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HomeMy WebLinkAbout7/7/2004 - STAFF REPORTS (31) DATE: July 7, 2004 TO: City Council FROM: Assistant City Manager-Administratiant= SUBJECT: Approve Consultant Services Agreement with MuniFinancial to provide User Fee and Overhead Cost Allocation Services RECOMMENDATION: It is recommended that the City Council approve an agreement with MuniFinancial, in an amount not- to-exceed $24,000, to prepare a User Fee Study and Overhead Cost Allocation Plan for the City's non-development departments. It is further recommended that the City Council approve and authorize the Director of Finance to prepare an offsetting budget adjustment in the amount of$24,000. SUMMARY: As fiscal limitations are imposed on local governments, it is becoming increasingly important that the City fully recover the actual cost of the services that are provided to the community. The City's existing Comprehensive Fee Schedule, which establishes fees for various services, has never been independently reviewed by an outside consultant. Moreover, the fees that are charged are not directly tied to a cost allocation plan, which allows the city to determine the full cost of operating departments, divisions, programs and services. Because of this, the City may be undercharging for some services, while overcharging for others. In order to properly identify and distribute costs so that the fees that are charged are well-documented and fully defensible, staff is recommending that a comprehensive user fee study and cost allocation plan be performed. BACKGROUND: A user fee, or service fee, is a payment made by an individual for a service that primarily benefits the individual. The City's Comprehensive Fee Schedule has a myriad of fees ranging from the issuance of dog licenses to facility use charges. By law, these fees may not exceed the reasonable cost of the service for which they are collected unless the excess fees are approved by a two-thirds vote of the electorate. Cities typically review and update their fee schedules every five (5) years to validate that the costs of providing services is being properly recovered. The City of Palm Springs has never performed a comprehensive user fee study to determine if we are recovering the full cost of the services being provided. Moreover, the City does not have a method for identifying and distributing administrative costs that is comprehensive, well-documented and fully defensible. Fees have basically been set on a case-by-case basis and periodically increased over the years as labor costs associated with a particular service have increased. Because the City has never performed a comprehensive fee study, it is very likely that the fees currently being charged are not recovering the City's actual cost of the services being provided. In 2003, the City retained MuniFinancial to perform a similar study for the City's Development Services departments. MuniFinancial found that the fees charged by the City's Building, Engineering and Planning departments were not covering 100% of the cost to perform the service. Based on this study and the consultant's recommendations, the City Council approved an across-the-board increase in development fees in March 2004. 1 Staff believes that the user fee study recently conducted for the development services departments demonstrates a clear need to perform a similar review of the fees charged by the non-development departments (i.e., recreation, finance, police, etc.). Therefore, staff is recommending that the City Council approve a consultant services agreement with MuniFinancial to perform a comprehensive user fee study and cost allocation plan. The cost to prepare this plan is $24,000. Although this expense for initially budgeted in the City Manager's Contract Services account, it was inadvertently cut from the final adopted budget. As a result, an off-setting budget adjustment will be necessary. It is anticipated that the study will take two to three months to complete. Tr L. Butzla_�, F�s,�istant City Manager- Administration APPROVED City Manager Attachments: 1. Minute Order 2. Proposal from MuniFinancial dated May 18, 2004 3. Consultant Services Agreement(under separate cover) 2 PROPOSAL TO PROVIDE USER FEE AND OVERHEAD COST ALLOCATION SERVICES FOR THE CITY OF PALM SPRINGS NON-DEVELOPMENT DEPARTMENTS MAY 189 2004 4 MuniFinancial Corporate Office Regional Offices 27368 Via Industria Antelope Valley, CA Phoenix, AZ Suite 110 Los Angeles, CA Sacramento, CA Temecula, CA 92590 Oakland, CA Seattle, WA Tel: (909) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (909) 587-3510 www.muni.com 77 L"YMuniFinancial ' 4' May 18, 2004 Mr. Troy Butzlaff Assistant City Manager City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, California 92262 RE: Proposal to Provide Additional User Fee Study and Overhead Cost Allocation Plan Services