HomeMy WebLinkAboutStaff Report 5.A 1/6/2014 74 g a'IteAw#5 . 1
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DATE: January 6, 2014
TO: Honorable Mayor and Members of the City Council'through City Manager
FROM: William Mushallo, Finance Director
SUBJECT: Resolution Authaorizing3.the City Manager to Enter into a Professional Services
Agreement with Willdan Financial Services to provide•an Overhead Cost
Allocation and OMB•Circular A-87 Plan, an.Internal Service Fund Study, a User
• Fee Study, CIP Administrative Rate and Work Order Rate Analysis.
RECOMMENDATION
It is recommended that the City Council adopt the attached-Resolution authorizing the City
Manager to enter into a professionalaservices agreement with Willdan Financial Services to
provide an Overhead Cost Allocation and OMB Circular A-87 Plan,an Internal Service Fund
Study, a.USer Fee Study, CIP Administrative Rate and Work Order Analysis.
BACKGROUND
An Overhead Cost Allocation Planis.an analysis which distributes the general governmental and
support service costs of an organization to the direct municipal services and;activities provided to
the?public_ The current cost allocationmethodologyused by the City of Petaluma was completed
in July, 2010 in accordance with the policies and procedures contained in OMB Circular A-87.
The plan was based on FY 2009-2010 budgeted financial and included a CIP
overhead'rate. An OMB A-87 Plan foi grant claim.purposes was not compiled at that time. The
last User Feb Study was completed in August 2010. Since then the resulting fees have been
updated annually based on the CPI index for the San Francisco Bay Area Internal service fund
rates are currently set each year based on a fund-specific allocation methodology used to recover
costs provided to other departments. It.is recommended'that thes&studies be updated every three
to five years.
A Request for;Proposals was released on Aug. 6, 2013. Five proposals were received and three
firms were invitedto oral presentationson'Dec. 12, 2013.
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DISCUSSION.
Based on the,selection.criteria, and the evaluation provided by department,staff, Willdan
Financial Services received the highest number of points. Asidc•from presenting the lowest bid,
the firm scored well for their experience, references, and user-friendly model and report.
Agenda Review:
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City Attorney _ _ Finance Director City Manager
Willdan Financial Services has provided cost.allocation and'user fee services for overa decade
to countless municipal clients, many similar in size and government to the City of Petaluma.
Finance staff contacted cities that had recently worked with Willdan Financial Services. The
comments were all favorable noting responsiveness, professionalism and ability to communicate
complex analytical results in a manner easy to understand by non-finance oriented individuals.
Finally, Willdan Financial Services will provide training so that Finance staff can independently
and efficiently update the cost allocation'model in the coming years.
The purpose of periodically updating the cost allocation and cost recovery methodologies is to
ensure that,the City of Petaluma'is;ufilizing comprehensive'overhead rates and accurately
accounting for the true cost of providing services within.and,to all City operations, including
capital projects. The objective is to utilize an equitable and defensible allocation method that
accurately accounts for all truecostsprograms and services. Additionally, the City must
implement an overhead cost allocation plan applicable to Federal Standards as provided in OMB
Circular A-87.
User fees are charges imposed,by`the City for a service'provided or.required. Examples of these
fees include: development review, inspection and approval(planning, engineering, and building);
recreational and community programs; public safety services; and administration. In most cases,
the only legal limitation on the establishment of these fees is that they may not exceed the
estimated and reasonable costs incurred to provide the service or perform the function.
Determination of the full cost off service is a periodic analytical exercise combining City
expenditure and organizational information with time-tracking data, time estimates, and/or
volumetric information. The full cost of service is derived for each service or activity, which
includes direct labor, directservicesor supplies, indirect labor, indirect non-labor expenses,
programmatic overhead, and City-wide overhead. In most cases,'the full cost of service is
expressed as a fully-burdened hourly rate applicable to`the time necessary to perform the service
or activity.
City staff has evaluated the proposals received and determinedithat Willdan Financial Services
has best met:the requirements Outlined in the Request for Proposals and recommends entering
into an agreement for preparing.a,Current Citywide Overhead Cost Allocation and OMB Circular
A-87 Plan, an Internal Service Fun'ds'Study, a User Fee Study, CIP Administrative Rate and
Work Order Rate Analysis.
The proposed contract will-use the City's standard 'Professional Services Agreement„with any
modifications fo`the standard form subject to the approval of the City Manager.
FINANCIAL IMPACTS
Total professional;services to be provided at an amount not to exceed: $39,875. A budget of
$60,000 was included in the FY 2014 First Quarter Budget Adjustments presented on Nov. 11,
2013 and approved by Ordinance No. 2476 N.C.S.
ATTACHMENTS
1. Resolution
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ATTACHMENT 1
RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT WITH WILLDAN FINANCIAL SERVICES TO
PROVIDE AN OVERHEAD,COST ALLOCATION AND OMB CIRCULAR A-87 PLAN, AN
INTERNAL SERVICE FUNDS STUDY, A USER FEE STUDY, CIP ADMINISTRATIVE
RATE AND WORK ORDER RATE ANALYSIS
WHEREAS, the City solicited proposals from various consulting firms in August, 2013
to provide cost allocation and cost recovery analysis for the City of Petaluma; and
WHEREAS;WILLDAN FINANCIAL SERVICES was selected as the top candidate
during the evaluation process having;adequately addressed:the City's scope of services, work
plan and schedule, and
WHEREAS,WILLDAN FINANCIAL SERVICES has extensive experience developing
overhead cost allocation plans'for agencies of similar size and range of services as the City of
Petaluma, and
WHEREAS, WILLDAN FINANCIAL SERVICES is licensed, staffed, equipped, and
financed to perform the work relevant to a project of this nature.
NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes the City
Manager to enter into a City of Petaluma Professional Services Agreement, acceptable to the
City Manager and City Attorney, with WILLDAN FINANCIAL SERVICES to provide an
Overhead Cost Allocation and OMB Circular A-87 Plan, an Internal Service Fund Study, a User
Fee Study, CIP Administrative Rate.and Work Order Analysis in an amount not to exceed
$39,875.
Mushallo, Bill
•
• From Joanie Reynolds 4<jreynolds @willdan.corn>
Sent: Wednesday, December 11, 2013 1:38 PM
To: Mushallo, Bill
Cc: Chris Fisher
Subject: Additional information
Attachments: Petaluma Prop CAP(Overhead &OMB)OF Revised Timeline Dec 2013_8106.pdf
Dear Mr. Mushallo,
On behalf ofMr:.Chris Fisher and.in response to your letter dated November,26,2013; attached is a revised project
timeline for the Cost Allocation Plan,Comprehensive Fee and Internal Service Fund Studies„Willdan Financial Services is
committed to completing this engagement in three months time in order to meet the City's budgeting process.Also,
Winder)will extended the services'and;fees'outlined in our submission for,an additional 60 days.
Sincerely,
WILLDAN DAN I
cer Joanie Reynolds
Proposal Services Supervisor
Wilidan Financial Services
27368 Via Industrie,Suite 110
Temecula,California.92690 1
Direct#951.587.3586
Tit.951,587.3500 800.755,6864
F#.951,587,3510 888 326 6864 sp
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.7. Cover ettei {t .s 1 Financial Services reach
August 26, 2013
Mr. Bill`Mushallo, Finance Director
City of Petaluma
11 English Street
Petaluma, California 94952
Re: Proposal to Prepare-an Overhead.Cost Allocation Plan and 0MB Circular A-87 Plan, User
Fee Study, CIP Rate Analysis, and Hourly Overhead Rates:for the City of Petaluma
Dear Mr. Mushallo:
As you are well aware, municipalities throughout the state are faced with continuing stress on limited
financial'resources, changes:incitystaffing strategies, andiorlayoffs. Atthe-same time, they are striving to
maintain high standards for service totheir communities. In light of this,,it is critical for cities to ensure that
their allocation of overhead costs and fees for services and projects have been developed to ensure
maximum appropriate cost recovery,;so'tnat revenues generated by fees'for user-requested services cover
the cost'of'those services and projectsto the best extent possible. M revenue resources are increasingly
strained and overhead expenses, such as pension costs continue to rise, policymakers need a clear
understanding of the existing core service levels and the associated,costs;to maintain them. Recognizing
this, the.City'of Petaluma ("City')-has responded by soliciting proposals°for'an Overhead.Cost,Allocation
Plan and OMB Circular A-87 Plan, Use •Fee Study, Capital Improvement'Projects (CIP) Rate Analysis, and
Hourly Overhead Rates.
WilldanFinanclal Services ('Willdan'}.is pleased to present this submission,in response to your Request for
Proposal'(RFP) We propose to assist the City in developing both an'overhead and'OMB A-87 compliant
cost allocation plan thatensures.maximum recovery of General fund expenditures through the appropriate
'• allocation of expenses'to each department and other chargeable,funds; as well as a user fee schedule that
is comprehensive, easy to communicate and accurately and defensibly represents the City's' true' and
reasonab}e costs of'providing services. We further understand that the•Citysproposed scope of services
provides for more separation o some thana typical.cost allocation and user fee:engagement, in that
an analysis of the CIP administrative rate and work order rate is outlined as an individual task, as is the
preparation of hourly overhead rates and an internal services fund.allocation.While our prior user fee and
cost allocation plan projects often included these components, they are typically incorporated into the
broader work'plan'tasks.
Willdan's approach is to conduct these important studies concurrently and collaboratively with City staff, in
order to efficiently complete them in timely manner with minimal impact to staff: Upon completion, Willdan
will present the findings in a way that will provide City-staff and elected Officials the information and tools
necessary to make financial decisions•appropriate for the community;-and deliver to the City a working
model that can be used'to make' adjustments on an ongoing- basis: We believe that we are uniquely
equipped to conduct this study for addressed below.
Familiarity with the City of Petaluma — Since 2003 Willdan has provided financial consulting and
municipal disclosure' services to the City of Petaluma. We have assisted the, City with ;multiple bond
refundmgiprojects, and currently provide municipal disclosure services-as well Willdan's proven record of
success with the City provides assurance of the professionalism and capability we will bring to this
engagement. More importantly, our knowledge of the organization, procedures and staff will allow us to
effectively gather data and information, and clarify questions: We will leverage our knowledge of the
City's operations and key staff to facilitate this study in a cost-effective and efficient manner;
focusing less time on data gathering, and more on analysis, resulting in lower project:cost and
higher valueto the City.
