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Project Name: Cost Allocation Plans & User Fee Study
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF THOUSAND OAKS
AND
MATRIX CONSULTING GROUP, LTD
THIS AGREEMENT is made and entered into this 24th day of September 2024, by and between CITY OF THOUSAND OAKS, a municipal corporation ("City"), and Matrix Consulting Group, Ltd ("Consultant").
City and Consultant agree as follows:
1. RETENTION OF CONSULTANT
City hereby retains Consultant, and Consultant hereby accepts such engagement, to perform the services described in Section 2. Consultant warrants it has the qualifications, experience, and facilities to properly and timely perform said services.
2. DESCRIPTION OF SERVICES
The services to be performed by Consultant are as follows:
Professional services in conjunction with the City's Cost Allocation Plans and User Fee Study. Cost Allocation Plan Services generally includes preparation of both the Full Cost and Federally Compliant Cost Allocation Plans, as well as citywide indirect cost rates for each fiscal year. User Fee Study services will generally include the calculation and development of a full cost of services study for all City Department user fees, fee comparisons to other agencies, fee increase recommendations, and fully burdened staff rates, and are more particularly set forth in the Scope of Work, attached as Exhibit "A," which is incorporated herein by reference.
City shall perform the services defined in Exhibit “A.”
3. COMPENSATION AND PAYMENT
(a)Maximum and Rate. The total compensation payable to Consultant by City for the services under this Agreement SHALL NOT EXCEED the sum of $183,600 (herein "not to exceed amount"), and shall be earned as work progresses on the following basis:
According to the payment schedule and expenses set forth in Consultant's Schedule of Fees and organized by "Billing Milestones" attached as Exhibit "B" and incorporated herein. The fixed fees, hourly rates, and expenses set forth in that exhibit shall be binding upon Consultant for the term of this Agreement or until August 31, 2029, after which any change in the rates and expenses must be approved in writing by City's Project Manager (City is to be given 60 days' notice of any rate increase ATTACHMENT #1
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request), provided the not to exceed amount is the total compensation due to Consultant for all work described under this Agreement. (b)Payment. Consultant shall provide City with written verification of the actual compensation earned, in a form satisfactory to City's Project Manager. Invoices shall be made no more frequently than on a monthly basis, and the Billing Milestone reached, and include, a list of hours worked for any services billed on an hourly basis.
All payments shall be made within 30 days after City’s approval of the invoice. (c)Extra Services. Additional work not reasonably encompassed by the Scope of Services described in Section 2 may be agreed upon only by execution of a written Amendment to this Agreement. No liability or right to compensation for extra services shall exist without such Amendment. Unless otherwise stated in the Amendment, applicable rates for extra services shall be at the rates set forth in Exhibit “B.”
4. CITY PROJECT MANAGER
The services to be performed by Consultant shall be accomplished under the general direction of, and coordinate with, City's "Project Manager," as that staff person is designated by City from time to time, and who presently is Ryan Roman, Budget Officer.
5. TERM, PROGRESS AND COMPLETION
The term of this Agreement is from the date first written above to August 31, 2027, unless term of this Agreement is extended or the Agreement is terminated as provided for herein.
City Manager or his or her designee shall have the authority to extend the term of this Agreement in writing no more than two (2) separate times, for a period of one (1) year each. Extensions of time shall be memorialized by execution of a written amendment.
Consultant shall not commence work on the services to be performed under the Agreement until (i) Consultant furnishes proof of insurance as required by paragraph 9 below, and (ii) City’s Project Manager gives written authorization to proceed with the work. All services shall be completed within the term of this Agreement and as listed in Exhibit “A.”
6. OWNERSHIP OF DOCUMENTS
All drawings, designs, data, photographs, reports and other documentation (other than Consultant's drafts, notes and internal memorandum), including duplication of same prepared by Consultant in the performance of these services, are the property of City. City shall be entitled to immediate possession of the same upon completion of the work under this Agreement, or at any earlier or later time when requested by City.