for the City of Palm Springs Dear Mr. Butzlaff: As requested, we are pleased to submit this proposal to provide User Fee Study and Overhead Cost Allocation Plan Services for the City's Non-development Departments that generate fee revenue. We have recently completed a User Fee Study and Overhead Cost Allocation Plan for the City's Development Departments and will continue this next effort by providing experience and quality the City has come to expect. We have assembled a team of senior staff for this effort, ensuring the highest quality work product for the City. Bob Quaid, Senior Project Manager in the Financial Consulting Services Group at MuniFinancial, will serve as project manager for these studies and will be your day-to-day contact. Assisting as analyst will be Jennifer York. I also have extensive cost allocation and user fee project experience and will complete the team as technical advisor. Our team will provide you with the requisite experience and technical knowledge necessary to successfully complete these projects. Thank you for the opportunity to present our credentials for your review. We hope to be of service to you in the near future. If you have any questions,please feel free to call Bob Quaid or me at (800) 755-6864.You may also send e-mail to bobq@muni.com. Sincerely, Mun�iFinaancial Brian Jewett Division Manager Financial Consulting Services Group Enclosure 27368 Via7ndustria,Ste. I10 Tel. (909)587-3500 Tmerarla, California 92390 avwm.nzuni.cara Fax(909)587-3510 TABLE OF CONTENTS INTRODUCTION TO MUNIFINANCIAL 1 Financial Consulting Services 1 COST ALLOCATION PLAN SERVICES 2 Cost Allocation Approach 2 Cost Allocation Work Plan 3 Cost Allcoation Project Schedule 6 USER FEE STUDY SERVICES 8 User Fee Study Approaches 8 User Fee Study Work Plan 9 User Fee Study Schedule 11 THE CITY OF PALM SPRINGS' TEAM 12 Bob Quaid 12 Jennifer York 12 Brian Jewett 13 REFERENCES 15 FEE FOR SERVICES 16 Additional Service Information 16 ManiFinanaal Cety of Palm Spring, CoatAllocation Plan dr UrerFee Study Page i INTRODUCTION TO MUNIFINANCIAL MuniFinancial is one of the largest public-sector financial consulting firms in the United States with corporate headquarters in California and regional offices throughout the country. Since 1987 we have helped over 600 public agencies and nonprofit organizations successfully address a broad range of financial challenges. MuniFinancial assists local agencies with arbitrage rebate, investment consulting, municipal disclosure, and special district administration. In addition, MuniFitiancial assists local agencies with long-term financial plans and cash flow modeling, cost allocations, development impact fees,rate studies, and property tax audits. MuniFinancial has the largest special district formation and administration practice in the nation.We are also Imown as the preeminent municipal disclosure firm as well as a major provider of arbitrage rebate services. The firm currently has a staff of 70 dedicated professionals with the range of expertise necessary to provide high-quality service to all our clients. Given the breadth and depth of expertise among our staff, MuniFinancial is able to offer clients a full range of financial services: • Financial planning and revenue enhancement, including financial projections and policy analysis,plus rate,user fee, and cost allocation studies; • Capital improvement planning and financing, including infrastructure financing plans and impact or connection fee studies; • Economic and fiscal policy analysis of proposed projects and plans, including government reorganizations studies; and • Special district implementation and administration, including district formation and voter campaigns, plus administrative services such as levies and delinquency management, and debt compliance services such as municipal disclosure,and arbitrage rebate. MumFinancial has been built on deep, continuing relationships with local government department staff. With hundreds of ongoing client relationships in finance, engineering and other services, we have been consistently called upon to assist staff with a range of special projects. In response to this need, we formed the Financial Consulting Services division,with experienced staff in offices in both northern and southern California. We want to emphasize that all our work incorporates excellent public communication strategies and skills. As voter approval becomes the norm for revenue measures, we offer expertise in communicating persuasive information to the targeted group, whether developers, land owners or the general electorate. We provide clearly written report summaries, on-point public presentations and strong meeting facilitation skills. MuidFinandal City of Palk Spring, Cost Allocation Plan dam'User Fee Study Page 1 0:� �- COST ALLOCATION PLAN SERVICES The purpose of a cost allocation plan engagement is to