User-friendly Models and Reports—Willdan prides-itself on creating user-friendly Excel-based models
that the City,can retain, and.'conducting our analysis and developing the.model-collaboratively with
City staff. Rather than using inflexible proprietary software program we construct our models from the
ground up, mirroring the City slbudget format wherever possible. As a result the'information contained in
our models is easy for City-staff to interpret, and the familiar software ensures ease of navigation.
This also allows'for easy on-therfly adjustments and updates, such as the,addition or removal of
costs or allocation bases, or inclusion of updated,budgets or'changes in organizational structure,
as requested in the scope of services*?the RFP. As the model is being designed and constructed, we
Engineering and Planning I Energy Efficiency and.Sustainnbility Financial and Economic Consulunc National Preparedness and Intro erabilit
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951 587.3500 1 1300255:686.1 I tax:953 587:3510 1 2736E Via Indusina•Suite 110.Temecula.Calilornia 92590-1855 I w•uwilioan.cotr
Mr.Bill Mushallo,City of Petaluma
Proposal Loran Overhead Cost Allocation Plan and OMB Circular A=87 Plan,User Fee`Study,'CIP Rate Analysis,and Hourly Overhead Rates
August 26,2013
Page 2
will work with.C'ity staff to determine the bestand mosteffective features to include, such as index links and
color coding to identify input cells and•protected formulas. After the project is complete, we will provide
training; so that your staff can independently and efficiently evaluate the effects of changes in certain
factors. Created directly from the' models, our reports dearly and, graphically illustrate bases 'for the
allocation of costs, the full cost recovery'level of fee programs, projections of revenue from fee programs,
both at full cost recovery and at recommended levels, break down the costs into direct and indirect
overhead categories and present the fee methodologies.
Unique Combination of Services and Expertise/Public Engagement — Willdan has provided cost
allocation and user fee services+to°.municipal clients for over a-,decade; and is the only firm providing these
types of consulting services that also has a long history of providing contract staff support to public
agencies for the delivery of municipal services. This direct experience as "city staff' provides us with
firsthand understanding of city operations and is uniquely useful in determining the full effort associated
with service delivery and in developing a;fee schedule that is easy to communicate and implement.
Our models and project approach are geared toward delivering,work•on schedule and presenting
analysis results at public meetings and council workshops: The,Wilidan Team is experienced at
communicating complex analytical results in a manner that is easy to understand by non-finance
oriented individuals'?'and facilitates'discussion. I have coordinated or participated in numerous public
and staff workshops_regarding fees:and cost of service based charges Our objective is to provide useful,
detailed information to City Council and staff, so that they have the information necessary to make
important decisions. Our experience ensures that we can meet this objective.
Whether policymakers are considering subsidizing or increasing fees, the process may be subject to public
discussion among Council and oomniunity.stakeholders. Our response toithese sensitive political issues is
to employ a real world approach to completing user fee studies, in determining the technically defensible
reasonable costs of providing services. Our intimate knowledge of each portion of the service delivery
function provides for greater accuracy, reduces the likelihood of,potential challenges; results in fee
schedules that are easier to implement, and increases the likelihood'of.acceptance by stakeholders.
Firm Background— Founded in 1964 and headquartered in Anaheim, California, Willdan was originally
_ established as a civil engineeringfirm-specializing in providing solutions for our public agency clients. Since
that time we have evolved,into a;professional consulting firm offering,a broad array of services that allow us
to provide a comprehensive and integrated approach to our clients" planning, engineering, financial,
economic, public facility, and public safety°challenges. Today Willdan has.over 500 employees operating
from offices located throughout California, as':well as in Chicago, Dallas, New York City, Orlando, Phoenix,
Seattle, and Washington, DC.
{ I, Chris Fisher; will serve as Willdan's contact person for this proposal and the requested contact
information is'included below. Furthermore, I am an officer and am authorized to bind the firm.
Willdan Financial Services
27368 Via Industrie, Suite 110
Temecula,California 92590
Tel#: (951)587-3500/Fax#: (951) 587-3510
Email:cfisher @willdan.com.
We are excited about this opportunity to use our skills and expertise to assist the City. Willdan
acknowledges herein its willingness to maintain all specified fees and services for 90 days after the closing
date of August 27, 2013.
Sincerely,
Willdan Financial Services
/
Chris Fisher, Vice President–Group Manager
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Table of Contents
7.7.1.2 SCOPE OF WORK 1
Project Understanding 1
Cost Allocation Study Approach 2
User Fee Study Approach 3
Work Plan.. 7
Project Schedule 14
7.7.1.3 PROJECT TEAM 15
Firm Experience 15
Assigned Staff 16
I r
7.7.1.4 REFERENCES 16
Cost Allocation Plan and User Fee Client Listing 19
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7.7.1.5 FEE SCHEDULE 22
7.7.1.6 APPENDICES A-I
Exceptions to the City's Request for Proposals A-I
Resumes A-I
' Proof of Insurance A-7
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Table of Contents i
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7.7. 1 .2 Scope of Work
The following describes our project:understanding, proposed approach and work'plan for an Overhead Cost Allocation
Plan and OMB Circular A-87 Plan, User'Fee Study, Capital Improvement Project (CIP) Rate Analysis, and Hourly
Overhead Rates. While the approach,and'work plan for the cost allocation plan and user fee is described separately,
they will be prepared concurrently for the following reasons: 1)allows for, shorter project timeline; 2)the two projects
(and models) utilize much of the same financial and accounting data and 3) the two projects are necessarily
interrelated, the results generated from the cost allocation plan will flow into'the"user fee study.
Project Understanding
After reviewing the City of Petaluma's ("City") Request for Proposal (?RFP ) and Fiscal Year 2014 Master Fee
Schedule, and further researching this opportunity, Willdan Financial Services ("Willdan") is confident that we can
meet the City's objective of developing,an O verhead Cost Allocation Study, which will be OMB A-87 compliant, and a
User Fee Study that accurately accounts for the true cost of providing various services within and to each City
operation, including capital projects..AS part of this effort we will also develop:.fully burdened hourly rates for City
employees that can be used for work orders; or to charge to specific_activities. This will include an analysis of
administrative and overhead costs.associated with activities that are-delivered directly to the public, where hourly
rates may be charged; to ensure appropriate:recovery of costs. Willdan will complete these studies concurrently, in a
manner that will fully identify and.take:into account direct and indirectcosts,,along with changes in staffing, structure
and methods of service delivery. The,end product(s)will include user-friendly Excel-based models which City staff will
retain, and which they can easily update'in the future, to determine the proper allocation of expenditures and on-going
full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are
clear and understandable, defensible, and easily implementable.
The lastin-depth review of the City's cost allocation plan and user fee was adopted by Council in 2010, with CPI
increases applied annually to fees (2:38%in the most recent year). In order to address concerns (if any)from the last
study and deliver results that will meet the City's current objectives, including the preparation of an OMB A-87 Plan,
we will bring fresh perspectives and ideas to ensure that allocation approaches and fee programs reflect latest
practices. We will work closely wlth:Ciity staff to understand exactly what they want to achieve, how they feel the
project could proceed most effectively, and determine specific issues associated with the allocation of cost and
current fee schedules.
For a successful and effective engagement, it is important to have a thorough understanding of the structure and
organization of the City, and the relationships'between the central and operating departments. We bring years of
successful experience working directly with hundreds of cities throughout California, including Petaluma. Our
primary objective for the cost allocation plan study will be to ensure that general government-costs are fairly and
equitably allocated to appropriate programs,and funds, based upon tailored and well thought out allocation factors.
This effort will ensure that each enterprise and program bears its.fair'share of the general governmental expenses.
Once developed, these indirect costs will be translated into the fully burdened hourly rates that will be the foundation
for the user fee study to make certain that the maximum recoverable amounts calculated for each service are
complete;,and clearly defined and identified. Willdan possesses the resources, practical experience, creative thinking,
and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan
brings to the City include thefoilowing:
On-site Data Gathering: Our experience has taught us that working together, via face-to-face discussions, is the
most efficient and thorough way to ensure that results are accurate and, that studies are, completed in a timely
manner,which again, is critical in this proposed engagement. Consequently;through on-site interviews with your staff,
Willdan will collect the,majority of required data for the User Fee Study.This method is better than the typical time
and motion surveys' that,are provided to agency staff when studies like these are conducted. This process ensures
that we gather the data,we need in one-coordinated step, rather than having to.go through repeated follow-up and
clarification. This approach and the dedication of several of our staff wip. help ensure we meet the City's
aggressive timeline and objectives, and provide important information to City staff and the Council as soon
as possible.
Lsfm. 7.7.1.2 Scope of Work 1
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Public Engagement: Our models and project approach are geared toward delivering our work on schedule and
presenting our analysis results at,public meetings and Council workshops. While we understand that the City Council
and local business community may be:generally'supportive of increasing fees,where necessary, it will be important to
present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis. The
Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by
non-finance oriented individuals and facilitates discussion. Mr. Fisher has:coordinated or participated in numerous
public and staff workshops regarding fees:and cost of service based charges..As previously mentioned, our objective
is to provide useful, detailed information,to the Council and City staff, necessary to make important decisions. Our
experience ensures;that we can meet,this Objective.
User-friendly Mode ls and Reports: Willdan prides itself on creating user +±°3 `kti 4n1-I Ti
friendly Excel-based models that the City can retain, and conducting our , tAt -yein A•,
analysis and developing:the model collaboratively with City staff With City ,”y°rj„,to JI i `h. Putt
staffs immediate input and collaboration; Willdan will design an extremely , kt„ r see❑ ?'g $.
flexible intuitive Excel-based`model. In the future, as the City assumes:new 4 `pns sibwichn" t $, tea.;
responsibilities, modifies existing processes, and/or eliminates unnecessary ' ,fjo. t {
services or programs, the model will be-capable of adding or deleting'funds, ° ' # rte,
objects, departments, programs, staff positions, and activities. Willdan
understands that issues facing the City;are unique;;consequently, we design eurmodel to match your immediate and
desired needs to ensure that end results exceed_staff expectations. This model is then the City's to retain, after
our study is completed,and allows us tim create revenue projections, highlight potential new revenues and
current levels of subsidy:
A key element of this study is presenting results and recommendations in a straightforward manner that allows
Council and staff to confidently make fee setting policy decisions, and understand the impacts of those decisions.
