Comprehensive Cost of Services Study and Overhead Cost Allocation Plan Services

The Vendor is required to provide a comprehensive cost of services study, compliant to propositions.
- Objective is to ensure that the City is accurately accounting for the true cost of providing services and that fees for services mitigate those costs. It is the City’s goal to have:
• A well-documented and defensible cost of service plan that will identify rates that can be used to recover billable hourly costs for services, and
• An overhead cost allocation plan that is both accurate and appropriate for the City’s current needs.
- The addition or removal of direct and overhead costs so that the overhead cost allocation plan can be developed from a simple plan to a progressively more inclusive plan.
- Consultant shall work with the Finance Department in developing service provisions, cost categories and allocation criteria for current and future programs.
- Model shall segregate separate overhead rates for stadium authority General and Administrative costs and Information Technology Internal Services Fund allocations.
- The ability for City staff to continuously update the model and overhead cost allocation plan from year-to-year as the organizational structure changes and the costs change.
- Consultant shall meet individually with City Departments that provide support services to other City Departments, explaining the overall process and gathering information about the services provided by the department to the other City Departments.
- Consultant shall meet with City staff and conduct interviews as needed to gain an understanding of the City’s processes, operations, and types of services offered by each department.
- Consultant shall conduct a comprehensive review of the City’s fee and rate structure with the goal of establishing a consistent and objectively based fee and rate structure that meets the needs of the City and citizenry.
- Consultant shall compare service costs with existing recovery levels. This should include any service area where the City is currently charging for services as well as areas where the City should charge for services.
- Consultant shall review the current adopted fee schedule and make a recommendation on the cost recovery percentage and subsidy level.
- The analysis should include the rationale for recommended changes to the fees and charges, whether an increase or decrease. The identification of new fees and charges should also be explained.