City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends that the City Council award a three-year contract to Public
Resource Management Group (PRM) to perform cost allocation preparation
services.
BACKGROUND:
A cost allocation plan is an analysis of the cost of providing central services and the
derivation of formulas that will be used to allocate these by the General Fund to the
Redevelopment Agency, to the various enterprise funds, and to the grant funds. The
basis for the determination of the costs is time sheet notations made by the
employees who render the central services. The allocation formulas are based on
the number of transactions (such as the number of employees [in a given function],
or the size of the budget of that function).
The City had contracted with PRM for the preparation of the cost allocation plans for
the first time last fiscal year. The professionalism of its consultants, thoroughness of
evaluation, and quality work product were commented on by several staff members
involved in the process. PRM also hosted a “Cost Allocation 101” session for staff
members to explain the process and answer questions staff had regarding the
process. PRM is becoming a leading consultant in the cost allocation field in the
State of California.
Meeting Date: 9/26/05 Item Number: C-7
AGENDA ITEM: Award of a Professional Services Contract to Public Resource
Management Group for the Preparation of Cost Allocation Plans.
Contact Person/Dept.: Mary V. Noller,
Budget & Finance
Phone Number: (310) 253-6012
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (09/21/05), Transportation Department,
Public Works, Redevelopment Agency
Department Approval: Marlee Chang,
9/15/05
CAO Approval:
Scott Bixby for Jerry Fulwood 9/19/05
City Controller Approval:
Marlee Chang 9/19/05City of Culver City, California
City Council Agenda Item Report
The PRM work product consists of a full-service cost plan and a cost plan that
conforms to Federal guidelines for agencies receiving Federal grants, such as the
Transportation Department.
FISCAL ANALYSIS:
The City sent a Request for Proposal (RFP) in August 2005 for the preparation of
cost allocation plans. The following vendors submitted proposals:
Vendor
Cost
1
st
Year
Cost |1010|nd
Year
Cost |1010|rd
Year Total
MAXIMUS 9,400.00 7,050.00 7,050.00 23,500.00
PRM 8,000.00 8,400.00 8,800.00 25,200.00
Revenue & Cost Specialists 14,500.00 10,000.00 10,000.00 34,500.00
Muni-Financial* 25,000.00 N/A N/A N/A
* Quote for one year only.
Staff realizes the PRM three-year contract price is $1,700 higher than MAXIMUS.
After reviewing the proposals for various qualifications other than price, such as
consultant interaction with City staff, meeting of deadlines important to the City, and
delivery of work product, staff feels that PRM better meet the needs of the City for
these services. This last fiscal year, City staff time was significantly reduced in
regards to preparation of cost allocation plan information, mainly due to the
professional, timely and streamlined work supplied by PRM. Over a three-year
period, this reduction in staff time is believed to more than make up the financial
difference between quotes.
PRM will provide full services to the City of Culver City for each of the three years,
which include PRM consultant(s) visiting the City to work/interview Budget staff and
the appropriate staff members from involved departments. There is adequate
funding in the Budget & Finance Division budget to pay for the first year of these
services for fiscal years 2005-06. Funding for the subsequent years will be
incorporated in the respective year’s budget.
ATTACHMENTS:
A copy of the PRM proposal. City of Culver City, California
City Council Agenda Item Report
MOTION:
That the City Council:
