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Exhibit A ` Appendix' . ATTACHMENT 1 SCOPE OF WORIr CITY OF SANTA ANA REQUEST FOR PROPOSALS FOR FULL COST ALLOCATION PLAN FOR ENGINEERING SERVICES AND/OR INTERNAL SERVICE FUND ALLOCATION STUDY FOR PUBLIC WORKS ADMINISTRATIVE SERVICES RFP NO.: 18-023 Proposers may respond to one or both of the projects detailed below: agar roun The City of Santa Ana is the only city in Orange County delivering capital projects using in- house staff to design and perform construction management with an expectation of full cost recovery. Therefore, overhead cost rates will deviate from a majority of other Orange County cities utilizing general fund subsidies. In 2016, the City hired a consultant to complete preparation of an Indirect Cost Rate Proposal and cost reimbursement services related to the Capital improvement Program (CIP) for the Public Works Agency, The City of Santa Ana Public Works Agency is currently seeking consultant proposals to prepare fiscal year (FY) 16/17, FY 17/18, and FY 18/19 Cost Allocation Plans that are acceptable to federal, state, and local grant agencies. It is critical that the FY 16/17 Cost Allocation Plan is completed, submitted, and accepted by local funding agencies prior to the end of the current fiscal year, which ends June 30, 2017, The City's last updated Cost Allocation Plan was completed for FY 15/16. Most of the grants awarded to the Public Works Agency from Caltrans and the Orange County Transportation Authority (OCTA) Comprehensive Transportation Funding Program for the City's Capital Improvement Program (CIP) projects are distributed on a reimbursement basis. To receive the grant funds, Public Works staff must submit detailed reimbursement documentation, as required by the respective funding agencies. However, because the reimbursement requests include both direct and indirect City employee labor costs, an approved Cost Allocation Plan is required that calculates the appropriate Indirect Cost hate percentage that can be used. os The purpose of this project is to ensure that the City of Santa Ana has a basis of applying comprehensive overhead rates and is accurately accounting fnr the true cost of providing various services within Public Works Agency. A Full Cost Allocation Plan is able to allocate all indirect costs. Additionally, best practices, accounting standards and OMB 2 CFR Part 225 make it necessary for the City to maintain a well -documented Cost Allocation Plan that will help it to appropriately allocate general and administrative costs in its budget; properly identify overhead rates that can be used in the calculation of billable hourly rates for federal and state grants, user fees, and reimbursements from other governmental agencies. The City's goal is to have a well - City of Santa Ana RFP 18-023 Page Al-1