ensure that the City of Palm Springs is maximizing the recovery of General Fund indirect costs from its various Enterprise and other chargeable funds. To achieve this goal, the City must have a method of identifying and distributing administrative costs that is comprehensive, well documented and fully defensible. A cost allocation plan coupled with comprehensive overhead rates will enable the City to achieve this goal. Furthermore, a cost allocation plan will establish Proposition 218 compliance for interfund transfers. The League of California Cities Proposition 218 Implementation Guide states the following: "To calculate an enterprise fund's fair share of city overhead expenses, some public agencies use an organization-wide cost allocation plan based on the Federal Office of Management and Budget's A-87 standards. This document was originally created in the 1960s to help local governments determine appropriate levels of reimbursement for indirect costs associated with administering federal grant programs." Accordingly,we believe that a cost allocation plan is an excellent way to ensure interfund transfers comply with Proposition 218. Another benefit of a cost allocation plan is that it allows a city to determine the full cost of operating departments, divisions, programs, and services. To cultivate a high degree of confidence in the City's reporting/accounting figures, the plan should be prepared by an objective consultant with a great deal of practical cost allocation plan experience. Because the City receives federal funding, the consultant should also have experience negotiating plans with cognizant oversight agencies. We believe our proposal reflects MuniFinancial's ability to address dnese needs in an efficient and effective manner. The City of Palm Springs needs a cost allocation plan that can survive intense scrutiny and recover as much overhead as legally permissible. Our approach accomplishes both goals. Cost allocation plans should be simple in concept and form. Yet all too often plans are prepared in a confusing and needlessly cumbersome fashion. Our plans are easily understood by nonfinance-oriented individuals and are presentable to finance committees and to the public. Ourpolicy of keeping the plan simple enahles the City to update the plan in-house. We use a single-step process that is recognized by federal cognizant agencies, yet is user friendly. The logical presentation of our plans fosters confidence in their results and facilitates adoption and implementation. However, to pass external scrutiny, simplicity is not enough. We will adhere to all state and federal guidelines.We will include a "Certification Statement"with the plan verifying that OMB Circular A-87 has been followed and that consistent methods have been used. If necessary,we will negotiate your plan with a federal cognizant agency or the State. MuniFinancial City ofpabi!Spring, CostAllocaton Plan&User Fee Study Page 2 CW� � � �� We use Microsoft Excel for our cost model because it is effective for allocation methodologies and can be easily understood and updated by finance staff. Below we present our proposed work plan by task. Since similar work was previously performed with the Development Departments study, some of these proposed tasks may be reduced in scope or eliminated to avoid duplication of effort. Task 1: Kickoff Meeting The objective of this task is to gain an understanding of the desired results and determine the City's expectations for the project. For this task, we schedule a kickoff meeting with Finance Department staff to determine goals and objectives for the cost allocation study, City of Palm Springs organizational structure, its policies and procedures, and discuss tithing issues. Task 2: Collect and Review Data and Documents For this task, we gather relevant cost and budget data. These items include, but are not limited to, operating and enterprise budgets, organizational charts, salary listing, benefit information, and direct billing schedules. We review all relevant cost data, budget documentation and other related documentation to further enhance our understanding of the issues and work processes and begin to identify relevant allocation bases. Task 3: Conduct Department Interviews In the last step of the data collection we meet with representatives from central services departments to determine functions and processes within each department. We will determine the activities and tasks each staff member performs on a daily basis. Through these interviews and results from previous tasks, we will identify direct charge out employees and identify the bases for each function. We will determine the reasonable relationships between each staff member and functions, and the allocation bases. We will use the direct billing schedules to identify areas where employees are directly charged out to other departments so that we