April 2, 2024, Item #7
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
April 2, 2024
Honorable Mayor and Members of the City Council
Brad Rosen, Interim Director of Finance ·~
Brad Rosen, Interim Director of Finance
(858) 668-4452 or [email protected]
CITY COUNCIL
Approval of Consultant Agreement with Matrix Consulting Group, LTD to Prepare a Cost Allocation Plan and Citywide User Fee Study
Historically the City of Poway (City) has used a cost allocation plan to proportionally distribute the costs of general, citywide support services (i.e. Administration, Finance, Information Technology and Human Resources) to departments and enterprise funds which use and benefit from those services.
Allocating costs across funds is not unique to Poway and is legally permitted under State law. It results in savings for residents and ratepayers as staff and support service costs are shared. The current cost allocation plan was prepared a number of years ago and while it has been modified to reflect organizational changes in recent budget cycles, preparing a new cost allocation plan was identified as a priority in recent budget cycles. Preparing a new cost allocation plan includes a comprehensive analysis of current citywide overhead allocations and preparation of a model that can be updated in future years. The new cost allocation plan will be used as part of the annual budget development process, as well as future water and wastewater fee updates.
In addition to preparing a new cost allocation plan, completing a new comprehensive citywide user fee study was also identified as a priority during the budget process. A new citywide user fee study will provide the City with updated cost of service information and provide for additional cost recovery that will be reflected in future budgets.
Many other cities throughout California have recently completed similar studies. Upon review of similar projects completed in California, staff recommends utilizing a recent Request for Proposal (RFP) completed by the City of San Ramon for the vendor selection for these services. Staff recommends the selection of Matrix Consulting Group, LTD to prepare a new cost allocation plan and citywide user fee study.
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Recommended Action:
It is recommended the City Council approve the consultant agreement with Matrix Consulting Group, LTD, in the amount of $77,500, for the cost allocation plan and citywide user fee study and authorize the City Manager to execute any necessary documents.
Discussion:
The last formal cost allocation plan and citywide user fee study was completed in 2007. While there have been modifications to the cost allocation plan to reflect organizational changes and City Council approved updates to portions of the Master Fee Schedule over the past 15 years, a new cost allocation plan and comprehensive citywide user fee study have not been completed. Both were identified as priorities in recent budget cycles, however due to staff changes and other priorities, the City has not had the opportunity to move forward with these important projects until now. Projects like these are staff intensive as they involve not only the staff managing the overall project, but staff and data from every department since the City is preparing both a cost allocation plan and a citywide user fee study.
The comprehensive cost allocation plan and citywide user fee study will provide recommendations for updating the Master Fee Schedule, identify additional service fees charged by other surrounding cities that are not currently part of the existing Master Fee Schedule, and develop a fully-burdened staff hourly rate which reflects the full cost associated with providing the associated service. It will also determine the appropriate general and administrative overhead allocations to City activities and applicable overhead rates for use in calculating the City's billable hourly rates.
The project, which involves meetings with the consultant and City staff, analysis of the data gathered, and preparation of both documents is planned to begin in June 2024 with completion anticipated in January 2025. Upon completion, staff will submit for City Council consideration an updated overhead cost allocation plan and recommendations for the adoption of a master schedule for user fees. Once adopted, this information will be used as part of both the annual budget process to forecast both revenues and expenditures, as well as for future water and wastewater rate updates.
Staff recommends the selection of Matrix Consulting Group, LTD to perform the analysis and completion of these reports. In July 2023, the City of San Ramon issued an (RFP) for a cost allocation plan and user fee study that matches the City of Poway's requirements for these services. Matrix Consulting has performed over 25 similar projects in the last five years with other California agencies.
Upon review of the proposed scope of services submitted to staff and included as part of the attached agreement for services, a recommendation by the City of San Ramon based on their experience working with Matrix Consulting, and staffs subsequent interview with the consultant and reference checks, Matrix Consulting is highly recommended to complete this project. Staff particularly appreciated the consultant's experience and understanding that projects like these are staff intensive and the consultant is committed to assisting staff and bearing as much of the workload as is feasible.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA) Fiscal Impact:
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Fiscal Impact:
The total cost for the Cost Allocation Plan and Citywide User Fee Study is $77,000. There is sufficient funding available in the FY 2023-24 Operating Budget Director of Finance Division (110010-17999) for this project.
Public Notification:
None.
Attachments:
A. Standard Agreement of Services -Matrix Consulting Group, LTD Reviewed/Approved By:
Wendy ( serman •
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chris Hazeltine
City Manager
April 2, 2024, Item #7
City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 2nd day of April, 2024, by and between the CITY OF POWAY (hereinafter referred to as "City") and Matrix Consulting Group, LTD (hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to perform a Cost Allocation Plan and Citywide User Fee Study;
WHEREAS, Consultant is a Management Conuslting vendor and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSULTANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice.
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information 4of46 ATTACHMENT A
April 2, 2024, Item #7
as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103. Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. "Consultant" means an individual who, pursuant to a contract with a state or local agency:
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(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code.
DISCLOSURE DETERMINATION:
~ 1. ConsultanUContractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
D 2. ConsultanUContractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, ConsultanUContractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law.
Department Director
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void.
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three (3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested.
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12. Independent Contractor.
At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services.
13. Licenses, Permits, Etc.
Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession.
Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession.
14. Consultant's Insurance.
Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees.
(b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence.
( c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers.
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(d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant:
(a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services.
17. Consultant Not an Agent.
Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
18. Personnel.
Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects.
City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect.
Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect.
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19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration. Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees.
Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses.
21. Gender.
Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder.
22. Counterparts.
This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby.
24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (Cal PERS) and shall not become members of CalPERS while providing services to City.
Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in 9 of46
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full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B."
Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect.
(Remainder of page intentionally left blank)
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written.
CITY OF POWAY
By:-----------
Chris Hazeltine, City Manager
Date: ___________ _
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
By: ____________ _
Alan Fenstermacher, City Attorney
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MATRIX CONSULTING GROUP, LTD
By:------------
Richard Brady, President
Date: ___________ _
April 2, 2024, Item #7
"SPECIAL PROVISIONS"
EXHIBIT "A"
A. Scope of Services.
Consultant agrees to perform consulting services as required by City, which shall consist of the development of a Cost Allocation Plan and Citywide User Fee Study further described in the Scope of Services submitted with the proposal dated January 22, 2024, which is included in this document as Attachment 1, and incorporated by reference, as if its contents were fully set forth herein. Consultant shall provide the necessary qualified personnel to perform the services.
B. Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Fee Proposal submitted with the proposal dated January 22, 2024, which is included in this document as Attachment 1. Total fee is not to exceed $77,500. Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received.
In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty-Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates.
Reimbursement for lodging is limited to travel from outside of San Diego County. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred.
C. Term of Agreement.
This Agreement shall be effective from the period commencing April 2, 2024, and ending December 31, 2025, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to two additional one year periods upon approval in writing of the City Manager and Consultant. Upon expiration or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement.
D. Consultant's Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the 12 of46
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following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate.
(b) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. (c) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance.
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following three provisions:
(a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement.