City agrees to hold Consultant harmless from all damages, claims, expenses, and losses arising out of any reuse of the plans, specifications, graphics, brochures, reports, and other documentation for purposes other than those described in this Agreement, unless written authorization of Consultant is first obtained.
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7. PERSONAL SERVICES/NO ASSIGNMENT/SUBCONTRACTS
This Agreement is for professional services, which are personal to City.
Khushboo Ingle, Vice President, is deemed to be especially experienced and is a key member of Consultant's firm, and shall be directly involved in performing, supervising or assisting in the performance of this work. This key person shall communicate with, and periodically report to, City on the progress of the work. Should said individual be removed from assisting in this contracted work for any reason, City may terminate this Agreement.
This Agreement is not assignable by Consultant without City's prior written consent.
No part of the work described in this Agreement may be subcontracted out to other parties.
8. HOLD HARMLESS AND INDEMNITY
(a) Hold Harmless for Consultant's Damages. Consultant holds City, its elected officials, officers, agents, employees and volunteers, harmless from all of Consultant's claims, demands, lawsuits, judgments, damages, losses, injuries or liability to Consultant, to Consultant's employees, to Consultant’s contractors or subcontractors, or to the owners of Consultant's firm, which damages, losses, injuries or liability occur during the work or services required under this Agreement, or performance of any activity or work required under this Agreement. (b) Defense and Indemnity of Third Party Claims/Liability. Consultant shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, agents, employees and volunteers from and against all liability including, but not limited to, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Consultant’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in the Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of City. Should conflict of interest principles preclude a single legal counsel from representing both City and Consultant, or should City otherwise find Consultant’s legal counsel unacceptable, then Consultant shall reimburse City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation.
The Consultant shall promptly pay City any final judgment rendered against City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of Consultant’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
Consultant’s obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an FIN: 330:20\rr\H:\COMMON\Council\Administration\2024\092424 Cost Allocation and User Fee Study Consultant Agreement.docx
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Indemnitee. However, without affecting the rights of City under any provision of this Agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City.
(c) Nonwaiver. City does not waive, nor shall be deemed to have waived, any indemnity, defense or hold harmless rights under this section because of the acceptance by City, or the deposit with City, of any insurance certificates or policies described in Section 9.
9. MINIMUM SCOPE AND LIMIT OF INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, and any extension thereof, policies of insurance of the type and amounts described below and in a form that is satisfactory to City.
Coverage shall be at least as broad as:
(a).Commercial General Liability (CGL): Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry General Liability insurance coverage at least as broad as Insurance Services form CG 00 01 in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate for bodily injury, personal and advertising injury and property damage, including without limitation, blanket contractual liability. (b).Automobile Liability: Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry Automobile Liability insurance coverage at least as broad as Insurance Services form CA 00 01 or the exact equivalent covering bodily injury and property damage for all activities of Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage of any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c).Worker’s Compensation: Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry workers’ compensation statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for bodily injury or disease.
Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its elected officials, officers, agents, employees and volunteers for all work performed by Consultant, its employees, agents and subcontractors.
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(d).Professional Errors and Omissions Insurance: Consultant shall, at Consultant’s sole cost and expense throughout the term of this Agreement, and any extensions thereof, carry professional errors and omissions coverage of no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate, with tail coverage for an extended reporting period of five (5) years.
If Consultant maintains higher limits than the minimum shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
City, its elected officials, officers, agents, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10 10 01 and CG 20 37 10 01 if a later edition is used). The provision shall also apply to any excess liability policies. In addition, Consultant shall ensure that the automobile liability policy contains a provision covering City as an additional insured, and shall obtain an endorsement to that effect if it does not.
Excess Insurance
The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Umbrella or excess policies shall provide coverage at least as broad as specified for underlying coverages and covering those insured in the underlying policies. Coverage shall be “pay on behalf” with defense costs payable in addition to policy limits. There shall be no cross-liability exclusion of claims or suits by one insured against the other. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and no-contributory basis for the benefit of City as required in written contract or agreement before City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
City’s Rights of Enforcement
In the event any policy of insurance required under this Agreement does not comply with these specifications or is cancelled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant’s payments. In the alternative, City may cancel this Agreement.
