Willdan Proposal — Pleasant Hill City Council, January 23, 2023

City of Pleasant Hill
Proposal
User Fee Study and
Cost Allocation Plan

PLEASANT HILL

TWILLDAN

W WILL DAN
1) Transmittal Letter FINANCIAL SERVICES
August 8, 2019
Ms. Mary McCarthy, Finance Manager
City of Pleasant Hill
100 Gregory Lane
Pleasant Hill, California 94523
Re: Proposal to conduct a Full Cost Allocation Plan and Comprehensive User Fee Study for the City of Pleasant Hill Dear Ms. McCarthy:

No matter how healthy the local, state and national economies seem to be, most municipalities throughout California are continually faced with the challenge of doing more with less. As cities are faced with limited financial resources to address numerous competing priorities and objectives, they are always striving to maintain high standards of service to their communities. Considering this, it is critical for the City of Pleasant Hill ("City") to ensure that its fees for requested services have been developed or updated to ensure maximum appropriate cost recovery, so that the revenues generated by fees cover the cost of those services to the best extent possible.

City Staff, and ultimately the Council, need a clear understanding of standards, service levels and the associated costs. Recognizing this, the City has responded by soliciting proposals for a Full Cost Allocation Plan (CAP) and Comprehensive User Fee Study.

Unique Combination of Services and Expertise/Public Engagement - Willdan Financial Services (Willdan") is a team of over 70 professionals who provide essential financial consulting services throughout California, and the United States. Willdan has provided the requested services to municipal clients for two decades; and is the only firm providing these types of consulting services that also has a long history of providing contract staff support to public agencies for the delivery of municipal services. This direct experience as "agency staff" provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.

Collaborative Approach and User-friendly Models and Reports - Willdan prides itself on working closely with City staff to develop an approach that is targeted toward your specific objectives and accounts for your reality, and then working together with you to gather first-hand information regarding the processes and tasks required to provide services to those requesting them.

A collaborative approach ensures we clearly understand your goals and challenges, and just as importantly, you understand the process and the results. We have included one full day of on-site data gathering and staff interviews to ensure we obtain the information we need efficiently and accurately, with limited need for follow-up.

We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the model collaboratively with City staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City's budget format wherever possible. As a result, the information contained in our models is easy for City staff to interpret, and the familiar software ensures ease of navigation.

This also allows for easy on-the-ily adjustments and updates, inclusion of updated budgets, or changes in organizational structure.

Created directly from the models, our reports clearly and graphically illustrate full and recommended levels of cost recovery and projections of revenue for fee programs, break down the costs into direct and indirect overhead categories, and present the fee methodologies. Our models and project approach are geared toward delivering work on schedule and presenting results at public meetings and council workshops.

We are excited about this opportunity to serve the City of Pleasant Hill. To discuss any aspect of our proposal, please contact me directly at (951) 587-3528 or via email at [email protected].

As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement.

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President - Group Manager
T 951.587.3500 - 800.755.6864 | F 951.587.3510 - 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com City of
Pleasant Hill PLEASANT HILL
Table of Contents
1) TRANSMITTAL LETTER.

TABLE OF CONTENTS..
2) EXPERIENCE AND QUALIFICATIONS.

Firm History, Size, and Organizational Structure....

Firm History..

Willdan Group, Inc..

Size of Firm
Location of Offices.

Willdan Financial Services Primary Business....

Employee Structure.. 2
Cost Allocation and User Fee Study Plan Primary Location... 2 Relevant Experience. 2
Experience.

Similar Services..

Project Team 5
Project Management 5
Resumes 5
3) SCOPE OF SERVICES AND WORK PLAN ..10
Project Understanding... ...10
Project Methodology ..11
Full and OMB Compliant Cost Allocation Plan Methodology ..11 Comprehensive User Fee Study Methodology ..12
Work Plans ... ...14
Full and OMB Compliant Cost Allocation Plan ..14
Comprehensive User Fee Study .. ..16
City Staff Support ..19
Project Schedules... ..20
Full and OMB Compliant Cost Allocation Plan .20
Comprehensive User Fee Study . ..21
4) • LEGAL ISSUES ..22
Conflict of Interest Statement. ...22
Financial Stability and Responsibility ..22
REFERENCES... ...23
6) FEE PROPOSAL. ..25
Full Cost Allocation Plan ...25
Comprehensive User Fee Study ...25
Additional Professional Services......... ...26
Hourly Fee Schedule .26
Notes.. .26
Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA
City of
Pleasant Hill PLEASANT HE
2) Experience and Qualifications
Firm History, Size, and Organizational Structure
Firm History
Established on June 24, 1988, Willdan Financial Services, a California Corporation, is a national firm, and is one of the largest public sector financial consulting firms in the United States. Willdan Financial Services is one of the operating divisions within Willdan Group, Inc. (WGI), which was founded in 1964 as an engineering firm working with local governments.

Willdan Group, Inc.

WGI is a publicly owned company on NASDAQ (NASDAQ ticker: WLDN). WGI provides technical and consulting services that ensure the quality, value, and security of our nation's infrastructure, systems, facilities, and environment. WGI has been a consistent industry leader through its subsidiaries and provides professional technical and consulting services that ensure the quality, value and security of our nation's infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since its inception - ensuring the success of its clients and enhancing its surrounding communities.

In doing so, Willdan has gained a notable reputation for technical excellence, cost- effectiveness, and client responsiveness in providing superior consulting services.

The company's service offerings span a broad set of complementary disciplines that include engineering and planning, energy efficiency and sustainability, and financial and economic consulting. Willdan has crafted this set of integrated services so that, in the face of an evolving environment -whether economic, natural, or built - Willdan can continue to extend the reach and resources of its clients.

Size of Firm
Today, WGI has nearly 1,300 employees operating from offices in Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Nevada, New Jersey, New York, Ohio, Oregon, Utah, Texas, and Washington.

Location of Offices
The following table provides the location of our Division Headquarters, as well as our satellite offices.

Willdan Financial Services
Office Locations
Division Headquarters
27368 Via Industria, Suite 200, Temecula, California 92590 | (800) 755-6864 Aurora, CO Orlando, FL Plano, TX
1555 South Havana St, Ste. F-305 200 South Orange Ave, Ste. 1550 5500 Democracy Lane, Ste. 130 Aurora, Colorado 80012 Orlando, Florida 32801 Plano, Texas 75024 Oakland, CA Phoenix, AZ Washington, DC
1939 Harrison St, Ste. 430 1440 E. Missouri Ave, Ste. C-170 1025 Connecticut Ave. NW Ste. 1000 Oakland, California 94612 Phoenix, Arizona 85014 Washington, DC 20036 Willdan Financial Services Primary Business
We have helped over 1,200 public agencies successfully address a broad range of financial challenges, such as financing the costs of growth and generating revenues to fund desired services.

User fee studies; Development impact fee establishment and analysis; • Cost allocation studies; Utility rate and cost of service studies; Real estate economic analysis; • Feasbity studies:

Economic development plans and strategies; Debt issuance support; Tax increment finance district formation and Long-term financial plans and cash flow modeling; amendment; Property tax audits;
Housing development and implementation strategies; • Arbitrage Rebate; and Financial consulting; Administration of special taxes, assessments, standby charges, Real estate acquisition; and utility rates.

Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA 1
City of
Pleasant Hill PLEASANT HILL
Employee Structure
Our staff of 74 full-time employees supports our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. The following table describes the Willdan staff and their assigned job classification.

Employee Structure
Title Count
President & CEO 1
ce Presiden A Group Manager
Vice President 2
Principal Consultant 9
Project Manager 14
Analyst 30
Analyst Assistant 6
Administration;
Cost Allocation and User Fee Study Plan Primary Location The City of Pleasant Hill Cost Allocation Plan and User Fee Study engagement will be conducted from our Temecula office, which maintains a staff of 54 professionals.

Relevant Experience
xperience
Willdan has provided user fee and cost allocation services to municipal clients for over 20 years; and has prepared comprehensive user fee studies, cost allocation plans, and OMB compliant cost allocation plans for clients throughout California and the United States.

Willdan's proven and successful track-record conducting user fee studies and cost allocation plan services for public agencies dates to 1998. Since that time, we have developed the expertise to successfully integrate this service into the Financial Consulting Services group's primary functions.

Our record of success within the industry provides assurance of the professionalism and capability we will bring to this engagement. A team composed of project managers and analysts develop and/or update cost allocation plans, along with their frequent companion projects - user fee studies.

