> 4u. In i 33 iw, 1? & iiiii ife!^ I IIIlie * HI. fa-4 I!««: i! . ca? Ron Galperin. Controller

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1 a > 4u V, In i 33 iw, 1? * HI & iiiii ife!^ I IIIlie * 1.4 in I 3. «* i ii ii WSJ xi ii ii uffo wfeun r i.'. C 1 fa-4 I!««: i! 1, 4 I : f^1 zm,. ca? \ Ron Galperin Controller August 30, 2017 Honorable Members of the City Council of the City of Los Angeles Dear Honorable Members: SUBJECT: COST ALLOCATION PLAN (CAP) 38 The Controller prepares a Cost ocation Plan (CAP) annually as the basis for recovering City overhead and fringe benefit costs on Federal and State grant projects. The plan is developed and negotiated with the U. S. Department of Health and Human Services (HHS) under contract with the City's Federal cognizant agency, the U.S. Department of Housing and Urban Development (HUD). The City Council, on April 1, 1986 (C.F ), authorized the Mayor to execute Cost ocation Agreements with copies to be transmitted to the City Council for informational purposes. Agreements of this type consist of schedules of the allocation of overhead and fringe benefit costs to City Departments, the computed overhead and fringe benefit rates, and Federal approval for their use in grant projects. Attached is the fully executed Cost ocation Negotiation Agreement Number 38 between the City and HHS. This Cost ocation Agreement applies to fiscal year We recommend the attached Agreement be noted and filed Sincerely, > 4 EORG$ MATTERA Chief Deputy Controller Attachment 200 N MAIN STREET, SUITE 300, LOS ANGELES, CA (213) * CONTROLLER.LACITY.ORG AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER CD

2 STATE AND LOCAL RATE AGREEMENT City of Los Angeles 200 N. Main Street Los Angeles, CA DATE: August 10, 2017 FILING REF.: The preceding agreement was dated: 09/08/2015 G22201 The rates approved in this agreement are for use on grants, contracts and other agreements with the Federal Government, subject to the conditions contained in Section IV. SECTION I: CENTRAL SERVICE INDIRECT COST RATES* Type From To Rate Location Applicable to 21.74% 6.50% AGING Balance of Dept. Special Fund (Title V) 18.54% 56.35% CITY ADMIN OFFICER (CAO) Petroleum Admin., Proprietary, Capital Projects (Physical Plant) Disaster Grants Coordination 10.17% 0.34% 644% User s Site City Space CITY ATTORNEY Criminal Direct (Proprietary/CRA) Direct (CDD, Housing Authority) 67.38% CULTURAL AFFAIRS 24.30% DEPT. ON DISABILITY 14.89% 3.78% ECON. & WORKFORCE DEVELOPMENT (was CDD) Balance of Department As Needed Employees 0.00% EMERGENCY MGMT. Emer. Prep. Policy & Public Info % 20.42% FIRE 7.54% 8.06% 25.92% HOUSING + COMM. INVEST. Grants Funded Housing Enforcement Housing, Internal Administration 1

3 SECTION I: CENTRAL SERVICE INDIRECT COST RATES* (continued) Type From To Rate Location Applicable to 17.07% LIBRARY 71.33% 69.62% 5.85% MAYOR Executive/Policy Grant Funded/Spec.Prog. City Space Direct Billed 47.20% PLANNING 10.91% 16.41% POLICE 50.62% PUBLIC WORKS DEPT. Board Office Direct: Pub. Svcs. Contract Administration 6.39% Construction Inspection 8.47% 9.03% 13.90% 9.70% 5.12% 10.64% Engineering Stormwater Facilities Eng. Wastewater Facilities Eng. Privately Fin. Imprv. Eng. Street Improvements Eng. Municipal Facilities Eng. Gen l. Mapping & Survey % 16.88% Sanitation Solid Waste Program Wastewater/Flood Control 21.41% Street Lighting 66.47% Street Services 35.14% RECREATION & PARKS 23.19% TRANSPORTATION 27.06% ZOO *BASE: Direct salaries and wages including vacation, holiday, sick pay and other paid absences but excluding all other fringe benefits. 2

4 SECTION II: FRINGE BENEFITS RATES* lype From To Rate Location Applicable to 43.59% 26.70% AGING Balance of Dept. Special Fund (Title V) 36.48% 37.01% CITY ADMIN OFFICER (CAO) Petroleum Admin., Proprietary, Capital Projects (Physical Plant) Disaster Grants Coordination 39.47% 37.89% 34.88% User s Site City Space CITY ATTORNEY Criminal Direct (Proprietary/CRA) Direct (CDD, Housing Authority) 60.04% CULTURAL AFFAIRS 40.47% DEPT. ON DISABILTY 39.80% 18.10% ECON. & WORKFORCE DEVELOPMENT (was CDD) Balance of Department As Needed Employees 41.20% EMERGENCY MGMT. Emer. Prep. Policy & Public Info % 71.30% FIRE 42.13% 42.10% 43.30% HOUSING + COMM. INVEST. Grants Funded Housing Enforcement Housing, Internal Administration 48.67% LIBRARY 45.74% 53.05% 30.67% 3 City Space MAYOR Executive/Policy Grant Funded/Spec. Prog. Direct Billed

