Escalon’s Cost Allocation Plan and Citywide User Fee Study awarded to the lowest bidder

WeEscalon – June 06, 2017.

Escalon City Council awards the Cost Allocation Plan and Citywide User Fee Study to the lowest bidder, Clear Source Financial Consulting at a cost of $26,700.00.

Escalon staff put together a Request for Proposals (RFP) for a Cost Allocation Plan and Citywide User Fee Study that was released on March 16, 2017. There were six proposals received ranging in cost from $26,700.00 to $150,000.00. Escalon staff reported interviewing the three lowest bidders; Clear Source Financial Consulting, Matrix Consulting Group and Willdan.

At the City Council Meeting of June 05, 2017, City Manager Tammy Alcantor, after receiving bids, interviews, and references, requested the City Council to award the Cost Allocation and Citywide User Fee Study Project to the lowest bidder, Clear Source Financial Consulting. After some discussion between Council and staff, the Council approved Alcantor’s request. When asked by members of the City Council, specifically Councilman Ed Alves, why the city needed to pay $26,700.00 out of the general fund for something the City Manager should already know, Tammy Alcantor replied that she did know the information, but really didn’t have the time to put such a report together. She also said that it would most likely be better to have a third party review the process. The City Attorney added that it would give the City an extra layer of protection in case of a challenge on the city’s process.

Escalon City staff currently utilized a method for cost allocation believed to have been developed by previous staff. Recently San Joaquin Council of Governments has requested that the City provide how the methodology was established or solicit for a study to be completed. Escalon staff feels it would be viable to have the method evaluated along with the user fees that are affected by the allocation.

The Cost Allocation Plan will establish a full cost allocation methodology for specific administrative overhead costs that will properly reimburse the City’s General Fund and estimate the anticipated reimbursements to the General Fund. It will allow for additions, revisions, or removal of direct and indirect costs so the cost allocation plan can be easily adapted to a range of activities both simple and complex. It will also provide the ability to continuously update the plan from year to year to accommodate organizational changes.

The Citywide User Fee Study will provide a review of the current comprehensive fee schedule and rate structures for all departments to determine whether the current schedule in place is consistent, objective, and encompasses all areas where fees could be charged. The study will provide Escalon staff with the ability to continuously update both the Cost Allocation and User Fee plans from year to year to accommodate organizational and economic changes.

Below is a summary of proposals received: