Public Works Agency
www.santa-ana.org/public-works
Item # 30
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Public Works Cost Recovery Analysis
AGENDA TITLE
Agreement for Public Works Cost Recovery Analysis Services (General Fund and Non- General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with Government Consulting Partners, Inc. to provide a comprehensive analysis of Public Works billable rates and indirect cost calculations in an annual amount not to exceed $120,000, which includes an $11,000 contingency, for a one-year term from July 1, 2024 through June 30, 2025, with the option of two, one-year extensions, for a total amount not to exceed $360,000 (Agreement No. A-2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Public Works Agency provides a wide variety of services to the community that incur operational costs which include labor, materials, and various indirect or overhead charges. Staff recoups as much of these costs as possible through various grants, fees, and cross charges. Developing a methodology of identifying the true costs of service for these activities is vital to the accurate and efficient recovery of these funds and the capture of revenue. This is especially true with requesting reimbursements from other government agencies such as Caltrans, who require indirect cost allocation plans to justify payment amounts to the City.
The Public Works Agency recommends performing a comprehensive analysis of its billable rates and indirect cost methodologies to ensure that the City is fully identifying service costs, capturing available revenues from external partners, and reducing costs to the City. To that end, a Request for Proposals (RFP) No. 24-058 was issued on April 3, 2024 on the City’s online bid management and publication system, Planetbids. A summary of vendor participation and results is as follows:
449 Vendors Notified
12 Santa Ana Vendors Notified
22 Vendors Downloaded the Bid Packet
Public Works Agency Cost Recovery Analysis
June 4, 2024
4 3
0 8
3 Proposals Received
0 Proposals Received from Santa Ana
Vendors
Proposals were solicited, opened on April 3, 2024, and evaluated. Three proposals were submitted by the RFP deadline and all three were determined to be responsive to the specifications and met the City’s requirements. Proposals were scored by a staff panel and were rated based on responsiveness to the RFP, experience of the firm, and pricing. Staff recommends the approval of the agreement with Government Consulting Partners as they demonstrated the most relevant expertise, capacity, and experience as specified in the RFP.
FISCAL IMPACT
Funds are available in the proposed Fiscal Year 2024-2025 and funding for subsequent fiscal years will be included in the proposed budgets for City Council Consideration.
Fiscal
Year
Accounting
Unit-
Account #
Fund
Description
Accounting Unit,
Account
Description
Total
2024-25 01117017-
62300
General Fund PWA- Service
Enhancement –
Contract Services –
Professional
$60,000
2024-25 10117601-
62300
Public Works –
Administration &
Planning
Public Works –
Admin Services –
Contract Services
Professional
$60,000
FY 24-25 TOTAL $120,000
Optional 1st-Year Extension
2025-26 01117017-
62300
General Fund PWA – Service
Enhancement –
Contract Services –
Professional
$60,000
2025-26 10117601-
62300
Public Works –
Administration &
Planning
Public Works –
Admin Services –
Contract Services –
Professional
$60,000
FY 25-26 TOTAL $120,000
Optional 2nd-Year Extension
2026-27 01117017-
62300
General Fund PWA – Service
Enhancement –
Contract -
Professional
$60,000
Public Works Agency Cost Recovery Analysis
June 4, 2024
4 3
0 8
Fiscal
Year
Accounting
Unit-
Account #
Fund
Description
Accounting Unit,
Account
Description
Total
2026-27 10117601-
62300
Public Works –
Administration &
Planning
Public Works –
Admin Services –
Contract Services –
Professional
$60,000
FY 26-27 TOTAL $120,000
TOTAL $360,000
EXHIBIT(S)
1. RFP for Cost Recovery Services
2. Government Consulting Partners Submittal
3. Agreement with Government Consulting Partners
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, Acting City Manager