the City is planning to add a Police Impact fee. The City requests that each proposal include an option to evaluate the feasibility of establishing one or more new fees (e.g., to fund public facilities needed for solid waste collection services), based on projected new development and the proposed improvements to be discussed with the successful Proposer (“Consultant”) upon selection.