HomeMy WebLinkAboutAgenda Bill 6.B 08/16/20044
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CITY OF'PETALUMA, CALIFORNIA
Agenda Title Authorizing the City Manager to enter into a
Meeting Date August 1 -6, 2004
Professional Services Agreement with - Revenue & 'Cost Specialists
LLC for the purpose of assisini the C
C m `the •implementation of
- ..
p rp e Fund. (Moore)
the Community evelo ment Ent!e ris
Meeting Time M 3:00 PM,
❑ 7:00 PM
Category (check. one) Consent Ca ❑ PublicEearing New Business
❑ lendar
❑ Unfinished Business ❑ ,Presentation
Department
Director
Contact Person
Phone Number
Community
Mike Moo
Mike Moor ,
707 - 778 -430.1
Development
Cost of Proposal $38,000:00
Account Number
Amount Budgeted $0.00
Name of Fund:
Attachments to Agenda Packet, Item
Scope of Work and.Budget from Revenue & Cost Specialists LLC
Summary Statement
Revenue & Cost Specialists have previously worked for the City. -preparing the Citywide "Cost of Service"
study in 2002 and, most recently, 'in the °preparation of the supporting analysis, and recommendations to
increase the City's development impact fees. The City Council's approval of-the FY 2004 -2005 budget
includes' shifting the Community Development Department from;being General Fund supported to being an
"enterprise ". This transition & dependent on'Community Development being able to fully cover the cost of
service through permit. fee revenue, as well as identify those areas where a subsidy from other City funds
(including the General Fund) is appropriate or necessary. The proposal also, covers iecominendations to -set
up the,necessaryprocedures to. accurately°monitor and account for the;new Comrimunity'Deve'lopment.Fund.
As, the C � l nue &
' p Spe they have included time
Cost S eciali `
w o
_ ,
C Council, at ke
pres entations to rthe points n
y y p the process The, proposed timeline ;anticipates
implementg
in 'the recommendations as part of the mid -year budget review.
Recommended City Council Action /Su't e'sted.Motion
Authorize the City Manager to'sigx� the Professional Services Agreement with Revenue &. Cost Specialists.
evie bv Finance Dir ector:
Review d by City Attor?ney
Date•
A rov `b., ,City Mn aner:
Date:
�ee:
Today. Date :: "
Revision # and Date Revised.
' File Code:
.August 6, 20.0,4
Q
July 30, 2004
Michael C. Moore, Comm.Devel. Director
City:of Petaluma
11.English ;Street
Petaluma, CA 94952
Dear Mike,
Revenue & Cost Specialists, L.LC.(RCS) is pleased to submit this Proposal to assist the
Community Development Department -in the implementation of an. enterprise fund for its
operations. This Proposal is submitted-in response to your RFP dated July 15, 2004:
Background
In Januar y '2002, Revenue. & Cost Specialists, L.L.C. (RCS) submitted its "Cost of Services
Study" to the City of Petaluma. On page 43, in the discussion of Community Development
Services, I mentioned that "... "(o)ne.way to assure that the revenues match the costs of the
above. services would be to create a Development Services. Fund, with all planning,
building and engineering fees posted to the Fund and,all development related services
being supported by it."
You.and. your staff are now preparedto take a'step towards fiscal independence which has
benefits as well 'as pitfalls. Since I have been recommending this step for the last fifteen
years,' I am both uniquely prepared to make sure that the, change is successful and
professionally concerned: that, if`it `is not done correctly, the experience could tarnish the
future recommendation of a separate Development Services Fund.
Petaluma Community'Development Enterprise Fund Page 2
Scope of Work - Topics Suggested by Department
As part of'the scope of work, RCS will:
Update Departmental service costs'to reflect the changes since FY 2001 -2002.
2. In the service costs, include a reserve account and any other factors that may not
have been covered in the prior study..
3. Determine a revised :fee for the_ review of final Maps and Improvement Plans based
on 100% cost recovery for plan review and inspection services, rather than the
current formula based on a percentage of the estimated cost of the improvement.
4. Establish a new formula for calculating Building Permit fees including plan check
fees,, based on 100% cost recovery rather than the conventional UBC valuation
tables. The'new formula would address the "excess revenue" issue from the prior
study as well as cover all costs of the service.
