TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
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Agreement with Matrix Consulting Group, LTD for the preparation of a citywide Cost Allocation Plan and User Fee Study.
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2. SUMMARY
At the June 25, 2024, City Council meeting, staff was directed to prepare and issue a Request for Proposal to develop a Cost Allocation Plan and User Fee Study. The City received two responses. Matrix Consulting Group, LTD was the top ranked consultant based on the evaluation of the proposals.
3. RECOMMENDED ACTION
recommendation
Approve the agreement with Matrix Consulting Group, LTD in the amount of $58,500 for the preparation of a citywide Cost Allocation Plan and User Fee Study; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
The expense for this amendment is $58,500 and will be funded through the General Fund (100).
100.1231.51670.00000 Other Professional & Consulting Services
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.
d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
At the June 24, 2024, City Council meeting, staff was directed to prepare and issue a Request for Proposal (RFP) to develop a Cost Allocation Plan and User Fee Study. The purpose of a cost allocation plan is to identify and distribute central service and other administrative support costs to the users of those services. These kinds of costs include finance, facility maintenance, personnel, and certain departmental administrative functions. Cost allocation plans help a city determine the full costs by identifying the indirect/overhead allocations to be added to a program's direct costs. Once developed, the full program costs can help set internal city charges and be used as a basis to establish user fees, permits and applications, billing rates,...
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