E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the following addresses:
To City:
To Consultant:
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City of Poway
P.O. Box 789
Poway, CA 92074
Matrix Consultign Group, LTD.
1650 S. Amphlett Blvd, Suite 213
San Mateo, CA 94402
April 2, 2024, Item #7
ATTACHMENT 1
Proposal to Conduct a Cost Allocation Plan and
Citywide User Fee Study
POWAY, CALIFORNIA
January 22, 2024
matrix@
consulting group
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Table of Contents
Cover Letter
1 Firm Background 1
2 Experience 6
3 Project T earn 10
4 Scope of Services 12
5 Schedule 26
6 Price 27
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matrixm
consulting group
Brad Rosen
Acting Finance Director
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Dear Mr. Rosen:
January 22, 2024
The Matrix Consulting Group is pleased to have this opportunity to submit our proposal to conduct a cost allocation plan and citywide user fee study to the City of Poway.
We understand the importance of establishing documented and defensible studies to recover direct and indirect costs. Our experience in providing similar services and understanding of the impact and implementation issues faced by jurisdictions in Southern California comes from recent work with the following clients: Chula Vista, San Diego Air Pollution Control District, Adelanto, Glendale, Manhattan Beach, Orange, Pomona, Redlands, and San Bernardino.
At Matrix Consulting Group, we distinguish ourselves from our competitors through our commitment to delivering unparalleled value. Our competitive advantage stems from the integration of comprehensive data analysis and a cross-trained team. Our staff possess a deep understanding of service and process assumptions behind the cost of service.
I am the firm's President, authorized to negotiate on its behalf and bind it contractually.
Courtney Ramos, a senior vice president and financial services practice leader, can clarify information in this proposal. We can be reached at the address and phone number below or via email at [email protected] and [email protected].
Richard Brady, President
Matrix Consulting Group, Lt
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1650 S. Amphlett Blvd., Suite 213 • San Mateo, CA 94402 650.858.0507 SF Bay Area (Headquarters), Charlotte, Dallas, Fort Myers, Irvine, Portland, St. Louis April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA 1 Firm Background
The Matrix Consulting Group is a management consulting firm dedicated to providing quality analytical assistance to local and state government. The firm was formed by experienced consultants to pursue an operating model in which analytical work is performed by senior level staff. Our history and composition are summarized below:
We were founded in 2002, incorporated in California, and have our headquarters there (in the Bay Area) and regional offices in Irvine (CA), Edwardsville (IL), the Dallas Metroplex (TX), Portland (OR), and the Tampa (FL) area.
We are comprised of 27 full time and seven part time highly experienced management consultants who specialize in the analysis of local government functions encompassing the entire spectrum of critical operational areas. We have a dedicated financial services team.
Since our founding, we have worked with over 1,700 government agencies, conducting cost of service and management studies providing recommendations relating to operations, improvements, and cost recovery.
The market and service focus of the Matrix Consulting Group has always been financial, management, staffing and operations analysis of local government. The following outlines our core financial services provided by our firm:
0MB 2 CFR Part 200 Cost Plans User Fee Studies
Full Cost Plans Development Impact Fee Studies
Indirect Cost Rate Proposals Fully Burdened Hourly Rates Internal Service Fund Analyses Revenue Projections
No other firm better understands how public agencies operate, or how to help them thrive.
Cost Allocation Plan Experience
Our firm has extensive experience developing Full Cost and 0MB compliant Cost Allocation Plans, as well as Indirect Cost Rate Proposals for various municipal organizations across the United States. Whether we are working with large cities, small towns, special districts, or individual departments, our goal is to document and define the services being provided, and accurately allocate costs to all beneficiaries. The following points highlight our experience with developing cost allocation processes and metrics:
• Administrative Functions: Our firm has extensive experience in evaluating processes and functions associated with Finance, Human Resources, and Matrix Consulting Group
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Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Purchasing. From basic tasks and responsibilities to process improvement and oversight controls, our project teams can:
Identify core service functions, such as payroll, employee benefits, budget preparation, agenda, and board support.
Review current data metrics, and work with staff to ensure resulting allocations are appropriate, fair, and equitable.
Recognize services that are not in direct support of departments, including land acquisition and stewardship, and ensure they are accurately identified, but not further allocated.
Our project teams understand the core services associated with administrative functions, as well as the time associated with process completion, and are adept at helping staff determine daily, weekly, monthly, or annual time spent on a task.
These assumptions form the core basis of a cost allocation plan, and should be defensible not only through documentation, but also by City staff.
Governmental Functions: The Matrix Consulting Group has worked with and been a part of managerial studies relating to Manager and Legal services. Additionally, we have extensive experience working with, and presenting to various boards, councils, subcommittees, and the public. Our understanding of the various types of services provided allow our project teams to assess what services are best for allocation, including:
Categorizing services and support that benefit the City as an organization, such as contract negotiation, and approval of internal policies.
Identifying services that benefit the City economically, such as lobbying, and economic development, which should not be allocated.
Our team understands how these costs can and should be treated in both a Full Cost Plan and 0MB compliant plan, including making staff aware of common practices, as well as aggressive allocation options.
• Internal Services: The Matrix Consulting Group has significant experience evaluating services and functions associated with facilities maintenance, fleet services, and information technology. While these services can be part of the general fund or internal services, their allocation is important when trying to understand the indirect costs associated with any fund, department, or program.
Our project teams work with these departments to:
Review existing allocation processes and metrics to ensure compliance with state and federal regulations.
Matrix Consulting Group 2
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Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Determine if newer metrics, or metric alterations could provide more accurate allocations.
Indirect Cost Rate Proposals: Our firm's experience with indirect cost rate proposals ranges from developing citywide proposals to departmental and divisional proposals. We look at all indirect costs related to the service and program area, determine if it is allowable and then set up the indirect cost rate calculation. Based upon the jurisdiction's rate methodology we are versed in provisional, fixed final, and fixed carry forward rates. We work with our clients to review rates, outline appropriate applications, and customize templates based upon cognizant agency guidelines.
The following table provides a sampling of California jurisdictions for whom we have provided similar services within the last five (5) years, including the types of services provided to each jurisdiction, relevant to the requested scope of services:
Jurisdiction Full Cost 0MB Indirect Rates
Adelanto, CA X
Chula Vista, CA X
Citrus Heights, CA X X
Cupertino, CA X X
Daly City, CA X
Dixon, CA X X
Downey, CA X X
Elk Grove, CA X X
Fairfield, CA X X
Hercules, CA X X
Livermore, CA X X
Manhattan Beach, CA X X
Millbrae, CA X X
Pacific Grove, CA X X
Pomona, CA X
Port of Long Beach, CA X
Redlands, CA X X
Redwood City, CA X X
Sacramento Regional Transit, CA X
San Bernardino, CA X X
San Mateo, CA X X
San Ramon, CA X
Santa Clara, CA X X
South San Francisco, CA X X
Sunnyvale, CA X
We are happy to provide additional project details upon request.
