Comprehensive User Fee Study and Cost Allocation Plan Services

The Vendor is required to provide to conduct a comprehensive user fee study and prepare a cost allocation plan with the goal of full recovery of actuals costs incurred for fee-related services.
- Comprehensive User Fee Study
•    Conduct a comprehensive citywide review and evaluation of user fees and charges resulting in recommended cost-based user fees.
•    This will include a thorough analysis of existing fees, development of fee models, and recommendations, including potentially identifying and recommending new fees.
•    Meet with city staff and conduct interviews as needed to gain understanding of the city’s processes and operations. 
•    Conduct a comprehensive review of the city’s existing fees, rates, and charges.
•    Identify the total cost of providing each city service in a manner that is consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, proposition 26 and proposition 218
•    Compare service costs with existing recovery levels. 
•    This should include any service areas where the city is currently charging for services, as well as areas where perhaps the city should charge, in light of the city’s practices, or the practices of similar or neighboring cities.
•    Recommend potential new fees and charges for services that the city currently provides but does not have any fees and/or charges established. 
•    Recommendations should be based on practices by surrounding cities that may charge for similar services, industry best practices, or the consultant’s professional opinion.
•    Recommend appropriate fees and charges based on the firm’s analysis together with the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.
•    Prepare a report that identifies each fee service, its full cost, recommended and current cost recovery levels. 
•    The report should also identify the direct cost, the indirect cost, and the overhead cost for each service.
•    Prepare a report that identifies the present fees, recommended fees, percentage change, cost recovery percentage, revenue impact and fee comparison with cities similar to and in close proximity to city.
•    Report on other matters that come to the consultant’s attention during the course of the study that in their professional opinion the city should consider, including a recommendation on the best the inflator to use to adjust fees annually
- Cost Allocation Plan
•    The cost allocation plan is to establish and maintain a well-documented and defensible plan that can be used to recover indirect costs.
•    Work with city staff to refine the project scope, schedule, and objectives of the city’s cost allocation plan to ensure that the plan is accurate and appropriate to meet the city’s needs.
•    Meet with city staff and conduct interviews as needed to gain an understanding of the city’s processes and operations. 
•    This includes identifying services that overlap different departments so that costs are allocated to and tracked to the appropriate department.
•    Identify each city service included in the plan and document the allocation basis for calculating the cost of providing the service.
•    Work with the finance department in developing service provisions, cost categories, and allocation criteria for current and future activities and programs.
•    Report on other matters that come to the consultant’s attention during the course of the study that in their professional opinion the city should consider.
•    Present the plan to city management and make adjustments as necessary.
•    Provide the city with an electronic copy of the model for adjusting to meet the city’s current and future needs and provide the city with an electronic copy of the final cost allocation plan, including related schedules and cost documentation in a format that can be edited and updated by city staff to accommodate organizational changes.
•    Consult with city staff should the need arise to defend the cost allocation plan as a result of audits or other challenges.
- Budget: $94.9 million

- Questions/Inquires Deadline: September 02, 2025