avoid "double dipping"in the allocation process. We will also meet with the enterprise fund managers to explain the process and listen to and address any concerns they may have. Task 4: Process Data and Prepare Draft Cost Plan We will take the data gathered from previous tasks and results from our interviews to develop a draft cost plan that will allocate central services costs to the appropriate City operations.We then run a series of logic checks and cross checks. We employ the single-step methodology recommended by OMB Circular No.A-87. Our model is Microsoft Excel based and is user friendly. Mttn0nancial City of Palm Springs, Cost Allocation Plan dam'User Fee Scudy Page 3 Task 5: Review Results with Selected Staff and City Council and Prepare Revised Cost Plan We will conduct a meeting with Finance Department staff to review the results of the prelin-rinary cost plan. We will collect and document comments and concerns. Should any revisions result from the meeting,we will incorporate them in the final cost plan. Task 6: Prepare Final Cost Plan We will prepare and deliver to the City the final cost plan (three bound copies and one unbound copy), incorporating any revisions. An updatable electronic copy of the Overhead Cost Allocation Model will also be provided on diskette. Task 7: Prepare OMB A-87 Certification Statement We will include a Certification Statement with the plan verifying that OMB Circular A-87 has been followed and that consistent methods have been used. This statement will also confirm that costs charged as direct costs of federally supported programs have not also been treated as indirect costs. If necessary we will negotiate your plan with a federal cognizant agency or the State. Task 8: Prepare Comprehensive Overhead Rates Based on the final figures from the cost plan we will construct a schedule of comprehensive overhead rates to ensure that the City of Palm Springs is accurately accounting for the true cost of providing services. Task 9: Present Plans to City Management If requested by City staff, we will present our allocation approach and findings to City staff and/or City Council at a regularly scheduled meeting or study session. Annual Update of Cost Allocation Plan MuniFinancial offers services whereby the City can update the cost allocation plan on an annual or as-needed basis in-house. Our model is based in Microsoft Excel and is easily updated from one year to the next. With minimal training, City staff can reflect budgetary or staffing changes and quickly print and implement resulting schedules. Within our base fee, we include up to four (4) hours of training in the use of the cost allocation model. This fee also includes a "help line," available for as long as you continue to use our model. We understand that even user-friendly systems require refresher training when used only once per year. Also, key staff may turn over or be reassigned. Accordingly, we propose the following options to facilitate updates of the cost plan: Optional Service #1: MuniFinancial Provides Assistance. MuniFinancial will assist the City as its employees update the cost plan. We will provide two days of on-site guidance and eight hours of office time to reorient City staff and reflect staffing, budget and statistical changes to the cost plan model. Any remaining time will be devoted to answering questions from staff. IVhra&Manrial City of Paki Spring, CostAlloratim Plan&User Fee Study Page 4 C;-V Optional Service #2: MuniFinancial Updates the Calculations. MuniPkiancial will provide a comprehensive update of the cost allocation plan and indirect cost rates. Additional Information We anticipate that we will require six weeks to prepare the draft plan and two additional weeks to prepare a final version. Delays are possible if the City does not provide data in a timely manner. This proposal includes two (2) meeting dates with City staff and up to three (3) management presentations during the course of this project. MuniFinancial City of Pak)Springs, CostAllocadon Plan&User Fee Study Page 5 ,q p� Following is a timeline estimate for cost allocation plan tasks. Start date:July 1,2004 "C��4iltioit Task Responsible Party Beginning End Date Date Authorization to Proceed City of Palm Springs 6/30/04 6/30/04 Task 1: Kickoff Meeting MuniFinancial/City 7/1/04 7/14/04 Task 2: CoDect and Review Data MuniFinancial 7/1/04 7/14/04 and Documents Task 3: Conduct Departmental MuniFinancial/City 7/14/04 7/28/04 Interviews as 4: Process Data/Prepare MumFinancial 7/29/04 8/4/04 Draft Cost Plan Task 5: Review Results with Selected Staff and City Council and MuniFinancial/City 8/05/04 8/11/04 Incorporate Revisions Task 6: Prepare Final Cost Plan MuniFinancial 8/12/04 8/18/04 Task 7: Prepare OMB A-87 MuniFinancial 8/19/04 8/25/04 Certification Statement Task 8: Prepare Comprehensive MuniFinancial 8/19/04 8/25/04 Overhead Rates Task 