Cost of Services and User Fee Study Experience
X
X
X
X
Annual Plan
X
X
X
X
X
X
Our firm has extensive experience conducting comprehensive user fee studies for a variety of municipal organizations and departments. When conducting comprehensive Matrix Consulting Group 3
19 of 46
April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA user fee studies, the focus is often on Community Development (building, planning, and engineering) and Parks and Recreation services. The following points highlight our experience in these areas:
• Community Development: Our firm has extensive experience in evaluating development review permitting functions for Building, Planning, Engineering, and Fire Prevention. From the basic process steps for submitting, reviewing, inspecting, and approving applications and permits to development of processes, procedures, and cost recovery goals, our project teams can address topics as:
The best metric for assessing fees, such as building valuation, square footage, construction estimate, or number of fixtures.
Appropriate deposit amounts, guidelines, and processes to ensure actual cost recovery is achieved.
Setting fees at levels that both recover costs but are not cost prohibitive.
Cost recovery and implementation options for support services including General Plan Updates, Technology Fees, GIS, etc.
Beyond understanding processes and assessing time estimates provided, our project teams are aware of the cross-departmental support associated with application and permit services. These costs are included in the full cost calculation and can be expressed as part of the established fee or a separate fee. • Parks and Recreation: The Matrix Consulting Group has worked with every type of recreation function, including traditional parks and recreation, libraries, and open space preserves. Our experience spans master and strategic planning, park condition assessments, and program staffing and cost recovery. Our project teams are well versed in the areas that most impact cost recovery, including:
The best use of a tiered recovery approach, such as resident versus non resident, or profit versus non-profit.
Setting fees according to the cost recovery pyramid to ensure that premium services have a higher cost recovery.
The goal in reviewing parks and recreation costs for service, is to ensure that fees and rates are set at a level that allows the City to continue to serve the community in a manner consistent with current goals and commitments.
Our firm also has extensive experience in calculating cost of services for administrative functions such as Finance and City Clerk, as well as public safety services relating to Police, Fire Prevention, and EMS.
Matrix Consulting Group 4
20 of46
April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA The following table includes a sampling of California clients over the last five (5) years for whom we have provided similar scopes of service:
Planning Building Engineering Fire Adrnin Utility Police Recreation Jurisdiction Fees Fees Fees Fees Fees Fees Fees Fees
Adelanto, CA X X X X X
Capitola, CA X X X X
Citrus Heights, CA X X X X X X
Cupertino, CA X X X X
Dixon, CA X X X X X X
Downey, CA X X X X X X X X
Elk Grove, CA X X X
Glendale, CA X X X X X X X X
Livermore, CA X X X X
Los Altos Hills, CA X X X X
Manhattan Beach, CA X X X X X X X X
Menifee, CA X X X X X X X
Millbrae, CA X X X X X X
Mill Valley, CA X X X X X X
Montebello, CA X X X X X X X X
Orange, CA X X X X X X X X
Pacific Grove, CA X X X X X X
Redlands, CA X X X X X X X
Redwood City, CA X X X X X X X X
San Mateo, CA X X X
San Ramon, CA X X X X X
Santa Clara, CA X X X X X X X X
South Pasadena, CA X X X X X X X
So. San Francisco, CA X X X X X X X X
Stockton, CA X X X X
Vacaville, CA X X X X X X X
Winters, CA X X X X X X X
Details about any project above are available upon request.
Matrix Consulting Group 5
21 of 46
April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User-Fee Study Poway, CA 2 Experience
The Matrix Consulting Group has worked with a variety of public agencies across the United States developing cost allocation plans and conducting cost of service studies.
The following table provides a sampling of California-based clients for whom a Cost Allocation Plan and or a User Fee Study was conducted within the past five (5) years.
Client
Bay Area Air Quality
Management District, CA
375 Beale St. Ste 600
San Francisco, CA 94105
Calimesa, CA
908 Park Avenue
Calimesa, CA 92320
Chula Vista, CA
276 Fourth Ave.,
Chula Vista, CA 91910
Cosumnes Community
Services District, CA
9355 E Stockton Blvd., # 185
Elk Grove, CA 95624
Daly City, CA
333 90th Street
Daly City, CA 94015
Dixon, CA
600 East A St.
Dixon, CA 95620
Downey, CA
11111 Brookshire Ave.
Downey, CA 90241
Elk Grove, CA
8401 Laguna Palms Way
Elk Grove, CA 95758
Matrix Consulting Group
22 of 46
Client Contact
Barry Young
Sr. Project Coordinator
{415) 749-4721
[email protected]
Celeste Reid
Finance Director
(909) 795-9801 x227
creid@cityofcalimesa_net
Nicole Remiker
Fiscal & Management Analyst
(619) 585-5693
nremiker@chulavistaca_gov
John Ebner
Sr. Management Analyst
(916) 405-7106
johnebner@csdfire_com
Abby Veeser
Deputy Dir. of Finance & Admin
(650) 991-8049
aveeser@dalycity_org
Joan Michaels-Aguilar
Deputy City Manager -Admin
{707) 678-7000
jmichealsaguilar@ci_dixon.ca.us
James Fructuoso
Assistant Finance Director
(562) 904-7625
_jfuctuoso@.<:lgwneyca.org
Jannet Meyer
Administrative Analyst
{916) 478-2272
jmeyer@E:!l~9r.9.yecity.org
Project Type
Full Cost Allocation Plan
User Fee Study
Full Cost Allocation Plan
0MB Compliant Cost Plan
Citywide Fee Study
Full Cost Allocation Plan
Fully Burdened Hourly Rates
Cost Allocation Plan
Fire Prevention Fee Study
Full Cost Allocation Plan
User Fee Study
Full Cost Allocation Plan
0MB Cost Allocation Plan
User Fee Study
Cost Allocation Plan
Citywide Fee Study
Cost Allocation Plan
Development Fee Study
6 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Client
Glendale, CA
141 N. Glendale Ave.
Glendale, CA 91206
Livermore, CA
1052 S. Livermore Ave.
Livermore, CA 94550
Manhattan Beach, CA
1400 Highland Ave.
Manhattan Beach, CA 90266
Menifee, CA
29844 Haun Road
Menifee, CA 92586
Mill Valley, CA
26 Corte Madera Ave.
Mill Valley, CA 94941
Montebello, CA
1600 W. Beverly Blvd.
Montebello, CA 90640
Pacific Grove, CA
300 Forest Ave.
Pacific Grove, CA 93950
Pasadena, CA
100 N. Garfield Ave.
Pasadena, CA 91101
Client Contact
Mari Karamyan
Budget Manager
(818) 551-4608
[email protected]
Erik Peterson
Finance Manager
(925) 960-4325
[email protected]
Steve Charelian
Finance Director
(310) 802-5555
[email protected]
Margarita Cornejo
Financial Services Manager
(951) 723-3716
[email protected]
Patrick Kelly
Director of Planning and Building
(415) 388-4039
[email protected]
David Sosnowski
Director of Recreation & Community
Services
(323) 887-4588
[email protected]
Lori J. Frati
Finance Management Analyst
(831) 648-3133
[email protected]
Maria Torres
Management Analyst IV
(626) 744-4351
[email protected]
Port of Long Beach, CA Tam Ho
4801 Airport Plaza Dr. Financial Specialist
Long Beach, CA 90815 (562) 283-7562
Poway, CA
Project Type
Citywide Fee Study
Development Impact Fee Study
Full Cost Allocation Plan
0MB Cost Allocation Plan
Hourly Rates
Development Fee Study
Cost Allocation Plan
Comprehensive Fee Study
Cost Allocation Plan
Citywide User Fee Study
Development Impact Fee Study
Development Fee Study
Citywide Fee Study
Cost Allocation Plan
Citywide Comprehensive Fee
Study
Internal Service Fund
Templates·_ Worker's Comp,
Liability, and Benefits Insurance
Overhead Cost Allocation Plan
_____________ t=a=m=·=ho""@"""'=p=ol=b=.c=o=m~ ________________ _ Redlands, CA
35 Cajon Street, Ste 30
Redlands, CA 92373
Matrix Consulting Group
23 of 46
Danielle Garcia
Management Services Director
(909) 335-4791
_g<,;1c1Ec:[email protected]<J ............. .