5. Establish the General Plan Maintenance 'Fee which was also recommended `in the
prior study.
6. Establish a new Technology Fee and any other fees necessary to successfully
•
implement the new fund.
7. The process will involve two to three weeks of on -site meetings with staff \ and two
meetings with the Council that do not occur on regular trips `to the City. Other
worksessions with the full. Council or with a, Council committee can °be scheduled
during regular trips to the City.
Scope of Work - Additional Work Recommended' by RCS
As part. of the scope of work, .RCS will also:
Update the City's Cost Allocation Plan '
o that any overhead charged to the new
fund` is supportable.
2. 'Calculate 100% of the costs of the new fund so that all costs are included in the
following three categories: (a) direct costs, of fee services;` -or
grant services
which cannot be 'recovered by fees, and, (c) .overhead costs which will, be allocated
to the first two categories.
3. Work With the department to arrange for the payment of the tax services by other
funds. i
etalurrra Qom . y „ p r�orise Fund Page 3
R nt Ente
munr eve' o me'
4. Work with the department to insure that the :costs of services provided .to other
departments are properly treated. Similarly, determine if other departments have
charges for the new fund, which should be incl`uded.'in the cost of services.
5. Design a revenue, cost, time and unit tracking system for the new fund so that the
Department is aware as soon as possible of any changes that could affect year -end
results. And,, so that any.changes to, the service.demand,can be met as quickly as
possible.
6. Work with the Finance Department on the documentation'of beginning balances for
the new fund and the possible restatement of the °6 /30 /2004'.Co,mprehensive Annual
Financial Report (CAFR).- To the: extent that assets 'are transferred, insure that
i
payment for them and their- replacement reserve afe properly established.
7. Work with the department to establish a fee 'schedule based on a range within
which the department. can make minor adjustments without having to adopt new
fees. This ca abilif should �elirriinate an =end loss: Likewise, work with the
de p This
to explore ways of refunding any year -end profit so that the system is
equitable.
8.. Prepare interim, and specific need reports as necessary Prepare a final Summary
• Report for the public,and .City Council. Submit ten hard copies and one PDF copy
to the City of the final Summary Report.
Timing of Services
RCS would begin work °within ten days of a "notice to proceed ". The work would be
scheduled to be completed, by the end of the 2,004 calendar year so that the results could
be incorporated :into the final'six months of the 20`04 -2005 fiscal` year.
The work will be scheduled so.that'it r is performed in the following sequence:
A. Create a revenue; unit and time tracking system immediately so that data,
can be included from the beginning of the FY without much extra effort.
B. Update the CAP and determine charges to /from, other departments. Discuss
the restatement o,f'the, CAFR =with the finance and :audit, staff.
C. Update the departmental service costs focusing on 100 % of staff time.
D. Work with the department on developing a comprehensive fee. policy
E. Present finfdings 'to the Council and obtain legislative /legal approval to
implement.
W
Petaluma Comri Page 4
Fee for Services
It sbould'bbo noted that the fee for thiswork is recoverable from the departmental fees and
that it w ill be included as part, of the ove r head.
I - - head.
.The flat, fee for the above scope of work is $31,00GWth additiohal not-to-exceed
$7,0 This incorporates the following - costs Which are s hown below f6r information
purposes only:
Flat, Fee for Scope of Work:
Update-of Departmental Cosfs"'. ...................... $46;000
U'Pdate of the C ost Allocation Plan ....................... $4,500
Creation of 8, Reporting System _; .................. I .. $5,800
Calculate Interdepartmental Charges & Misc. Issues ..... $4,700
Not-To-Exceed.Cost&:
Travel expenses ........ ........................... $5,500
Two 'Special Council"meotings requiring separate trips .......... $1,000
Incidental Expenses such as printing and.taxes, not to exceed $5,00
These prices and the Proposal, atLaqood until September r 30, 2004.
Project
Out professional. qualifications are included in A m Ope l hdi A.
Rick Kermer, CPA, President will perform the work, using one or more ofthefolloWing if
necessary to e0m'pfete the project ontime
Erit -Johnsoh,'Partner-
Scott Thorpe, Partner
RCS looks forward to. being of service to the City of'Petalu m a...