9: Present Plans to City MuniFinancial 8/26/04 9/01/04 Anticipated Support of City Staff To complete our tasks on schedule, we will need the cooperation of City staff. We suggest that the City assign a key individual as project manager for the City. We would expect the project manager to help coordinate our requests for information. We would expect requests for data and requests for review of draft documents to be returned to us within one week. If there are delays on the part of the City, we will need MitnFinandal Cady ofPalar Springs, Cost Allocation Plan&User Fee Study Page 6 ,�-;P)- C � to adjust out schedule of completion accordingly. We would expect to keep the project manager appraised of any information or feedback we need that is affecting schedules. MuniFinancial will make every effort to minimize the impact on City staff in the completion of these projects. We anticipate that staff will be required to spend some time with our consultants during the survey tasks. Typically, staff time during the survey process is estimated at one hour per staff person per survey. We also require two to four hours of supervisor time to review and comment on the draft cost allocation plan and overhead rate schedule. MaivDi anceal Qy ofPadnJ Springs, CostA110catm;Plan&User Fee Study Page 7 USER FEE STUDY SERVICES MumFinancial's Financial Consulting Services group has specific expertise preparing cost of service or user fee analyses and documentation. Our approach includes: • Close coordination with public agency staff to devise a consensus approach; • Strict adherence to key legal and policy issues with regard to service fees, including the percent of cost recovery that the agency seeks to achieve. State law requires that a user fee be set no higher than the reasonable cost of providing a fee-generating service. Our approaches are aimed to meet each agency's cost recovery policy while ensuring that each fee is supported by legally defensible documentation and does not exceed warranted costs;and, • Providing the technical analysis necessary for project participants to resolve policy issues. mr.d We believe there are two basic approaches to calculating user fees,as described below: Case Study Method This approach estimates that actual labor and material costs associated with providing a unit of service to a single user. The case study method is often used when the cost for the service may vary substantially between users, or when the service is only provided intermittently. Costs are estimated based on interviews with staff regarding the time typically spent on specific tasks,and review of available records. Average Cast Method:This approach estimates costs per unit of service by taking the total costs associated with a service across a substantial sample period, such as a year, and dividing by the total number of service units delivered over the same period. This approach is useful when a service is provided on a routine basis and the staff and other costs associated with the service can be segregated out from available budget data. Typically, we recommend the use of the case study methodology. This method is the most flexible in that unit costs can be isolated for easier adjustments in the future. Using this approach, we examine an agency's fee structure from the "bottom up." A "case stud'typical fee model should have three general cost layers: • Direct labor flours. This category refers to staff hours spent on providing a fee-generating service; for example, the lifeguard at the municipal pool and the building inspector on site; • Agency-wide indirect central services. This category may involve costs such 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; and, • Department overhead. This final category may include expenses related to such items as office supplies, outside consultants and membership dues. In addition,it may include management, supervision and administrative support not provided to a direct, fee-generating service. Typically, these items are charged directly to the department, division or project on an item-by-item basis. MuniFinanaal City of Palm Spring, Cott Allocation Plan&User Fee Study Page 8 u° � Below we present our proposed work plan by task. For each task, we clearly state the objectives, provide a description of work to be accomplished, and fist any deliverables. This approach is a standard approach that can be used for reviewing and updating non- development-related user fees such as building and safety, planning, engineering, traffic and streets. Our approach can be modified to fit the City's unique situations. Task 1: Project Management and Document Review The objective of this task is to gain an understanding of City financial considerations, operational processes and policy goals. For this task,we schedule a luckoff meeting with City staff to determine goals and objectives for the fee study, City