Full Cost Allocation Plan
Citywide Fee Study
---·····--··---
7 April 2, 2024, Item #7
Proposal
to
Conduct
a
Co
st
Allocat
io
n
Plan
and
City
wide
Us
er
Fee
Study
Poway,
CA
Client Redwood
City,
CA
1017
Middlefield
Rd
.
Redwood
City,
CA
94063
Riverside,
CA
3900
Main
Street,
6th
Floor
Riverside,
CA
92522
Sacramento
Regional
Transit
District P.O.
Box
2110
Sacramento,
CA
95812
San
Bernardino
County
Fire
Protection
District,
CA
620
S.
E
St
.
San
Bernardino,
CA
92415
San
Diego
Air
Pollution
Control
District,
CA
10124
Old
Grove
Road
San
Diego,
CA
92131
San
Mateo,
CA
330
W.
20 th
Ave
.
San
Mateo,
CA
94403
San
Mateo
Resource
Conservation
District,
CA
80 Stone
Pine
Road
Half
Moon
Ba
, CA
94019
Santa
Clara,
CA
1500
Warburton
Ave
.
Santa
Clara,
CA
95050
Saratoga,
CA
13777
Fruitvale
Ave
.
Saratoga,
CA
95070
Sonoma,
CA
#1
The
Plaza
Sonoma,
CA
95476
Matr
ix Consu
lting
Group
24 of46
Client
Con
ta
ct
Jun
Nguyen
Revenue
Services
Manager
(650)
780-7213
jnguyen@redwoodcity
.org
Peter
Kakos
Principle
Management
Analyst
(951)
826-2396
PKakos@riversideca
.gov
Paul
Selenis
Accounting
Manager
(916)
557-4511
pselenis@sacrt
.com
Adam
Panos
Deputy
Fire
Marshal
(909)
386-8412
APanos@sbcfire
.org
Michael
Watt
Deputy
Director
(858)
899-0136
Michael.watt@sdapcd
.org
Christina
Horrisberger
Project
Typ
e
Cost
Allocation
Plan
Citywide
Fee
Study
Review
of
existing
Full
Cost
Plan,
Development
of
0MB
Cost
Plan,
and
Development
of
CIP
Rates Indirect
Cost
Allocation
Services Fire
Protection
Fee
Study
Cost
Recovery
and
Fees
Consultant
Services
Cost
Allocation
Plan
Development
Services
Fee
Study
Community
Development
Director
(650)
522-7209
chorrisberge_r@cityofsanmateo
.org
Development
Impact
Fee
Study
_
Lau
Hodges
Administrative
Officer
(650)
712-7765
lau
[email protected]
Kenn
Lee
Assistant
Director
of
Finance
(408)
615-2344
klee@santaclaraca
.gov
0MB
Cost Allocation
Plan
Indirect
Cost
Rate
Proposal
Billable
Rates
Full
Cost
Allocation
Plan
0MB
Cost Allocation
Plan
Citywide User
Fee
Study
Nick
Pegueros
Cost Allocation
Plan
Director
of
Finance
&
Administrative
Comprehensive
Fee
Study
Services (408)
868-1221
__ npegueros@saratoga
.ca.
us
Sue
Casey
Assistant
City
Manager
(707)
933-2215
Cost Allocation
Plan
Planning
Fee
Study
scasey@sonomacity
:9rg
_________________
_
8 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Client
South Pasadena, CA
1414 Mission Street
South Pasadena, CA 91030
South San Francisco, CA
400 Grand Ave.
South San Francisco, CA
94080
Walnut, CA
21201 La Puente Road
Walnut, CA 91789
Client Contact
Albert Trinh
Finance Manager
(626) 403-7256
[email protected]
Jason Wong
Deputy Finance Director
(650)877-8505
Jason. Worn;;[email protected]
Joelle Guerra
Senior Planner
(909) 595-7543
[email protected]
Poway, CA
Project Type
Citywide User Fee Study
Full Cost Allocation Plan
0MB Compliant Cost Plan
Citywide User Fee Study
Development lmp_~ct Fee Studx_ __
Development Fee Study
Impact Fee Review
We would be happy to provide additional information about any of the projects listed above upon request.
Matrix Consulting Group 9
25 of 46
April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA 3 Project T earn
The project team proposed by the Matrix Consulting Group are all full-time employees of our firm; we will not be partnering with any subcontractors. The following chart outlines the project team, their specific roles, and reporting structure.
Provides project oversight
and overall project
approval.
Provides expertise in reviewing
drafts and presenting
results.Leads interviews,
financial analysis, policy
discussion and development.
Coordinates data
collection, supports City
staff in data development,
and populate models.
City of
Poway
I
Khushboo Ingle
Project Manager
I
I I
Madison Dixson Abnash Minhas
Analyst Analyst
The following table provides experience summaries for our proposed project team, including types and years of experience, recent clients, and project roles.
Khushboo Ingle
Vice President
Experience:
12 years
Matrix Consulting Group
26 of46
Ms. Ingle is a Vice President who manages cost allocation plan, user fee, development impact fee, and cost of service engagements. Her experience with the firm also includes participation in operational audit engagements focusing on organization, staffing, and internal processes.
Khushboo has completed over 150 cost of service studies. Recent Southern California clients include Adelanto, Blythe, Chula Vista, Manhattan Beach, Port of Long Beach, Orange, Downey, Riverside, Glendale, San Bernardino County Fire, and Menifee.
Her role on this project would be to serve as the Project Manager, involved in leading meetings, developing draft results, and reviewing results.
10 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Madison Dixson
Senior Consultant
Experience:
3 years
Abnash Minhas
Consultant
Experience:
2 years
Matrix Consulting Group
27 of46
Ms. Dixson is an analyst who assists our senior staff on cost allocation plan, user fee, development impact fee, and cost of service engagements.
During her time with the firm, Ms. Dixson has served as a project analyst for several Southern California clients including Adelanto, Burbank, Glendale, Walnut, Menifee, Riverside, Manhattan Beach, San Bernardino, Port of Long Beach, and Redlands.
Her role on this project would be to serve as an Analyst, involved in attending meetings, data input, and developing models.