1. Award a professional services contract to Public Resource Management
Group for the preparation of cost allocation plans for an amount not to exceed
$8,000 in fiscal year 2005-06, $8,400 in fiscal year 2006-07, and $8,800 in
fiscal year 2007-08, for a combined total of $25,200; and
2. Instruct the City Attorney to draft the contract; and
3. Authorize the Chief Administrative Officer to execute the contract.
MEETING DATE 9/26/05
AGENDA ITEM Award of a Professional Services Contract to Public Resource
Management Group for the Preparation of Cost Allocation
Plans
ATTACHMENTS
Page
1 Public Resource Management Group Proposal 1 — 18PRM
August 31, 2005
City of Culver City
Mary V NoIler
Budget Management Analyst
Culver City, CA
Dear Ms Noller,
SENT VIA EMAIL
Public Resource Management Group, LLC (PRM) is pleased to respond to your request
for a proposal related for the development of cost allocation plans for the city of Culver
City PRM's consulting philosophy is based on two major factors 1) the quality of the
people providing the consulting service and 2) the planning and tools utilized This
proposal is designed to provide the city of Culver City the confidence that PRM offers
the best in both areas
The Firm and the People
PRM is a new firm, started in May of 2002 In just under two years, PRM has built a
reputation for providing the industry's best cost accounting services We are now the
state's leading governmental cost analysis firm PRM has had the good fortune of
attracting the very best professional consultants who have a long history with providing
California cities with cost allocation plan preparation services While other consulting
firms have lost staff over the past two years, PRM has had to add staff to meet the
requests of our current clients and as we have added clients at an astonishing rate
As a member of David M Griffith and Associates, (DMG) and Maximus, I worked with
hundreds of city governments on projects related to cost allocation Including preparing
the city of Culver City's onginal cost allocation plan in the early 1980's and later the
cities first two citywide user fee studies in the 1980's and 1990's At the conclusion of
my career with DMG-Maximus, I was the corporate officer responsible for all local
government consulting projects, offices and staff in the Western United States
The first person to join PRM, two years ago, was Ms Erin Payton who is well known to
the city Erin was responsible for the cities cost allocation plan for several years dunng
the 1990's up until she left the firm to join PRM
/Other PRM staff now includes, Brad Burgess, Nicky Cass, Carole and Dick Hazeltine,
Mike Adams, Patrick Dyer and Mr Enc Pansh Recently, Mr Jeff Wakefield previously
with Muni Financial, also joined PRM Jeff was the only person at Muni Financial with
cost allocation plan expenence Before joining Muni Financial, to build their cost plan
credentials, Jeff was a colleague at DMG Each person had their own reasons for leaving
their long careers at DMG/Maximus, but one belief we all hold in common is our desire
to work more closely with clients and not focus on the concerns of a publicly traded firm
Planning and Consulting Tools
PRM cost allocation plan software is designed to be user fnendly It uses Excel as the
report wnter, allowing the user access to the format and data With this access, charts,
graphs and design can be added to the report In addition, tables can be emailed, data can
be put into database programs for additional analysis, etc PRM's cost allocation plan
system has been selected by Riverside, San Mateo, Lassen, Inyo, Plumas and Lake
Counties
This is key because county governments are held to the very strict requirements of OMB
A-87 for their cost plan projects PRM adheres to these requirements when preparing
city cost plans as well We use the full featured model of the double step down process
that is accepted by the State Controller's office in Sacramento, and has been found to be
defensible for enterprise fund allocations and SB 90 claiming Simpler methods may be
used, and we would be pleased to bid using a simpler method, however, these methods
may not be acceptable to the State controller's office and to enterprise fund managers
Recently the following cities selected PRM over their traditional cost plan consultant —
some of these cities had been served by DMG or Maximus for over 20 years
• Sacramento • La Habra
• Santa Barbara • Anaheim
• Folsom
•
Pittsburg
• Burbank • Emeryville
• Huntington Beach • San Jose
• Whittier
In each case, PRM was selected because of our experience, stability of staff, and focus on
the client's interests before our firm's interests
PRM has enjoyed the past years relationship with the city and the staff We felt that our
combined efforts last year produced a cost plan even more accurate than ever before, not
only because of our technical skill but also our emphasis on communication and our
City of Culver City 2 PRM Cost Allocation Plan Proposal
2outreach program to city departments The input from city staff assisted in making the
project a success We look forward to having Enn and Nicky again work closely with the
