CITY OF PETALUMA REQUEST FOR PROPOSALS
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- Owen Cummings
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1 CITY OF PETALUMA S 1) OVERHEAD COST ALLOCATION PLAN AND OMB CIRCULAR A-87 PLAN 2) USER FEE STUDY 3) CIP ADMINISTRATIVE RATE AND WORK ORDER RATE ANALYSIS 4) PREPARATION OF HOURLY OVERHEAD RATES 5) INTERNAL SERVICE FUND ALLOCATION STUDIES Release Date: August 6, 2013 Proposal Due: August 27, 2013 Contact: Bill Mushallo Finance Department City of Petaluma, California bmushallo@ci.petaluma.ca.us 1
2 Table of Contents 1.0 Purpose Background Information Scope of the Request for Proposal Report Qualifications Project Schedule Required Information 7.1 Cover Letter Scope, Work Plan and Schedule Description of Project Team Experience and Qualifications Client References Fee Schedule and Estimate Appendices Submittal Requirements Selection Procedure 8.1 Proposal Review Team Evaluation Criteria Final Selection Qualifications Questions Discussions and Right to Reject Incurring Costs Disposition of Proposals and Ownership of Data 10.1 Disposition of Proposals Ownership of Data Professional Services Agreement and Insurance Requirements Signatures and Declarations
3 1.0 PURPOSE The City of Petaluma is requesting proposals from qualified firms for: 1. Overhead Cost Allocation Plan and OMB Circular A-87 Plan, 2. User Fee Study, 3. CIP Administrative Rate and Work Order Rate Analysis, 4. Preparation of Hourly Overhead Rates, and 5. Internal Service Fund Allocation Studies. The purpose of this project is to ensure that the City of Petaluma is utilizing comprehensive overhead rates and accurately accounting for the true cost of providing various services within and to all City operations, including capital projects. Additionally, the City must implement an overhead cost allocation plan applicable to Federal Standards as provided in OMB Circular A-87. The models will utilize comprehensive overhead rates in an equitable allocation method and will accurately account for all true costs, programs and services. 2.0 BACKGROUND INFORMATION Petaluma is located in southern Sonoma County approximately 40 miles from downtown San Francisco, and is situated on the Highway 101 corridor. The City was incorporated as a general law City by the State legislature on April 12, The City operates under a Council-Manager form of government established under a charter election in 1947 and provides the following service; police and fire protection, ambulance service, transit services, parks and recreation, public works, community development, and general administrative services. In addition, the City owns and operates a water and waste water utility, a municipal airport and a marina. Petaluma s fiscal year adopted budget for all funds is $158,992,730. The General Fund adopted budget is $35,021,085. The current method of cost allocation used by the City is supported by a full cost allocation plan ( Plan ) in accordance with the policies and procedures contained in OMB Circular A-87. The Plan was completed in July, 2010 based on FY budgeted financial information. An OMB A-87 Plan for grant claim purposes was not compiled from the Full Cost Plan completed in FY The last User Fee Study was completed in August User fees are updated annually on July 1 based on CPI index. A CIP overhead rate was also prepared in conjunction with 2010 cost plan. Internal service fund rates are currently set each year based on a specific allocation methodology relevant to each fund to recover costs provided to other departments. 3.0 SCOPE OF THE This Request for Proposal (RFP) is a step in the planned procurement action to acquire the desired services and/or products. Firms responding to this RFP shall be prepared to deliver products and perform the work necessary to provide the bulk of the services described within two months of the issuance of a contract. The project consists of furnishing all labor, materials, equipment, tools, supervision and travel necessary to complete the following tasks: 3
4 3.1 Work with selected City staff to define the purpose, uses, and goals for an overhead cost allocation plan, ensuring that the development of the plan will be both accurate and appropriate for the City s current needs. 3.2 Develop an Overhead Cost Allocation Plan Model for calculating the full costs of providing each City service and an OMB Circular A-87 applicable plan for use with Federal Grants and Programs. The requirements of the model shall allow for: 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 The ability to continuously update the model and overhead cost allocation plan from year-to-year as the organizational structure changes and the costs change Provide justification to support internal and external rates and/or percentages charged by departments for cost recovery, including Capital Improvement Projects. 3.3 Preparation of Hourly Overhead (Work Order) Rates of City employees. 