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City’s Right to Revise Specifications
City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation.
Primary and Non-Contributory Coverage
For any claims related to this Agreement, Consultant's insurance coverage shall be primary insurance as respects City, its elected officials, officers, agents, employees and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be excess of Consultant's insurance and shall not contribute with it and shall be at least as broad as CG 20 01 04 13.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to City.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by City.
City may require Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with a current A.M. Best’s rating of no less than A:VII, (unless otherwise acceptable to City).
Waiver of Subrogation
All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected officials, officers, agents, employees or volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications - to waive their right of recovery prior to a loss. Consultant hereby waives his own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Copies of these waivers shall be submitted to City prior to commencement of work.
Claims Made Policies
If any of the required policies provided coverage on a claims-made basis:
(a). The Retroactive Date must be shown and must be before the date of the Agreement or the beginning of contract work.
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(b). Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the work required under this Agreement.
(c). If coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the Agreement effective date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.
Verification of Coverage
Consultant shall provide City with copies of certificates (on City certificate form or an Accord form as modified per City direction) for all policies, with the appropriate named additional insured coverage and an endorsement that they are not subject to cancellation without 30 days prior written notice to City. All certificates and endorsements are to be received and approved by City before work commences.
However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04
13. 10. RELATION OF THE PARTIES
a.Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b.No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
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11. CORRECTIONS
In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work that may be disclosed during City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably timely manner, such correction shall be made by City, and the cost thereof shall be charged to Consultant or withheld from any funds due to Consultant hereunder.
12. TERMINATION BY CITY
City may terminate without cause any or all of the services agreed to be performed under this Agreement upon 30 calendar days’ written notice. If termination is for cause, no advance notice need be given. In the event of termination, Consultant shall have the right and obligation to immediately assemble work in progress for the purpose of closing out the job. All compensation for actual work performed and charges outstanding at the time of termination shall be payable by City to Consultant within 30 days following submission of a final statement by Consultant unless termination is for cause. In such event, Consultant shall be compensated only to the extent required by law.
13. ACCEPTANCE OF FINAL PAYMENT CONSTITUTES RELEASE
The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished, or relating to Consultant's work or services.
Acceptance of payment shall be any negotiation of City's check or the failure to make a written extra compensation claim within 10 calendar days of the receipt of that check.
However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors, agents and consultants for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors, agents and consultants.
14. AUDIT OF RECORDS
Consultant shall maintain, in accordance with generally accepted accounting principles, complete and accurate records of all activities and operations relating to this Agreement. Records, including but not limited to, timecards, employment records, work progress reports, reimbursements, invoices, project records, proprietary data and information, as well as licensed software and any electronic records shall be kept for a period of four years beyond the termination of this Agreement. Consultant agrees that City, or its authorized representative, shall have the right to examine, audit, excerpt, copy or transcribe any of the records pertaining to this Agreement at any time during normal business hours. Consultant shall reimburse City for all reasonable costs of the audit, including travel time and auditor costs, should such audit reveal an overcharge of five (5) percent or more. Any overcharge will be considered a breach of this Agreement and could be cause for termination. The obligations of this section shall be FIN: 330:20\rr\H:\COMMON\Council\Administration\2024\092424 Cost Allocation and User Fee Study Consultant Agreement.docx
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explicitly included in any subcontracts or other agreements entered into by Consultant with respect to this Agreement.
15. WAIVER; REMEDIES CUMULATIVE
Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future. No waiver by a party of a default or breach of the other party shall be effective or binding upon such party unless made in writing by such party, and no such waiver shall be implied from any omissions by a party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.
16. CONFLICT OF INTEREST
Consultant is unaware of any City employee or official that has a financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this Agreement, Consultant shall not offer, encourage or accept any financial interest in Consultant's business by any City employee or official.