Mr. Chris Fisher will serve as the primary contact for the City's engagement. The proposed project team collectively maintains nearly sixty years of experience providing Financial Consulting Services, the project team's key resources are comprised of the following individuals:
• Mr. Chris Fisher, Vice President and Group Manager;
• Mr. Tony Thrasher, Senior Project Manager; It is important to note • Ms. Priti Patel, Senior Analyst; and that Mr. Fisher has been • Mr. Robert Quaid, CPA, Principal Consultant. with Willdan for more than 20 years, ensuring
Staff Continuity the City of Pleasant Hill
Mr. Fisher has been assigned to serve as the City's representative; and has been selected for this of continuity and role due to his extensive experience, which includes the preparation and supervision of numerous dedication in staffing Cost Allocation Plans and User Fee Studies, as well as his experience presenting to governing during the completion of bodies, stakeholders, and industry groups. the project.

Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA 2
City of
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Similar Services
Listed in the table below, are public agencies in which similar services have been completed, or are currently in progress, in the previous five years, by the project team proposed to the City of Pleasant Hill.

Willdan Financial Services
Cost Allocation Plan and User Fee Study Experience
Contracting Agency Project Description
Cost Allocation Plan, User Fee Study and User Fee Study and City of Banning, CA Development Impact Fee Study
City of Bellflower, C Overheard and OMB A-87 Cost Allocation Plan and Citywide User Fee Study Cost Allocation Plan, OMB Compliant Plan, User Fee Study and City of Bellflower, CA Development Impact Fee Study
City of Belmont, CA User Fee Study and Refinement of Cost Allocation Plan City of Blythe, CA Cost Allocation Plan and OMB Compliant Plan (City of Brea, C Police Department Cost Allocation Plan City of Cerritos, CA Development Services User Fee Study City of Chino Hills, C Cost Allocation Plan, and Comprehensive User Fee Study City of Claremont, CA Cost Allocation Plan and User Fee Study City of Coalinga, CA User Fee and Rate S
City of Colton, CA User Fee Study
City of DeSoto mprehensive User Fee Stud
City of Dinuba, CA Cost Allocation Plan
City of El Cen omprehensive User Fee St
City of El Cerrito, CA Cost Allocation Plan and Community Development Department User Fee Study City of Encinitas Development Services User Fee tudy and Cost Allocation Plan Cost Allocation Plan, OMB Compliant Plan,
City of Escondido, CA and Comprehensive User Fee Study
on Plan, OMB Compliant Plan, and User Fee Study
City of Fountain Hills, AZ Comprehensive User Fee Study of Fullertor y Development Department User Fee Study
City of Galt, CA Cost Allocation Plan and OMB Compliant Plan ity of Gardena Cost Allocation Plan
City of Gilroy, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Glendale, A Cost Allocation Plan
City of Goleta, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
Hawthorne cation Plan and Comprehensive User Fee
City of Hayward, CA Comprehensive Master User Fee Study City of Hayward, CA everhead ocation
City of Hayward, CA Rental Inspection Program Fee Analysis City of Hesperia
City of Indian Wells, CA Comprehensive User Fee Study
on Plan and comprenen sive User
City of Irwindale, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study Cit La Mirada: CA ion Plan and User Fee Study Update
City of La Puente, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study Laguna Comprehensive User Fee Study and Cost Allocation Plan Update Full Cost Allocation Study, OMB Compliant Plan, and
City of Los Banos, CA Comprehensive User Fee Study
City of Lynwood Iser Fee Study and Cost Allocation
City of Mesquite, TX Cost Allocation Plan and OMB Compliant Plan ission Viejo, C ensive Usel Study and Cost Allocation P Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA 3
City of
Pleasant Hill PLEASANT HILL
Willdan Financial Services
Cost Allocation Plan and User Fee Study Experience
Contracting Agency Project Description
City of Missouri City, TX Full and OMB Compliant Cost Allocation Plan and User Fee Study City of Montebello, CA Cost Allocation Plan Update
City of Montebello, CA Transit Cost Allocation Plan
City of Monterey Park, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey, CA Cost Allocation Plan and Indirect Cost Rate City of Murrieta CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan City of National City, CA Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and IS Allocation Study
City of Oroville, CA Cost Allocation Plan
City of Palm Desert, CA Cost Allocation Plan and User Fee Study ¡ City of Patterson, CA Comprehensive User Fee Study, Full Cost Allocation Plan and OMB Compliant Plan
City of Petaluma, CA Cost Allocation Plan, User Fee Study, CIP Admin Rate & Work Order Rate Analysis, Hourly Overhead Rates, and ISF Allocation Study
City of Petaluma, CA ocation Plan Update
City of Pittsburg, CA User Fee Study and Cost Allocation Plan City of Rocklin, CA ser tree
City of Richmond, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
Cost Allocation Plan, OMB Compliant Plan,
City of St. Helena, CA User Fee Study and Development Impact Fee Study City of Salinas, CA Full Cost Allocation Plan and Comprehensive Fee Study City of San Anselmo; CA Cost location Plan and Comprehensive Jser Fee Stuc City of San Bruno, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan ost Allocation Plar OMB Compliant Plan, User Fee Study and City of San Fernando, CA Development Impact Fee Study
Cost Allocation Plan, OMB Compliant Plan,
City of San Jacinto, CA User Fee Study and Development Impact Fee Study Santa Ana, C User Fee Study
City of Signal Hill, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan City of Soledad, CA User Fee Stud
City of Sunnyvale, TX Comprehensive User Fee Study
City of Surprise, AZ Full Cost Allocation Plan
City of Tulare, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan
City of Twentynine Palms, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan
Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, City of Union City, CA and OMB Compliant Plan
Comprehensive User Fee and Rate Study, Cost Allocation Plan, City of Watsonville, CA and OMB Compliant Plan
City of West Covina, CA Cost Allocation Plan and User Fee Study City of West Sacramento st Allocation Plan, OMB Compliant Plan and Comprehensive User Fee Study Comprehensive User Fee and Rate Study, Full Cost
City of Yucaipa, CA Allocation Plan, and OMB Compliant Plan County of San Benito, CA User Fee Study and Development Impact Fee Study Kentuckiana Works, KY OMB Cost Allocation Plan and Updates Rainbow Municipal Water District, C Cost Allocation Plan and OMB Compliant Plan Sacramento Public Library, CA Cost Allocation Plan, and Updates Town of Paradise Valley, AZ lanning and Engineering Services Fee Study Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA 4
City of
Pleasant Hill PLEASANTHU
Project Team
Our management and supervision of the project team is very simple: staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

Mr. Chris Fisher will administer the City of Pleasant Hill project as the Principal-in-Charge. He will apply his extensive financial rate design/modeling experience and ability to clearly communicate results through the facilitation of numerous stakeholder forums. In this role, he will attend meetings and presentations, provide technical guidance, produce key study elements, and will be responsible for work deliverables.

Mr. Tony Thrasher will serve as the Technical Project Manager for this engagement, and primary contact for the Comprehensive User Fee Study and Cost Allocation Plan project. He will work closely with Mr. Fisher to develop the analyses under the City's scope of services and develop complete and accurate models that will best fit the project needs.

Ms. Priti Patel will provide Analytical Support, she will work closely with Mr. Fisher and Mr. Thrasher, and the City, to ensure that data is collected, interpreted, researched, and correctly entered into the model.

Mr. Robert Quaid, CPA, will provide quality assurance/quality control to this engagement in the role of Quality Assurance/Technical Advisor. Mr. Quaid will review the models as a third-party internal reviewer prior to their submittal to City staff. His continual review of data entry and model development assures that the draft, and final products have been thoroughly evaluated for potential errors; thus, providing quality client deliverables, and high levels of integrity and outcomes throughout the duration of the project.

Project Management
Furthermore, to ensure that the project stays on schedule, and is properly focused on City objectives, Mr. Fisher, in collaboration DISTINCTIVE SERVICE with Mr. Thrasher and Ms. Patel, will provide City staff with updates to summarize our progress against the project timeline, and update Willdan is an established leader in the provision of municipal the status of upcoming deliverables. We will also document services with over five decades of exemplary service discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and UNIQUE CLIENT model. The Project Team will utilize a detailed Project SOLUTIONS Management Plan from the outset of the engagement to manage RELATIONSHIPS Experience coupled with in
and control all proposed activities, deliverable deadlines, client and creativeness leads to successfu projects for our clients.
stakeholder engagement, and quality control.

Willdan will meet with staff to enhance our understanding of the project objectives, review the project timelines, and seek INSPIRED assistance in identifying the best information sources to obtain the necessary inputs to evaluate the City of Pleasant Hill.

Wilican team members pride themselves on By achieving our Client's goals, Finally, following key stakeholder discussions, we will schedule a their dedication to the Client and the project we have accomplished our objective. call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate. These steps guarantee that as the project moves forward success will be achieved by continually aligning our approach and work with stakeholder and City objectives, Resumes
Resumes for Willdan's project team are presented on the following pages.

Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN 5
City of Pleasant Hill, CA
City of
Pleasant Hill PLEASANT HILL
Chris Fisher
Principal-in-Charge
Education Mr. Chris Fisher, Vice President and Group Manager of Willdan's Financial Consulting Services group, will serve as San Francisco State Principal-in-Charge for the City of Pleasant Hill project. He will also share his extensive knowledge related to cost- University, Bachelor of of-service principles with members of the project team.

Science, Finance
Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects Areas of Expertise for public agencies in California, Arizona, Colorado, Texas, and Florida; coordinating the activities of resources Cost of Service Analyses within Willdan, as well as those from other firms working on these projects. He is one of the firm's leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety.

Multi-disciplinary Team
Management Related Experience
City of Union City, CA - Comprehensive Fee and Rate Study & Overhead Cost Allocation Plan: Mr. Fisher Special District
served as the principal-in-charge for the City's fee study. He oversaw the development of an overhead cost allocation Formations
plan, OMB compliant cost allocation plan, as well as a comprehensive user fee study.

Client Presentations
City of Petaluma, CA - Overhead Cost Allocation Plan and OMB Circular Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rate Study: Mr. Fisher served as project manager for the project team and Proposition 218
provided oversight for this thorough and intensive study for the City of Petaluma.

Affiliations City of Belmont, CA - Master Fee Study and Cost Allocation Refinement: Mr. Fisher served as the project California Society of manager for Willdan's work with the City of Belmont and the Belmont Fire Protection District's fee study. Willdan Municipal Finance completed a Master Fee Study and an analysis and review of the existing Cost Allocation Plan for the City of Officers
Belmont, and a Fee and Rate Study for the Belmont Fire Protection District.

Municipal Management City of Pittsburg, CA -Cost Allocation Plan and User Fee Study: Mr. Fisher provided policy guidance and Association of
quality assurance to the City's update and development of a comprehensive user fee study for the development of Northern California
a master user fee and rate schedule and a cost allocation plan to recover overhead costs related to central service activities.

California Municipal
Treasurers Association City of Hayward, CA - Cost Allocation Plan and User Fee Study: Mr. Fisher served as the project manager for the City's full overhead cost allocation plan and OMB A-87 cost allocation plan, along with a comprehensive master 20 Years' Experience user fee study. He worked with the City and Willdan staff to gather the necessary data and is overseeing Willdan's development of the cost allocation model. The City has a complicated and detailed budget and the cost allocation plan that Willdan developed is tailored to their structure and includes provision for several Internal Service Funds.

City of Salinas, CA - Comprehensive Fee Study and Full Cost Allocation Plan: Mr. Fisher served as the project manager for the City of Salinas engagement, to prepare an OMB A-87-compliant full cost allocation plan and comprehensive fee study for the development of a master list of fees. Mr. Fisher led an all-departments overview meeting, where the framework and general process was reviewed, and global practical and policy questions were addressed. Immediately following the overview meeting, individual meetings were held with representatives from each department to discuss their specific fee related activities and gather necessary information to update fees.

City of Irvine, CA - OMB Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City's Finance Commission and to the City Council.

City of Signal Hill, CA - Cost Allocation Plan and User Fee Study: As principal-in-charge, Mr. Fisher oversaw the development and review of a Full and OMB compliant cost allocation study and a comprehensive user fee and rate study for the City's master list of fees..

City of Laguna Hills, CA - Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr.

Fisher oversaw the update of the City's general overhead allocation plan and cost-of-service user fees.

City of Murrieta, CA - Cost Allocation & OMB Compliant Plan and Comprehensive User Fee Study: Mr. Fisher served as the project manager on the City's fee study. The primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds.

The City has recently re-engaged Willdan to conduct an update to both studies.

Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN 6
City of Pleasant Hill, CA
City of
Pleasant Hill PLEASANT HILL
Tony Thrasher
Technical Project Manager
Education Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Bachelor of Science, Technical Project Manager for the City's engagement. Mr. Thrasher is a Senior Project Manager within the Financial Economics; California Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses State Polytechnic for cost allocation plans, user fees, and utility rate studies.

University, Pomona
Mr. Thrasher's prior employment was as a financial analyst working in bond, equity, and mortgage-backed security Areas of Expertise markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank. His experience includes portfolio Cost Allocation Plans accounting, differential analysis, and forecasting.

Fiscal Analysis for Related Experience
User Fees and Rates City of Monterey, CA - Cost Allocation Plan: Mr. Thrasher is serving as the technical project manager for the City of Monterey Cost Allocation Plan engagement and updates. He is assisting in the development of the City's District Administration general overhead allocation plan, whereby he applies his expertise on alternative allocation methods. The City hired Services Willdan for the original study, and has since hired us for multiple updates.

Utility Rate Studies City of Hayward, CA - Cost Allocation Plan and User Fee Study: For this project, Mr. Thrasher provided analytical support, and was largely responsible for the development of the models. Primary duties include gathering 11 Years' Experience and verifying necessary data, finalizing model figures and generating reports. The City hired Willdan to complete the original Cost Allocation Plan and User Fee Study, and has subsequently hired us for updates to both studies.

City of Petaluma, CA — Overhead Cost Allocation Plan and OMB Circular A-87 Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rate Study: Mr. Thrasher provided analytical support for this engagement.

His primary duties were to work with City staff to gather data, provide assistance to the project manager, and produce reports. The City has hired Willdan for multiple updates since we completed the original study.

City of Richmond, CA - Cost Allocation Plan & User Fee Study: Mr. Thrasher is the technical project manager for the City of Richmond's ongoing fee study.

City of Salinas, CA - Full Cost Allocation Plan and Comprehensive Fee Study: Mr. Thrasher provided analytical support for the City of Salinas OMB A-87-compliant full cost allocation plan and comprehensive fee study engagement. He worked closely with City staff to gather and analyze data to produce reports, participated in multiple meetings, and assisted the City appointed Project Manager in the adoption of the new fees.

City of Chino Hills, CA - Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Thrasher is serving as the technical project manager for the City's Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement.

City of Mission Viejo, CA - Cost Allocation Plan and User Fee Study: Mr. Thrasher was assigned to work with the City on this project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure full-cost recovery for building and safety, planning, community development, and public works departments.

City of Bellflower, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study Update: In Willdan's initial engagement with the City, Mr. Thrasher provided analytical support, with his primary duties including finalizing model figures and generating reports. In the subsequent update of both the CAP and the Fee Study, Mr. Thrasher assumed a lead technical role, working directly with the client to develop a new Cost Allocation Model, update the comprehensive fee model, and resolve policy and fee setting issues. He was directly responsible for delivery of reports and presentations to the City.

City of Indian Wells, CA - User Fee Study: Mr. Thrasher served as the technical project manager for the City's Administrative, Building, Planning and Public Works Departments. The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs cost recovery levels.

Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN 7
City of Pleasant Hill, CA
City of
Pleasant Hill PLEASANT HILL
Priti Patel
Analytical Support
Education Ms. Priti Patel is a Senior Analyst within the Financial Consulting Services group, whereby she supports project Bachelor of Arts; managers in conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 Business compliance, and forming special districts.

Management,
Information Systems Coordinating and conducting activities associated with Cost Allocation Plans and User Fee Studies, including and database integration and manipulation, revenue and expenditure analyses, and documentation preparation are just International some of Ms. Patel's duties. With these duties, she interacts with clients on a regular basis.

Business,
University of Ms. Patel joined Willdan as an analyst with the District Administration Group, while with DAS she performed research Cincinnati and analysis needed for local government financial issues related to district administration, including document data entry and updating, database management, research and report preparation. She also provided general information Areas of Expertise on questions pertaining to Assessment Districts and special taxes (such as Mello-Roos Pools), as well as the status Cost Allocation Plans of property delinquencies. Ms. Patel came to Willdan with more than five years' experience as an Analyst.

User Fee Studies Related Experience
City of Richmond, CA — Cost Allocation Plan & User Fee Study: Ms. Patel is the financial analyst on the City Proposition 218 of Richmond's ongoing User Fee Study and Cost Allocation Plan. She is assisting the project manager with gathering and validation of data, development of the models and related analysis, staff interviews and preparation of reports 7 Years' Experience
and presentations..

City of Monterey, CA - Cost Allocation Plan: Ms. Patel is serving as the financial analyst for the City of Monterey Cost Allocation Plan and updates. In this role she is responsible for obtaining updated information and data, reviewing overhead structure and functions and preparing the updated model and report. The City originally hired Willdan for the creation of the first Cost Allocation Plan, and has hired us for multiple updates since then.

City of Dinuba, CA - Cost Allocation Plan Update and Utility Rate Study: Ms. Patel assisted with a utility rate study and a cost allocation plan update for the City. Duties included reviewing relevant documentation, gathering information related to indirect staffing and functions, assisting in the preparation of a comprehensive draft cost allocation model and plan, and testing and reviewing the model and results with project management staff.