3.4 Work with the City in developing service provisions, cost categories and allocation criteria for current and future programs. 3.5 Prepare Overhead Cost Allocation Plan and participate in the presentation to the City Manager, City Council and City staff. Collect and document comments and concerns. 3.6 Prepare final plans for both OMB Circular A-87 Cost and Total Full Cost Allocation Plan and provide 5 bound copies, one unbound copy, file in PDF format and file copy in Microsoft Word format to the City. Electronic files to be ed to bmushallo@ci.petaluma.ca.us. 3.7 Work with City staff to explain the operational methodology of the User Fee Study, with the end result being a fee structure that best fits the City of Petaluma. The User Fees are to be developed from the ground up, starting with the interview of personnel providing end-user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service Prepare draft User Fee Study that indentifies the total cost for each service, the current fees, and makes fee recommendations for each service presented. Review draft report with departments and City Manager for final input on report before presenting final report. Provide 5 bound copies, one unbound copy, file in PDF format and 4
5 file copy in Microsoft Word format to the City. Electronic files to be ed to Prepare a final User Fee Study and present to City Council. Collect and document comments and concerns for follow up as needed. 3.8 Evaluate the City s administrative costs associated with Capital Improvement Projects, and establish both a single, and tiered overhead rate structure for recovery of costs from these projects. 3.9 Evaluate the City s administrative and overhead costs associated with providing planning, engineering, inspecting, building services and establish a billable rate structure for recovery of costs for services provided to customers doing business through various departments, such as community development, public works, police, fire, legal, etc Prepare a draft billable rate schedule that identifies the total cost for each service, the current fees, and makes fee recommendations for each service presented. Review draft report with departments and City Manager for final input on report before presenting final report. Provide 5 bound copies, one unbound copy, file in PDF format and file copy in Microsoft Word format to the City. Electronic files to be ed to bmushallo@ci.petaluma.ca.us Prepare a final billable rate schedule and present to City Council. Collect and document comments and concerns for follow up as needed Prepare hourly overhead rates for each category of employee Prepare internal service fund allocation studies for the City s Information Technology, General Services, Liability Insurance, and City Attorney operations Review and comment on current allocation methodologies for the Employee Benefits and Worker s Compensation funds. 4.0 REPORT 4.1 Prepare final plans and provide 5 bound copies, one unbound copy, file in PDF format and file copy in Microsoft Word format to the City. Electronic files to be ed to bmushallo@ci.petaluma.ca.us. 4.2 The Cost Allocation Plan Model developed shall also be made available to the City electronically to provide the ability to add or delete, and/or update information as needed. 5
6 5.0 QUALIFICATIONS CITY OF PETALUMA, CALIFORNIA 5.1 The qualified firms shall have extensive experience developing an overhead cost allocation plans for agencies of similar size and range of services as the City of Petaluma. 5.2 The qualified firms must be properly licensed, staffed, equipped, and financed to perform the work relevant to a project of this nature. 5.3 The qualified firms shall have proven methodologies for the collection and analysis of cost data relevant to a project of this nature and for the conversion of the data to the studies specified in this RFP. 6.0 PROJECT SCHEDULE The major events within the selection process for determining the Overhead Cost Allocation Plan vendor are outlined below. An approximate schedule of these events is as follows: Event Schedule RFP Issued Aug 6, 2013 Receive responses no later than Aug 27, :00 p.m. (PST). Oral interviews at City s discretion Selected firm notified Presentation to City Council for approval Begin project TBD TBD TBD TBD 6.1 The City expects to award a Professional Services Agreement in September, As input on certain issues is needed for development of the City s budgets, final reports are desired by December,