organizational structure, its policies and procedures for public service delivery, and its financial picture. We also review all relevant documentation to further enhance our understanding of the issues.We anticipate one (1) meeting with City staff during this task. Task 2: Data Collection For this task, we gather relevant cost of service data necessary to calculate appropriate and reasonable department fees. We gather and examine relevant plans, polices, budgets, and staffing records associated with agency services and programs. In addition, we interview City staff that directly and indirectly processes these services. This task may include staff members from other departments within the same agency who might spend time on another department's services, either directly or indirectly. We suggest an approach for data collection that employs staff interviews to gain an understanding of all necessary steps involved with the processing of each service. Once we have achieved this understanding, we may generate comprehensive surveys for the staff member to complete while completing each separate task. During the process, the staff member could make time-tracking notations on the provided form for each step of the process. Once these surveys are completed, we can sit down with the staff member and her/his supervisor to verify and agree upon the responses. In addition, we will gather existing and proposed fee schedules from comparable agencies to use in benchmarldng the study agency's current and proposed fee schedules. We also access and use our knowledge of other jurisdictions to gather cost data and provide recommendations based on this information, if appropriate. We would conduct a working meeting with agency staff to review our progress. We anticipate a total of two (2) meetings with agency staff during this task. Task 3: Develop Fee Model This task involves the development of a fee model to calculate proposed agency or department fees based on data and information gathered in previous tasks. The model will be formatted to include appropriate costs and to ensure that agency policies are met through the imposition of the proposed fees. Key model inputs will include staff and material costs per unit,relevant budget data and appropriate overhead figures. Muni Financial City of Palvi Springs, CestAllocailon Plan dam°User Fee Study Page 9 �8 . Task 4: Calculate Proposed Fee Schedules For this task, we calculate the proposed fee schedules for discussion with agency staff Based on the data collected and the fee model developed in previous tasks, we calculate each proposed department fee schedule. Each schedule provides for cost recovery up to the amount allowed by law and requested as a matter of agency policy. If deemed appropriate by the agency, we will compare the proposed fee schedule with comparable agencies using the fee matrix proposed in the prior task. We conduct one (1) working meeting with agency staff to review our progress. Task 5: Prepare User Fee Documentation This task is the culmination of the entire project. It is the most important task in that it provides the required fee documentation that meets the standards mandated by state law and determined by the Attorney General of the State of California. We usually prepare a first draft of a report that summarizes our findings and recommendations. We submit this draft report to agency staff for review. Based on staff comments, we will prepare a final draft for presentation to the City Council of Palm Springs. We anticipate one (1) meeting to present the study results to the City Council. NLmaFinancaa! City ofPddm Spnngs, CostAllocateon Plan&User Pee Sttdy Page 10 0 1 We anticipate that this non-development services user fee study will be completed within ninety (90) days. This is a typical fee study schedule. Delays are possible if further tasks are warranted and agreed upon Uy he City and MuriFinancial or if City staff re wires more time to complete the time surveys and transmit data to our offices. Following is a timeline estimate for user fee study plan tasks. Start date:July 1,2004 1 Task Responsible Party Beginning End Date Date Authorization to Proceed City 6/30/04 6/30/04 Task 1: Kickoff Meeting/ MuniFinancial/City 7/1/04 7/14/04 Document Review Task 2:Data Collection / Conduct MuniFinancial/City 7/15/04 8/11/04 Departmental Interviews Task 3:Develop Fee Model MuniFinancial 8/12/04 8/25/04 Task 4: Calculate Proposed Fee MuniFinancial 8/26/04 9/9/04 Schedules Task 5: Prepare User Fee MumFinancial 9/10/04 9/30/04 Documentation / Report MuniFinandal City of Pak)Spring, CostAllocatlon Plan&UrerFee SAi y Page 91 THE CITY OF PALM SPRINGS' TEAM Following are detailed resumes of the team members proposed for this project. Mr. Quaid is a Senior Project Manager in MuniFinancial's Financial Consulting Services Group. He has served for the last three years performing