city on this project
Thank you very much for your consideration of this proposal
Sincerely,
p stadia, Vcaed
J Bradley Wilkes
Public Resource Management Group, LLC
City of Culvei City 3 PRM Cost Allocation Plan Proposal
3TABLE OF CONTENTS
SECTION
Cover Letter
Executive Summary
I
Scope of Services II
Descnption of Project Team & References III
Proposed Budget IV
City of Calve, City 4 PRA/I Cost Allocation Plan Proposal
1/I. Executive Summary
p
ublic Resource Management Group (PRM) is a new firm, started in May of 2002
The focus of the firm is the analysis of the full cost of governmental services This
includes the development of cost allocation plans, indirect cost rates, and the full cost of
providing user fee services and other related cost and revenue enhancement consulting
services As a regionally owned firm, PRM's business model facilitates providing
excellent service and quick response at professional fees that reflect a low overhead firm
While the company is new, it's principal consultant and owner has a long history of
providing professional consulting services to local government in California Mr Brad
Wilkes began working with local governments in California in 1982 as a front-line
consultant Since that time, he has prepared hundreds of cost allocation plans, user fee
calculations and indirect cost rate studies He recently left DMG-Maximus as the
company's Director for all consulting projects, 90 staff members and 5 offices in the
Western States
The City of Culver City's cost allocation plan project presents a complex opportunity
The services requested are challenging and require not only a technical sound consultant,
but one who has the stature required to make presentations to a diverse groups of city
staff and managers Culver City has a long history with both full cost and OMB A-87
cost allocation development Since the 1980s, Culver City has depended on these studies
to allocate general fund costs to enterpnse funds, internal service funds, grant related
City of Culver Cay 5 PRM Cost Allocation Plan Proposal
sfunds, etc The annual indirect cost rate studies have become an integral part of the city's
annual budgeting process
The services described in the city's RFP require a consultant who has a long and varied
background with local government consulting experience Mr Wilkes and Ms Emm
Payton, have such a background, with experience in scores of city governments in
California, and, specifically, with the City of Culver City Mr Wilkes as the DMG
manager for cost allocation plan projects was involved in the original development of the
City's first cost allocation plan in the 1980's serving for many years as the on-site
consultant for the cost allocation plan and user fee project for DMG Mr Wilkes
continued to review and assist in the annual cost allocation plan projects and later
participated with DMG staff in various cost plan and user fee calculation projects
throughout the 1990's
PRM has a number of strengths
1 PRM software is as technical and detailed as any traditional packaged cost plan software
available But a significant advantage is in its flexibility The software was developed
using Microsoft office Using Word and Excel provides PRM with unlimited flexibility
to produce charts, graphs, comparison statistics, etc The reports provide the technical
and detailed documentation needed, but not at the expense of providing user friendly
reports that are inviting to read PRM's software facilitates the use of email to
electronically send the entire excel cost plan report to clients This increases the
communication and allows for a more accurate cost plan
2 A hallmark of successful cost allocation projects is communication, both written and
verbal While the PRM software is designed to produce reports that are well formatted
and inviting to read, of more importance is the personal presentation of the process and
results An introductory meeting to the cost plan project and a final meeting to review
results are offered as standard steps in the City of Culver City project Mr Wilkes will
conduct these meetings and will rely on 20 years of local government experience, and his
ability to present complex costing issues in a straight forward manner
3 PRM understands that the cost allocation plan project is an important part of the
budgeting process Meeting agreed upon schedules will facilitate a smooth integration of
indirect cost data with the budget PRM believes that the city may encounter enough
unplanned events to challenge even the best thought out budgeting process As such, the
city should not have to bear the responsibility of ensuring the cost plan schedule runs
smoothly PRM considers meeting project schedules its responsibility not the City s
responsibility PRM will use only California based staff to prepare the city's cost plan
4 Propose professional fees that reflect the low overhead of a small, local firm PRM will
provide better service a more experienced senior consultant and fees that are less than
anticipated
City of Calve, City 6 PRNI Cost Allocation Plan ProposalIn summary, PRM considers this RFP in the City of Culver City a premier opportunity to