Si ere4lly�,
Rick Kerme ' r, CPA
President
ALBERT.RICHARD ( "RICK ") KERMER, JR.
EDUCATION
Bachelor of Arts - University of Chicago- Economics
Master of Business Administration - University of Chicago- Accounting and Math Methods /Computers
PROFESSIONAL CERTIFICATION
Certified. Public Accountant, State of California
PROFESSIONAL EXPERIENCE
Revenue & Cost Special ists %Management Services Institute - 'President
(1979- Present) Chief Executive Officer of a, diversified management services company.
City of Buena Park - Director of Finance /City Treasurer
(1976 -1979) Managed a. deparfinent.responsible for administering the budget and general accounting -
plus water billing, treasury management, business licensing and data processing of a full- service city.
Developed and implemented an integrated on -line financial and program budgeting system. Prepared
City's first Annual Financial Report for FY 1978 -79 which received a CSMFO Meritorious Award.
Municipal Finance. Consultant, Lecturer and Author
(1976- Present) Performed accounting' and financial assistance to numerous municipal governments.
Assisted redevelopment agencies, 'housing .authorities, and other specialized districts.. Provided
-contractual accounting services to cities including service as Acting Controller of Compton.
Lecturer on governmental accounting, budgeting, cost accounting and risk;management at the University
of Southern California. �Speaker:at several League of California Cities meetings on risk management
and cost accounting.- Co- author of several articles on risk management published by the Municipal
Finance Officers Association and Western Cities magazine. Co- author ofthe League of California Cities
publication, Cost Accounting for California Cities.
City of Lynwood - Fiscal Officer
(1975 -1976) Created Finance Department. Established centralized purchasing and review of accounts
payable. Administered risk management program. Organized utility billing system for accounting control
and follow -up on delinquents.
Lance., Sol I &, Lu rig hard, CPAs - Senior Auditor
(1971- 1'975) Audited the Cities of Bell California City, Claremont, Costa Mesa, Duarte, El Monte,
Lynwood Montclair, Oxnard, Rialto, San and Whittier. Recommended warrant processing and
receipting procedures. Reviewed internal control and recommended changes, to strengthen same.
Prepared annual financial reports and monitored adherence to generally accepted accounting
procedures.
Publications:
Co- Author of Cost Accounting for California Cities. League of California Cities, 1981 Sacramento, CA
ALBERT RICHARD ('RICK ") KERMER, JR.- (continued)
CLIENTS:SERVED
SERVICE COST STUDIES
SERVICE COST STUDIES (cost:)
City of Alhambra
City of South Gate
City of Banning
City of South Lake Tahoe
City of Big Bear Lake
City of Springville, Utah
City of Brea
City of Thousand Oaks
City of Carlsbad
c City of Tulare
City of Carpinteria
Cityof Turlock
City of Ceres
CitylofUpland
City of Chino
City of Villa Park
City of Claremont
City of Vista
City of Coachella
City of Westminster
County of Contra Costa
City of West Jordan, Utah
City of Corona
City of Cudahy
COST ALLOCATION PLAN
City of Dinuba
Cityof Alhambra
City of Dublin, Ohio
City of Buena Park
City of Folsom
City of Carlsbad
City of Fontana
Cityof'EI Cajon.
