25C - AGMT INDIRECT COST ALLOC PLAN

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Agreement with ClearSource Financial Consulting to Prepare an Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology August 20, 2019 Page 3 • General Liability • Employee Benefits • Fleet • City Yard • Building Maintenance • Central Services In addition, ClearSource will be working with the above -referenced Departments to ensure they optimize their understanding for the respective operations and business process when developing the related methodologies. At the conclusion of their (ClearSource) analysis, an information session will be held to ensure Department stakeholders have an understanding of how the costs are arrived along with the distribution of the said costs to City Departments. As such, staff recommends contracting with ClearSource to provide the City's Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology for a period of three years with the option to renew for two additional one-year terms. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #5 (Create a culture of innovation and efficiency within the organization), Strategy F (Explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). FISCAL IMPACT Funds in the amount of $170,700 will be budgeted and available for the following fiscal years: Accounting Unit FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 01110110-62300 $22,000 $14,400 $14,400 $14,400 $14,400 01110100-62300 $33,500 $14,400 $14,400 $14,400 $14,400 Total $55,500 $28,800 $28,800 $28,800 $28,800 APPROVED AS TO FUNDS AND ACCOUNTS: Lv ` Kathryn Downs yvw Executive Director Finance and Management Services Agency Exhibit: 1. Professional Services Agreement 25C-3