continue to work with one of the best city governments in the State It also offers a
chance to tackle a challenging project in a city with which PRM staff have a long
personal history
City of Culver City 7 PRM Cost Allocation Plan Proposal
7II. Scope of Work
A
s PRM approaches this project for the city of Culver City, we are guided by three
ovemding goals, 1) producing the most technically sound project possible, 2)
managing the project in a professional manner to ensure as much "buy-in" as possible by
city departments and, 3) producing management reports that are professionally presented,
informative and useful
A Project Approach|109| Technical Issues
PRM is committed to developing the most technically correct and accurate indirect cost
study the city has ever had This will be accomplished through expenence, knowledge,
communication and review First, the PRM project manager, Brad Wilkes, has
completed hundreds of similar studies and has over 20 years of expenence working with
California city government He is an expert in the areas of cost allocation, indirect cost
rate development and rate studies for information technology related services Key to his
success has been his interest and ability to explain the indirect cost study process to
general fund departments, enterpnse fund managers, city councils, etc By incorporating
Cay of Calve, City 8 PRM Cost Allocation Plan Proposal
gonumerous meetings throughout the project schedule, the process and deliverable reports
will
• Be more accurate
> Have fewer mistakes — requiring less re-runs of the data
> Require less city staff review
> Be better accepted by enterprise fund managers|109| Management Issues
Communication is paramount for the successful management of a consulting project
PRM relies heavily on face-to-face meetings and brief status reports as communication
tools Both methods assist in 1) setting goals and expectations, 2) meeting goals and
expectations and 3) keeping the city and the consultant working as a team toward the
project conclusion
In any study of this nature, the consultant bnngs a wealth of knowledge from years of
work in other local governments However, because each project is unique PRM
proposes to hold an introductory meeting with city staff to review past indirect cost
calculations to ensure that the proper balance is given to city staff goals and objectives
The purpose for this meeting is two fold First, it provides an opportunity to discuss the
process with users of the indirect study By explaining the process up front, asking for
input and answenng questions, the acceptance level of the allocations will increase
PRM believes it is advantageous to be aggressive with shanng information with
departments who will be charged through the cost plan The greater understanding that
departments have about the process, and the more that they feel like they have been
included, the better the cost plan project will be received
Second, these introductory meetings help to analyze the strengths of past indirect cost
studies and to identify weaknesses that should be improved upon It is important that
city's ideas be heard and implemented By holding an introductory meeting as step one
in the project, potential problems, corrections and staff disruptions will be held to a
minimum PRM views this as an opportunity to provide the city with a ngorous review
of how this work has been done in the past — retain what is working well — change old
habits and outdated methods - and improve on what may be done in a more optimal
method
Dunng these introductory meetings, schedules, deadlines and responsibilities will be
confirmed Once expectations are clearly delineated, the first status report will be written
and delivered to the city PRM will use on-site meetings and bnef status reports to keep
the city informed as the project progresses At a minimum, a succinct and informative
City of Culver City 9 PRM Cost Allocation Plan Proposal
9status report will be issued after each on-site visit The reports will descnbe the goals of
the visit, what was accomplished, the next step, and a discussion of any problems or
concerns|109| Management Reporting Issues
PRM is committed to making the cost allocation process more than just an accounting
exercise Traditionally, the cost plan is developed for a very limited and narrow purpose
— allocation of general fund costs to non-general fund operations However, the cost
allocation plan and indirect cost rate calculation process produces a wealth of
"management and accounting" related data Histoncally, this data has not been utilized
because the format and appearance of traditional cost plan reports are bland, uncreative
and fixed Most users of a cost plan pull a few numbers from the summary schedules and
never open the documents again PRM software produces all the traditional accounting
documents, and generates management reports that include compansons of data, color
charts and graphs, and statistical information that city management staff will find useful
The very format and appearance of PRM reports invite greater use Because of the
flexibility of PRM software, the mounds of data produced can be extracted electronically
