On June 12, 2018, the City Council authorized Agreement No. A2018-126 with Willdan Financial Services to prepare the City's cost allocation plan, conduct a comprehensive fee study, and optional annual updates to the cost allocation. The purpose of a cost allocation plan is to determine 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 by public entities.
The proposed amendment is to provide annual updates to the Fully Burdened Hourly Rates. Annually, the User Fee model's Fully Burdened Hourly Rates will be updated with new budget data, staffing/salary/benefits data, and any needed updates to department overhead factors. The result will be an updated model provided with calculated personnel and department hourly rates. In order to continue with this annual update, staff is recommending Amendment No. 1 to Agreement No. A2018-126 increasing the total not-to-exceed amount from $61,450 to $83,550. This increase will cover an additional year that is needed for the annual update to the cost allocation plan and four annual updates to the fully burdened hourly rates; which will allow us to utilize the plan for five years.