TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
Steve Charelian, Revenue Services Manager
SUBJECT:Title
Contract with Matrix Consulting Group to Perform a Cost Allocation Plan and Comprehensive User Fee Study in the Amount of $38,000 (Finance Director Moe).
APPROVE
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Recommended Action
RECOMMENDATION:
The Finance Subcommittee and staff recommend that the City Council approve a contract with Matrix Consulting Group to perform a cost allocation plan and comprehensive user fee study for a total cost of $38,000.
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FISCAL IMPLICATION:
Funds totaling $40,000 are included in the FY 2013-2014 Finance Department budget for the cost allocation plan and comprehensive user fee study. The cost of the project is $38,000.
BACKGROUND:
In 2010, the City conducted its most recent cost allocation plan and user fee study, which identified the labor involved in providing each discreet service, and assigned the fully-burdened rate (i.e. direct labor costs as well as indirect costs) for each City position involved in service delivery. The purpose of the cost allocation plan is to ensure that the City is utilizing comprehensive overhead rates in the accounting of the true cost of providing various City services, as well as maximizing the recovery of General Fund indirect costs from identified enterprise and other chargeable funds.
City Council adopted a policy that we review and update the fees periodically. A new user fee study will examine all of our user fees (located in our Resolution of Fees) and provide us with updated costs of providing the services. With limited abilities to raise revenues, it is becoming increasingly important that we fully recover our costs for the services we provide when appropriate. These revenues typically go to the General Fund for use in fundi...
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