7 7.0 REQUIRED INFORMATION 7.1 Cover Letter CITY OF PETALUMA, CALIFORNIA The cover letter shall be signed by an official authorized to bind the firm and shall contain a statement that the proposal is valid for ninety (90) days. As well, the cover letter shall serve as the introductory letter, and should provide a summary of the proposal, an overview of the project and should include a brief description of your understanding of the services to be provided, as well as your approach to providing such Provide the name, address, phone number, fax number, and address of your firm s contact person for this Request for Proposal Provide a description of your firm, including the size (number of employees), number of years in business and areas of specialization. 7.2 Scope of Services, Work Plan and Schedule Provide a description of the work program including a description of deliverables and activities that will be undertaken. Consultants should describe their approach for managing the project, schedule and communicating with the City Consultants should describe their technical approach to the work, and should list specific tasks necessary to fulfill the project requirements. Proposers are encouraged to amplify the scope of services, and to identify any supplemental tasks necessary or recommend any alternatives that may enhance the project or reduces its costs Provide a schedule that includes resource (both City employees and vendor employees) requirements, a step-by-step work plan of all activities involved in the conduct of the work, and timelines for those steps, identifying major steps and milestones. 7.3 Description of Project Team Experience and Qualifications Describe your firm s qualifications to provide the scope of work as outlined in Section 3. Include recent projects of a similar nature Provide the background, qualifications and experience of professional staff to be assigned to this engagement. Specify who the Project Manager (lead person) will be for the project. Describe projects of a similar nature in which they had hands on responsibility. 7
8 7.3.3 The qualifications of each of the Principal and senior consultants should be spelled out in this section (resumes for those people included in Appendix). Those who are named must continue to have a direct, hands-on role in the project. The City may insist on Principal-level participation at every stage of the project. Any substitutions will require prior City approval Identify sub-consultants if any, and the role of each, spelled out by task. 7.4 Client References Provide the names, titles, addresses, and telephone numbers of a contact person for at least three references. It is preferred that this list includes organizations for which your firm has performed similar services as outlined in this RFP. It is preferred that this list include municipalities of the approximate size of the City of Petaluma Provide a complete listing of all California Municipal agency clients. 7.5 Fee Schedule and Estimate The consultant shall present a specific not to exceed fixed fee including associated fees (i.e. printing costs, etc.) with separate fee proposals for the OMB Circular A-87 applicable plan, full allocation cost plan, user fee study, CIP rate analysis and preparation of hourly overhead rates. The fee estimate shall include: 7.6 Appendices A listing of tasks required to accomplish the scope of services An estimate of the labor hours for each task, by position classification The proposed hourly fee schedule for calendar year All reimbursable fees and expenses, noting that the City will not pay for lodging, vehicles or travel time The qualifications of professional personnel who will be working on the project. 8
9 7.7 Submittal Requirements CITY OF PETALUMA, CALIFORNIA Proposers should respond to only those items requested, and brevity will be appreciated. Proposals should include, in this order: Cover Letter Scope Project Team References Fee Schedule Appendices Each section of your response should be clearly defined and separated from the others. Each section of your response should clearly match the number schema of this RFP. For example, response to item number should be clearly labeled: Proposal packages must be in hard copy, PDF and Microsoft Word document. Someone authorized to execute legal documents on behalf of your firm must sign the original transmittal document. Please submit five (5) bound copies of the completed proposal. Electronic files to be ed to All Mailed Proposals shall be addressed as follows: Bill Mushallo Finance Director City of Petaluma 11 English Street Petaluma, CA The envelope shall also have stated thereon the name and address of the submitting firm All proposal packages shall be received at City Hall at the address indicated in Item no later than, 4:00 pm (PST) on August 27, Proposals will not be accepted thereafter. All proposals received after said date and time will be returned unopened to the submitter Facsimile proposals will not be considered. Postmarks will not be accepted Please note that your response becomes property of the City of Petaluma and a matter of public record It is preferred that the basic proposal be submitted in standard 8 ½ by 11-inch page format. Attachments or enclosures may vary in size as necessary. Each response must be clearly numbered and match the RFP item number schema, i.e.,