17. CONSTRUCTION OF LANGUAGE OF AGREEMENT
The provisions of this Agreement shall be construed as a whole according to its common meaning of purpose of providing a public benefit and not strictly for or against any party. It shall be construed consistent with the provisions hereof, in order to achieve the objectives and purposes of the parties. Wherever required by the context, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neutral genders or vice versa.
18. MITIGATION OF DAMAGES
In all situations arising out of this Agreement, the parties shall attempt to avoid and minimize the damages resulting from the conduct of the other party.
19. GOVERNING LAW
This Agreement, and the rights and obligations of the parties, shall be governed and interpreted in accordance with the laws of the State of California. Should litigation occur, venue shall be in Superior Court of Ventura County.
20. TAXPAYER IDENTIFICATION NUMBER
Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W-9, as most recently issued by the Internal Revenue Service.
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21. NON-APPROPRIATION OF FUNDS
Payments due and payable to Consultant for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of City funds. In the event City has not appropriated sufficient funds for payment of Consultant’s services beyond the current fiscal year, this Agreement shall cover only those costs incurred up to the conclusion of the current fiscal year.
22. MODIFICATION/AMENDMENT OF AGREEMENT
Any amendment, modification, or variation of the terms or tasks of this Agreement shall be in writing and shall be effective only upon the mutual written approval of the City and Consultant.
23. USE OF THE TERM “CITY”
Reference to “City” in this Agreement includes the City Manager or any authorized representative acting on behalf of City.
24. PERMITS AND LICENSES
Consultant, at its sole expense, shall obtain and maintain during the term of this Agreement all appropriate permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.
25. CAPTIONS
The captions or headings in this Agreement are for convenience only and in no other way define, limit or describe the scope or intent of any provision or section of the Agreement.
26. AUTHORIZATION
Each party has expressly authorized the execution of this Agreement on its behalf and binds said party and its respective administrators, officers, directors, shareholders, divisions, subsidiaries, agents, employees, successors, assigns, principals, partners, joint venturers, insurance carriers and any others who may claim through it to this Agreement.
27. ENTIRE AGREEMENT BETWEEN PARTIES
Except for Consultant's proposals and submitted representations for obtaining this Agreement, this Agreement supersedes any other agreements, either oral or in writing, between the parties hereto with respect to the rendering of services and contains all of the covenants and agreements between the parties with respect to said services.
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28. PARTIAL INVALIDITY
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
29. NOTICES
Any notice required to be given hereunder shall be deemed to have been given by depositing said notice in the United States mail, postage prepaid, and addressed as follows:
TO CITY: Finance Department
Attention: Ryan Roman, Budget Officer
City of Thousand Oaks
2100 Thousand Oaks Boulevard
Thousand Oaks, CA 91362
TO CONSULTANT: Matrix Consulting Group, Ltd
Attention: Courtney Ramos
1650 S. Amphlett Blvd., Suite 213
San Mateo, CA 94402
30. SIGNATURES
(a)Counterparts. This Agreement may be executed in two or more counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument.
(b)Scanned Signatures. In the event that any signature is delivered by facsimile transmission or submitted electronically as a scanned image (i.e. files with .pdf,
.tiff or .jpeg extensions), such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or scanned signature page were an original thereof. (c)Digital/Electronic Signatures. This Agreement may be executed through the use of digital or electronic signatures provided they meet the requirements of the Electronic Signatures in Global and National Commerce (ESIGN) Act and the California Uniform Electronic Transactions Act (UETA) and are produced using a City- approved method. The presence of an electronic signature on this document shall be construed as the parties’ consent to do business electronically FIN: 330:20\rr\H:\COMMON\Council\Administration\2024\092424 Cost Allocation and User Fee Study Consultant Agreement.docx
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31. LEVINE ACT COMPLIANCE
California Government Code section 84308 (Levine Act) prohibits any Thousand Oaks City Council member from participating in any action related to a contract, agreement, or franchise agreement if the councilmember receives a campaign contribution totaling more than $250 (aggregated) from the party to the contract, agreement, or franchise agreement, an agent of the party, or any financially interested participant who actively supports or opposes the matter within the previous twelve (12) months. Councilmembers must also disclose any eligible campaign contribution received on the record of the proceeding.
Councilmembers are also prohibited from soliciting, accepting or directing campaign contributions totaling more than $250 (aggregated) from the applicant or party, an agent of the applicant/party, or any financially interested participant who actively supports or opposes the matter within the previous twelve (12) months, and for twelve (12) months following the date a final decision on the contract/agreement is made.
The Levine Act also required parties to a contract, agreement, or franchise agreement to disclose any campaign contribution over $250 (aggregated) within the preceding twelve (12) months by the party to the agreement, contract, or franchise agreement. The Levine Act does not apply to competitively bid, labor, or personal employment contracts.
In order to assure compliance with these requirements, Consultant has provided the disclosure requirements identified in the Levine Act Disclosure Form, attached as Exhibit C, incorporated herein by reference, and Consultant verifies by its signature that it has completed Exhibit C in compliance of these requirements.
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Consultant shall also be responsible for understanding and complying with requirements of Government Code section 84308, which prohibits parties to a contract/agreement, as well as their agents and representatives, from contributing more than $250 (aggregated) to a City Council member of the City of Thousand Oaks for the 12 months prior to the award of this Contract/Agreement, and for the 12 months following award of this Contract/Agreement. Where applicable, Consultant shall disclose any post award campaign contributions prior to seeking an amendment to this Agreement.
In concurrence and witness whereof, this Agreement has been executed by the parties effective on the date and year first above written.
MATRIX CONSULTING GROUP
By: Courtney Ramos
Title: Senior Vice President
By: Richard Brady
Title: President
CITY OF THOUSAND OAKS
Al Adam, Mayor
ATTEST:
Laura B. Maguire, City Clerk
APPROVED AS TO ADMINISTRATION:
Andrew P. Powers, City Manager
APPROVED BY DEPARTMENT HEAD: APPROVED AS TO FORM:
Office of the City Attorney
Jaime Boscarino, Finance Director By: Tracy Friedl, Assistant City Attorney FIN: 330:20\rr\H:\COMMON\Council\Administration\2024\092424 Cost Allocation and User Fee Study Consultant Agreement.docx
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Exhibit "A"
Cost Allocation Plans & User Fee Study
Scope of Work
Consultant shall perform all work necessary to prepare Cost Allocation Plans and a User Fee Study as more specifically outlined below.
Cost Allocation Plan:
City expects Consultant to keep the following objectives in mind while completing the work: 1) the full cost plan is used to identify General Fund central service support to various City governmental and enterprise funds, 2) the federal cost plan is used to identify overhead costs associated with any state or federally funded programs, such as the SB-90 program, and 3) the indirect costs identified in the full cost plan are added to the direct costs that are part of the User Fee study.
Consultant will complete two Cost Allocation Plans (CAP) each year and an Indirect Cost Rate Proposal (ICRP), as described below:
Full Cost Plan: For cost of service (user fee) analysis. Identify central service support to various City governmental and enterprise funds as described in items A through R below. The Full Cost CAP will follow the federal guidelines, in general, but it will include some legitimate City central service costs that are specifically disallowed for federal reimbursement.
Federal Cost Plan: Complies fully with federal guidelines for use in charging federal, state, county, and other external funding sources.
Indirect Cost Rate Proposal (ICRP): Determination of factors representing indirect costs the City can apply to direct costs for each department in the CAP and citywide.
The annual CAP update process will incorporate all new cost inputs into each CAP, such as staff salaries and benefits, line-item expenditures, and other direct expenditures incurred by the central service departments. In most instances, the allocation bases and other data will not be updated. Annual CAP and updates will be completed by June 30th each year, as follows:
FY 2023-24 Full Cost and Federally Compliant Cost Allocation Plans and Indirect Rates by June 30, 2025
FY 2024-25 Annual CAP and Federally Compliant Cost Allocation Plans and Indirect Rates by June 30, 2026
FY 2025-26 Annual CAP and Federally Compliant Cost Allocation Plans and Indirect Rates by June 30, 2027
(Optional) FY 2026-27 Annual CAP and Federally Compliant Cost Allocation Plans and Indirect Rates by June 30, 2028
(Optional) FY 2027-28 Annual CAP and Federally Compliant Cost Allocation Plans and Indirect Rates by June 30, 2029
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Cost Allocation Plan Tasks
A. Collect data to gain an understanding of the City's operations and structure, as well as current allocation methodology, in order to prepare study materials for initial meetings with City staff.
B. Conduct a kick off meeting with City staff to coordinate project management tasks, establish project contacts and roles, and gain an understanding of the City’s processes and operations to determine appropriate cost allocation bases.
C. Work with City staff to customize the structure of the analysis and model.
D. Identify and classify the Central Service Departments.
E. Determine whether secondary studies (e.g., fee study) would benefit from designation of other departments as "central service".
F. Classify the "functions" of each allocated department.
G. Determine the optimal allocation basis for each function.
H. Identify the source and collect allocation bases data/statistics.
I. Collect cost information, such as salaries, benefits, and support costs.
J. Guide Central Service staff to collect workload distributions.
K. Calculate staff workload costs for each Central Service function.
L. Populate analytical model and calculate results.
M. Employ quality control processes.
N. Review results with the City.
O. Revise analytical model/study data per City direction and finalize the Plans and ICRP
P. Discuss strategic approaches to implementing the Plans.
Q. Document and communicate results with City’s Project Manager.
R. Provide adequate documentation for City staff to reconcile to the General Ledger (and particular the General Fund by general ledger account line item).
Deliverables for the Cost Allocation Plans and Indirect Cost Rate Proposal, as well as their associated services, include;
A. A summary results worksheet for each plan in electronic form (Excel).
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B. Supporting documentation detailing all of the distributions and their bases and provide historical documentation of the allocation processes.
C. Draft CAP and ICRP in electronic form (PDF and Excel).
D. Final CAP and ICRP incorporating City’s feedback, including embedded summary narratives documenting the key elements of the CAP. Documents shall be provided in electronic form (PDF and Excel).
The Federal CAP results will serve as the basis for the ICRP. Consultant will gather additional data necessary from the City to incorporate into the ICRP calculation model and produce ICRP results.
User Fee Study
City expects Consultant to keep the following objectives in mind while completing the work for the User Fee Study: 1) complete a full cost of services study as described below for as many department fees as feasible by March 2025 (departments include, Building and Safety, City Clerk, citywide, Cultural Affairs, Finance, Library, Planning, Police, and Engineering), 2) calculate CPI updates for fees from departments not included in the initial cost of services update, 3) complete full cost of services study for remaining departments prior to March 2027, 4) assist with preparation of the City’s biennial User Fee manual.
User Fee Study and updates will be completed by the following timeline:
FY 2025-27 Full User Fee Study by March 1, 2025. Alternatively, if it is not possible to complete fee study for all City Departments by March 1, 2025 due to City staff workload, City’s project manager will direct Consultant in writing to take a phased approach and complete the user fee study for certain departments/fee types (e.g.
Building and Safety, Engineering, etc.). Any remaining departments will be included in the next FY 2027-29 biennial cycle (by March 1, 2027). If the City opts for a phased approach, Consultant may bill by percentage completed for the fee milestones specified in Table 3 in Exhibit B, “Schedule of Fees.” Regardless of the Study duration, all costs for the comprehensive user fee study will remain within the dollar amount specified in Table 3 in Exhibit B, “Schedule of Fees.”
(Optional) FY 2027-29 User Fee Update by March 1, 2027. (Optional) FY 2029-31 User Fee Update by March 1, 2029.
Consultant shall complete the following tasks in relation to the Cost of Services study:
A. Collect data to gain an understanding of the fee department operations, organization, staffing, and current fee structure, in order to prepare study materials for initial meetings with City staff.
B. Meet with project manager to coordinate project management tasks and establish project contacts and roles.
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C. Conduct a "Kick-off" presentation with representatives of all involved departments to communicate the study process and methodology, establish mutual expectations, discuss data needs, and solicit initial City input and suggestions.
D. Meet with Finance Department staff to customize the analytical approach and base models.
E. Establish and/or restructure the inventory of fee services (current and potential).
F. Identify the staff positions that work on each fee service.
G. Calculate the direct productive hourly rate for each position.
H. Document the time for each position to perform fee tasks.
I. Calculate the direct cost of the staff time for each fee.
J. Distribute indirect and overhead costs to each fee.
K. Sub-allocate supporting activities to fee services.
L. Perform quality control processes (constant).
M. Calculate revenue impacts as a result of new or revised fee recommendations.
N. Perform the "gap analysis" between current costs and fee revenue for each fee as provide the same analysis for proposed/revised costs.
O. Prepare fee comparisons with other municipalities and theatres (see “Fee Comparison” below).
P. Document and present draft results and prepare final study.
The deliverables for the User Fee Study, as well as their associated services, are described in further detail in the sections presented below.
User Fee and Staff Rates Analysis
A full cost of services study will be performed for all City user fees, including Building and Safety, City Clerk, citywide, Cultural Affairs, Finance, Library, Planning, Police, and Engineering. An analysis of the fee structures, staffing, overhead, staff workload data and time estimates, and other relevant data to determine the unit costs, subsidies, and revenue impacts will be performed. In addition to the individual cost of fee services, the Study will identify subsidy levels and potential fee adjustments. As part of the larger study in each department/division, the analysis will include a determination of the cost-recovery (fully burdened) hourly rates for each staff member.
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revenue impacts of current and recommended fees, as well as annualized subsidies.
If desired, the consultant will work with the City to establish recommended fees.
Consultant will work directly with department management to reorganize and restructure the fees to best fit City's current (or desired) operating practices, policy goals, customer service objectives, and administrative needs.
Consultant will deliver a package of detailed worksheets that demonstrate the cost components for each fee calculation, as well as summary documentation of the unit costs and overall results. These worksheets also contain subsidy analyses for unit costs and annual performance, percentage results, change calculations, revenue impacts, and other metrics. City will receive pdf copies of the final results worksheets, as well as electronic versions (e.g., Excel worksheets) of the final fee results to facilitate future analysis and distribution.
Consultant will work with the City to ensure that the Excel results worksheets, or their equivalent, have a mechanism to calculate fee increases based upon inflation factors, in order to keep fees current in the interim, between Study updates.
Fee Comparison
Consultant will work closely with the City to select 5-7 agencies for targeted fee comparison. Consultant will obtain fee data from other jurisdictions through website research, phone calls, email, and other approaches necessary to accomplish this task.
Following the collection of the data, the consultant will document the results, which normally consist of a matrix of fees with side-by-side comparisons.
Fee Study Summary Report
Consultant will produce a report (draft and final versions) to describe and document general approach, methodologies, related issues, and results of the Study.
Electronic Copies of Fee Results
Consultant will provide electronic copies (pdf and/or Excel) of the summary results for the Cost of Services Study to the City. The Excel worksheets will have the capability for the City to update the fees regularly for inflation or other factors. City will have the option to update the worksheets with City staff or work with the Consultant to update based on CPI/inflation factors. Should the City need assistance updating the User Fee Manual based on established modifiers, the Consultant will provide those services at no extra cost.
User Fee Manual/Master Fee Schedule Update;
Consultant will assist with updating the City’s biennial User Fee schedule, which will include a comprehensive list of all City fees, organized by fee type (e.g. Building and Safety fees, Engineering fees, etc).