City of Pittsburg, CA -Cost Allocation Plan and User Fee Study: Ms. Patel was assigned to provide assistance to senior project team members on the City of Pittsburg Cost Allocation Plan and User Fee Study engagement. She will be a technical lead for the gathering of data, creation of the models and preparation of study reports and presentations. The City hired Willdan for the original study, and for two subsequent updates.

City of Chino Hills, CA - Cost Allocation Plan and Comprehensive User Fee Study: Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study. Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods.

She is also assisting in the preparation of user-friendly Excel-based models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.

City of Fillmore, CA - Full Cost Allocation Plan and User Fee Study: Ms. Patel helped develop a cost allocation plan and model that fully allocated central overhead costs to appropriate operating departments, funds, and/or programs. She assisted in the completion of the model and report and worked directly with senior staff to their feedback and revisions.

City of San Fernando, CA - Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel is currently providing support to senior team members in the preparation of a cost allocation plan, OMB compliant plan and comprehensive user fee study. The cost allocation plan is being used as a component of the comprehensive user fee study.

Kentuckiana Works, KY - Cost Allocation Plan: Mr. Patel is the financial analyst assigned to the Kentuckiana Works Cost Allocation Plan engagement.

City of Laguna Hills, CA - Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Patel provided analytical support in the preparation of a full cost allocation plan and comprehensive fee study for the development of a master list of fees.

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City of Pleasant Hill, CA
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Robert Quaid, CPA
Quality Assurance/Technical Advisor
Education With his 35 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality Bachelor of Science, assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr.

University of Southern Quaid provides project management, procedural support, technical support, and quality review for Willdan's District California Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis.

Areas of Expertise
Fiscal Analysis for User Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance. He began Fees and Rates his career with the public accounting firm formerly known as Haskins & Sells (currently known as "Deloitte & Touche"). His experience includes financial statement analyses, asset administration, computer conversion, and Cost Allocation Plans reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA.

Acquisition Audit Services
Related Experience
Sautor Fronia Statutory Financial City of Thousand Oaks, CA - Cost Allocation Plan: Mr. Quaid served as project manager for the development Reporting of an OMB A-87 compliant cost allocation plan model using fiscal year actual costs as the basis for the allocations.

Fund Audits He was responsible for the preparation of the Cost Allocation Plan report and provided cost allocation model training to City statt.

Quality Review of The objective of this project was to determine the appropriate allocation of indirect costs from City General Fund Community Facilities,
Lighting & Landscaping, central service departments to the General Fund operating departments/programs and the non-General Fund and Assessment Districts departments/programs. The plan model included 16 allocation bases allocating costs to over 100 departments and divisions. Both full and OMB A-87 cost allocation models were delivered to the City. Willdan was awarded a four- Affiliations year contract.

California Society of
Municipal Finance Cities of Fontana, Gardena and Hawthorne, CA - Cost Allocation Plan Projects: For each of these cities, Mr.

Officers Quaid served in the role of task manager for the development of an OMB A-87 compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff California Society of on how to use the cost allocation model.

CPAs
City of Rialto, CA - Comprehensive User Fee Study: Project manager for the Comprehensive User Fee Study Certifications/ Licenses to develop a user fee model in Microsoft Excel and update fees for Planning, Engineering, Building, Public Works, Certified Public Recreation, Police, Fire, City Clerk, Treasurer and Finance.

Accountant
City of Cathedral City, CA - Comprehensive User Fee Study: Mr. Quaid served as project manager for a user 35 Years' Experience fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance.

Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients throughout California. Provided below are a few examples of clients in which services have been provided in the previous five years. • City of Belmont, CA • City of Petaluma, CA
City of Cerritos, CA • City of Rocklin, CA
• City of Claremont, CA • City of St. Helena, CA
• City of Coalinga, CA County of San Benito, CA
• City of El Cerrito, CA City of San Bruno, CA
• City of Fillmore, CA Sacramento Public Library, CA
• City of Galt, CA City of Salinas, CA
• City of Hayward, CA • City of Union City, CA
• City of Indian Wells, CA • City of Watsonville, CA
• City of Monterey, CA • City of Yucaipa, CA
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3) Scope of Services and Work Plan
Project Understanding
Willdan Financial Services ("Willdan") is confident that we can meet the City of Pleasant Hill's request for services for a Full Cost Allocation Study (CAP) and Comprehensive User Fee Study.

The overall objective of this project will be to develop an updated schedule of user fees for City services, that accounts for the true costs of providing those services.

The end products will include user-friendly Excel-based models, which City staff will retain, and which can be easily updated to add or remove services and/or costs, update budgets in future years, determine the proper allocation of expenditures, and on-going full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable.

For these studies, we will meet directly with departmental representatives at the City at the beginning of the project, to discuss the approach and process for the studies. Discussions will include ways to combine tasks and efforts among the cost allocation plan and user fee study components to maximize efficiencies and ensure adherence to specified timelines A key building block of the calculation of updated fees is the development of defensible indirect overhead rates that reflect the cost of support services provided by the City's central service departments to the operating groups that provide end-user services to the public and customers of the City. The development of a comprehensive Cost Allocation Plan will ensure that the costs of indirect overhead services within the City are appropriately allocated to various fees and programs, and the OMB Cost Allocation Plan will provide the City with billing rates to be used for grant reimbursement or other similar situations where OMB compliance is required.

The completion of a CAP is a key component and first step in this effort. A well thought Rather than a costly and inflexible out CAP ensures that indirect costs associated with central overhead services, such as proprietary software, which can finance or city clerk, are appropriately allocated to operating departments, and ultimately require expensive licensing fees, included as a cost component of fees for services. We will work collaboratively with City Willdan builds the Models utilizing staff to identify the overhead support services that are provided to operating departments Excel, from the ground up, in Pleasant Hill and develop a fair and defensible means of allocating these costs. This employing the City's budget as the CAP will also need to be compliant with Federal regulations related to cost gauge. These Models, which are reimbursement and grant funding, formerly known as OMB A-87 guidelines, which have then the City's to retain, gives City now been superseded by the OMB Super Circular. The new circular did not completely staff the control to make on-the-fly overhaul the guidelines, and the intent is still the same, but it did add new limitations to consider and incorporate into an OMB compliant CAP.
adjustments and updates.

For the User Fee Study, we will work directly with personnel at the City who provide services and interact directly with residents and customers, to understand the personne and procedures involved. By carefully examining these processes, we will be able to identify associated costs such as direct staff costs (salaries and benefits) associated with personnel involved in the activities, and appropriate overhead allocations from both the department and city levels.

For a successful and effective engagement, it is important to have a thorough understanding of specific City policies and objectives, the structure and organization of the City, and the relationships between the central and operating departments. We bring years of successful experience working directly with hundreds of cities throughout California.

Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan brings to the City include the following:

On-site Data Gathering
Our experience has taught us that working together, via face-to-face discussions, is the most efficient and thorough way to ensure that results are accurate, and that studies are completed in a timely manner, which again, is critical in this proposed engagement.

Consequently, through on-site interviews with your staff, Willdan will collect the majority of required data for studies. This method is better than the typical "time and motion surveys" that are provided to agency staff when studies like these are conducted. This process ensures that we gather the data we need in one coordinated step, rather than having to go through repeated follow-up and clarification.

This approach and the dedication of our staff will help ensure we meet the City's timeline and objectives and provide important information to City staff and the Council as soon as possible.

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Public Engagement
Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and Council workshops. While we understand that the City Council and local business community may be generally supportive of increasing fees where necessary, it will be important to present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis.

The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance- oriented individuals and facilitates discussion. Our proposed principal-in-charge for this engagement has coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges. As previously mentioned, our objective is to provide useful, detailed information to the Council and City staff, necessary to make important decisions. Our experience ensures that we can meet this objective.

User-friendly Models and Reports
Willdan prides itself on creating user-friendly Excel-based models that the City can retain and conducting our analysis and developing the models collaboratively with City staff. With City staff's immediate input and collaboration, Willdan will design extremely flexible, intuitive Excel-based models. In the future, as the City assumes new responsibilities, modifies existing processes, and/or eliminates unnecessary services or programs, the models will be capable of adding or deleting tunds, objects, departments, programs, statt positions, and activities. Willdan understands that issues facing the City are unique; consequently, we design our models to match your immediate and desired needs to ensure that end-results exceed staff expectations.

These models are then the City's to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy.

