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Item 30 - Agreement for Public Works Cost Recovery Analysis Services
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Item 30 - Agreement for Public Works Cost Recovery Analysis Services
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5/30/2024 4:10:27 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
30
Date
6/4/2024
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Step two: Execute - Begin Cost Analysis: <br />1) Input data received from the data gathering meetings into GCP <br />software. <br />a t7 Execute <br />2) GCP reviews for completeness and issues a request for any missing <br />data. <br />3) Review overhead rate calculations and fully burdened hourly rate <br />calculations with City representatives. <br />COST ANALYSIS METHODOLOGY <br />GCP employs three methods of analyzing costs for user fee study engagements: per -unit analysis, <br />case -study analysis, and programmatic analysis. The particular method we use depends on <br />available data, City's goals and objectives and other considerations. Each method is designed to <br />calculate estimated reasonable costs in compliance with the California State constitution. Each <br />method incorporates the five elements of eligible cost as described below. <br />Salary and benefit costs of staff directly involved with <br />Direct Labor Costs service provision. Direct contractor costs. <br />Material costs that benefit a particular fee service. <br />Direct Materials Costs Example: public noticing costs for planning entitlements. <br />Administrative staff (managers, clerical, analysts) within a <br />department/division and line -item expenditures not <br />Department/Divison Indirect Costs specific to one fee service. <br />Citywide Overhead <br />Cross Surmort Costs <br />Central support department budgets (HR, Attorney, <br />Finance, etc.) are allocated to direct service departments <br />based on auditable metrics. <br />Instances where two or more departments contribute <br />direct labor for a particular fee service. Best practice is to <br />consolidate these efforts rather than create two separate <br />fees. Example: Attorney review of a specific plan <br />application. <br />Per -unit analysis method -this is our primary method of user fee cost analysis. We interview the <br />city's subject matter experts to determine the average reasonable time required to complete each <br />fee -related service. Time estimates are then applied against fully burdened hourly rates to produce <br />full cost results. Fully burdened hourly rates incorporate all of the cost elements described above. <br />Government Consulting Partners City of Santa Ana PW Proposal 15 <br />1111_ll <br />
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