Rather than using an inflexible proprietary software program,.we construct our models from the ground up, and as
previously discussed, mirroring theCityls budget format:wherever possible. As a result, the information contained in
our models is easy for City staff to interpret, and the familiar software ensures ease of navigation: As the
model is being designed and constructed, we will work together with City staff to determine the best and most
effective.features to include. aid), indexlinks and color coding to identifyfinput.cells and protected'formulas. After
the project is completed, we will provide training, so that your staff can independently and efficiently evaluate the
effects of changes in certain factors.'Created directly from'the, our reports clearly and graphically illustrate
bases for the allocation=of costs, the full cost recovery level of lee programs; provide projections of revenue from fee
programs, both at full cost recovery ,and at recommended levels, break down the costs into direct and indirect
overhead'cate9oriesand present the-fee:methedologies.
Cost Allocation Study Approach
The purpose of this,cost allocation plan engagement is to ensure that the City is maximizing the recovery of General
Fund indirect costs from'identified(Operating departments, as well as enterprise and other chargeable funds and
capital projects. Furthermore a sound cost allocation plan is a foundational element of a user fee study, and the
development of internal hourly rates. We will work closely with staff.in identifying'the proper balance of allocation
factors appropriate for the City. In order to achieve the maximum cost recovery objective, the City must have a
method of identifying and ,distributing administrative costs that is fair; comprehensive, well documented and fully
defensible. A cost allocation plan coupled with comprehensiveoverhead-rates will enable theCity to achieve this goal.
We will work'collaboratively with City:staff in the development of this model to verify that our assumptions are sound
and accurate, given specific City characteristics. Further, we will ensure that appropriate allocation factors are
selected for various City functions and enterprises to ensure that 'the overall allocation strategy is tailored for
Petaluma.
Cost allocation studies should be simple•in concept and form. Our plans are not over-complicated, can be easily
understood by non-finance oriented individuals, and are readily presentable to elected officials, appointed finance
committees and the public. We deliberately design our cost allocation models_to quickly and easily transition from a
simple model to a progressively more'inclusive plan, which will include OMB A-87 compliance (exclusion of certain
expenses for reimbursement to the General'Fund by outside funding sources). The logical step-by-step presentation
of our plans fosters confidence in their results and facilitates adoption and implementation.
c VV (LL�!'!N 7.7,1.:.' ape of Work 2
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User Fee StudyApproach
In order to comprehensively update fees that have been adjusted using the CPI iindex, the City should develop a
comprehensive user fee schedule that accurately accounts for the true cost of providing services. Once the study is
complete, the user fee study model:mustbe flexible so that the City can'acid, delete and revise fees in the future. To
meet this goal, we will bring our expertise and unique perspectives to your feeatudy by approaching the project with
these four principles:
1)Technical Expertise
The City's fee and rate study,requires a professional firm possessing years'oftuser fee study experience. Our staff has
performed user fee studies-for agencies ranging;in size from the City'of Rolling Hills (population 1500) to the City of
Phoenix (population 1,500,000). These studies presented unique opportunities for our staff to incorporate
enhancements into each fee model's capabilities. Willdan staff members:assigned'to this project developed user fee
expertise through the completion of dozens of such projects, which will benefit the City as they evaluate the fees
associated with the services delivered.•
Experience with Development Service'Processes
A unique aspect of our firm is ourrelationship with our engineering division: For many agencies throughout California
and other Western-states, this division provides contracted services in planning, engineering, and building and safety.
When conducting cost recovery studies, we regularly consult with our engineering and land-development staff of
experts on development-related issues:,By working with our planners, engineers,and building officials, we understand
development-related agency service procedures and workflow functions, which often make the entire user fee study
process smoother for your staff.
2) Defensibility
Our user fee projects have not been legally challenged since the inception•of this practice,area in our firm. We have
accomplished this by closely working--with'legal,counsel familiar with user fee studies, our engineering division and
with agency staff: In this way we can'tailol the correct approach to ensure-full cost recovery combined with a sound
and reasonable basis for each user fee you implement.
While Proposition 218 does not directlyapplly to non-property-related fees, we employ principles from this important
constitutional article to make certain that your user fee schedule is developed with fairness, equity and proportionate
cost recovery principles in mind. With the recent addition of Proposition 26, Willdan will review each analyzed user fee
for compliance and appropriateness`to,ensure continued defensibility.
Although our fee studies have not been challenged, we have assisted cities that have encountered prior legal
challenges to their current fee schedules.'We are frequently brought into situations in which we help prepare user fee
schedules that,are acceptable both to the agency and challenging party. Through this process, we have developed a
wide variety of fee approaches thahwe centring to the table for this fee_study to meet your defensibility requirements.
3) Project and Staff Time
The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as
applicants'approach the City for its services. Our standards and approaches serve to get to the issues of your fee
study quickly. Starting with the project kick-off, we will make certain that your staff understands the purpose and
scope of the study and its corresponding on-site departmental interview. As'Willdan is able to communicate directly
with the service providers; this face-to=face':interaction provides valuable time estimates. In addition, Willdan is able to
extract information beyond normal time and motion data which allows a more usable and comprehensive fee
schedule. By working.collaboratively'with your staff during on-site meetings, we help ensure that the survey process
does not become a burden;Ibut, rather, a simplermeans by which to ensurer adequate cost recovery.
4) Responsiveness
We take great pride in providing responsive service to our client.agencies. Frequent communication is critical to a
successful fee study experience We will provide a list of data requirements in.advance of the project kick-off meeting.
Due to this simple step, the introductory meeting can focus on the survey input process, answering questions,
determining policy goals, and defining next steps in the project.'Werwill follow up weekly with you at each step in the
fee study process'to'make sure that staff"buys in"to the fee study approach and results. If we feel that the project
�,.. WILLDAN 7.7.1.2 Scope of Work 3
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schedule is starting to slip, we will immediately'notify your staff to discuss ways to steer the project back on track to
meet the City's timing:goals.
Methodology
Our approach to preparing the user fee study and documentation for Petaluma includes:
a Close coordination with your staff to devise a consensus approach;
I = Strict adherence to key legal and,policy issues with regard to user fees;including the percent of cost recovery that
the City seeks to achieve. A user the shall not be set higher than the reasonable cost of providing a fee-generating
service. Our approach provides you with schedule that achieves maximum legal cost recovery while ensuring
that each fee is supported by technically defensible and
o Technical analysis necessary for project participants to resolve policy issues.
As described below, there are two basic-approaches to calculating user fees:;
Approach 1:Case Study Method
Using a time and materials approach; the "Case Study Method' estimates the actual labor and material costs
associated with providing a unit of service to a single user. It is often used when service cost substantially varies
between users, or when only intermittent service is provided. Estimated costs are based on City staff interviews
regarding the time spent,on specific tasks, and on the review of available records: In order to prepare the Hourly
Overhead (Work Order)Rates of City employees, Willdan will most nicely using this methodology.
A typical case study fee model should'comprise the following three general cost layers:
1) Central Services Overhead: This category may involve such costs as labor; services, and supplies that benefit
more than one department, division, or project. The,exact benefits to specific areas are impossible to ascribe to a
single activity. Examples are purchasing, human resources, and liability insurance. As part of the user fee study,
these costs are calculated in the overhead cost,review,
2) Department Overhead: This category may include expenses
related to such items as office supplies, outside consultants, and ardeait
membership dues. It may include management, supervision, and
administrative support that are not provided to a direct fee-
generating service. Typically, these items are charged, on an item 3/4114
by item directly to the department, division, or project.
k. e
3) Personnel Costs: This category refers.to direct salary and x tr `
benefit costs of staff. hours spent on 'providing a fee-generating fqar 1d r
service(e.g., on-site,building inspector). er'1@
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d),Approach-2: Average Cost Method
By taking total service costs acrossa,substantial P eriod (a .4.!!'",
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year); and dividing by the total number of service units delivered
over that same period, costs per unit of service is estimated.
This approach is useful when..a service is provided on a routine cst74. Y
basis, and staff and other costs associated with the service can be
segregated from available budget data or where it is not feasible to Personnel '.
cost-effectively segregate costs associated with specific activities. r 444' "Cos LSe
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'I Work Plan
Our proposed work plan, descnbed.in detail by task, is provided below We propose to maximize efficiency and cost-
effectiveness by combining meetings,and data gathering efforts between the cost allocation,study and user fee study
wherever possible. We explain how .each', task will be accomplished and identify associated meetings and
deliverables. We want to ensure ourscope provides quality and clarity, and is responsive to the City's needs and
specific local circumstances. We will work-in concert with the City to adjust our scope as needed during the course of
the study.
This plan includes determining the appropriate cost allocation methods, fees=and charges to recover the City's costs
for providing services. Taxes, fines, utility rates and penalties are not"user fees" and will not be part of our work plan
for this project. However, we will,advise.the City regarding additional study efforts it may pursue to evaluate fee
categories not considered user fees.
Overhead Cost Allocation and ONIB Circular A437 Plans
Task= o acumen quest . -,° .s, x • ; + r %,,
Objective: Initial due diligence.
Description: Prior to the kick-off meeting, relevant documentation will be obtained and reviewed in order to
enhance our understanding of the City's current cost allocation plan and internal structure of the
agency. A written request'for specific data will be sent to the City. The data provided in this task will
provide the building blocks for'later model development.
Our request may include(but is not limited to):
• Detailed budget and iaccounting data;
• Prior year's financial data, salary, position and staffing data;
• Organizational structure;
• Prior cost allocation plan;and/or user fee documentation,and models; and
• Data related to'various allocation bases that maybe incorporated as part of the methodology, i.e.
City Council agenda frequencies by department, AP/AR transactions by department, IT
equipment distribution by department, etc.
Meetings: None.
Deliverables: Willdan:.Submit information'request to City. City: Provide-requested data to Willdan (prior to Task 2,
Kick-off Meeting/Refine'Scope). We will follow up with the City to confirm in writing the data that we
have received, or which°is still outstanding.
K iN in a 777' pn
Objective: Identify and resolve policy issues raised by the study and'determine.appropriate fee categories.
Description: Willdan will identify and resolve policy issues typically raised':by these studies and address data gaps
in orderto gain a full understanding of the City's goals for the cost allocation:plan. We will establish
effective lines of communication and processes for information gathering and review.