Ms. Minhas is an analyst who has recently joined our firm to assist our staff on cost-of-service engagements including cost allocation plan, user fee, and development impact fee studies. She has recently assisted on projects for Southern California clients including Chula Vista, Redlands, San Bernardino, and Pomona.
Her role on this project would be to serve as an Analyst, involved in attending meetings, data input, and model development.
11 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA 4 Scope of Services
The City of Poway is interested in two scopes of work: (1) a Cost Allocation Plan and (2) a Comprehensive User Fee Study. The following points outline the basic approach to each of these scopes, including a summary of the steps required for each study.
Cost Allocation Plan: will help the City establish a full cost allocation methodology for specific administrative overhead costs that will properly reimburse the General Fund and estimate anticipated reimbursements. The following chart outlines the basic process steps for developing a cost allocation plan.
Review existing allocation assumptons
Determine cost categories and services for allocation
Review indirect costs for allocation
Develop allocation recommendations
A Full Cost plan would be developed based on budgeted expenditures, and would be used for interfund transfers, and development of fully burdened hourly rates. • Citywide User Fee Study: will document the direct and indirect costs associated with fee-based city services. This study would also identify services currently provided for which fees could be assessed and understand how services and fees compare within the regional area. The following chart outlines the basic process steps for conducting a citywide user fee study.
Review existing fees and services
Establish time estimates and service level assumptions
Calculate fully burdened hourly rates
Conduct jurisdicitonal comparison
Develop fee recommendations and master fee schedule
The culmination of the citywide user fee study will provide the City with documentation outlining the full cost of providing fee-based services. This information, in conjunction with the jurisdictional survey will help the City determine where to set fees.
The results of this engagement will provide the City with documentation outlining the direct and indirect costs associated with providing services both internally and externally, and outline options for recovering costs through fees or other mechanisms.
Matrix Consulting Group 12
28 of 46
April 2, 2024, Item #7
Proposal
to
Conduct
a
Cost
Allo
cation
Plan and
Cityw
ide User
Fee
Study
Poway,
CA
Approach The
Matrix
Consulting
Group
works
with
various
clients
ranging
from
small
towns
to
major
metropolitan
cities
in
over
45 states
across
the
U.S.
and
Canada.
Every
project
is
unique
but
is
managed
according
to
the
following
essential
project
approach:
Understanding
City-specific
financial
data
.
Working
collaboratively
wtih
City
staff
through
meetings
and
workshops.
Applying
indust
ry standards,
best
management
practices,
and
technical
expertise
fo
r fee
and
cost
allocation
application
.
•
Calculating
defensible
results
with
buy-in
from
internal
and
external
stakeholders
..
Providing
recommendat
ions
and
transferr
ing
knowledge
and
wo
rk
products
to
City
staff
fo
r sccessful
project
implementation
.
We
believe
very
strongly
in
the
science
of
our
craft,
especially
as
it
relates
to
cost
allocation
and
cost
of
service.
Our
firm
utilizes
quality
control
techniques,
including:
Project
Management:
Ensuring
our
projects
meet
the
needs
and
timelines
of
our
clients
are
accomplished
through
the
following
:
The
project
manager
and
lead
analyst
develop
general
and
project-specific
data
collection
plans
and
interview
guides.
All
project
work
activities
are
defined
in
advance
and
tied
to
each
project
team
member, deliverables,
schedule,
and
budget.
We
have
frequent
client
review
meetings
to
discuss
the
quality
and
direction
of
the
project
through
interim
deliverables
and
draft
documents
.
•
Numerical
Results:
Financial
analyses
are
used
to
develop
budgets
and
projections
and
often
are
subject
to
public
oversight
and
review
. For
this
reason,
our
firm
ensures
data-determined
quality
control
through
the
following:
Expenditure
data
used
in
cost
models
are
tied
to
budget
documents.
Revenue
projections
developed
are
based
on
existing
workload
and
activities
and
can
be
reconciled
based
on
quantitative
assumptions
.
Mat
rix Consu
lting
Gr
oup
13 29
of
46 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA These project management approaches have resulted in all projects being delivered at a high level of quality, on time, and budget.
Work Plan
Both the Cost Allocation Plan and Citywide User Fee Study scopes or work can be conducted concurrently, as there are economies of scale that can be achieved by doing so. The following subsections detail our approach to project-wide, cost allocation plan, and user fee study specific tasks.
Project-Wide Tasks
There are four key tasks that would initiate and close out this project. The following tasks are related to both the cost plan and user fee study scopes of work.
Task 1 Data Collection
Prior to any initial meetings, the Matrix Consulting Group will provide the City with a list of initial data requirements for the study. This will allow our project team to review this information thoroughly in preparation for initial discussions with staff. A common list of data collection items include:
Budgeted expenditures on a fund, department, and line-item basis.
Copy of any prior studies
List of all budgeted personnel by fund, department, and division.
Most recent completed Fiscal Year revenue reports
List of all current fees being charged to be included in the analysis.
List of comparative jurisdictions to be included in the analysis.
The above list is a sampling of the type of information that will be requested. The provision of these items allows our project team to familiarize themselves with current financial practices.
. . . ..
-~Meetings • _. ·None '. -.. , . • . .
.• I I I I 4-;8 hours for, staff to collect ari'd ,distribute information •. -. , ' • ~ J ' • ·-• -<-,,. ~ '-• ,_ ~
Matrix Consulting Group 14
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April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Task2 Study Objectives and Project Schedule
Once the data has been collected, the project team will then meet with designated City staff to discuss any issues identified by the project team, as well as to clarify any existing concerns held by the City regarding current fee methodologies. Discussions will include:
Review of the City's specific needs and critical issues surrounding development and implementation of the cost plan and fee studies.
Discussion of concerns or issues that should be addressed during the development of the study.
Discussions regarding current fee structure and any potential changes.
Review and identify existing cost recovery policies or established subsidies.
At the culmination of the meeting, the project team and the designated City staff will leave with a greater understanding of the overall approach and methodology that will be taken by the project team to conduct the Cost Allocation and User Fee study. • Project Schedule • .
Meetings_ _. Kickoff . -_ "
'Estimated City Support 1 hour for all involvec:I City Departments _ . :. , Task3 Present the Final Report to Key Stakeholders
The presentation of results to City officials and/or stakeholders is critical to the success of the overall engagement. Because the product from the study is often controversial, the objective of this final step is to present a succinct summary that provides decision makers with key information.
We will attend and present the Study at a minimum of two (2) meetings with the Council Finance and Investment Review Committee and the City Council.
Deliverable Fee StUay Presentation
Meetings • • _· Min. of 2 City Committee I Council and Stakeholder Meetings -Estimated City Support
Task4 Implementation and Future Support
The Matrix Consulting Group is committed to helping our clients not only develop accurate and defensible cost allocation and cost of service methodologies, but helping ensure that they are able to implement the results of these studies appropriately. Our project team will work with City staff to facilitate an understanding of the results of each Matrix Consulting Group 75
31 of 46
April 2, 2024, Item #7
Pmposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA analysis, and how to incorporate those results into budget and policy documents, informational handouts, and other City Materials.
Our Client support does not stop once a final report has been issued. We understand that questions can arise about the development of a study well after project completion and are committed to working with our clients to answer any questions about methodologies and applications of results. This support is provided to our clients at no extra cost.