10 City of Petaluma is not responsible for proposals that are delinquent, lost, mismarked, and sent to an address other than that given above, or sent by mail or courier service. The City of Petaluma reserves the right, after opening the proposals, to reject any or all proposals, or to accept the proposal(s) that is, in its sole judgment, in the best interest of the City of Petaluma. 8.0 SELECTION PROCEDURE 8.1 Proposal Review Team The review team may consist of some or all of the following: City staff, outside experts, representatives of the local business community, members of other local or regional organizations, and representatives of the public. The final approval of any contract award recommendation will necessitate review and approval by the City Manager and the City Council. 8.2 Evaluation Criteria Each firm shall submit a written proposal package, which shall include the items requested in Section 6. Failure to include any of the required information listed below may disqualify your proposal. Proposals will be evaluated on the following factors: Responsiveness to the instructions, requirements, terms and conditions of this RFP Project methodology and work plan. Demonstrated understanding of the project scope and tasks to be completed Project team s qualifications, expertise and overall experience in carrying out the scope of service Firm s municipal public sector experience conducting similar studies for cities of similar size and complexity Firm s ability to commence work immediately and accomplish the requested services in a timely fashion and within the contracted time References Cost 8.3 Final Selection The City may interview a limited number of finalists following the review and ranking of proposals. 10
11 8.3.2 Firm s invited to oral interviews will be provided with additional instructions in preparation of such interviews. The City reserves the right not to select any of the submitted proposals. 8.4 Qualifications The City reserves the right to proceed with any subsequent procurement contract award to any firm based upon responses to this Request for Proposal and exclude those firms that are deemed not qualified. 8.5 Questions Additional information and/or questions should be directed to Mr. Bill Mushallo by at bmushallo@ci.petaluma.ca.us. All answers to questions will be sent via to an interested parties list so that all can review the questions and answers in the same timeframe. All identifying information name, firm, and address of the person asking the question will be removed prior to distribution of all responses. Responses will be provided within two (2) business days. 8.6 Discussions and Right to Reject Proposals 9.0 Incurring Costs The City may award a contract on the basis of proposals submitted, without discussions, or may negotiate further with those firms within a competitive range. Proposals should be submitted on the most favorable terms the firm can provide. After selection of the consultant, the City and the consultant shall negotiate the contract under which the work shall be performed. All items submitted in the consultant s proposal shall be subject to negotiation The City reserves the right to reject any or all proposals. 9.1 The City is not liable for any costs incurred by firms in responding to this RFP. 11
12 10 Disposition of Proposals and Ownership of Data 10.1 Proposals submitted in response to this RFP shall become the property of the City and a matter of public record. The firm must identify all copyrighted material, trade secrets or other proprietary information that they claim are exempt from disclosure under the Public Records Act (California Code Sections 6250 et seq.). In the event such an exemption is claimed, the firm shall state in the proposal that they will defend any action taken against the City to release such exempt material Upon completion of all work under this contract, ownership and title of all plans, reports and documents produced as part of this contract will automatically be vested in the City of Petaluma. 11 Professional Services Agreement and Insurance Requirements 11.1 A copy of the City s standard Professional Services Agreement and related insurance requirements are attached for your information. Please provide a statement showing your present coverage including appropriate professional liability insurance coverage, errors and omissions insurance, and Workers Compensation insurance coverage. Please also detail any concerns you may have with the City s Professional Services Agreement. The selected consultant will be required to comply with the stated indemnification provision and all applicable insurance requirements. A current City of Petaluma business license is also required prior to the execution of the Services Agreement. 12 Signatures and Declarations 12.1 Each proposal must be signed on behalf of the firm by an officer authorized to bind the proposal. The City reserves the right to revise this RFP after it has been issued, but prior to the required response date. In the event of a revision an addendum will be sent to all parties known to have received a copy of the original RFP. 12
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