At this meeting,we will'askthafthe City assign a project manager to serve as its primary contact.The
selected City project, manager will ensure that available data is provided to Willdan in a timely
manner, thereby maintaining adherence to the project's schedule. It is important for the City and
Willdan to identify and address any foreseeable problems and maintain open communication
throughout:the;process.-
We will obtain and review the current cost allocation methodology and discuss with City staff. The
objective of'this;review isrto determine specific areas of focus as they relate to the City's objectives,
and to discuss and evaluate current and potential allocation factors.
r711 $V I LLDAN 7.7.1.2 Scope of Work 7
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Meetings: One (1)on-site project kick-off meeting to initiate the,project, discuss data needs and methodologies
and to address policy issues. We would propose•to conduct User Fee Study kick-off at this same
meeting to maximize efficiency and cost effectiveness of staff and Willdan time.
Deliverables: Willdan: If needed, a.revised project scope and schedule. City: Provide further data requirements
and select/introduce.City's,project manager.
sw s'Gather affing Inf r a fan an va cip Cast A7 b d o tr;glacial m° . r °'i
Objective: Gather information related to indirect staffing and functions. Prepare draft cost allocation plan and
model.
Description: This task involves the;gathering of specific information, directly from City staff, through interviews and
discussion, related to the functions served by indirect staff and the departments served by their
activities. This task also focuses on the development of and/or adjustment of existing, allocation
bases, and the development and testing of a model that will u_ltimately be used to calculate the proper
cost allocations derived:frern data gathered in prior tasks.
The model will be developed to incorporate any recentchanges,in the provision of City services, and
fully allocate central service costs, as well as to allocate only those costs eligible under OMB A-87
guidelines. This is accomplished by loading relevant data,into the model,then employing a toggle that
will remove the OMB A:87 ineligible costs as appropriate. The OMB A-87 compliant model is valuable
as the City may receive Federal or State,grant funding that'Mandates compliance with the Federal
OMB regulations
We will utilize budget and organizational information, and other required information gathered from
City staff to complete the work,in this task. Specific discussions,will be held to discuss bases, how
central overhead services are provided to and utilized by other departments, cost categories and
allocation criteria, and how these will factor into the overall cost allocation methodology.
We will work with the City to review current Internal Service Fund (ISF) functions and structures, and
incorporate into the model and methodology the allocation of appropriate overhead and administrative
costs to these funds; including the City's Information Technology, General Services, Liability
Insurance, and City Attorney'operations.
The model and methodology will also produce fully loaded hourly billing rates for City staff positions.
Finally, we will review 'allocation methodologies for the Employee Benefits and Worker's
Compensation:funds, andlmake recommendations as appropriate.
Meetings: Meet with•staff to.understand structure and operations as model and allocation bases are developed.
Key staff will be,interviewed to best understand central overhead staffing and functions and the
departments served.
Deliverables: Willdan: One (1)user-friendly model in Microsoft Excel format that provides both a full cost allocation
plan and an OMB;A:87'compliant cost allocation plan.
fx G f T ¢Ylew All a c.tloh 5 rsdoto • f t b '61
Objective: Test and review:Model and results with City.
Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to
ensure that preliminary allocations provide an accurate depiction of how the central overhead costs
should be borne by the operating programs and funds. Over the past several years, we have
successfully integrated online meetings by using GoToMeetingTM as an element to our approach.
This allows us'to remotely guide staff through the model review, and allows you the opportunity to
interactively change inputs'and.test approaches.
Meetings: One(1)conference call and online demonstration(GoToMeeting)to review the model.
•WILLDAN 7.7.1.2 Scope of Work 8 •
! Pr, i J Ic the -,t,, I Petalwna
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City of i' 1 44 X ,24,PETALUMA - • {
Deliverables: Willdan and City: Draft cost allocation plan model review.
Mr< `- t� e ar_ a �- res g i _' � 7fr
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Ohjective: Prepare the draft cost allocation report.
Description: This task involves. the draft report preparation. The cost allocation plan's background, model
methodologies', and results will be discussed; calculations and supporting data will be presented
textually and in easily.uriderstood tables, and provided to the City.
Meetings: One (1)meeting to present the draft report to the,City Manager, City Council and City staff.
Deliverables: Willdan: Draft report.for'City review and input. City: Review of draft report, with comments and edits.
Task s @: iscGSS !Revise pAYf. : r • � ' "=s�
Objective: Review'of'draft report,cost distribution methods, and model.,
Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation
method for each expenditure type. Often, through the course of an engagement, comments usually
revolve around issues of understandability; appropriate levels of enterprise funds'cost recovery, etc.;
ease of calculation; and overhead costs' distribution methods.
Following a round of comments from City staff concerning the draft report, the final report will be
prepared for presentation to the Council.
Meetings: One(1),conference•call with City staff to review the report.
Deliverables: Draft report, and revised draft/final report.
Taft't _,.Faa ley sen Tana'Repo:r to an MotS1 n *a js
Objective: Prepare and present the final report to City Council. Educate City staff on the operation and use of
the model for future modifications.
Description: This task is the culmination'dfthe cost allocation plan project. Based on staff comments on the draft
report, Willdan will prepare the'final report for presentation;to City Council.
Meetings: One (9) meeting with the City Council to present the final cost allocation plan. This meeting may be
held in conjunction'with the presentation of the User Fee Study results.
We'will,also provide staff training on the operation and use of the model on the same day during
regularbusiness hours:
Deliverables: Willdan: Provide fivei(5) bound copies, one (1) unbound copy, and one (1)'electronic PDF file copy of
the final',report and models (overhead and OMB A-87 compliant) to the City. Using Microsoft Word
and Excel,.an updateabte electronic copy of the study and models, as well as related schedules, will
also be provided on CD/ROM.
User Fee Study
'`. . �; rtDelttlues + -kmat ;,.. +.� rd_,.sn '> ^> 7ky > = :'-•
Objective: Initial due diligence;obtain study-related data
Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our
understanding of the services„fees and rates to be studied. A written request for data will be sent to
the City. Please note'that.Time.Survey data is not part of this request and will be gathered during the
on-site interviews described°in Task 5.
v LLDAN WI. 7.7.1.2 Scope of Work 9
V V LLDAN V Propos i to The City cif Petaluma
Financial Services
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City O' �! 1! ' ti,}r b '�
We will request information and documentation on current fees and fee.programs, activity levels, and
budget:and staffing information (to the extent not already available) related specifically to programs
and activities which`haveassociated fees, and for which the City has this level of detail.
Meetings: None.
Deliverables: Willdan: Submit information request to City. City: Provide requested data to Willdan (prior to Task 3,
Kick-off Meeting/Refine Scope): As with the cost allocation plan, we will follow up with the City to
confirni,reeceipt of requested:data and information, and'highlight data elements that are outstanding.
+ �fnyent. a �Sv� 5.. r
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Objective: Willdan will identify a schedule of fees and methodology for calculating,the'fees.
Description: Based on the results of the initial document request and independent research, incorporate into our
model the existing fees, provided by the City, to comprise the parameters of the fee study.
Meetings: None. It is,possible'that a conference call with the City may be necessary to discuss new'fees to
implement or existing fees that may no longer be required.
Deliverables: Willdan: One(1)draft list of current fees based on initial data provided (to be discussed and finalized
during the kick-off meeting) City: Review completed feek""schedule with comments/revisions to be
discussed at the kick-off meeting.
;SC:-• a 4 41e:atrn fRefi Sc ; G a -4144:w
Objective: Identify and resolve policy issues typically raised by a user fee study, address gaps in data, and
refine appropriate existing or.new fee categories(based on Task 2).
Description: Verify our understanding of athe City's goals, the City's cost-recovery policy for user fees, and to fill
any gaps in data/information necessary for the project. It is important for the City and Willdan to
identify and address any foreseeable problems and maintain open communication throughout the
process.
During this meeting;we,will ask that the City identify a project manager who:will serve as the primary
contact-for the project. The project manager shall have responsibility for ensuring that all available
data is provided in,a timely manner, thereby maintaining adherence to the project's schedule.
Meetings: One (1) project kickoff meeting to initiate the entire project, discuss data needs and address policy
issues. This meeting Will be:doone in conjunction with the kick-off meeting for the cost allocation plan.
As mentioned in"the'cost allocation plan work plan we suggest combining the kick-off meetings to
increase efficiency.
Deliverables: Wllidan: (1) Revised project scope and schedule if needed); and (2) brief summary of policy
decisions (if needed) City:`(1)'Provide further data needs; and (2) determine/introduce City's;project
manager.
i t Deyef •relienslV Fe el '? - ;:• '
Objective: Develop and testmodel.
{ Description: This task involves the developmentof the model ultimately.used to calculate-the departmental fees,
based on data and information gathered in previous tasks and in the Time Survey Interviews
described in Task 5. To ensure that City policies are met through the imposition of the calculated
fees,the model will be formatted to include appropriate costs.
Key medetinputs will include staff and allocated overhead costs per position, and relevant budget
data on salaries and benefits. Most of this information'will be developed during the cost allocation
;t' 7.7.1.2 Scope of Work
W.LLDAN . r1r,, , 1 !r, I,e.City of Fwlaluma 10
' ji Financial Services
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City of f•l I Col.
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plan phase of this project„and will be incorporated directly:into'the user fee model. We will request
clarification and/or additional data if necessary.
The model will build upon the cost allocation plan results to provide an allocation of administrative
and overhead costs to fee related activities and departments providing services to customers so that
fees and billable rate schedules, incorporate applicable costs. Furthermore, the fees and rates
charged to customers will also'reflect.the cost of the services being provided, to the extent possible
given policy and/orpolitical'considerations.
Meetings: None.
Deliverables: Willdan: One (1)-user-friendly model in Microsoft Excel format, which, when finalized, City staff can
use to calculate fee changes annually, or as often as deemed appropriate by the City Council.
Surve s a 51t on ntering
Objective: Meet with City staff to complete Time Surveys and understand`servic li R
e delivery processes
Description: In order to assist staff with the completion of the survey worksheets, we will schedule one (1) full day
of on-site meetings,with staff; however, the number of'meetings needed may vary depending on the
number of staff and departments;involved.
The Willdan Teamrrwill conduct interviews with supervisors/managers, as well as other staff, as
deemed appropriate and/or necessary, from each department involved in the user fee study to
determine the average:time°required by City staff to provide:each of the services for which a fee is
collected.
The fee model is designed so that full cost recovery,fees are calculated immediately upon input of
Staff time. This willallbw,Willdan:and City staff to conclude with a final meeting to review the draft full
cost recovery fees and adjust any times as necessary;,once all information has been compiled and
input into the fee model. We will schedule the interviews with staff'to'minimize any disruption to their
normal workflow.
Meetings: One(1)full business day of on-site meetings/staff interviews.