A key element of these studies is presenting results and recommendations in a straightforward manner, The models will be
that allows Council and staff to confidently make fee setting policy decisions and understand the impacts of those decisions. Rather than using an inflexible proprietary software program, we construct our models developed to allow from the ground up, as previously discussed, mirroring the City's budget format wherever possible. As a the City to run result, the information contained in our models are easy for City staff to interpret, and the familiar software "what-if" scenarios ensures ease of navigation. As the models are being designed and constructed, we will work together with to address possible City staff to determine the best and most effective features to include. After the project is completed, we changes in staffing will provide training, so that your staff can independently and efficiently evaluate the effects of changes in levels, working certain factors. Created directly from the models, our reports clearly and graphically illustrate bases for the hours, etc. full cost recovery level of fee programs, provide projections of revenue from fee programs, both at full cost recovery and at recommended levels, and present the fee methodologies.

Project Methodology
The following describes our proposed approach, and work plan to prepare a Cost Allocation Study and Comprehensive User Fee Study.

Full and OMB Compliant Cost Allocation Plan Methodology The purpose of this cost allocation plan engagement is to ensure that the City is maximizing the recovery of indirect costs from identified operating departments, as well as enterprise and other chargeable funds and capital projects. Furthermore, a sound cost allocation plan is a foundational element of a user fee study, and the development of internal hourly rates, including CIP billing rates. We will work closely with staff in identifying the proper balance of allocation factors appropriate for the City. To achieve the maximum cost recovery objective, the City must have a method of identifying and distributing administrative costs that is fair, comprehensive, well documented, and fully defensible. A cost allocation plan coupled with comprehensive overhead rates will enable the City to achieve this goal.

Our models are unique in that they utilize an iterative method which is considered the most accurate. An additional benefit of the methodology is the ability to accurately account for where each dollar and cent is allocated based on the chosen methodology. This enhances the transparency of the Plan, helps in conveying the results and process in easy to understand terms. Most other Cost Allocation Plans rely on straight allocations or multi step methods that can be manipulated and are less accurate which makes them less defensible.

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Approach for Managing the Project
Willdan's "hands-on" supervision of Cost Allocation Plan studies, include the following methods:
•Effective Project Management - Principal-in-Charge Chris Fisher will manage the entire project with an eye toward high responsiveness, while ensuring that all stakeholders are "on board" with the direction of the project, as well as with the final results.

Mr. Fisher will ensure that regular status updates are provided to City staff, conference calls are scheduled, and that in-person meetings are conducted (as necessary).
• Adherence to Time Schedule — Willdan recognizes that the use of "timelines" is highly effective in meeting all required deadlines. To keep the project on schedule, there are several tasks that must be completed in a timely manner. Therefore, we will present a project timeline at the kick-off meeting that should be closely followed Although the establishment of an experienced project team and a detailed project timeline work extremely well in general, Willdan understands that outside influences can create uncontainable situations for everyone involved in the project. In rare circumstances like these, our team quickly adapts to changes, and communicates our recommended schedule adjustments to the City.

Approach in Communicating with the City
Willdan staff is accustomed to interfacing with local government councils, boards, staff, community organizations, and the public in general in a friendly and helpful manner; we are always mindful that we represent the public agency.

We are sensitive to the need of delivering a quality product, with the highest level of service and professionalism. Therefore, as the work on the project progresses, we understand that it will be necessary for our staff to work closely with you and City personnel. To accomplish this, we employ a variety of tools, including monitoring project status and budget costs; and ensuring effective communication through several options that are based on the City's preferences.

Experience with Development Service Processes
A unique aspect of our firm is our relationship with our Engineering Division. For many agencies throughout California and other Western states, this division provides contracted services in planning, engineering, and building and safety. When conducting cost recovery studies, we regularly consult with our engineering and land-development staff of experts on development-related issues. By working with our planners, engineers, and building officials, we understand development-related agency service procedures and workflow functions, which often make the entire user fee study process smoother for your staff.

Comprehensive User Fee Study Methodology
To comprehensively update fees, the City should develop a comprehensive user fee schedule that accurately accounts for the true cost of providing services. Once the study is complete, the fee study model must be flexible so that the City can add, delete, and revise fees in the future. To meet this goal, we will bring our expertise and unique perspectives to your fee study by approaching the project with these three principles:
1) Defensibility
Our user fee projects have not been legally challenged since the inception of this practice area in our firm. We have accomplished this by closely working with legal counsel familiar with user fee studies, our engineering division and with agency statt. In this way, we can tailor the correct approach to ensure full cost recovery combined with a sound and reasonable basis for each user fee you implement.

We employ principles from Proposition 218 to make certain that your user fee and rate schedule is developed with fairness, equity, and proportionate cost recovery principles in mind. With the addition of Proposition 26, Willdan will review each analyzed user fee for compliance and appropriateness to ensure continued defensibility. 2) Project and Staff Time
The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as applicants approach the City for its services. Our standards and approaches serve to get to the issues of your fee study quickly. Starting with the project kick- off, we will make certain that your staff understands the purpose and scope of the study and its corresponding on-site departmental interview. As Willdan is able to communicate directly with the service providers, this face-to-face interaction provides valuable time estimates.
3) Responsiveness
We take great pride in providing responsive service to our client agencies. Frequent communication is critical to a successful user fee study experience. We will provide a list of data requirements in advance of the project kick-off. Due to this simple step, the introductory meeting can focus on the survey input process, answering questions, determining policy goals, and defining next steps in the project. We will follow up weekly with you at each step in the fee study process to make sure that staff "buys in" to the fee study approach and results.

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Approach
Our approach to preparing the user fee study and documentation for Pleasant Hill includes:
• Close coordination with your staff to devise a consensus approach. Different programs and/or different service delivery methods will necessitate different approaches. We will discuss specific pros and cons with City staff as we determine which methods work best for various categories of fees;
• Strict adherence to key legal and policy issues with regard to user fees, including the percent of cost recovery that the City seeks to achieve. A user fee shall not be set higher than the reasonable cost of providing a fee-generating service. Our approach provides you with a fee schedule that achieves maximum legal cost recovery while ensuring that each fee is supported by technically defensible documentation; and
• Technical analysis necessary for project participants to resolve policy issues.

As described below, there are two basic approaches to calculating user fees:

Approach 1: Case Study Method
This is also sometimes referred to as a cost build-up approach. Using a time and materials approach, the "Case Study Method" examines the tasks, steps and City staff involved in providing a particular 'unit" of service, such as a permit review, and then uses that information to develop estimates of the actual labor and material costs associated with providing a unit of service to a single user. It is often used when a service is provided on a regular basis, and staff and other costs associated with the service can be segregated from available budget data.

A typical case study fee model should comprise the
following three general cost layers: Central
1) Central Services Overhead: This category may Services involve such costs as labor, services, and supplies that Overhead benefit more than one department, division, or project.

The exact benefits to specific areas are impossible to
ascribe to a single activity. Examples are purchasing,
human resources, and liability insurance. As part of the user fee study, these costs are calculated in the overhead cost review.
2) Department Overhead: This category may include
expenses related to such items as office supplies, outside Departmental Fully -Burdened consultants, and membership dues. It may include Overhead Hourly Rate
management, supervision, and administrative support
that are not provided to a direct fee-generating service.

Typically, these items are charged, on an item-by-ltem
basis, directly to the department, division, or project. 3) Personnel Costs: This category refers to direct salary and benefit costs of staff hours spent on providing a fee- generating service (e.g., on-site building inspector).

Approach 2: Average Cost Method
This is also sometimes referred to as a programmatic Personnel approach, because it looks at costs at a program level, Costs and then allocates them to participants on an occurrence basis. By taking total service costs across a substantial sample period (a year) and dividing by the total number of service units delivered over that same period, costs per unit of service is estimated.

This approach is useful when services or programs are provided in a more aggregate manner, where it might be difficult to identify a specific sequence of steps associated with one user or participant; or where it is not feasible to cost-effectively segregate costs associated with specific activities.
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Work Plans
Our proposed work plans, described in detail by task, are provided below. We propose to maximize efficiency and cost-effectiveness by combining meetings and data gathering efforts between the cost allocation plan and user fee study wherever possible.

We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City's needs and specific local circumstances. We will work in concert with the City to adjust scopes as needed during the course of the studies.

Full and OMB Compliant Cost Allocation Plan
This proposed scope of services addresses the completion of both the full and OMB compliant versions of the Cost Allocation Plan (CAP).

We have noted where activities specific to the OMB compliant plan occur.

Task 1: Initial Document Request
Objective: Initial due diligence.

Description: Prior to the kick-off call, relevant documentation will be obtained and reviewed in order to enhance our understanding of the City's current cost allocation plan and internal structure of the agency. A written request for specific data will be sent to the City. The data provided in this task will provide the building blocks for later model development.

Our request may include (but is not limited to):
• Detailed budget and accounting data;
• Prior year's financial data, salary, position and staffing data; • Organizational structure;
• Prior cost allocation plan and/or user fee documentation and models; and • Data related to various allocation bases that may be incorporated as part of the methodology, i.e. City Council agenda frequencies by department, AP/AR transactions by department, IT equipment distribution by department, etc.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 2, Kick-off Call/Refine Scope). We will follow up with the City to confirm in writing the data that we have received, or which is still outstanding.

