NIGP 94920: Development Fee Return

NIGP 94920 Development Fee Return, an Item code, encompasses consulting services to develop and justify development impact fees and nexus studies for state and local governments expanding infrastructure to support new development. The City of Santa Cruz recently issued an RFP for a Downtown Expansion Plan Development Impact Fee and Nexus Study, seeking consultants to prepare comprehensive documentation demonstrating the relationship between new development and municipal infrastructure impacts in compliance with California's Mitigation Fee Act. The work typically involves reviewing buildout assumptions, conducting infrastructure needs assessments, performing nexus and proportionality analyses, developing fee structures, and preparing final studies ready for adoption by governing bodies. Proposers under this code must demonstrate experience performing economic analysis, impact fee analysis, and nexus studies for municipal clients. Cities and towns represent the primary issuing bodies under this code, procuring these studies to establish the legal and financial foundation for charging developers fees that offset infrastructure costs attributable to new projects.

The Santa Cruz RFP, issued May 15, 2026 with a response deadline of April 23, 2026, exemplifies current demand. The scope included infrastructure analysis across potable water, sanitary sewer, storm drainage, utilities, traffic and circulation, pedestrian and bicycle facilities, parks and open space, and flood control, with order-of-magnitude costs totaling approximately $39.9 million for the approximately 29-acre Downtown Plan Expansion area. The City applied a 100-point scoring rubric emphasizing Technical Approach and Work Plan (50%), Cost Proposal (20%), Firm Background and Team Qualifications (20%), and Adherence to RFP Requirements and References (10%), with local business preferences offering scoring bonuses. The contract term runs six months from award with potential renewal by mutual agreement. Proposers must maintain Professional Liability insurance of $2 million per occurrence and comply with the City's Living Wage Ordinance for contracts exceeding $10,000. California municipalities represent the geographic focus of identifiable recent activity under this code.