Deliverables: Wilidan and City:'Time'surveys,and draft full cost recovery:fees.
s ,.6; 41s An ilia FnatU erFeA: _ z ,' e x°11/1
Objective; Incorporate information-obtained-from on-site surveys tofully develop model.
Description:trap: We will update the model, based on information received during the on site surveys, to generate a
comprehensive user fee schedule. In addition, it is very.common that a supplemental data request
may be necessary, based on new fees identified that the City is not currently collecting. Where
appropriate,we will suggest and discuss with staff alternate approaches to existing fee programs (i.e.
building fees), and suggest potential areas where fees could be collected where they are not
currently We will present the-full cost recovery level for fees, and revenue projections, given certain
assumptions about the levels of subsidy for different fees. Cost will be calculated at reasonable
activity levels, and include,all,appropriate direct and indirect,costs and overhead. We will review fee
programs for compliance with Propositions 218 and 26.
The user fee data analysis and'model development may take three (3)to four(4)weeks with frequent
correspondence with City staff to discuss current cost recovery amounts, necessary to recover full
cost and frequency activity:
Meetings: Conference calls to finalize fee schedule.
Deliverables: Finaluser fee model for City Council presentation and'discussion.
'�"�”` WILLDAN Scope 11
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Objective: Prepare draft report.
Description: This task involves.the preparation of the draft report that discusses the study's background, the
methodologies utilized in the study, and the results and presentation to various stakeholder groups.
As noted below, meetings may occur during this or the next task as appropriate. The calculations
used totgenerate theruserfee study will be included textually, as-well as easy to understand tables.
Individual fee summaries.by'department and a comprehensive fee schedule will be included. The
draft reporbwill include the:following:
• Key results and findings;
• Basic descriptions=of each service;
• The full cost of each service and current cost recovery levels;
• Costs broken down=graphically into indirect and direct components, with a graphic display of the
level of cost recovery;
• Fee recommendations With associate levels of cost;recovery;.
• Projections,of potential fee revenue;
• Assessment of reasonableness of each City's costs;
• Comparison survey;
• Review of reasonableness of current consultant cost structure (for Building Division services);
• As appropriate, recommend alternative methodologies for building permit fee calculation; and
• Summary and.recommendations.
The objective of the reporlis to communicate the;recommendation of appropriate fees, which include
the appropriate subsidy percentage for those fees where full costrecovery may be unrealistic.
Meoi/rugs: One(1)meeting to present the draft report to the City Council at a•Council Workshop session.
Deliverables: Wllldan: Draft report for City review and comment. City: Review of draft report, with comments and
edits.
./..pttpp'.. De or:WO COOVRittedarritiondatidcSon
Objective: Review of draft.reportand'fee model.
Description: The goal of this task is';to conduct an in-depth review of the draft report and model, and finally arrive
at an optimum fee structure. Often through the course of an engagement, City staff will volunteer
insightful likes and'dislikes regarding the existing feeistructuie. We listen to this feedback carefully
because your staff members know the community best. Comments usually revolve around issues of
• Understandability;
• Fairness to applicants;
• Ease:of calculation;
• Appropriate levels of cost recovery; and
• Full cost recovery hourly rates.
When adjusting`fee recovery levels,we believe it is'important to.address'these concerns.
Following,one °(1)- round of comments from City staff on the draft report, we will prepare the final
report for presentation to the City Council.
M=>et,ruu : One(1)conference call-and online demonstration(GoToMeeting)to review'the model.
Deliverables: Draftreport,.revised draft ffinal report.
,. 1
WI LLDAN 771 .2 Scope of Work 12
I Ft,ws I to the City of Pekaiuma
Financial Services
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City c/j
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PETALUMA = . _r. ,�n.� .
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Objective: Prepare and present final report to City Council. Train staff on the operation and use of the model for
future•modifications.
Description: This task is the culmination of the entire project. Based on staff comments received regarding the
draft report, we will prepare.thefinal report for presentation.
Meetings: One (1) meeting with City Council to present the results. We will also provide staff training on the
operation and use of the model on the same day during regular business hours.
Deliverables: We will provide up to five:(5).bound copies, one (1) unbound copy one (1) electronic PDF file
• copy of the final report and. model to the City. Uthing Microsoft Word and Excel, an updateable
electronic copy of the study and model, as well as related schedules, will also be provided on
CD/ROM.
City Staff Support
To complete our tasks, we will need the cooperation of City staff, We suggest that the City of Petaluma assign a key
individual to represent the City as the project manager who can function as'our primary contact. We anticipate that the
City's project manager will: (1) coordinate responses to requests for information; (2) coordinate review of work
products; and (3) help resolve policy'issues..We will ask for responses: to Initial'information requests in a timely
manner. If there are delays on the part of;the City, we will contact the;Cityls project;manager to steer the project back
on track. We will keep the City s project manager informed of data or feedback we need to keep the project on
schedule.
Willdan will rely on the validity arid accuracy of the City's data and documentation to complete our analysis and
endeavor to minimize the impact on City in the completion of this project.
•
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47; WI LLDAN 7:7,1.2 scope of work 13
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7.7. 1.3 Project Team
Firm Experience
Willdan's experience in the preparation of cost-of-service studies dates to 1998. Since that time we have developed
the expertise td successfully integratefthis service;into the Financial Consulting Services group's primary functions. A
team composed of project managers and analysts develop and/or update cost allocation plans, along with their
frequent companion projects—user fee studies.
Provided below• are project descriptions of a similar nature to those requested by the City of Petaluma. Contact
information for each has been provided inthe References section of thisproposal, located on page 18.
City of Placentia — Cost Allocation Plan and Comprehensive Fee and Rate Studies
The City of Placentia was seeking an outside oonsultant to develop an overhead cost;allocation study, as well as a
comprehensive fee and rate study,for the.development of its master:list of fees. Willdan recently completed these
studies in a manner that would fully identify andtake.into account all direct/indirect costs.
Our primary objective for the overhead cost allocation study was to ensure that general government costs are fairly
and equitably allocated to appropriate programs and funds, which are based on tailored and well thought out
allocation factors. This effort ensures that each enterprise and program bears its fair share of general governmental
expenses.
City of Irvine — Comprehensive User Fee Study and Cost Allocation Plan
In January of 2009, Willdan completed a comprehensive user fee study-and cost allocation plan for the City of Irvine.
The cost allocation plan was OMB -A-87 compliant, whereas the user fee study focused on the community
development)planning, city clerk, public safety,:and public works departments. In addition to identifying the true costs
of City-provided services, Willdan staff;wbrked with each department to identify opportunities in recovering costs of
services for which no fee had previously been,collected. To reflect current conditions; Willdan was retained in July of
2011 to update both the cost allocation plan and user fee study. This work was'completed in March of 2013.
City of Glendale - Comprehensive User Fee Study
The City hired Willdan to determine if the.currentfee schedule accurately reflected actual costs for the rendering of
over 1,000 fee-related services In oider to verify whether its General Fund was subsidizing many services benefitting
users, the City requested an expert analysis..of fee amounts to assure that support costs were included in service
costs. To address these issues, the City requested a comprehensive update of its fee schedule. As a part of this
update,the study completed by Willdan,reviewed current service fees; and identified the full cost recovery fee, or total
cost associated with delivering each'service.
Town of Fairfax — User Fee Study
In,May;oY2009, Willdan completed,a user fee study for the Town of Fairfax. Thisproject involved the development of
a methodology to convert the building and safety valuation-based permitting calculations, to more equitable and
defensible square footage or deposit-based methodologies.
Willdan also conducted a comprehensive cost analysis of Town-provided building and safety service functions. Given
that the Town was interested in recovering the full cost of these provided,,services, Willdan analyzed allocated indirect
costs (such as;a portion of the finance department) to building and safety hourly rates. In that way, Willdan enabled
the Town to recover all,direct and indirect costs associated with providing services. The final report included a
comparison survey of neighboring jurisdictions.
I I
I
�'.' 7.7.1.3 Project Team
WI LLDAN Pro, I,al rU ills City CO C;lit�n.� 15
A g rA Financial Services
city o)
City of Burlingame — Comprehensive User Fee and Development Impact Fee Study
In order to develop a-user fee program that allowed for full cost recovery; Willdan analyzed and identified the true cost
of services provided by City departments, including such and development-related services as building and safety,
engineering, and planning.
Likewise, Willdan completed a development;impact fee.study for the City, wherein existing development and future
growth were identified; facility standards were calculated, facility needs and costs were determined, funding and
financing alternatives identified, and documentation to support the new'impact fees was provided. For both the user
fee and development impact fee-studies,Willdan also conducted a fee comparison survey in neighboring jurisdictions.
Town of Los Altos Nibs — Cost Allocation Plan and User Fee:Study
The 'Town recently hired Willdan to ,complete, a cost allocation plan' and user fee update. The Town had not
undertaken.-a user fee study for-manyyears;;and utilized an outdated, internally developed, cost allocation,plan. To
date, Willdan has completed the cost allocation plan and presented the report and results to the Town's Finance
Commission.We have;developed the preliminary user fee model, conducted the initial round of onsite interviews and
collection'of activity data and information, and'are preparing the draft schedule ofupdated fees.
Town of Danville — Cost Allocation Plan
In February of 2012, the Town of Denville-hired Willdan to complete a cost allocation plan and prepare fully-burden
hourly rate (FBHR) .calculations for,landscape and lighting maintenance workers. Relevant documentation was
obtained and reviewed to enhance our understanding of the issues at hand;-and Willdan identified and resolved policy
issues that were typically raised by these studies. In addition, Willdan staff'addressed data gaps to gain a full
understanding of the Towns goals for the[cost allocation plan and FBHR calculations; developed and tested a model
that would ultimately be used to calculate proper cost allocations derived fromrgathered data; and utilized budget and
organizational information; as well as 'other required gathered information, to complete the work. To ensure that
preliminary allocations provided an accurate depiction of how central overhead costs should be borne by operating
programs,and funds,the draft cost allocation plan model was reviewed With Town staff and, as necessary, adjusted.
The cost allocation plan was consequently, used to determine the indirect costs attributable to each operating
department.A draft report was then prepared, whereby the cost:allocation plan's background, model methodologies,
and results were discussed; calculations and supporting data-was textually presented, with easily-understood tables;
and a report was then provided to the Town. An in-depth review of'the report and model was then conducted, I
whereby an optimum allocation method for each expenditure type,was achieved.