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City Provided Services— User Fee Study and Cost Allocation Plan The information provided by City will include:
A. Budget
B. Organizational Charts
C. Salaries and Benefits by Position
D. Activity statistics (e.g., annual fee volumes)
E. Current fee amounts
City staff will also provide requested cost and statistical data to be used as allocation bases in the Cost Allocation Plan. Examples of these data include:
F. FTE counts for each City department
G. Number of computers
H. Building square footage
I. Accounting transaction statistics (e.g., AP transactions, cash receipts) J. Other information determined during meetings with Consultant and City necessary for allocation factors.
Department management will be involved in the study process to ensure timely completion of City tasks and rapid decisions regarding project direction and policy resolution. Managers with the authority to decide the final fee or allocation structures, resolve issues, and assign follow-up tasks, will participate in meetings. Knowledgeable staff that can address specific service issues and data elements (e. g., time to complete tasks, who works on each service, etc.) will also participate in these meetings.
City staff and management will review all worksheets and results (draft and final) for accuracy, reasonableness, and defensibility.
Meeting may be conducted virtually or on site. For on-site meetings, City will provide a conference room or office space to conduct meetings/interviews and perform tasks between meetings. Consultant's use of City equipment or supplies will be minimal and generally limited to the use of a photocopier and projector when necessary for meetings with City staff.
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Exhibit "B"
Cost Allocation Plans & User Fee Study
Schedule of Fees
Table 1: Year 1 Project Wide Costs Due Upon Milestone Completion Milestone # Project Wide Costs Milestone
Description
Fixed Fee
Amount
1 Data Collection $1,400
2 Study Objectives $1,100
Project-Wide Subtotal: $2,500
Table 2: Year 1 Cost Allocation Plans (CAP) Fees Due Upon Milestone Completion Milestone # CAP Milestone Description Fixed Fee
Amount
1 Interview Staff/Gather Metrics $1,900
2 Review Draft Metrics $2,000
3 Structure / Prepare Draft Full CAP $2,300
4 Finalize Full CAP $2,000
5 Develop OMB CAP $1,700
6 Finalize OMB CAP $1,700
7 Draft/Develop Indirect Cost Rate $1,900
8 Finalize Indirect Cost Rate $2,000
CAP & Indirect Rate Analysis
Subtotal: $15,500
Table 3: Year 1 Comprehensive User Fee Study Fees Due Upon Milestone Completion Milestone # User Fee Milestone Description Fixed Fee
Amount
1 Current & Potential Fees $1,900
2 Data Workshops $2,800
3 Fully Burdened Hourly Rates $8,000
4 Total Cost Analysis $7,600
5 Comparative Survey $3,500
6 Review/Revise Results $5,500
7 Draft Fee Study Report $8,100
8 Prepare Final Report $6,100
9 Master Fee Schedule $2,300
10 Presentation $3,200
Comprehensive User Fee Study
Subtotal: $49,000
Grand Total Year 1 $67,000
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Table 4: Cost Allocation Plans
Years 2-5:
Future Year Cost Allocation
Plan Updates/Indirect Cost Rate Year 2 Year 3
Year 4
(Optional)
Year 5
(Optional)
Full Cost Allocation Plan $5,300 $6,200 $6,600 $8,200
OMB Cost Allocation Plan $2,200 $2,600 $2,700 $3,400
Indirect Cost Rate Proposal $2,500 $2,900 $3,100 $3,900 Table 5: Optional User Fee
Study Updates Years 2-5:
Future Year User Fee Manual
Updates Year 2
Year 3
(Optional)
Year 4
(Optional)
Year 5
(Optional)
Update Biennial User Fee Manual N/A $15,000 N/A $35,000 Table 6: Extra Services Details
(Optional):
Extra Services Rates
Principle
-in-
Charge
Project
Manager Analyst
Rate per Hour: $300 $250 $150
Extra Services (for unanticipated items not included in the Scope) $17,000 Billing Milestones*:
*Consultant may complete certain elements of the Scope in a different order than the billing milestones may indicate. If any of the specific project components are removed from the study, the associated billing milestones will be removed and will not be invoiced.
For future Cost Allocation Plans and optional User Fees updates, fees are due upon completion of the update.