Cost Allocation Plan Tasks
The following tasks provide our workplan for developing a full cost allocation plan.
Task 1 Interview Staff and Gather Allocation Metrics
The project team would review the City's budget and financial structure to identify City departments and services to be allocated. To structure a custom cost allocation model, our project team would perform the following:
Review and discuss the accounting (fund and organizational levels) structure of the City based upon the budgeted expenditures to identify any anomalies from previous years.
Identify and meet specific central services departments to develop allocation bases and ensure that the plan reflects the following aspects:
All current services provided by the Department are identified and documented within the Cost Allocation Plan.
Allocation bases discussed to be utilized are reflective of the current level of effort and most relatable to the service being performed.
The following is a sample flowchart visually representing discussion outcome, the first level is the central services department, the second level is the identified service category, and the third level is the basis by which costs will be allocated:
Matrix Consulting Group 16
32 of 46
April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Finance
I
I I I
Payroll Accounts Payable Financial Reporting
I I I
# of Employees per # of Invoices per Actual Expenses per Division Division Division
Discuss alternative allocations, including outcomes and potential impacts.
The points above provide examples of the types of detailed and in-depth discussions that the project team will have with City Departments involved in the cost allocation process.
At this point in the process, the project team would reach out to each department and ask for specific allocation metrics such as purchase orders, invoices, sq. ft. per facility, etc.
Deliverable AJlocation Metric Requests from Support Departments Meetings ' 1 Departmental Suppq!"1Jyle~ttr1g per Department Estimated City Support 1 hour per City Support Department _ Task 2 I Review of Draft Cost Allocation Metrics
Based on the units of service identified in Task 1 and the allocation metrics collected, the project team would put together allocation statistic workbooks for review with specific central service departments. The purpose of these workbooks is to review the initial results of the allocation metrics gathered by the project team. The following graphic shows an example of the allocation workbook:
Fund Dept Desc
1 .... ___ 1 O __ City Manag~er __
1 16 Human Resources ---·-·--····--·-··--"-··-
1 20 City Attorney
1 30 Police • •• • • •••
··-····-··········-·-···············-··
1 • ••rn•••• •• ••··• ,.,.,, • •• •••• "'"'. ··••'" •••••'" •·•••••••••••··•••••••-•••••••-•••••••·••·•• ••••••• -••••••---•-•--•• ••·--• ·-•-----•-•··••··•·•••H<•• 1 40 Development Services
1 so -Pubficworks Streets ______ ------
1 50 • Public Works Facilities •• ·-
1 ••••• 50 ••• P~~ffc Wor~5._g<>_r:!l!"fll:J_ni~f?ervic~s 10 Water
... ····················-·-·--· ... ··-·--·. ---···--·------·········--- 14 Sewer
29 • Self-Insured Liability Fund •
TOTAL
Matrix Consulting Group
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# of AR Transactions
per Fund/Dept
3 Allocation %
0.87% .................................. _.. •···• ........ ··--·-·-·-·-· ··--···•··· .......... . ..................................... ·-·-·--·· ··-·- 30 8.75% --·-·-~··--······--···-··•·· ··•-··· .... ···••··••··••·•·•·· .............. ·--········· 30 8.75% ·---·· -·-····••--·· .... ··-···· ·······-•-·· ·•-·-•· ..... "····--··· ..... _, .... _., ··-- 68 19.83%
1 7
5 0.29%
2.04%
1.46%
....... ······ .. ····-·•·····"· ··-· ··••'···-·-" ··---....... •-···--·· .. . 1 ........... ·····-•····---······-·· ••••••••
185
1 8
4 343
··-·····•-············-·
0.29%
53.94%
0.29%
2.33%
1.17%
100.00%
17 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA In the sample graphic provided, based upon the number of AR Transactions per fund/department, the primary support is for Public Works Community Services (54%) for all the Parks and Recreation transactions, followed by Police (20%). Based upon the results of this sample, the project team would verify with Finance that the statistics were allocated to the appropriate fund/department and that the resulting percentage is reflective of the support being provided by the Accounts Receivable staff and function.
This type of detailed review is critical for the development of a defensible cost allocation plan. It also ensures that departmental staff and City staff are comfortable with the use of the allocation metrics and the support that those metrics represent.
Draft Allocation Workbooks • · • • • "· i
'. 1· D~aft Allocati_oii'Meeting per Department • • .
. Estimated City_ ~~pp~rt .
Task 3 I Structure and Prepare Draft Full Cost Allocation Plan Once the central service departments and administrative functional areas have agreed upon, the appropriate allocation metrics for services, allowable administrative or other indirect costs are allocated to each benefiting department, operating unit, or fund. At this point the project team would begin customizing the Cost Plan to ensure methodologies and assumptions comply with Federal regulations and general accounting principles.
During the development of the cost allocation plan, the project team will ensure that any expenses included in the plan are vetted and reviewed with Finance staff as well as incorporate any direct reimbursements. The results of the draft cost allocation plan will be provided to staff in numerical format in Excel prior to the development of a draft report. ; Deliverable • •. :...
Meetings Draft Results Meeting with Finance • . • :'
1 'hour for Finance •
Task 4 I Finalize the Cost Allocation Plan
Upon review and approval of the draft cost plan by central service departments and the Finance Department, the project team will finalize the Cost Allocation Plan and report.
The final deliverables associated with the Cost Allocation Plan will be:
• Cost allocation plan report: including all detailed allocation schedules, cost schedules, summary schedules, and narrative information regarding the central services included.
• Excel summary schedule: the results of the full cost allocation plan in Excel format for ease of calculations, incorporation into City documents, and review by staff.
Matrix Consulting Group 18
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April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA This type of final work product ensures that information is available in a variety of formats for City staff to use. The detailed report serves as backup documentation; whereas the excel results can be input into budget documents.
• • • • I •
Meetings None . .,.
Estimated City Support None • ·,. _. . . : • • • .. · •.
User Fee Study Tasks
The purpose of a user fee study is to ensure compliance with Propositions 218 and 26, as well as document the direct and indirect cost of services. The following tasks provide our workplan for conducting a citywide user fee study.
Task 1 Develop a Schedule of Current and Potential Fees for Service The project team will work with staff to go through their current fee schedules in line-item by line-item detail. This meeting is critical in ensuring that staff can incorporate any updates or changes to the fee study based upon code, regulation, staffing, process, or technological changes. The focus of this meeting will be the following:
• Renaming fees: Rewording or renaming fees to identify services more clearly. • Eliminating fees: Removing any outdated services or fees. • Adding new fees: Capturing any new services or breaking out existing fee categories to identify all the services being provided by city staff more clearly, as well as identifying potential fees for service that the city would like to provide. • Recategorization of fees: Collapsing or expanding multiple fee ranges to better capture the services being provided. For example, eliminating lot ranges or acreages if those do not impact review amount, but adding in categories based upon approval body (i.e., Commission vs. Director level).
It is important to note that this meeting occurs first, as to ensure that any major proposed structural changes are captured prior to collecting time estimate information or developing draft fee results. However, there is the ability to make future adjustments. i·P.ropose~ F~e Stru~tu.re(s)
iMeetings .. ,· • • • . Fee,$tructure Meeting • .