City of Thousand Oaks — Cost Allocation Plan
In 2010, Willdan prepared an OMB A-8Z compliant cost allocation plan for the of Thousand Oaks. The objective
of this project was to determine,the appropriate allocation of indirect costs from City General Fund central service
departments; to General Fund operating/non-General Fund departments/programs. The plan model included 16
allocation bases distributing costs to'over 100_departments+and divisions.-.Both full cost allocation and OMB A-87 cost
allocation models were delivered to the City. Willdan was awarded a four-year contract and will therefore, be updating
the,plan annually,through2014.
Assigned Staff
Our management and supervision of the project team is very simple7'staff every position with experienced, capable I
personnel in sufficient'punters,to deliver a superior product to the City; on time and on budget With that philosophy
in mind,we have selected experienced professionals for this engagement: We are confident that our team possesses
the depth of experience that will sdoceasfully fulfill'your desired work,perforrnance.
Mr. Chris Fisher will serve as the project manager and primary City contact, whereby he will apply his extensive
financial rate design/modeling and City experience and ability to clearly communicate results through the facilitation of
numerous,stakeholder forums. In this role, he will attend meetings and presentations, produce key study elements,
and will be responsible for work deliverables.
•
W I LLD p h 1 7.7.1.3 Project Team 16
i.=_..a Financial-services Fr000sel to Ihn City Uf PetaWma
�- I
Cay o ¢ 7s
LumA w t ; �
.trETA •
Mr. Robert Quaid, CPA, will provide,quality assurance/quality control to this engagement in the role of technical
advisor. Mr. Quaid will review the models as a third-party internal reviewer prior to their submittal to City staff. His
continual review of data entry and model development assures that the draft-and final products have been thoroughly
evaluated for potential errors; thus providing quality client deliverables, and high levels of integrity and outcomes
throughout the duration of the project.
Mr: Tony Thrasher and Ms. Andrea Boehling will provide analytical`support;and will work closely with Mr. Fisher
and the City to develop,complete and accurate models that will best fit the City's needs. They will ensure that data is
collected, interpreted, researched, and correctly entered into..the model. Experience gained assisting with cost
allocation plan and user fee projects for the Cities of Placentia, Bellflower, Irvine, Lynwood, Agoura Hills and
Thousand Oaks will be utilized throughoutthis engagement.
Furthermore, to ensure that the project"stays on schedule and is properlydocused on City objectives, Mr. Fisher, in
collaboration with Mr. Thrasher and Ms. Boehling, will provide City staff with updates to summarize our progress
against the project timeline, and update the status of upcoming deliverables: We will also document discussions
leading to important policy decisions and/or theschoice of critical assumptions used in constructing the analysis and
rate model. Given the December'2013 protect completion date noted in the Cites RFP, it will be important to the
overall success of the project to ensure that work progresses according to the"timeline that is agreed to during the
project kick-off: We will also schedule and conduct conference.calls necessary to review project progress, and
address changes in objectives or direction of the. project. Finally,'following key stakeholder discussions, we will
schedule a"call to summarize findingszand direction with City staff, to make.certain that we are in agreement with
stated objectives, and that feedback'is incorporated as appropriate. All of these steps guarantee that as the project
moves forward success will be achieved:by continually aligning our approach and work with stakeholder and City
objectives, adjusting where necessary.
Resumes for Willdanis'project team are included in the Appendix section of this,proposal. Willdan will not require the
assistance of a subconsultant firm to provide the scope of services outlined in the City of'Petaluma's RFP.
'F` 7.7.1.3 Project Team
WI LLDAN Pii i o I, to the Ui 0'P=:(a[uma 17
y, Financial Services
City of fi I te = vnm t
7.7. I..4 References
Provided below is client reference information for the project descriptions:previously identified in the Project Team
section of.this submission. We areyproud of our reputation for,customer service and encourage you to contact these
clients in regard to our commitment to completing the projects within budget and agreed upon timelines.
City of Placentia—Cost Allocation.Plan and Comprehensive Fee and Rate.
.Studies
Karen Ogawa,.Finance Director
401 EChapman Avenue, Placentia, CA!92870
Tel.#: (714)993-8237; E-mail: kogawebplacentia.orq
City of Irvine—Comprehensive User'Fee:Study and Cost Allocation Plan
Ken Brown, Manager of Budget and/Business Planning
One Civic Center Plaza, Irvine-CA 92606'
Tel.#: (949)724-6046; E-mail: kbrown(a7ci:irvine.ca.us
City of Glendale—Comprehensive User Fee Study
Bob Elliot, Director of Finance
613 ES Broadway,;Glendale, CA 91206
Tel#: (818)548-2085; E-mail: Belliot(aha.cilendale.ca.us
Town of Fairfax—User Fee Study
Michael Rock, City Manager(formerly with the Town of Fairfax; now,with the City of Lomita)
24300 Narbonne.Avenue, Lom ita,.CA 90717
Tel. #:(310)325-7110,Ext. 115; E.mail:-m:inckto")lomitacitv.com
City of Burlingame—Comprehensive User Fee and Development Impact Fee Study
Jesus.Nava,.Chief AdministrativeOfficer
(formerly with City of Burlingame, now with Santa Clara Valley Water District)
5750 Almaden Expressway; San Jose;CA 95118
Tel. #: (408)265-2600; E-mail:jnavaevallevwater:orq
Town of Los Altos Hills— CostAliocation Plan and User Fee Study
Richard Lee Finance Manager
26379'Fremont-Road, Los Altos Hills; CA 94022
Tel. #: (650)947-2512; E-mail:rlee(a,losaltoshills.ca.gov
Town of Danville—Cost Allocation Plan
Elizabeth.Hudson,'Finance Director/Treasurer
510 La Gonda Way, Danville;CA 94526
Tel. #:'(925)314-3371; Email: Ehudsonadanville.ca.gov
City of Thousand Oaks,—Cost'Allocation'Plan
John;F. Adams, Finance Director
2100 Thousand Oaks Boulevard,Thousand Oaks,CA 91362
Tel. #: (805)449-2235; Email.jadams(o>toaks.orq
WW I LLDAN g 7.7.1.4 Reference:, 18
Pr gicv,n1 lc lire ell,/c f �_Ia�Lona
i 9 Financial Services
a1
City of , �tl ifJ i '*`.` ., .' ,...% ' % lip
'PET LU A -
Cost Allocation Plan and User Fee Client Listing
A selection of our clients, which are similar in nature to the City's engagement, are outlined in the table below.
v m �
.dal 5f+ x,31` s�-^' •-w W :v a C"('lticre3 a !m
City of Adelanto, CA Cost Allocation Plan and User Fee Study'
City of:Agoura'Hills,CA - ;Cost Allocation:Plan and^User Fee Study
City of American Canyon,CA .User Fee Study
City of,Artesia'CA' - ',Citywide User.Fee Study .; -
City of Bellflower CA Cost'Allecation Plan.and Comprehensive User Fee Study
City of:Burtingame:CA rComp"rehensive User Fee!and Development.Impact Fee Study,
City.of Cathedral City, CA -.User Fee Study
City.of Coachella;CA f`Cost Allocatio n Plan and,Compreh nsive User Fee'Study7 , .
City of Colton,CA Comprehensive User Fee.Study
City of Compton,CA 'Cast AllocatioiilPlaiS
City of Covina,CA Cost Allocation Plan
City of'EI,Monte,;CA ',User,Fee'Study for the,Public Workstand Planning Departments and impact
City of Elk Grove,CA - User fee Study
City ofFlorida City:FL ;Cost Allocation.Plan City of Fontana,CA Cost Allocation Plan and Building Department.User Fee Study
City of Gardena,1-CA .. . 'Cost AllocationPian . . _ ' -
City of Glendale,.CA Citywide User Fees and Charges Study
City of Grover Beach,,CA Cost Allocation;Plan end'Comprehensive Master Fee and Rate Study
City of Hawthorne,CA Cost Allocation Plan and User Fee Study
City of Hayward;CA, - .Cost Allocation'Pian and''.Comprehensive User Fee Study
City of Hemet,:CA Cost Allocation PlanandComprehensive-UserFeeStudy
City of'Hesperia„CA ' Cost Allocation Plan and Comprehensive User Fee Study
•
City of Indian'Wells,CA Cost Allocation Plan •
City of Irvine,CA ,Cost Allocation Plan and User Fee Study'
City of Irwindale, CA Cost'Allocation Plan
•
WI rI LLD A A' I t7.7 II 1 4 References 19
Li, 1 Financial Services
Proposal s City of Petaluma
Clt_vu� `l '�t= x r
PETAL
A r.
( � � gym+ "" ".Z". �' RCiB iQ06a ta''' � _-.
atr Alan sin and User fe Study Clients`:. ra >
City of Kingshurg;CA . .'Planning Department User Fee Study -
Cityof La Mirada, CA Overhead Cost.Allocation Plan and Citywide User Fee Study
°Cityof.Laguna Hillsr�CA' ;Comprehensive User Fee:Study• -
City of Long.Beach,CA Cost Allocation Plans
City of.Los Altos-CA CostAllocation"Plan' -
City of Lynwood,CA Cost Allocation Plan
,'City.of.Madera,-.CA afi'Development'Departments User Fee Study:, • .
City of Manteca,CA Cost Allocation Plan
City of CostAllocation•Planand'.Develo menu
p f Services User Fee Study, •
City of Miami Beach, FL Revenue Enhancement Study
Cityof Montebello;.CA Cost AllocationPlan,^Comprehensive iserFee Study and Impact Fee.Study
City of Monterey Park, CA Cost Allocation Plan and User Fee.Study
City of Murray City UT Cost Allocatidh Plan
City of Norwalk,CA Cost'Allocation Plan and Comprehensive User Fee Study
.
City of Orange,LCA • ;Comprehensive User.Fee•Study
City of.Palm Desert,CA Road Maintenance Cost Allocation Study
City of Palm Springs;CA '^'Cost Allecation.Plan and.'.Comprehensive User Fee Study
City of Phoenix,AZ 'Development Services Special Revenue Fund andFee Study
City of Placentia,CA . ' ;Cost"Allocation,Plan ands,User Fee;Study,_
a. ,City of Pleasant Hill,CA "Comprehensive User Fee Study
City of Richmond;CA Cost Allocation'Plan,UserFee and;Impact FeeStud
Y
City of Rocklin,CA Building.Department User Fee Study
-
City of San Carlos,-CA ,Cost"AllocationPlan;User Fee and Impact Fee Study
City of San'Marcos',CA Non-development Services Department Fee Study
City of Shasta;Lake;CA - Planning and Building Division Fee Study
City of Sierra Madre,CA Development Services Fee Study
City of.South EI Monte,:CA- :.Cost Allocation Plan and User Fee Study
V 1 L L D n N 7.7:1.4 References
20
rc, tsno Ine(Ay 01 1 Financial Services
kf-Ir Ci ty Or ijfi:lit'
yt4 ..y k _, §, ` JMarm
pp nn INl a :i ik x v
5 t ial�Seivi
C st•9,a n U 4_,L ` 1 nts
City of Stockton,CA .Cost User Fee Study
.