Task 2: Kick-off Conference Call / Refine Scope
Objective: Confirm project goals and objectives. Identify and resolve policy issues raised by the study and determine appropriate fee categories.

Description: Willdan will identify and resolve policy issues typically raised by these studies and address data gaps in order to gain a full understanding of the City's goals for the cost allocation plan. We will establish effective lines of communication and processes for information gathering and review.

We will also discuss costs that may not be allocable for OMB purposes, and the potential impact on the OMB version of the CAP.

During this call, we will ask that the City assign a project manager to serve as its primary contact. The selected City project manager will ensure that available data is provided to Willdan in a timely manner, thereby maintaining adherence to the project's schedule.

We will obtain and review the current cost allocation methodology and discuss with City staff. The objective of this review is to determine specific areas of focus as they relate to the City's objectives, and to discuss and evaluate current and potential allocation factors.

Meetings: One (1) project kick-off conference call to initiate the project, discuss data needs and methodologies and to address policy issues. We would propose to conduct the user fee study kick-off during this same call, to maximize efficiency and cost effectiveness of staff and Willdan time.

Deliverables: Willdan: If needed, a revised project scope and schedule.

City: Provide further data requirements and select / introduce City's project manager.

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Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model Objective: Gather information related to indirect staffing and functions. Prepare draft cost allocation plan and model.

Description: This task involves the gathering of specific information, directly from City staff, through interviews and discussion, related to the functions served by indirect staff and the departments served by their activities. This task also focuses on the development of, and/or adjustment of existing, allocation bases, and the development and testing of a model that will ultimately be used to calculate the proper cost allocations derived from data gathered in prior tasks.

The model will be developed to incorporate any recent changes in the provision of City services, and fully allocate central service costs.

The model will also be developed to allocate only those costs eligible under OMB Super Circular (former A-87) guidelines. This is accomplished by loading relevant data into the model, identifying which costs are not allocable under OMB guidelines, then employing a toggle that will remove the OMB ineligible costs as appropriate. The OMB Super Circular compliant model is valuable as the City may receive Federal or State grant funding that mandates compliance with Federal OMB regulations
We will utilize budget and organizational information, and other required information gathered from City staff to complete the work in this task. Specific discussions will be held to discuss bases, how central overhead services are provided to and utilized by other departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation methodology.

The model and methodology will also produce indirect cost rates. These rates will be suitable for a variety of uses, including incorporation into the User Fee Study's personnel rates, billing to CIP projects, and in the OMB Super Circular compliant CAP, to Federal grants.

Meetings: Online meetings with staff to understand structure and operations as model and allocation bases are developed. Key staff will be interviewed to best understand central overhead staffing and functions and the departments served.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format that provides both a full cost allocation plan and an OMB Super Circular compliant cost allocation plan.

Task 4: Test and Review Cost Allocation Methodology
Objective: Test and review model and results with City.

Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure that preliminary allocations provide an accurate depiction of how the central overhead costs should be borne by the operating programs and funds. Over the past several years, we have successfully integrated online meetings by using WebEx™ as an element to our approach. This allows us to remotely guide staff through the model review and allows you the opportunity to interactively change inputs and test approaches.

Meetings: One (1) online meeting and demonstration with City Staff to review the model.

Deliverables: Willdan and City: Draft cost allocation plan model review.

Task 5: Prepare and Present Draft Report
Objective: Prepare the draft cost allocation report.

Description: This task involves the draft report preparation. The cost allocation plan's background, model methodologies, and results will be discussed; calculations and supporting data will be presented textually and in easily understood tables and provided to the City.

Meetings: One (1) online meeting to present the draft report to City Staff.

Deliverables: Willdan: Draft report for City review and input.

City: Review of draft report, with comments, and edits.

Task 6: Discuss and Revise Report
Objective: Review of draft report, cost distribution methods, and model.

Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation method for each expenditure type. Often, through the course of an engagement, comments usually revolve around issues of:
understandability; appropriate levels of enterprise funds' cost recovery, etc.; ease of calculation; and overhead costs distribution methods.

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Following a round of comments from City staff concerning the draft report, the final report will be prepared for presentation to the Council.

Meetings: One (1) conference call with City staff to review the report with changes and revisions.

Deliverables: Draft report, and revised draft/final report.

Task 7: Prepare and Present Final Report and Model
Objective: Prepare and present the final report to City Council. Educate City staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report, Willdan will prepare the final report for presentation to City Council.

Meetings: One (1) meeting with the City Council to present the final plan. This meeting may be held in conjunction with the presentation of the user rate study results.

We will also provide staff training on the operation and use of the model.

Deliverables: Willdan: Provide one (1) electronic PDF file copy of the final report and models (overhead and OMB Super Circular compliant); and twenty (20) bound copies, and one (1) unbound copy to the City. Using Microsoft Word and Excel, an updatable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ROM.

Comprehensive User Fee Study
Task 1: Initial Document Request
Objective: Initial due diligence; obtain study-related data.

Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the on-site interviews described in Task 5.

We will request information and documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already available) related specifically to programs and activities which have associated fees, and for which the City has this level of detail.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). As with the cost allocation plan, we will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.

Task 2: Compile Inventory of Current and Potential Fees Objective: Willdan will identify a schedule of fees and methodology for calculating the fees.

Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study.

Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required.

Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed and finalized during the kick-off call).

City: Review completed fee schedule with comments/revisions to be discussed during the kick-off call.

Task 3: Kick-off Conference Call / Refine Scope
Objective: Confirm goals and objectives for the User Fee Study. Identify and resolve policy issues typically raised by a User Fee Study, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2).

Description: Verify our understanding of the City's goals, the City's cost-recovery policy for user fees, and to fill any gaps in data/information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.

During this call, we will ask that the City identify a project manager who will serve as the primary contact for the project.

The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project's schedule.

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Meetings: One (1) project kick-off call to initiate the entire project, discuss data needs, and address policy issues. This will be held in conjunction with the kick-off for the cost allocation plan. As mentioned in the cost allocation plan work plan, we suggest combining the kick-off calls to increase efficiency.

Deliverables: Willdan: 1) Revised project scope and schedule (if needed); and 2) brief summary of policy decisions (if needed).

City: 1) Provide further data needs; and 2) determine/introduce City's project manager.

Task 4: Develop User Fee Model
Objective: Develop and test model.

Description: This task involves the development of the model ultimately used to calculate the departmental fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5. To ensure that City policies are met through the imposition of the calculated fees, the model will be formatted to include appropriate costs.

Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on salaries and benefits. Most of this information will be developed during the cost allocation plan phase of this project and will be incorporated directly into the user fee model. We will request clarification and/or additional data if necessary.

The model will build upon the cost allocation plan results, to provide an allocation of administrative and overhead costs to fee related activities and departments providing services to customers, so that fees and billable rate schedules incorporate applicable costs. Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council.

Task 5: Time Survey Interviews and On-site Information Gathering Objective: Meet with City staff to complete Time Surveys and understand service delivery processes.

Description: In order to assist staff with the completion of the survey worksheets, we will schedule one (1) full day of on-site meetings with staff; however, the number of meetings needed may vary depending on the number of staff and departments involved.

The Willdan Team will conduct interviews with supervisors/managers, as well as other staff, as deemed appropriate and/or necessary, from each department involved in the user fee study to determine the average time required by City staff to provide each of the services for which a fee is collected.

The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels. This will allow Willdan and City staff to conclude with a final meeting to review the draft full cost recovery fees, and adjust any times as necessary, once all information has been compiled and input into the fee model. We will schedule the interviews with staff to minimize any disruption to their normal worktlow.

Meetings: One (1) full business day of on-site meetings/staff interviews.

Deliverables: Willdan and City: Time surveys and draft full cost recovery fees.

Task 6: Common Fees Comparison
Objective: Examine selected user fees charged by up to five (5) comparable cities in Contra Costa County, or jurisdictions that are similar to the City of Pleasant Hill.

Description: We will access and use our knowledge of other jurisdictions to benchmark each department's five (5) most common fees or highest yielding fees with comparable jurisdictions agreed.

Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs. For this reason, Willdan takes a selection of the City's most commonly used and/or highest yielding fees.

The survey will contain the following, a comparison of common or similar fees and charges used by the City and other jurisdictions; current and proposed fees and charges unique to the City of Pleasant Hill; fees and charges used by other public entities not currently used in the City; and If possible, identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions.

Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.

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Task 7: Data Analysis and Final User Fee Schedule
Objective: Incorporate information obtained from on-site surveys to fully develop model.