City of Foster'City
City of Lynwood
City of Fountain Valley
City of Rialto
Cityof Fullerton
Cityof San Rafael
City of Goodyear, Arizona
Cty:ofSolana Beach
City of Hemet,
City of Thousand Oaks
.City of.Highland
Orange County Vector, Control'District
City of Huntington Beach
County of Imperial
CASH MANAGEMENT
City of,La;Mirada
Cityof Buena;Park
City of .La Palma
City of Commerce
City of Lake Forest
Cityof'Compton
City of Lemoore
La Mirada CivicTheater
CityofLindsay'
City of- Palmdale
City of Los Altos
City of Lynwood
ACCOUNTING PROCEDURES
Cityof Mammoth Lakes
City of Buena'Park
Cityof Marina
Commerce Redevelopment Agency
City of,Merced
City of Compton
City of Milpitas
City of La Habra
City of Monrovia
Cityof?La Palma
City of Monterey
City of Morgan, Hill
City of Moreno Valley
City of Palmdale
City,of'Morgan Hill
South Gate. Housing Authority
City of Norwalk
City of Oakdale
DATA PROCESSING
City of Oceanside
City of La Palma
Oceanside Harbor District
Ontario - Montclair School District
City of Palmdale
City of Palmdale
Cityof Palm,Desert
Cityof San Clemente
City of Pasadena
City of'South °,Gate
City of Pittsburg
City of Villa Park
City of Pomona
City of Port;Hueneme
ORGANIZATIONALAND MANAGEMENT
Cityof Rancho Cucamonga
City of'La Mirada
Cityof'Rancho Palos Verdes
Ontario - Montclair School_ District
City of °Red Bluff
City of'South Gate
City of'Redlands
City of Vista
City of Rialto
City of Richmond
UTILITY RATE STUDIES
City of Riverside
City of Brea
Cityof Rocklin
City of Chino
City of Salinas
City of EI Segundo
City of San Clemente
City of San Juan Capistrano-
LONG RANGE FINANCIAL PLAN
Cityof•San Rafael
City of Chino
Cityof Sanger
City of Cudahy
City of•Santa Clarita
City of Lake Elsinore
City of'Scotts Valley
City of South Gate
Cityof Seal Beach
City of Hesperia
City of Selma
Cityof Turlock
City'of`Sierra Madre
City of Solana Beach
ERIC S. JOHNSON
EDUCATION
Bachelor of Arts - Unive .sltyiof Redlands, Redlands, California
PROFESSIONAL EXPERIENCE'
Revenue & CostiSpecialists /Management Services Institute - Partner
(January 1990-- Present) Provide general financial management assistance to municipalities, counties, and
special districts.
Unit Distribution - Cu stonier ServiceiRepresentative
(July 1989 - January 1990) •Administered a distribution :account for client and acted as a liaison between
client and their customers.
City of Redlands Redevelopment Agency - Redevelopment Intern
(November 1987 i May 1.989_) Researched issues related to Redevel pmentifor'the Director. Audited the
Agency budget. Researched and reported on the Agency's 20% " set - aside "responsibilities for Low &
Moderate Income Housing.
COST OF SERVICE FEE STUDIES
City of Arcadia
City of Atascadero
City of Azusa
City of Banning
City of Carlsbad
- City of Corona
Contra Costa County
City of Dublin, Ohio
City of Folsom
City of Glendora
City of Highland
City of Huntington Beach
Imperial County
City of La Puente
City of Lincoln
City of Lindsay
City of Loma. Linda
City of Long Beach Marine Bureau
City of Manhattan Beach
City of Milpitas
City of Monterey
City of Morgan Hilt
City of Morro Bay
City of Needles
City of'Oroville
City of'Pico Rivera.
City oYPismo Beach;
City of Redlands
Cityof Rialto
City of Santa Clarita .
Cityof Santa Paula
City of Seaside
City of,Solana Beach.
City of South Lake Tahoe
City of South Pasadena'
City of Thousand Oaks
City of Tracy
Town of Truckee
Ventura County Fire District
City of West 6ovine'
Cityof West Jordan,, Utah
City of Westminster
City of Yuba City
CLIENTS SERVED
PROPERTY TAX TRANSFER
City of American Canyon
Town of Truckee
GANN APPROPRIATION LIMIT
San Bernardino Mts. Community'Hospital District
Town of Truckee
COST ALLOCATION PLAN
City of Arcadia
City of°Atascadero
City of Azusa
City of Carlsbad
Coachella Valley Association of Governments
County of Cobb; GA
City of'Corona
City of Desert � Hot 'Springs
City.of Folsom
Cityof Glendora
City of La Puente_
City of: Lathrop
City of,Lincoln
City of. Lynwood
City of Manhattan Beach
City of Needles
Pity-of Oroville
City of Palmdale
City of Pasadena
City of Pismo Beach
Riverside• County ,,Transportaiion.Commission
San Bern ardino Associated Govemmehts
County of San Bernardino Special Districts
City of Santa,Monica
City of Santa Paula
City of Seaside
City of Solana Beach:
City of South Pasadena
Cityrof Suisun•City ,
'Cityof Thousand Oaks
City of Tracy
County of Tulare
EDUCATION
Bachelor of Public Administrafion,•,(B P.A) - San Diego•State'University
Master of Public Administration(M.P,A.) California'StateUniversity Fullerton
PROFESSIONAL EXPERIENCE
Revenue ;& Cost Specialists, L:L.C'. Senior Viee President
(1998-Present) Theprincipals,of Management Services.Institute formed Revenue & CosVSpecialists, as an LLC.