:
u
Cii ofd Sr riseAZ
City of _ p •Cost
ity of Tehachapi,CA Building, Planning and Engineering Fee-Study
City ofThousand Oaks CA °`:, (Coat fAllocation Plan(includes up to�tur annual updates)
City of Torrance,CA Market Rate Program Fee Comparison.Study
City of Ukiah;CA, a
;Cost Alloc Lion:Plan and`Comprehensive User Fee,Study
City of Upland, CA Cost Allocation Plan,User Fee and Impact Fee.Study !.
'911 Emergency Communications Fee Study;Cost Allocation Plan and User
-Fee StudY
City of�Vallefo,CA
City of Walnut Creek,CA Cost Allocation Plan and Comprehensive:User Fee Study
•
)County of Marin, C.A Plaining and Environmental Health User Fee Study
County of Mariposa,.CA UserFeeStudy
County of San Benito, CA. IIUser Fee Study
Town of Buckeye,AZ Cost Allocation Plan and Comprehensive User Fee Study
Town of CA Cost Allocation-Plan'
Town;of Fairfax,CA Comprehensive User Fee Study.
Town of Longboat Key FL Cost Allocation Planand'Bwldmg Permit Fees and Fire Inspection Fees
Town of Los Altos Hills,CA Cost Allocation Plan and User Fee Study
I Town of'.Portola Valley CA Development Services^Fee Study '
Town of Yucca Valley,CA Comprehensive User Fee Study
C; WILLDAN 7.7.14 References 21
Yi Proposal it 1.110 Cliy of F'elalunk
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*PETALU A • . �' ;.` 1 . 3' ,_ -
Notes:
n The cost of preparing the user fee:study can be included`in the;resulting:.new fee schedules. Therefore, over
time the City can recover:the initial outlay of funds that was required to complete the study.
it Wherever possible, to maximize efficiency and cost-effectiveness, we will combine meetings and data
gathering efforts between the user fee and cost allocation plan studies.
= There is no additional expense for OMB A-87 features or for a proprietary software program.
▪ Our fee includes all direct expenses associated with the project.
n We will invoice"the City monthly based on percentage of project completed.
Et Additional services may be authorized by the City and will be billed at our then-current hourly overhead
consulting rates.
Additional Services
Our current hourly rates are listed below. This hourly fee schedule will be valid in calendar year 2014 as well.
{ „ * Wiih3.n
i fat Sctedule a
Position , :` - `Houly Rate'• ' '`
,
Group Manager $210
Principal Consultants:., t$170
Senior Project Manager $165
Project Manager; r '-$145!
Senior.ProjectTAnalyst $130
Senior Analyst . $12.0
Analyst $100
Assistant'enalyst, - • $75'.
t
1
{
r ..° 7.7.1.5 Fee Schedule 23
{ `• W I LLDA� Prc. i s it o the r hr Petaluma
(L./LA Financial Services
l J
City o
7.7. 1.6 Appendices
Exceptions to the City's Request for Proposals
Wilidan's attorney has reviewed the Professional.Services Agreement provided,as part,of the RFP packet.We kindly
request the Citys consideration of the contract+exceptions outlined below. Language requested for removal has been
streek-through and revised language`has been underlined.
22. Indemnification. To the maximum extent permitted by law, Consultant shall, at its own expense, indemnify,
defend with counsel acceptable to the?City, (which acceptance will not be unreasonably withheld), and hold
harmless City and its officers,officials,employees, agents and volunteers("Indemnitees")'from an against any
and all liability, loss, damage; claims; suits, actions, arbitration proceedings, administrative proceedings,
regulatory proceedings, civil penalties and fines, expenses and costs (including, without limitation, claims
expenses, attorneys fees and costs and tees of litigation) (collectively,"Liability') of every nature, whether
actual, alleged:or threatened,;ti the.eztentresulting from.Corisiltant's negligence or other wrongful conduct
arising out;of'or in connection with ithe Services or Consultant's'failure to comply with any of the terms of this
Agreement; regardless of any fault or alleged fault of the lndemnitees. The Consultant's obligatien-1e
iade defend any �old haarmlo ^der-this-previsien shall not oxs --beG461se-moo Cons !tant'c
inability to evaluate Liability,.or because the Consultant evaluates Liability and determines that the Consultant
is-net-ei-may-not be liable. The Consultant must respond within 30 calendar days to any tender for defense
and indemnity by the City, unless the time for responding has.been extended by an authorized representative
of the City in writing. If the Consultant fails to aseept respondlto the=tender of defense and indemnity within 30
calendar days, in addition to any other remedies authorized by law, so'much.of the money due or that may
become due the Consultant:under this Agreement as shall reasonably be,considered necessary by the City,
may be retained by the City until disposition has been made of the matter subject to tender, or until the
Consultant aesepts responds. to the tender, whichever occurs first. In 'the event that the City must file
responsi'e documents in a matter ,tendered to Consultant prior to Consultant's acceptance of tender,
• Consultant agrees to fully reimburse all,costs, including but not limited to reasonable attorneys fees and costs
and fees of litigation, incurred4by the City in filing such responsive documents, if Consultant ultimately accepts
such tender.
D. Other Insurance Provisions
5. Each insurance policy required by, this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days'
prior written notice by eertifled:first class mail, roturn receipt roqucctod, has been give to the City. ten (101
{
days notice if cancellation is due to nonpayment of premium.
Resumes
Resumes for the key personnel denoted in the Project Team section of this submission are presented on the following
pages. These resumes highlight projects of a similar nature in which the individual'had hands-on experience, and also
include each their length oftime with!:the firm.
WILLDAN 7.7.t 6 Appendices Al t
• Financial'Services Proposal o the CI.),vi Ptialumn
315
CND'°� L1iIE=FIiEa TALU
' I
Chris Fisher
Project Manager-
, Education Chris Fisher,group manager of Willdan's Financial Consulting Services group, will serve as
San Francisco State project manager. He will also share his extensive knowledge related to cost-of-service
University, Bachelor of principles with-members of the project team.
Science, Finance
Mr. Fisher joined Willdan in April of 1999 and during°that time has managed an array of
Areas of Expertise financial consulting projects for public agencies in California, Arizona and Florida,
Cost of Service Analyses coordinating the activities of resources within Willdan, as well as those from other firms
working on these'projects. He is one of the firm's leading experts for special district financing
Multi-disciplinary Team related to public infrastructure, maintenance and services, including public safety.
Management
Related Experience
Special District City of Glendale, CA—Comprehensive User'Fee:Study:As principal-in-charge, Mr. Fisher
Formations oversaw this ;project; which required the review of the City's current service fees and
identification of the full cost recovery fee, or total cost associated with delivering each service.
Client Presentations
City of La Mirada, CA — Overhead Cost Allocation,P,lan`and Citywide User Fee Study:
Mr. Fisher rovided policy guidance and quality y s update and
Proposition 218 P P Y 9 q y assurance to the Cit '
development of a comprehensive citywide user fee study for the development of a master
Affiliations user fee and rate schedule and a cost allocation plan to recover overhead costs related to
California Society of centralservice•activities.
Municipal Finance City of Placentia, CA— Cost.Allocation Plan,and Comprehensive Fee and Rate Studies:
Officers Mr. Fisher oversaw the development of an overhead cost allocation study, as well as a
Municipal Management comprehensive fee and rate study for the development of the City of Placentia's master list of
Association of fees.
Northern California City of Irvine, 'CA.- OMB A-87 Cost Allocation Plan and Comprehensive User Fee
Study: Willdari completed a cost allocation plah,and user fee study for the City of Irvine. Mr.
California Municipal Fisher managed and provided quality,assurance to this project, ensuring the accuracy of the
Treasurers Association models, as well as the final reports. He also presented the results to the City's Finance
121 Years Expel1„arse Commission and to the City Council.
City of Ukiah; CA — Cost Allocation, Plan and Comprehensive User Fee Study:
Mr. Fisher provided quality assurance to this project, ensuring the accuracy of the models, as
well as the final reports.
City of Adelanto,.CA — Cost Allocation Plan and User Fee Studies: As principal-in-
charge, Mr. Fisher oversaw the development and review of an OMB A-87-compliant and full
cost allocation study and.a comprehensive user fee and rate study for the City's`masterlist of
fees, also assisted'in presenting results to the City:Willdan previously successfully completed
cost-of-service-based fee studies for the City in 2004.and.2007.
Town of, Fairfax, CA — User Fee Study: Mr. Fisher provided quality assurance to this
project, which involved the development of a methodology to convert the building and safety
valuation-based_ permitting calculations; to more equitable and defensible square footage or
deposit-based methodologies. The Willdan Team also conducted a comprehensive cost
analysis iof`Town:provided' building and safety service functions: Given that the Town was
interested in recovering the full cost of these provided services, Willdan analyzed allocated
indirect costs (such as a portion of the finance department)to building and safety hourly rates.
In thatway, Willdan enabled the Town to recover all direct and indirect costs associated with
1 A/ q t�I providing services.'The final report included a comparison survey of neighboring jurisdictions.
VVV i I I fl A 1 V 7.7.1.6 Appendices A-2
Piupo ai in Iiie CM/of Felali rna
Financial Services .hhh
!h�
err.., v h 7.. V
PCity of ETALU A l ry !, ` fij r
Town of Los Altos Hills, CA — Cost Allocation Plan and User Fee Study: Mr. Fisher is the
C.Fisher engagement director for Willdan's:current work with the Town to complete•a cost allocation
Resume Continued plan and user fee update. The Town has not undertaken a user fee;study for many years, and
currently uses an outdated, internally developed, cost allocation plan. We have completed the
cost allocation plan, and presented the,report and results to'the Town's Finance Commission.
We have developed the preliminary user fee model and are preparing the draft schedule of
updated fees. Mr.. Fisher oversaw the development and ,quality review of both the cost
allocation and user models and was responsible for-QA/QC of the report.
