Comprehensive Citywide Fee Study and Cost Allocation Plan Services

The Vendor is required to provide a full-service city requesting proposals from qualified and independent firms to conduct a comprehensive citywide fee study and cost allocation plan.
- The City aims to ensure its user fees and charges for services are fair, equitable, and legally defensible.
- The City is comprised of the following departments:
•    City Attorney
•    City Clerk
•    City Manager
•    Community Development
•    Community Services
•    Finance
•    Fire Department
•    Human Resources
•    Information Technology
•    Police Department
•    Policy & Management
•    Public Works
- This study will require close coordination with all departments that charge fees for services.
- This will ensure legal compliance, financial sustainability, and fairness to both service users and taxpayers.
- The consultant will perform a comprehensive, legally defensible, and citywide user fee study that establishes the full cost of all fee-supported services, identifies opportunities for improved cost recovery, and provides a sustainable fee-setting framework.
- Comprehensive Data Collection
o    Request, collect, and review all necessary financial, operational, staffing, and workload data, including:
o    Budgets and expenditure reports
o    Organizational charts and position classifications
o    Salary and benefit schedules
o    Capital and equipment replacement costs
o    Existing fee schedules and authorizing ordinances/resolutions
o    Workload activity data (e.g. permit volumes, inspection hours, service calls).
- Current Fee Practice Assessment
•    Document each department’s existing fee-setting practices, policies, and cost recovery goals.
•    Identify current challenges, inefficiencies, and opportunities for fee restructuring or consolidation.
- Cost Allocation Plan Development
•    Create or update a comprehensive, auditable, and legally defensible cost allocation model, identifying:
o    Direct costs (labor, materials, operating costs, equipment)
o    Indirect departmental costs
o    Fully burdened overhead (citywide overhead, administrative overhead, building/facility costs, internal service costs)
•    Ensure the plan is consistent with industry standards.
- Activity-Based Costing
•    Identify and document all measurable units of service for each fee-bearing activity.
•    Develop time estimates and workload drive based on staff interviews, timesheets, or process mapping.
- Fee Calculation and Cost Recovery Analysis
•    Compare full costs to current fees to determine cost recovery percentages for every service.
•    Identify fees that are under-recovering, over-recovering, or inconsistent with policy goals.
•    Highlight subsidies and quantify the fiscal impact of maintaining or adjusting current cost recovery levels.
- Fee Recommendations and Multi-Year Strategy
•    Recommend updated fee levels based on the cost-of-service analysis and alignment with policy objectives.
•    Provide a multi-year implementation plan, including phased adjustments for substantial changes, CPI indexing options, and strategies for long-term maintenance.
- Benchmarking with Peer Agencies
•    Conduct a comparative analysis of fees charged by comparable or neighboring jurisdictions.
•    Identify market positioning, competitiveness, and best practices relevant to each service area.
- Evaluation of Opportunities for New or Modified Fees
•    Identify services or activities for which fees are not currently charged but could be implemented legally and reasonably.
•    Recommend consolidation, restructuring, or simplification of existing fees for greater clarity and efficiency.
- Public Engagement, Presentations, and Support
1. Staff Engagement
•    Conduct ongoing meetings with City departments to validate assumptions, review findings, and build consensus.
2. Public and Stakeholder Engagement
•    Assist with public outreach materials such as FAQs, presentation slides, and narrative summaries.
•    Participate in community meetings or public workshops, if requested.
3. City Council and Commission Presentations
•    Present findings and recommendations to the City Council and any applicable commissions.
•    Support City staff in answering questions, addressing concerns, and explaining key components of the fee study.
4. Implementation Support
•    Provide assistance in drafting or reviewing fee resolutions, ordinances, and staff reports.
•    Offer post-adoption technical support for a defined period.

- Contract Period/Term: 1 year
- Intent to Bid Due Date: January 12, 2026
- Questions/Inquires Deadline: January 12, 2026