1. Cost Allocation Plan The City's existing overhead cost allocation plan, updated annually and incorporated into the comprehensive fee schedule, was last studied in 2015. The Consultant will work with City staff to review the current plan and determine whether its methodology follows current best practices and the practices of similar or neighboring cities. If a change in methodology is deemed appropriate, the Consultant will: • Work with staff to define the purpose, uses, and goals of the cost allocation plan, along with key service provisions, cost categories, and allocation criteria for current and future programs. • Develop an updated cost allocation model for calculating the full costs of providing each City service. The model must allow for City staff to continuously update it from year-to-year. • Consult with City staff should the need arise to defend the plan as a result of audits or other challenges. • Provide an electronic copy of the final plan in a format that can be edited by City staff to accommodate changes in organizational structure or costs. 2. Comprehensive Fee Study • Conduct a comprehensive review of the City’s current fee schedule (see sample from fiscal year 2024-25 here), including all sections from General Government Fees to Recreation Fees. Note: business license tax fees will be excluded from this study, with the exception of select administrative fees. • Identify the total cost of providing each City service in a manner consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities. • Identify services currently charged below cost recovery as a policy matter and provide an analysis of how these compare to best practices and the practices of similar or neighboring cities. • Conduct an analysis, consistent with best practices, to update the General Plan Maintenance Fee. • As related to building permit fees, provide a recommended approach to determining building valuation based on best practices in other jurisdictions. • For each City service, identify its full cost and current and recommended and cost recovery levels. Provide direct and indirect costs for each service along with a model for adjusting these fees for the City’s current and future needs. • Recommend appropriate fees for City Council consideration, along with any subsidy percentage for fees where full cost recovery may be infeasible. Fees may be restructured if more effective or optimal approaches are available. • Provide a comparison of fees with 6-10 similar cities in the region, with a City review of the draft list of peer cities prior to analysis. • Report on any other matters that come to your attention in the course of your evaluation that, in your professional opinion, the City should consider. • Provide an electronic copy of the final study, including related schedules and cost documentation, in a format that can be edited and updated by City staff to accommodate changes in organizational structure or costs. 3. Meetings & Adoption Support • Throughout the study, participate in various presentations to select City staff and the City Council as deemed necessary by staff. Collect and document comments and concerns from staff and Council members and incorporate these comments as directed. • Prepare staff reports and adoption materials for City Council consideration. • Provide expert testimony during adoption hearings.