Description: We will update the model, based on information received during the on-site surveys, to generate a comprehensive user fee schedule. In addition, it is very common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting. Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs (i.e. building fees) and suggest potential areas where fees could be collected where they are not currently. We will present the full cost recovery level for fees, both current and projected under the new calculated fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees. Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee programs for compliance with Propositions 218 and 26.

In developing the fee schedule, we will make recommendations for new fees where appropriate, based on our experience with other cities. Some areas for new fees may be due to changes in law (legalized cannabis), or for activities that the City finds itself performing regularly, but for which no fee is collected. Where possible, we will incorporate discussion of the City's economic development policies, and where these may intersect with fee programs, for instance setting fees in a manner that encourages certain activities.

The user fee data analysis and model development may take three (3) to four (4) weeks with trequent correspondence with City staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity.

Meetings: One (1) meeting, as necessary, to gather additionall input, complete analysis and finalize fee schedule.

Deliverables: Final user fee model for City Council presentation and discussion.

Task 8: Prepare and Present Draft Report
Objective: Prepare draft report.

Description: This task involves the preparation of the draft report that discusses the study's background, the methodologies utilized during this or the next task as appropriate.
textually, as well as in easy to understand tables. Individual fee summaries by department and a comprehensive fee schedule will be included. The draft report will include the following:
• Key results and findings;
• Basic descriptions of each service;
• The full cost of each service and current cost recovery levels; • Costs broken down graphically into indirect and direct components, with a graphic display of the level of cost recovery;
• Fee recommendations with associate levels of cost recovery; • Projections of potential fee revenue;
• Assessment of reasonableness of each City's costs;
• Review of reasonableness of current consultant cost structure (for Building Division services); • As appropriate, recommend alternative methodologies for building permit fee calculation; and • Summary and recommendations.

The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.

Meetings: One (1) conference call with City staff, to present draft results address questions and receive feedback.

Deliverables: Willdan: Draft report for City review and comment.

City: Review of draft report, with comments and edits.

Task 9: Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review of draft report and fee model.

Description: The goal of this task is to conduct an in-depth review of the draft report and model, incorporate feedback and changes as a result of previous discussions, and arrive at an optimum fee structure. Often through the course of an engagement, City staff will volunteer insightful likes and dislikes regarding the existing fee structure. We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of:

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Understandability;
Fairness to applicants;
• Ease of calculation;
• Appropriate levels of cost recovery; and
• Full cost recovery hourly rates.

When adjusting fee recovery levels, we believe it is important to address these concerns.

Following one (1) round of comments from City staff on the draft report and feedback from City statt, we will prepare the final report for presentation to the City Council.

Meetings: One (1) online demonstration (WebEx) to review the report and model, with any revisions.

Deliverables: Draft report, revised draft /final report.

Task 10: Prepare and Present Final Report/Train Staff on Model Objective: Prepare and present final report to City Council. Train staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation.

Meetings: One (1) meeting with City Council and City's Management Group to present the results and adopt the updated fee schedule. We will also provide staff training on the operation and use of the model on the same day, during regular business hours.

Deliverables: Provide one (1) electronic PDF file copy of the final report and models; and if requested provide twenty (20) bound copies, and one (1) unbound copy to the City. Using Microsoft Word and Excel, an updatable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ROM.

City Staff Support
To complete our tasks, we will need the cooperation of City staff. We suggest that the City of Pleasant Hill assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City's project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy issues.

Willdan will endeavor to minimize the impact on City staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City's project manager to steer the project back on track. We will keep the City's project manager informed of data or feedback we need to keep the project on schedule.

Willdan will rely on the validity and accuracy of the City's data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

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Project Schedules
Willdan understands time is of the essence for the City of Pleasant Hill to begin this engagement. These schedules can only be met with the cooperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule.

Full and OMB Compliant Cost Allocation Plan
City of Pleasant Hill
Full and OMB Compliant Cost Allocation Plan
Project Schedule
September October November
Scope of Services 16 23 30 14 21 28 11 18 25
Task 1: Initial Document Request 261
Task 2: Kick-off / Refine Scope (conference call) 282
Task 3: Gather Staffing Information and Develop Model (conference call) Task 4: Test and Review Cost Allocation Methodology (conference call) 264 Task 5: Prepare and Present Draft Report (meeting) 1 85 Task 6: Discuss and Revise Report (conference call)
Task 7: Prepare and Present Final Report/Train Staff on Model (meeting) 1 867 Legend:
861: Information Request 885: Draft Report
882: Revised Project Scope and Schedule (if needed) 286: Revised Draft Report/Final Report 283: User-friendly Model in Microsoft Excel 967: Final Report - Hard and Electronic Copies 384: Draft Cost Allocation Plan Model Review
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Comprehensive User Fee Study
City of Pleasant Hill
Comprehensive User Fee Study
Project Schedule
September October November December January
Scope of Services 14|21 28 18 120 27
Task 1: Initial Document Request 21
Task 2: Compile Inventory of Current and Potential Fees Task 3: Kick-off / Refine Scope (conference call) 262
Task 4: Develop User Fee Model
Task 5: Time Survey Interviews and On-site Information Gathering (meetings) Task 6: Common Fees Comparison #10
Task 7: Data Analysis and Final User Fee Schedule (conference calls) Task 8: Prepare and Present Draft Report (conference call) 85 Task 9: Revise Draft Report/Determine Cost Recovery Levels (conference call) Task 10: Prepare and Present Final Report/Train Staff on Model (meeting) Legend:
261: Information Request 966: Revised Draft Repor/Final Report 262: Revised Project Scope and Schedule (if needed) 367: Final Report - Hard and Electronic Copies 263: User-friendly Model in Microsoft Excel 868: Draft List of Current Fees 384: Draft Fee and Rate Model Review 869: Time Surveys and Draft Full Cost Recovery Fees 365: Draft Report 2610: Common Fee Comparison
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4) Legal Issues
Conflict of Interest Statement
Willdan is not aware of any actual, apparent, direct, or potential conflicts of interest that would arise from any work performed by us that would impair or impede our ability to perform objectively for the City of Pleasant Hill.

Financial Stability
inancial Stability and Responsibility • In business for over 50 years Willdan Group, Inc. (WGI) has sustained a healthy financial performance record due to the • Market capitalization of $242.6M outstanding performance of our operating divisions and a strong, dependable reputation in (as of end of 2nd Quarter, 2017) municipal consulting. A snapshot of Wl's financial statistics are provided to the right • Fiscal 3rd Quarter 2018 revenue demonstrating our financial position and stability. (3 months) of $71.5M As a publicly traded company (NASDAQ ticker: WLDN), must provide public financial • Fiscal Year 2017 revenue of information as required by the SEC. Detailed financial statements and annual reports are $273.49M included on our webpage (http://ir.willdangroup.com/). • $35 million Line of Credit with the ability to increase up to $60
Furthermore, Willdan Financial Services is not currently involved in any condition (e.g., million bankruptcy, pending litigation, planned office closures, impending merger) that may impede (as of end of 3rd Quarter, 2018) our ability to complete this engagement. • $16.7M in cash and cash equivalents
(as of end of 3rd Quarter, 2018)
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5) References
Below are recent project descriptions, including client contact information, that are similar in nature to those requested by the City of Pleasant Hill. We are proud of our reputation for customer service and encourage you to contact these clients regarding our commitment to completing the projects within budget and agreed upon timelines.

City of Union City, CA
Comprehensive User Fee and Rate Study and Full & OMB Compliant Cost Allocation Plan The City of Union City sought an outside consultant to prepare a comprehensive study of the City's user fees, as well as the preparation of a Full Cost Allocation Plan. Willdan completed these studies in a manner that would fully identify and take into account all direct/indirect costs. Our primary objective for the cost allocation study update was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. The Cost Allocation Plan was also created to develop OMB compliant overhead allocations and indirect rates.

Willdan reviewed and analyzed existing user fee programs, and based upon conversations with staff, made suggestions, as necessary, for fees that may need to be added to the City's fee schedule for which fees were not currently being charged. We developed a cost of service analysis and model that updated existing fees and incorporated new fees and used it to create an updated comprehensive fee schedule.

Client Contact: Mr. Mark Carison, Finance Director
34009 Alvarado-Niles Road, Union City, CA 94587
Tel. #: (510) 675-5338 | Email: [email protected]
City of Petaluma, CA
Overhead Cost Allocation Plan & OMB Circular A-87 Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rates
Willdan provided an Overhead Cost Allocation Plan and OMB Circular A-87 Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rates to the City of Petaluma. After reviewing the City's 2014 Master Fee Schedule, we developed an Overhead Cost Allocation Study, which is OMB A-87 compliant, and a User Fee Study that accurately accounts for the true cost of providing various services within and to each City operation, including capital projects.