5 SECTION II: FRINGE BENEFITS RATES* (continued) Type From To Rate Location Applicable to 42.94% PLANNING 46.52% 69.79% POLICE 43.84% PUBLIC WORKS DEPT. Board Office Direct: Pub. Svcs. Contract Administration 41.82% Construction Inspection 40.29% 41.07% 41.39% 41.02% 39.84% 37.86% Engineering Stormwater Facilities Eng. Wastewater Facilities Eng. Privately Fin. Imprv. Eng. Street Improvements Eng. Municipal Facilities Eng. Gen l. Mapping & Survey 48.94% 44.28% Sanitation Solid Waste Program Wastewater/Flood Control 44.76% Street Lighting 48.14% Street Services 70.32% RECREATION & PARKS 48.10% TRANSPORTATION 49.10% ZOO *BASE: Direct salaries and wages including vacation, holiday, sick pay and other paid absences but excluding all other fringe benefits. 4

6 AGREEMENT DATE: August 10,2017 SECTION III: SPECIAL REMARKS TREATMENT OF PAID ABSENCES Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages and are charged to Federal projects as part of the normal charge for salaries and wages. Separate charges for the cost of these absences are not made. TREATMENT OF OTHER FRINGE BENEFITS This organization uses a fringe benefit rate which is applied to salaries and wages for both budgeting and charging purposes for Federal projects. The fringe benefits listed below are included in the fringe benefit rate. RETIREMENT, FLEX BENEFIT PROGRAM (HEALTH, DENTAL & BASIC LIFE INSURANCE), EMPLOYEE ASSISTANCE, ORDINANCE LIFE INSURANCE, MEDICARE, SOCIAL SECURITY, UNION SPONSORED BENEFITS, UNUSED SICK/VACATION PAYOUT, UNEMPLOYMENT INSURANCE, WORKER S COMPENSATION & HIRING HALL FRINGE BILLED COS'i S In addition to the costs distributed through the rates cited in Sections I and II, the costs of central services listed below may be billed directly to user departments/agencies. PRINTING SERVICES DIVISION DEFINITION OF EQUIPMENT Equipment is defined as tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. This Rate Agreement is issued in accordance with the Customer Service Agreement between DHHS/CAS and the Department of Housing and Urban Development. 5

7 STATE/LOCALITY: City of Los Angeles SECTION IV: GENERAL A. LIMITATIONS: The rates in this Agreement are subject to any statutory or administrative limitations and apply to a given grant, contract or other agreement only to the extent that funds are available. Acceptance of the rates is subject to the following conditions: (1) Only costs incurred by the organization were included in its indirect cost pool as finally accepted; such costs are legal obligations of the department/agency and are allowable under the governing cost principles; (2) The same costs that have been treated as indirect costs are not claimed as direct costs; (3) Similar types of costs have been accorded consistent accounting treatment; and (4) The information provided by the organization which was used to establish the rates is not later found to be materially incomplete or inaccurate by the Federal Government. In such situations the rate(s) would be subject to renegotiation at the discretion of the Federal Government. B. ACCOUNTING CFIANGES: This Agreement is based on the accounting system purported by the organization to be in effect during the Agreement period. Changes to the method of accounting for costs which affect the amount of reimbursement resulting from the use of this Agreement require prior approval of the authorized representative of the cognizant agency. Such changes include, but are not limited to, changes in the charging of a particular type of cost from indirect to direct. Failure to obtain approval may result in cost disallowances. FIXED RATES: If a fixed rate is in this Agreement, it is based on an estimate of the costs for the period covered by C. the rate. When the actual costs for this period are determined, an adjustment will be made to a rate of a future year(s) to compensate for the difference between the costs used to establish the fixed rate and actual costs. D. BILLED COSTS: Charges for the services listed in Section III will be billed in accordance with rates established by the State/locality. These rates will be based on the estimated costs of providing the services. Adjustments for variances between billed costs and the actual allowable costs of providing the services, as defined by 2 CFR 200, will be made in accordance with procedures agreed to between the State/locality and the approving agency. E. USE BY OTFfER FEDERAL AGENCIES: The rates in this Agreement were approved in accordance with the authority in 2 CFR 200, and should be applied to grants, contracts and other agreements covered by 2 CFR 200, subject to any limitations in Paragraph A above. The organization may provide copies of the Agreement to other Federal Agencies to give them early notification of the Agreement. ON BEHALF OF THE FEDERAL GOVERNMENT: BY THE STATE/LOCALITY: DEPARTMENT OF HEALTH AND HUMAN SERVICES City of Los Angeles (STATE/LOCALITY) Digitally signed by Arif M. Karim -A DN: e=us, o-u.s. Government, ou=hhs, ou-psc, =People, cn=arifm. Karii -A, 0, = Date: :31:45 -OS'OO' if (SIGNATURE) (SIGNATURE) Eric Garcetti Arif Karim (NAME) (NAME) Mayor Director, Cost ocation Services (TITLE) (TITLE) AUG August 10, 2017 (DATE) (DATE) HHS Representative: Naomi Tamashiro Telephone: Approved r/zst iwuhaeljv" feuer. By (415)