TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:September 24, 2024
SUBJECT: Cost Allocation and User Fee Study Consulting Services Agreement
RECOMMENDATION:
1. Approve Professional Services Agreement with Matrix Consulting Group (San Mateo, CA) for Cost Allocation Plan and User Fee Study Consulting Services, in an amount of $166,600, plus extra services of $17,000, for a total not-to exceed amount of $183,600, for a three-year period beginning September 24, 2024, through August 31, 2027, with two one-year options to extend the agreement through August 31, 2029.
2. Authorize expenditure in the amount of $73,700 in FY 2024-25 as follows:
$17,700 from A/C #001-3110-612-5640 (General Fund - Contracted Services/Management Fees), and $56,000, from A/C #001-3010-612-5640 (General Fund - Contracted Services/Management Fees).
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. $73,700 is included in the Adopted FY 2024- 25 General Fund Budget for a cost allocation plan and User Fees study. Additional costs for the remaining contract term will be included in the upcoming biennial budget process.
BACKGROUND:
Annually, the City prepares a Full Cost Allocation Plan, and an Office of Management & Budget (OMB) A-87 Cost Allocation Plan. The Full Cost Allocation Plan is used to identify central service support from the City’s General Fund to the City’s governmental and enterprise funds. The OMB A-87 Cost Allocation Plan is
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used to identify overhead costs associated with any state or federally-funded programs. Indirect costs identified in the Full Cost Allocation Plan are added to the direct costs that are part of the biennial User Fee study. A cost allocation plan ensures the General Fund is reimbursed for all support that is provided by central services (e.g., finance, human resources, city attorney) by those governmental and enterprise funds that receive the services.
Biennially, the City updates its User Fees which the City charges to users for City services, goods, permits, rentals, and fines. These fees and charges can be set at 100 percent of full cost recovery or subsidized by City funds and general taxpayer dollars. Fees and charges must not exceed the City's costs of providing the service. User fees and charges are adjusted biannually with the goal of cost recovery for services provided, unless City Council determines that a subsidy from the General Fund (or any other fund) is in the public’s best interest.
The City utilizes a consultant to prepare the annual Cost Allocation Plan and review and update User Fees. The five-year contract with the City’s previous consultant expired on August 30, 2024.
DISCUSSION/ANALYSIS:
In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, staff solicited a formal Request for Proposals/Qualifications (RFP/Q) for Cost Allocation Plan and User Fee Study Consulting Services. Unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than satisfactory performance of the services solicited.
On July 19, 2024, a formal RFP/Q was published in the Thousand Oaks Acorn newspaper and on the City’s e-procurement website. The RFP/Q was emailed to 2,492 users, received 335 views, and had 30 downloads. The RFP/Q closed on August 13, 2024. From this effort, the City received three proposals.
Company City, State
1. Government Consulting Partners, Inc. (GCP) Granite Bay, CA
2. Matrix Consulting Group, Ltd (Matrix) San Mateo, CA
3. Willdan Financial Services Temecula, CA
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Staff from the Finance, Community Development, and Public Works Departments (Committee) reviewed and evaluated the proposals based on the following criteria:
1. Quality, clarity, responsiveness, conformance with the terms of the RFP/Q, and overall impression of proposal.
2. Project understanding and approach in completing the work.
3. Number of years of experience the Proposer has providing these services to governmental agencies, including relevant experience (past similar scope and size projects).
4. Demonstrated competence.
5. Qualifications and availability of key persons.
6. Reasonableness of completion schedule and hours dedicated to completion of each task.
7. Reasonableness of cost and compensation submittal.
All three proposers were invited to interview with the Committee. After careful review and reference checks, the Committee determined that Matrix best met the evaluation criteria for this solicitation and was selected by the City’s review team.
Matrix has conducted over 300 cost-of-service studies, mostly in California, having provided these services for over 21 years. Matrix is currently working with the City on a development process analysis involving the permitting system. The nexus from this analysis will provide additional value in reviewing the components of the fee study. Matrix possesses a deep understanding of the specifications required and is well-equipped to provide the requested services.
A detailed scope of work and fees have been negotiated and finalized with Matrix (Attachment #1). Work on the Cost Allocation Plan and User Fee study is expected to start in October 2024, to incorporate the consultant recommendations into the next biennial budget process.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act (Attachment #2). City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially- interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited Cost Allocation and User Fee Study Consulting Services Agreement September 24, 2024
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from accepting, soliciting, or directing a campaign contribution of more than $250 aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Miguel Chavez, Sr. Financial Analyst
Attachments:
Attachment #1 – Agreement
Attachment #2 – Exhibit C Levine Act Form
FIN: 330-20\mc\H:\COMMON\Council\2024\Administration\092424 Cost Allocation and User Fee Study Consulting Services Agreement Staff Report.docx