As part of this effort, we also developed fully burdened hourly rates for City employees that can be used for work orders, or to charge to specific activities. This included an analysis of administrative and overhead costs associated with activities that are delivered directly to the public, where hourly rates may be charged, to ensure appropriate recovery of costs. Willdan completed these studies concurrently, in a manner that fully identifies and takes into account direct and indirect costs, along with changes in staffing, structure, and methods of service delivery.

Willdan was re-selected to provide several annual updates to the Cost Allocation Plan.

Client Contact: Ms. Corey Garberolio, Finance Director
11 English Street, Petaluma, CA 94952
Tel. #: (707) 778-4352 | Email: [email protected] City of Watsonville, CA
Cost Allocation and OMB Compliant Plan and Comprehensive User Fee Study The City of Watsonville was seeking an outside consultant to complete a full and OMB compliant cost allocation plan and the preparation of a comprehensive user fee study. Our primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds, which are based on tailored and well thought out allocation factors. For the user fee study, the primary objective was to ensure that fees for requested services were calculated to account for the full cost of providing the services, and set appropriately, given City policy and financial objectives.

Upon completion of the update to the cost allocation plan, Willdan utilized the final report to complete the comprehensive user fee study.

Willdan has recently been re-selected to provide an update to the studies.

Client Contact: Mr. Bill Hays, Assistant Finance Director 250 Main Street, Watsonville, CA 95076
Tel#: (831) 768-3450 | Email: [email protected] Comprehensive User Fee Study and Full Cost Allocation Plan W WILLDAN City of Pleasant Hill, CA 23
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City of Pittsburg, CA
Citywide User Fee Study and Cost Allocation Plan Update The City of Pittsburg sought an outside consultant to update their cost allocation plan, as well as a comprehensive study of the City's user fees. Willdan completed these studies in a manner that would fully identify and take into account all direct/indirect costs. Our primary objective for the cost allocation study update was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. The Cost Allocation Plan was also created to be develop OMB compliant overhead allocations and indirect rates.

Willdan reviewed and analyzed existing user fee programs, and based upon conversations with staff, made suggestions, as necessary, for fees that may need to be added to the City's fee schedule for which fees were not currently being charged. We developed a cost of service analysis and model that updated existing fees and incorporated new fees, and used it to create an updated comprehensive fee schedule.

Willdan finalized the model, and completed a draft report, which after comment and review, was updated to reflect feedback received from City staff. The report, which explained the background, approach, data gathering and model development processes, and provided narrative interpretation of the results, was then finalized and presented to the City Council.

The City recently contracted with Willdan to assist the City with an update to the Cost Allocation Plan and calculation of fully burdened rates.

Client Contact: Ms. Margie Padua, Finance Division Manager - Revenue and Collections 65 Civic Avenue, Pittsburg, California 94565
Tel. #: (925) 252-4918 | Email: [email protected] City of Hayward, CA
Full Overhead Cost Allocation Plan, OMB A-87 Cost Allocation Plan, and Comprehensive Master User Fee Study Willdan completed a full overhead cost allocation plan and OMB A-87 cost allocation plan, along with a comprehensive master user fee study for the City of Hayward. The Willdan team worked with City staff to gather the necessary data to develop the cost allocation model.

The City had a complicated and detailed budget and the cost allocation plan that Willdan developed is tailored to their structure and includes provisions for several Internal Service Funds. Willdan staff worked through the course of reorganizing staff functions and/or reducing staff, it was important to revisit the manner and methodology by which indirect overhead costs were distributed to the operating departments and, as appropriate, other chargeable funds and programs.

The City was in need of a new cost allocation plan that would ensure the fair and equitable allocation of government expenses to appropriate departments, programs, and funds, while utilizing tailored and well thought out allocation factors. Furthermore, Willdan updated many of its user fee programs and fee structures.

We were contracted once again to prepare an updated Cost Allocation Plan.

Client Contact: Mr. Dustin Claussen, Director of Finance 777 B Street, 3rd Floor, Hayward, CA 94541
Tel. #: (510) 583-4010 | Email: [email protected] City of Belmont, CA
Master Fee Study and Cost Allocation Refinement
Willdan completed a Master Fee Study and an analysis and review of the existing Cost Allocation Plan for the City of Belmont, and a Fee and Rate Study for the Belmont Fire Protection District.

Collectively, the Fee Studies will ensure that the City and FPD can accurately account for the cost of providing various services to the public and set updated fees appropriately; while the CAP review and refinement ensures that the Plan developed internally by the City is allocating the cost of its central (overhead) service organizations to operating groups and enterprise funds, in an equitable and defensible manner.

Client Contact: Mr. Thomas Fil, Director of Finance
One Twin Pines Lane, #320, Belmont, CA 94002
Tel #: (650) 595-7433 | Email: [email protected]
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6) Fee Proposal
Willdan Financial Services (Willdan") proposes a not-to-exceed fixed fee of $35,395 for the Full Cost Allocation Study and Comprehensive User Fee Study engagement. Below we have presented a breakdown of each specific phase of the project.

Full Cost Allocation Plan
Based on the corresponding work plan identified within Willdan's Technical Proposal, we propose a not-to-exceed fixed fee of $10,995 to prepare a Full Cost Allocation Plan. The table below provides a breakdown of this fee by task and project team member.

City of Pleasant Hill
Full & OMB Compliant Cost Allocation Plan
Fee Proposal
C. Fisher T. Thrasher P. Patel R. Quaid
Principal-in- Tech Project Analytical QA/Tech
Charge Manager Support Advisor Total
250 $ 185 $ 125 $ 210 Hours Cost
Scope of Services
Task 1: Initial Document Request 1.0 1.0 2.0 $ 310
Task 2: Kick-off /Refine Scope 1.0 1.0 1.0 3.0 560
Task 3: Gather Staffing Information, Develop Cost Allocation Plan Model 1.0 4.0 12.0 17.0 2,490 Task 4: Test and Review Cost Allocation Methodology 2.0 4.0 8.0 1.0 15.0 2,450 Task 5: Prepare and Present Draft Report 4.0 12.0 1.0 17.0 2,450 Task 6: Discuss and Revise Report 2.0 2.0 5.0 9.0 1,495 Task 7: Prepare and Present Final Report/Train Staff on Model 1.0 4.0 2.0 7.0 1,240 Total - Full Cost Allocation Plan 7.0 20.0 41.0 2.0 70.0 $ 10,995 Comprehensive User Fee Study
Based on the corresponding work plan identified within Willdan's Technical Proposal, we propose a not-to-exceed fixed fee of $24,400 to prepare a User Fee Study. The table below provides a breakdown of this fee by task and project team member.

City of Pleasant Hill
Comprehensive User Fee Study
Fee Proposal
C. Fisher T. Thrasher P. Patel R. Quaid
Principal-in- Tech Project Analytical QA/Tech
Charge Manager Support Advisor Total
250 $ 185 $ 125 210 Hours Cost
Scope of Services
Task 1: Initial Document Request 1.0 2.0 3.0 $ 435
Task 2: Compile Inventory of Current and Potential Fees 1.0 2.0 3.0 435 Task 3: Kick-off /Refine Scope 1,0 1.0 2.0 4.0 685
Task 4: Develop User Fee Model 4.0 12.0 16.0 2,240
Task 5: Time Survey Interviews and Information Gathering 2.0 8.0 8.0 18.0 2,980 Task 6: Common Fees Comparison 1.0 4.0 12.0 17.0 2,490
Task 7: Data Analysis and Final Fee and Rate Schedule 2.0 6.0 32.0 2.0 42.0 6,030 Task 8: Prepare and Present Draft Report 2.0 6.0 16.0 2.0 26.0 4,030 Task 9: Revise Draft/Determine Cost Recovery Levels 2.0 8.0 8.0 2.0 20.0 3,400 Task 10: Prepare and Present Final Report/Train Staff on Model 2.0 5.0 2.0 9.0 1,675 Total - User Fee Study 12.0 44.0 96.0 6.0 158.0 24,400
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Additional Professional Services
Hourly Fee Schedule
Our current hourly rates are listed below.

Willdan Hourly Rate Schedule
Position Hourly Rate
Group Manager $250
Managing Principal $240
Principal Consultant $210
Senior Project Manager $185
Project Manager $165
Senior Project Analyst $135
Senior Analyst 3$125
Analyst Il $110
Analyst l $100
Notes
• Our fee includes all direct expenses associated with the project. • We will invoice the City monthly based on percentage of project completed. • Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. • City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan 's rates in effect at the time of such response. • The cost of preparing the User Fee Study and Cost Allocation Plan can be included in the resulting new fee schedule. Therefore, over time the City can recover the initial outlay of funds that was required to complete the studies.

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Pleasant Hill City CouncilJanuary 23, 2023

Pleasant Hill City Council
January 23, 2023