quality control reviews for MumFinancial's District Administration Services division. As a certified public account, Mr. Quaid brings an extensive analytical and cost/benefit perspective to the area of user fee analysis. Mr. Quaid will serve as Project Manager and will be your day-to- day contact. With more than 14 years of experience in the public finance industry, Mr. Quaid was associated with the financing team of MumFinancial's parent company, Willdan, for 7 years as a special district consultant. His experience with Willdan included cost accounting and analysis for the City of Orange and the City of Los Angeles. Prior to jointing MuniFinancial, Mr. Quaid spent 15 years in private industry in the fields of real estate accounting and finance. His experience includes organizational budget preparation and reviews, financial statement analysis, asset administration, computer conversions, and reporting to the Securities and Exchange Commission for several public real estate partnerships. Mr. Quaid became a licensed California CPA in 1979. Education Bachelor of Sciences,Accounting,University of Southern California Professional Affiliations California Society of CPAs Ms. York is an Analyst II in the Financial Consulting Services Group at MuniFinancial. Her responsibilities are wide-ranging and include support of project managers, fiscal analysis via fee studies and coordinating and conducting activities involved with the assessment balloting process. Client interaction also falls under her purview. Ms. York will provide analytical support for these studies. Ms. York is also responsible for supporting district formation and assessment re- engineering projects. Her duties include identifying and verifying parcels within district boundaries; researching land use; researching missing data; creating parcel databases and voting tally databases;preparing ballots, notices and envelopes; coordinating printing and mailing; and attending public hearings and tabulating ballots. Ms. York also provides analytical support to User Fee Studies. Ms. York most recently was a member of MuniFinancial's District Administration Services Group, where her responsibilities included the administration and delinquency management of Mello Roos Community Facilities Districts, Assessment Districts, MnniFinanaal Cidy of Palm Springs, CostAllosaizon Plan dr User Fee Stu y Page 12 ��� Landscaping and Lighting Districts, Business Improvement Districts and other special districts. Ms. York has over nine years of experience in the accounting sector. Her expertise includes cost reduction management, budgeting, manpower utilization, general ledger, billings, accounts receivable, accounts payable, and job cost reporting. Prior to joining MuniFinancial, Ms. York worked as a Systems and Technical Consultant where she designed and implemented new accounting systems, created training manuals and prepared troubleshooting materials for several companies. Education Master of Business Administration,Averett University Bachelor of Science,Business Administration,University of Mary Washington Mr. Jewett is Division Manager of the Financial Consulting Services group at MuniFinancial, and works from the firm's Temecula office. His background is in public administration for state and local government. Mr.Jewett specializes in fiscal analysis and financial services to local agencies. He is our lead consultant for cost of service fee studies, utility rate analyses and Proposition 218 re-engineering projects. Mr. Jewett will serve as technical advisor to the team. Selected Project Experience • Cost of Service Analysis, City of San Marcos, CA: Mr.Jewett was the project manager for the review, analysis and subsequent update of the City's Non- development Services department fees. As part of this project, Mr.Jewett examined actual labor and material costs associated with providing a unit of service to a single user. Mr. Jewett developed cost layers for each service unit including direct labor hours, agency-wide indirect central services and department overhead. The resulting fee schedule allows the City to recover up to 100 percent of the costs reasonably associated with fee service provision. Mr.Jewett also gathered fee schedules from similar agencies to compare San Marcos' proposed fees with other jurisdictions. The comparative fee matrix allowed City Council and Staff to benchmark their updated fee schedule and impose fees accordingly. • Cost of Service Analysis, County of Marin, CA: Mr. Jewett was the project manager for this project. MuniFinancial was engaged by the County of Marin to develop new user fee schedules for the County Planning and Environmental Health Services Divisions. MuniFinancial was responsible for reviewing and updating the County user fees, recommending new service fee areas, and providing legally defensible documentation regarding the construction