• * I O !I I
Matrix Consulting Group 19
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April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Task2 Conduct Time Data Gathering Workshops
The project team will conduct workshops to gather time estimates for each service included in the study, interview key personnel from each department, and analyze the various activities being performed. Below is an example of the steps involved in permit processing and the time associated with each step.
(Ii Intake and Processing. Permit Tech: 15 minutes.
( fl) Routing. Permit Tech: 1 O minutes.
(~ Initial Review. Plan Checker: 1 hour
11) Final Review. Plan Checker: 30 minutes.
( I) Issue Permit. Permit Tech: 15 minutes.
Basic process steps in application/permit processing will be documented and provided in detail for each department/ division represented in the study. The project team will try to minimize the impact on staff by incorporating any baseline assumptions from prior city studies.
The project team will conduct multiple time estimate workshop(s) for each department/ division included in the study, and the workshop results will be Excel-based workbook(s) that staff can review. Staff will be provided time for any edits or comments on time estimate information.
Time Estimate Workbook{s)·
2-3 Tii'ne'Estimate Workshops , ,
Estimated City Support
Task 3 Develop Fully Burdened Hourly Rates
Based on the City's staffing and budget information, the project team will calculate fully burdened hourly rates inclusive of direct and indirect costs. The following points highlight the cost components and factors included in fully burdened rates:
Matrix Consulting Group 20
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April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Direct costs: This component accounts for salary and benefits associated with each employee or position and is reflective of City staffing and salary reports.
Indirect costs -Departmental: This component accounts for administrative and management support provided to line level staff, as well as operational services and supplies which are used in the execution of job duties. This cost component is developed through interviews with staff, as well as an analysis of budgets.
Indirect costs -Citywide: This component accounts for citywide support such as Finance, HR, and City Attorney support provided by other city departments. This cost component is typically derived from the City's Cost Allocation Plan.
Once the cost components have been documented and developed, the project team will review MOUs, and talk with departmental staff to determine appropriate productive hour calculations. This reduction in available hours will ensure that fully burdened hourly rates account for leave accruals (holiday, vacation, and sick), as well as any meetings or trainings.
. Fully Burdened Hourly Rates
Estimated City Support , ,
Task4 Perform Total Cost Analysis
The Matrix Consulting Group's costing model is built based on the City's operations, budget detail and intended uses for the results. This method is a customized approach specific to each jurisdiction for cost analysis of user fee services. It is a "bottom-up" approach, which is the most defensible methodology for calculating user fees. The methodology incorporates the time estimate information and fully burdened hourly rate information. The following graphic shows the cost calculation:
Fully
Burdened
Rate
This costing method uses time and annual activity level data to establish the cost of providing services on both a unit and annual level. Once the time spent for a fee activity is determined for each individual or position, the team uses its fee and rate software to apply the fully burdened hourly rates calculated in the previous task.
Matrix Consulting Group 21
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April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Resulting costs are presented on a unit and annual level and are compared to the existing fee schedule and revenue reports. The following graphic shows a sample presentation:
Per Unit
Fee Title
Lot Line Adjustment
Temporary Use Permit
Annual
Fee Title
Lot Line Adjustment
Temporary Use Permit
Current Fee
$900
$40
Workload
4 60
TOTAL
Surplus/
Total Cost Per Unit (Deficit) Per Unit Cost Recovery%
$1,557 ($657) 58%
$325 ($285) 12%
AVERAGE COST RECOVERY PER UNIT 35%
Revenue at Current
Fee
$3600
$2400
$6,000
Revenue at Full
Cost
$6,228
$19,500
$25,728
Annual Surplus/
(Deficit)
($2,628)
($17,100)
($19,728)
As the example in the graphic indicates, the per unit subsidy for the Lot Line Adjustment at $657 is more than double the per unit subsidy for the Temporary Use Permit. However, the annual results help provide Department management with some additional context, as due to the volume of activity, the larger impact to the Department is felt by the smaller subsidy for the Temporary Use Permit.
The City will obtain detailed information like that presented in the previous graphic regarding cost recovery surpluses and deficits on both a detailed (per unit) and global (annualized) level, as well as an understanding of cost components for each service.
Deliverable Per.Unit and Annual Fee·study Results :
Meetings 1-2 Draft Results Meetings
Estimated City Support 1-3 hours per City Dep~rtment .-: _ • t Tasks Conduct a Market Rate Survey
We will work with the City to identify jurisdictions in San Diego County or elsewhere in Southern California to conduct a comparative survey of fees. This comparative survey activity will include the following:
Developing fee scenarios for each department included in the study to be compared to other jurisdictions.
Graphing the results of the fee analysis for easy visual comparison purposes.
Matrix Consulting Group 22
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April 2, 2024, Item #7
Proposa
l to
Conduct
a
Cost
Allocat
ion
Plan
and
Citywide
User
Fee
Study
$8,000.00 $7,000
.00
$6,000.00 $5
,000
.00
$4,000
.00
$3,000.00 $2,000.00 $1,000
.00
$0.00
C: ~ ::, 0
Single
Family
Home
-New
Permit
and
Plan
Check
Fees
en 0 0 * 0 0 ~
~ a. E 0 0
-
N
"'
a.
a.
E
E
0 0
0 0
Poway
, CA
■
Permit Plan
Check ■
-st
"'
a.
a.
E
E
0 0
0 u
Collecting
contextual
information
such
as
population
size,
budget,
staffing,
last
time
fee
study
was
done,
and
last
fee
schedule
update.
As
market
surveys
do
not
provide
adequate
or
objective
information
about
the
relationship
of
a
jurisdiction's costs
to
its
fees,
these
steps
ensure
we
provide
the
City
with
the
most
amount
of
information
as
possible.
Deliverable
Comparative
Graphs
(included
in
Draft
Report)
None
•
.
'.i~stimated
City
Support
None
:
~ • • ,
• • : : . •
Task
6 Review
/ Revise
Fee
Study
Re
sul
ts
Because the
analysis
of
fees
for
service
is
based
on
estimates
and
information
provided
by
City
staff,
it
is
extremely
important
that
all
participants
are
comfortable
with
our
methodology
and
with
the data
they
have
provided.
Once
the
department
agrees
that
the
analysis
reflects
the
reasonable
costs
of
providing
services,
City
management will
have
an
opportunity
to
review
the
results.
At
this
point
in
the
process,
the
project
team
will
provide
Development
Services
staff
with
Recommended
Fee
Workbooks.
The
Recommended
Fee
Workbooks
will
provide
departments
/
divisions
the
results
of
the
fee
study
in
an
excel
based
format.