Management Services Institute - Senior Vi' e4President
(1985 -1998) Principal.in a:,municipal;tnanagement services company °providing; diversified financial services.
City of Brea - Management and Budget Manager
(1984 -1985) Developed 'budget. prep aration and management information ,reporting systems. Established
personal computer operations'including acquisition, placement, and mainfenance;lof all equipmentfo initial and
on- going employee `training; Created a.comprehensiye legislative program for. reviewing all federal, state, and
local legislation.
City of Anaheim Budget Analyst /Management' Operations „Auditor'
(1979 =1984) Assisted in the,p re p aration of $350,000,00 0 ,annual budget: ' Provided centralized management
'
support and .assistance of line departments with a variety of services including' work' measurement 'and.
management techniques program development productivity improvement internal:mana g ement audits, budget
review /analysis, revenue forecasting,,. and .:auditing, data processing ;systems development. Specialized 'in
management,assistance to public safety, stadium, convention center, And -golf operations. Responsible for fiscal,
work -unit measurement and.managemeni trainingsessions- required of all city managemerivstaff.
City of Covina - Administrative .Assistant to the , City Manager
(1974 -1979) Performed general; program: development with significant emphasis on the improvement of the
budget process, legislative, pubiic:information, and agenda` process;systems. 'Conducted major annexation study
and effort.
City of Chula 'Vista- Administrative Aide)”
(19134974)Entry'level,J b'which involved completion of'a City" -wide Policy and Procedure, Manual, operation
reviews of1'ong term fire vehicle: equipment,.purchases and.of the municipal'bus system,stop locations.
OTHER ACCOMPLISHMENTS
ABC Elementary &hooMistrict Closure Project = Enrollment `P,r6ections
Charter Oak Unified School District FaciliWClosure Committee =Board •Appointee
Lecturer on various municipal?govermnent /management topics .at two universities
bie af:ww'mreveunecost.com)
PUBLICATIONS Both availa
"Financing Capital Improvements ", Journal American Water Works Association, August, 1991, pages 50 -52
"Impact Fees: Practical Guide for Calculation -and Implementation ", Journal of Urban Planning and Development,
Vol. 18, No. 3, September, 1992, pages',106-118
Resume of Scott Ian Thorpe,, continued
CLIENTS SERVED.
DEVELOPMENT IMPACT FEES
City of. Atascadero„ CA
City of Barstow, CA
City of Big Bear, Lake, CA
Brigham City Corporation„ UT
Carpinteria- Summerland.(CA) "Fire Protection District
City of Carpinteria', CA (l)
City of Chino,,CA (1)
City of, Chino - Preserve (Sub-area 11)
City of Coachella,'CA
City, of.Corona, CA (1)
City of.Corona, -< South CoronarSpecifc P1an.Impact Fees
City, of Hot Springs, CA
City, of Folsom, CA (1)
City of Gilroy, CA, Review ofrEi isting;DIFs
City of:Glendale_CA; Parks, OpenSpace an - d,CommunityFacilit es
City of Gonzales, Police /Fire /Streets /Storm Drainage, . -
City of Greenfield,, CA, ; Police /Fiie/Cornmunity, Centers
.
City , of Hemet, CA (1)'
City" of Highland, CA (1)
June Lake (CA),tire Protection District,
City,of- Kng,:CA
City of Lake Havasu City, AZ'
City , of lemoore CA,
:Long'Valiey (CA) Fire Protection District.