and implementation of the new fees. MuniFinandal City of Paini Springs, CostAlloration Plan dam'User Fee Study Page 13 Cost of Service Fee Study, City of Surprise, AZ: Mr. Jewett was the project manager for this project.MuniFinancial was engaged by the City of Surprise,Arizona to conduct a two-phase cost of service study for the City. Phase one of the study required an in-depth organizational study of the City's Community Development Department. Because the City is experiencing phenomenal growth, City staff is finding it increasingly difficult to provide high-quality customer service given limited staffing and the application of dysfunctional work processes. MuniFinancial staff assisted the City in its efforts to develop a coordinated and consolidated workflow procedure to become more efficient and lessen the likelihood of employee "burnout." Phase two of the study requires that MuniFinancial conduct a comprehensive user fee study for the Community Development Department. The purposes of the study are to develop a fee schedule that sets fees appropriate to the cost of providing City services and to provide legally defensible documentation. Prior to joining MuniFinancial, Mr.Jewett gained over five years of experience working for state and local government, including staff positions within the City and County of San Francisco and the County of San Diego and an internship position with the City of Poway, California. He consulted on land use planning issues for communities within the State of Delaware, and was a consultant to the Governor's Cabinet Committee on State Planning. Education Master of Public Administration,University of Delaware Bachelor of Arts, University of California, Santa Barbara MuwFinanaal City ofPabu Springs, Cost Allocation Plan&User Fee Rady Page 14 REFERENCES We are proud of our reputation for quality service. We encourage you to contact all references provided below. CITY OF PALM SPRINGS, CALIFORNIA Troy Butzlaff,Assistant City Manager (760) 322-8336 CITYOFLEMOORE, CALIFORNIA .Jeff Brlltz,Assistant City Manager (559) 924-6700 CITY OFSANMARCOS, CALIFORNIA Carl Blaisdell,Director of Building and Safety (760) 744-1050 x3240 COUNTY OFMARIN, CALIFORNIA Phil Smith,Director of Environmental Health Services (415) 499-7338 Brian Crawford,Director of Planning (415) 499-6402 CITY OF SURPRISE,ARIZONA Forrest Fielder, Senior Plans Examiner (623) 583-1088 TOWN OFPORTOLA VALLEY, CALIFORNIA Angela Howard,Town Administrator (650) 851-1700 x15 TOWN OF WINDSOR, CALIFORNIA Mathew Mullan,Assistant Town Manager (707) 838-5330 ManiFthancaal 00 of Palm String, CostAllocalion Plan&User Fee Study Page 15 FEE FOR SERVICES This section presents a budget estimate for User fee study for the Non-Development departments. Our fee quote includes all direct expenses associated with the project. If the City requires tasks outside of the agreed upon scope of services, MuniFinancial will invoice the City at our current hourly rates and for associated costs. Invoicing will occur on a monthly basis, as work is completed. I'9 ru,�alCd � 3p1(�ttYo��aeY� ��Cot try Ir'!�aer Yrr _['Y�'c L Fee Study and Specific Brian Jewett rtment Overhead Cost Plan Bob Quad $� 24,000 �r Jennifer York . 4 Additional services may be authorized by the City and will be billed at our then-current hourly consulting rates. Our proposed fees are based on the following hourly rates: Division Manager (Brian Jewett) $$180 Principal Consultant 145 Senior Project Manager(Bob Quaid) 130 Project Manager 105 Senior Analyst/Analyst I1 Qennifer York) 85 Analyst 75 Analyst Assistant 65 Property Owner Services Rep 50 Support Staff 45 MsrndFinancial Caiy of Pabi Springs, CostAUocadzon Plan d9°User Fee Stud y Page 16 6 � 5_„.2t ''RESOLUTION NO '> OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2004-05 FISCAL YEAR. WHEREAS Resolution 20973 approving the budget for the fiscal year 2004-05 was adopted on June 9, 2004; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 20973, adopting the budget for the 2004-05 fiscal year is hereby amended as follows SECTION 1. ADDITIONS Fund Activity Account Amount 001 - General 1100 43200 $30,000 City Manager Contractual Service Purpose To set up account to track cost of consultant cost for review of City's fees and charges. SECTION 2. SOURCE Offsetting revenue in current Fiscal Year Fund Activity Account Amount 001 — General 34110 $30,000 Other Charges — Current Service Adopted this day of 2004. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED AND APPROVEIC�K �'"W"t MINUTE ORDER NO. APPROVING A CONSULTANT SERVICES AGREEMENT WITH MUNIFINANCIAL TO PROVIDE USER FEE AND OVERHEAD COST ALLOCATION SERVICES --------------- I HEREBY CERTIFY that this Minute Order, approving the a Consultant Services Agreement with MuniFinancial was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 71h day of July, 2004. PATRICIA A. SANDERS City Clerk