City of Walnut Creek, CA— Cost Allocation'Plan and U ser Fee Study: Willdan completed
a cost allocation'plan and comprehensive user fee study for the City. The analysis included
an in=depth review of the full cost to the.City for requested services provided by the following
departments:'Police{ Public Services; Arts, Recreation and Community Services; Community
Development Administrative Services including Purchasing/Warehouse; and City
Manager/City Attorney Departments.
City of Hayward, CA—.Cost Allocation Plan and User Fee Study: Mr. Fisher is serving as
the project manager for the City's full overhead cost allocation plan and OMB A-87 cost
allocation plan, along'with a comprehensive master user fee study. He has worked with City
and Willdan'staff to gather the necessary data and oversaw Willdan's development of the
cost allocation model. The City has a complicated and detailed budget and the cost allocation
plan that Willdan developed is tailored to their,structure, and includes provision for several
Internal Service Funds.
ff ,'.:1' W I LLDAN ( 7.7.1 B Appendices A_3
p ; o the.C O of Peidlunin
FServices
I
new
Tory Thrasher
Analytical Support
Education Owing to his prior cost"allocation and user fee.analyses experience, Mr. Thrasher has been
Bachelor of Science in selected to provide analytical support for the City's engagement..Currently, Mr. Thrasher is an
Finance (Econometrics); analyst within the Financial Consulting Services group, whereby his responsibilities include
California State .supporting project managers and conducting fiscal analyses for cost allocation plans, user
Polytechnic University, fees, and utility rate studies.
Pomona'
Mr. Thrasher's prior employment was as a financial,analyst working in bond, equity, and
Areas ot'Expertise mortgage backed security markets for Wells, Fargo Bank, Bank of New York Mellon, and
Cost Allocation Plans Deutsche Bank: His experience includes portfolio accounting, differential analysis, and
forecasting.
Fiscal Analysis for User
Fees and Rates Related Experience
City of Placentia; CA — Cost Allocation Plan and>Comprehensive Fee and Rate Study:
Utility Rate Studies As an analyst; Mr: Thrasher provided analytical support;..and designed micro-level allocation
models to ensure.full-cost recovery for police, community services, engineering, planning, and
2 Years Experience building departments.:,
City of Irvine, CA OMB A-87 Cost Allocation; Plan and Comprehensive User Fee
Study: Serving as the project's analyst, Mr. Thrasher provided analytical support; and
designed micro-level allocation models to ensure full-cost'recovery for public safety, public
works, community development, community services, and administrative departments.
City of Bellflower, GA—OMB A-87 Cost Allocation Plan and Comprehensive User Fee
Study. Update: _Provided analytical support. Primary duties included finalizing model figures
and generating reports.
Town of Los Altos Hills, CA— Cost Allocation Plan and User Fee Study: Mr. Thrasher is
working with the Town on this project, providing analytical support, gathering data working
with staff to?make+refinements, and developing cost allocation and fee models to ensure full-
• cost recovery for building and safety, planning, community development, and public works
departments.
City of Agoura Hills,_CA — Cost Allocation Plan and Comprehensive User Fee Study:
Mr. Thrasher provided analytical support for this engagement, whereby he designed micro-
n level allocation models to ensure full-cost recovery for building and safety, planning,
community development,.and public works departments.
Town of :Danville,. CA — Cost Allocation Plan: Provided analytical support for this
engagement..Primary duties included finalizing model figures and generating reports.
City of Hayward, CA — Cost Allocation Plan and User Fee Study: For this ongoing
project, providing analytical support, and primarily responsible for the development of the
models: Primary duties include gathering and verifying necessary data, finalizing model
figures and generating reports.
City of"Lynwood,:CA— Cost Allocation Plan: Provided analytical support. Primary duties
included finalizing model figures and generating reports.
City of.Murray, ,UT — OMB A-87-compliant-Cost Allocation Plan: Provided analytical
support. Primary duties included finalizing model figures and generating reports.
c:741, WILLDAN I 7.7,1.6 Appendices A-4
;'1 Financial Services f'in�u ai to Ili!A .ilv of Pcaahim;,3 I n
JLe
tW to
tt'City"nf 4,1t q c. '
PETALUMA
t f
Andrea Boehling
Analytical Support
Education Ms. Boehling is an analyst within the Financial Consulting Services group, whereby she
Bachelor of Science in supports project managers in conducting utility rate analyses; fee studies, cost allocation
Computer Engineering plans, monitoring,Proposition 218 compliance, and forming,special,districts.
and Accounting, DeVry
University Some of Ms. Boehling'sduties include coordinating and conducting activities involved with the
formation of Community Facilities Districts, conducting special tax and assessment.modeling,
Areas of Expertise database integration and manipulation, revenue and expenditure analyses, documentation
Cost Allocation Plans research.and preparation, and client interaction.
Fiscal Analysis for User Having joined'Willdan in August of 2012, Ms. Boehling came to us with more than six years
Fees and Rates experience'as an'Information Systems Auditor for the State of Tennessee.
Utility.Rate Studies Related Experience
Town of Los:,Altos Hills, CA — Cost Allocation Plan,and User Fee Study: Ms. Boehling
Proposition 218 provided analytical support to ensure that the Town's OMB A-87-compliant cost allocation
model and plan fairly allocated general and administrative overhead service costs to
Community Facilities appropriate activities and departments. She-also is currently assisting with a fee study that will
District Formation capture the full"cost recovery associated with the delivery of certain Town services, including
community development, planning, publicwworks,;and parks.,and recreation.
8 Years Experience
City of Hayward, CA--Cost.Allocation Plan and User Fee Study: Ms. Boehling is working
collaborativelyiwith City staff to conduct both a full overhead cost allocation,plan and OMB A-
� 87 cost allocation plan, along with a comprehensive master user fee study. Duties include
reviewing relevant: documentation, gathering information related to indirect staffing and
functions, preparing a comprehensive draft cost allocation model and plan, preparing a fee
model, and testing and reviewing the model and''results with project management personnel
and Citystaff.
City of Red Bluff,.CA — Full Cost Allocation Plan: Ms, Boehling helped develop a cost
allocation plan and model that fully allocated central overhead "costs to appropriate operating
departments, funds and/or programs; and automatically allocated only those costs allowed
under OMB A-87 guidelines, excluding unallocable expenses from the distribution of costs.
She completed the model and report, and worked'directly with the client to integrate their
feedback and revisions.
City of Thousand Oaks, CA — Cost Allocation Plan: Provided analytical support in the
development of an annual update to the City's extensive full and OMB A-87 cost allocation
plan. Ms. Boehling assisted in the annual review and update of the model, and in the
development of updated allocation bases that accurately reflected. City operations, while
complying with..regulatory requirements.'She also prepared the revised report for delivery to
the City.
City of Salinas, CA — Cost Allocation Plan: Currently-providing analytical support in the
preparation.of an OMB A-87-compliant full cost allocation plan and comprehensive fee study
for the development of a master list of fees. Ms. Boehling is working to identify and take into
account direct and indirect costs, along with changes in staffing; structure, and service
delivery-methods. She also assisted in the preparation of user-friendly Excel-based models
that City staff could easily update in the future to determine the proper allocation of
expenditures and ongoing full cost of City-provided services.
4 7.7.5 G Appendices A-5
1N1 LLDAN ( Pp po,ai to the t ;t Puiaiuma
S A�Li Financial Services
r
3 !\
City o(' M r Trri ni,
PETALUM t* zr,—
Robert Quaid, CPA
Technical Advisor
Education
Bachelor of Science, Robert Quaid, has been selected to provide quality assurance/quality control due to his
University of Southern extensive experience in public financing In his position;as a Principal Consultant at Willdan,
California- Mr, Quaid provides project management, procedural support and quality review for Willdan's
District Administration and Financial Services Consulting groups.
Areal of Expertise
Acquisition Audit Services With more than 13 years of experience in the public finance industry, Mr. Quaid has
participated it the annual administration of hundredsspecial tax and assessment districts and
Cost Allocation Plans performed numerous cost allocation plans and user fee studies. Mr. Quaid began his career
as an auditor.in 1976,with the international CPA firm formerly known as Haskins & Sells. He
Statutory.Financial spent 11 years,as an accounting and financial manager in the real estate development
Reporting industry before joining Willdan in 2001.
Fiscal Analysis for User Related Expei'isnce
Fees and Rates City of Thousand Oaks, CA —Cost Allocation Plan:.Mr. Quaid served as project manager
for-the development of-an OMB A-87 compliant,cost allocation plan model-using fiscal year
Fund Audits 2009 actual costs as the basis for the allocations: He was responsible'for the preparation of
the Cost Allocation•Pian report and provided cost allocation model training to City staff.
Quality.Review of
Community Facilities, The objective of;this,project wasto,determine the appropriate allocation of indirect costs from
Lighting&Landscaping; City General Fund, central service departments to the General Fund operating
and Assessment Districts departments/programs and the non-General Fund departments/programs: The plan model
included 16 allocation bases allocating costs to over 100 departments and divisions. Both full
Affiliations and OMB A-87 cost allocation models were delivered,to the City. Willdan was awarded a four-
California Society of year contract, and will'be updating the plan annually over the next four years.
Municipal Finance
Officers Cities of•Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For
each of these cities Mr. Quaid served.in the'role of1task manager for the development of an
California Society of OMB A 87 compliant cost allocation plan model using Microsoft Excel. He was responsible for
CPAs the preparation of the cost-allocation plan report and trained City staff on how to use the cost
allocation rnodel.
Certifications/Licenses
Certified Public Cit y of Rialt o, CA — Comprehensive User Fee Study: Project manager for the
Accountant Comprehensive User Fee Study to develop a user fee model in Microsoft Excel and update
fees for Planning,. Engineering, Building, Public Works;-Recreation, Police, Fire, City Clerk,
13 Years Experience Treasurerand'Finance.
City of Cathedral City,'CA— Comprehensive User Fee;Study: Project manager for a user
fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City
Clerk and Finance..
x I
7.7.1.6 Appendices
-.V I L�D/l - Pnwposel to Ihr:C'i t �' Pelalumz A
j i,;,t! Financial Services
Cit ' . _ ItAt 11, esl} E s s147
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Proof of Insurance
With a rating of A+X04,Willdan maintains s insurance from top-rated companies,as.well as standard legal licenses that
uphold state and federal labor laws. Upon award of contract certificates of insurance and endorsements will be
provided to the City. A sample certificate otinsurance is included below for reference.
•
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7,7.3 s Appanmccs
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