The
following
table
shows
an
example
of
the
Recommended
Fee
Workbook:
Mat
rix Consulting
Group
23 39
of
46 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA Current -Per Unit Results
Surplus/ (Deficit) Cost Recovery
Fee Title Current Fee Total Cost Per Unit %
Lot Line Adjustment $900 $1,557 ($657) 58%
Temporary Use Permit $40 $325 {$285} 12%
Recommended Fee
$ Change to Recommended
Recommended Recommended % Change to Fee Cost
Fee Title Fee Fee Recommended Fee Recovery%
Lot Line Adjustment $1,200 $300 33% 77%
Temporary Use Permit $100 $60 150% 31%
Recommended Fee Annual
Potential
Revenue at Revenue at Change in
Fee Title Workload Current Fee Recommended Fee Revenue
Lot Line Adjustment 4 $3,600 $4,800 $1,200
Temporary Use Permit 60 $2,400 $6,000 $3,600
TOTAL $6,000 $10,800 $4,800
As the table above indicates, the recommended fee workbook allows the Development Services to input information into the Recommended Fee column and see its impacts such as the dollar increase, percentage increase, and what percentage of their current costs they are going to recover. Additionally, the workbook allows the Department to calculate potential increases or declines to revenue because of the recommended fees.
Deliverable -Recommended fee Workbooks • • •
Meetings
~,Est~~~ted City Support • None • • . . '
-----
Task7 Prepare a Draft User Fee Study Report
Upon conclusion of the fee study, we will prepare a detailed report that summarizes the results of each of the previous work tasks described above. This report will include:
A succinct executive summary discussing the study, methodology, and the results.
A narrative describing the services included in the study.
A section on proposed modifications to the current fee schedule, including removal or addition of new fees for service.
A section on per unit and annual results for each fee included in the analysis and where workload data is available.
Matrix Consulting Group 24
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April 2, 2024, Item #7
Proposa
l to
Conduct
a
Cost
Al
location
Plan
and
Citywide
User
Fee
Study
Poway,
CA
A
comparative
survey
section
outlining
key
fees,
their
comparison
to
other
local
jurisdictions,
and
contextual
information
regarding
budget,
staffing,
and
when
they
last
conducted
fee
studies.
The
draft
report
will
be
provided
to
City
staff
for
comments
.
Deliverable
Draft
Fee
Study
Report
:Meetings
None ,J;
?J!§
_Q@
p~r
City
Department
to
Review
Report
.
Task
8 Finalize
Fee
Study
Report
Any
edits
or
revisions
to
the
draft
user
fee
study
report
will
be
incorporated
into
the
finalized
fee
study
report.
This
finalized
fee
study
report
will
not
only
include
all
elements
of
the
draft
fee
study
report,
but
also
include
any
additional
cost
recovery
considerations
and
policy
considerations
for
council's
review.
Deliverable
•
Final
Fee
Study
Report
Meetings
,:
·. <
:
\
:; • •
None
•
.
Estimated
City
Support
None
Task
9 Master
Fee
Schedule
Once
the
final
user
fee
study
report
is
approved,
the
project
team
will
develop
a
master
fee
schedule,
consolidating
all
fees
in
a
singular
location.
The
master
fee
schedule
will
include
a
numbering
system,
the
department
name,
the
fee
title,
the
unit
of
application,
the
current
fee,
the
total
cost
per
unit
calculated
through
the
study,
the
difference,
the
cost
recovery,
the
relevant
rule
/
regulation
that
applies
to
the
fee
type,
the
staff
recommended
fee,
and
staff
recommended
cost
recovery
level.
This
type
of
attachment
is
extremely
helpful
for
staff
as
part
of
the
staff
report
provided
to
Council
upon
adoption.
(?eliverable
•.•
' . •.
·
None
•
None
Matri
x Consulting
Group
25 41
of
46 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocatio11 Plan and Citywide User Fee Study Poway, CA 5 Schedule
The typical timeframe for completing projects of this nature is approximately six (6) months. The following table shows, by task, the proposed week(s) of work.
Task
Project Wide Tasks
Data Collection
Study Objectives
Presentations
Cost Allocation Plan
Interview Staff and Gather Data
Review Allocation Metrics
Structure Draft Full Cost Plan
Finalize Full Cost Plan
Citywide Fee Study
Current & Potential Fees
Data Workshops
Fully Burdened Hourly Rates
Total Cost Analysis
Comparative Survey
Review/Revise Results
Draft Fee Study Report
Prepare Final Report
Develop Master Fee Schedule
Matrix Consulting Group
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Month
1 2 3 4 5 6
26 April 2, 2024, Item #7
Proposal to Conduct a Cost Allocation Plan and Citywide User Fee Study Poway, CA 6 Price
The Matrix Consulting Group proposes to perform the tasks and services associated with developing a cost allocation plan and citywide user fee study for a fixed fee of $68,000.
The following chart provides a breakdown of hours by team member and costs for each task area to conduct the requested scope of services.
Project-Wide Tasks
Data Collection
Study Objectives
Presentation of Fee Results
Project-Wide Subtotal
Cost Allocation Plan Tasks
Interview Staff and Gather Data
Review Allocation Metrics
Structure Draft Full Cost Plan
Final Full Cost Plan
Cost Analysis Subtotal
Comprehensive Fee Study Tasks
Current & Potential Fees
Data Workshops
Fully Burdened Hourly Rates
Total Cost Analysis
Comparative Survey
Review/Revise Results
Draft Fee Study Report
Prepare Final Report
Develop Master Fee Schedule
Fee Study Subtotal
Total Hours
Hourly Rate
Total Professional Fees
Total Project Cost
Project
Manager
2 2
12 16
4 2
4 2
12 4
8 12
16 6
16 18
10 0
90 118
$240
$28,320
Analyst
4 2
0 6
8 10
16 8
42 10
18 34
28 32
24 28
16 10
200
248
$160
$39,680
Total Cost
$1,120
$800
$2,880
$4,800
$2,240
$2,080
$3,520
$1,760
$9,600
$2,560
$4,800
$8,320
$8,320
$6,560
$7,680
$8,800
$4,960
$1,600
$53,600
$68,000
$68,000
Our typical practice is to bill for hours worked monthly, with our contracts set up as fixed price contracts. We are open to billing on a task or deliverable basis as well.
If the City were interested in excel-based models for annual updates of the studies, those could be provided at a flat rate of $4,500. In addition to the Full Cost Plan an 0MB Compliant Cost Allocation Plan could be developed for a flat rate of $5,000.
Matrix Consulting Group 27
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April 2, 2024, Item #7
EXHIBIT "B"
Cal Gov Code§ 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section.
(c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e)
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(l)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with April 2, 2024, Item #7
a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement. (2)A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(f)A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions:
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(l)The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2)
(A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)For legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements. (4)The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter.
April 2, 2024, Item #7
(g)A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply.
(h)This section shall not apply to a person who is retired from the State Teachers' Retirement System, and who is subject to Section 24214, 24214.5 or 26812 of the Education Code.
(i)This section shall not apply to (1) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System II who is assigned to serve in a court pursuant to Section 68543.5.
History
Added Stats 2012 ch 296 § 15 (AB 340), effective January I, 2013. Amended Stats 2013 ch 528 § 11 (SB 13), effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January 1, 2013; Stats 2014 ch 238 § 1 (AB 2476), effective January 1, 2015.
Annotations
Notes
Amendments:
Note--
Amendments:
2013 Amendment:
Substituted (1) "have passed" for "has passed" in the first sentence of subds (f)(l) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)( 4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i).
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