City of Loma ±Linda CA (in,p ;ogress)
Town of:Maminotfi Lakes, CA
Cityrof'Nlorgan Hill, CA
City,ofMurrieta, CA
'City of Noico;'CA
Ciryso North Ogden City, UT
North -(UT) Fire:Departtnent.(1)
City of OrovtlleECAtng /New'Model Colony,, CA
di of'Onta
Town ofParadise, ,CA
City'of Paso:Robles, CA
City of Petaluma, 'CA
,City of Poway, CA, (in progress)
City'.
of Reedley, CA
City of Rialto, CA (1)
CityofAiyerside (City- wide), CA,
City of Riverside CA, Parks /Open Space {K- Rat:Habitat)
City if Riverside Fire Departirient
City ofSanta Paula, -CA.
City ofSedona (1)
City of Selma, CA'(1)
City ofSierra•Madre, CA
SANBAG, CA.
County of
CityofScotts Valley - , CA
South,'Jordan UT (1)
South;Ogden City, UT
City of Thousand.0aks, CA „Review' Existing ImpaceFees
City of Tracy, CA, Public Facilities
Town of Truckee,, CA
City of Tulare; CA
Washington,Terrace City, UT
West Jordan City, UT
Wheeler Crest Fire Protection Districf(in progress)
(I) Includes one or:more impact fee calculation updates
MASTER,FACILITIES PLANS /CIPS
City, of Atascadero
City of Big Bear'Lake„ CA (5 /,IO'year)
Brigham City Corporation, UT
City.of Carpinteria, CA,
Carpinteria- Summerland Fire Proie_ction_ District
City of Chino, CA
City of'Corona, CA
City of Folsom, CA (1)
City,of Deserf Hot Springs, CA
City of Gon Iles, CA
City;of "Greenfield, CA
City!of Highland, CA
June Lake (CA)•Fire Protection District
King Ci ty; CA
City.of'LSake::Havasu:City,. SZ
City of Lorna-Linda CA (in progress)'
Long Valley. (CA) Fire Protection,Disttict
Town of Mammoth Lakes; CA_
Cityw iviurrieta, CA.
City of Norco, CA
North Ogden City, UT
City of Ontario, CA
'City of Oroville, CA
City•:of Poway, CA (in progress)
Town of Paradise, CA
City of Paso. Robles, CA
.Cityof Santa Paula, CA
. city of Sedona, At
City'ofSelma, CA
South Jordan;City; UT
South OgdewCity;'UT
City of Tracy,CA,,Public Facilities
Town of Truckee, CA
West Jordan City, UT
MISCELLANEOUS. PROJECTS'
City "of Azusa, CA-- Bldg. Plan. Cbeckhrispection Process Review'
Brigham City Corporation- Closed Indian School Use,conversion
City, of Colton, CA - Utilities Collection - Procedural Manual
City of Corona, CA - I -1$ Area'Publi Safety Facility Financing
City of Corona; CA - Communication Repeater ,, Cost Financing',
City of Fontana, CA = General' & Departmental Overhead Plan
City of Hemet, CA - Supplemental':DIF Public-Peril-Report
City' of,Higlland, CA - Capital';Financing'Plan
City of Highland, CA = Fee and.Ra_te Schedule.
City of Lake Havasu City, AZ.- Capital, Financing -Plain
Los ,Angeles ;Fire/Police •; Retirement System'- FiscaD.Re'view,
City of Milpitas - Business_License- Ordinance Rev iew•
City of;Redlands, CA = Corp. Ya 1 , Delit.F nancing CosrDist.
City of Redlands, CA -- Solid' Wasie'Collection/Laridfill; St
City of Redlands, CA,- Street Sv✓eeping?Rafe Study
City of.Pico.Rivera - Business L'icense,Ordinance Review
.City ofPort :Hueneme, CA - Revenue Search. Report
San Bernardino County, CA,• Special Dist. Office; Finance Review'
San Diego City - ,Building & Fee•Liiigaiion Assistance
San Diego County Counsel - rlmpact Fee Use:LitigaiionAssistance
City of Santa.Paula Park General;Pfan.Element jwprogrem)
City of Seaside -Hayes Housing, Development Service Demands 1. "Sou[h Business Regulation Cosiing
South "Lake'Tahoe, CA.- Transfer of Custody�Cost.Ve'riftcat on
City'of Westminster, CA - Productivity Measurement`. Module
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