using familiar Microsoft tools to develop trends, averages, comparisons, charts, graphs,
etc The once single use cost plan can now be used for a vanety of management
purposes
B Work Plan
Step 1 Project Introductory Meeting
As mentioned on the previous page, it is important that the project start off on the best
possible course PRM recommends holding an introductory meeting with key staff
members that include both general fund departments and non-general fund departments
This will be especially helpful if similar meetings have not been held for a number of
years City staff members change positions, retire, or can benefit from a refresher course
on the cost allocation process due to the passage of time Of course, PRM will look to
city staff for guidance for the purpose and content of the meeting and for a list of invitees
PRM considers a meeting designed to review the project's overall goals and objectives
vital to a successful outcome Agenda items for the introductory meeting could include
)=. An explanation of the cost plan process
> The purpose of a cost plan
• How other cities use the plan
> How to read a cost plan
City of Culver City 10 PRM Cost Allocation Plan Proposal
/0> Example summary reports produced by the plan
> Questions and answers
> Etc
Step 2 Data Review
As soon as possible, lists of basic data requirements will be developed They include
lists of selected staff salary levels, benefit cost detail, operational budgets, etc PRM will
work with the city to develop and gather needed data in the most optimal way possible
Once this basic data is acquired, the cost plan and rate structures will be developed
Step 3 Cost Allocation Plan Development
a) Central Service Department Interview Preparation After the central city financial and
operational data is gathered, PRM interview forms will be completed Before any city
department interviews are begun, PRM interview forms are developed with questions
related to staffing lists, actual salary level, staff titles, department expenditure report
detail, development of pre-interview questions, etc The completion of as much
information as possible before any departments are approached will facilitate 1) a
professionally conducted streamlined interview, and 2) a thorough and complete
understanding of city processes
b) Central Service Departmental Interviews Central service or "allocating departments
are interviewed to ensure that costs are spread in a manner that reflects what work was
done, what departments benefited and what allocation bases are proper - all key
principles stated throughout OMB A-87 While PRM staff will bring a background of
knowledge and ideas to these interviews, it is also important to listen to department
staff who understand more about their particular area of expertise Examples of
departments interviewed will include building maintenance, accounting, management
and budget purchasing etc In addition any internal services funds (ISF) that charge
for services will be interviewed with emphasis on ensuring indirect costs are allocated
accurately so that they can be included in the full cost analysis when calculating ISF
rates
c) Personnel Service Analysis From information gathered in the initial interviews,
Personnel Service Analysis (PSA) worksheets will be completed The PSA provides a
basis for the distribution of departmental costs into departmental functions During
our interviews with central service departments we will discuss each person's
assignments and duties Using timesheets, assignments, or interview notes, we will
determine what percentage of each person's time should be divided into departmental
functions This information will be entered into the PSA worksheets to define
departmental functions Once staff members and their corresponding salaries are
distributed to functions, other department costs like materials and supplies will also be
distributed into the same functions or cost pools This process takes a departmental
City of Culver City 11 PRM Cost Allocation Plan Proposal
/1budget unit and breaks it into functional cost pools, which can then be allocated
throughout the city using a meaningful allocation base This PSA form is shown as
an integral part of the cost plan report With this schedule showing within each
central service chapter of the cost plan, the reader of the plan can follow all the salary
distributions for each central service department This feature is unique among all
other consulting firms offering cost plan services
d) Departmental Cost Distribution Before the allocation base is developed, the PRM
software takes an added step usually not considered in other cost allocation plan
software Salary and departmental supply and service costs are analyzed here and
distributed to the vanous functions within accounting Equally important in Step 2 is
the analysis of "incoming or indirect costs being allocated Each line of incoming cost
is shown and the consultant has the ability to examine each in detail and distribute
each in a unique way across the functions No other software has the ability to
analyze, display and allocate the indirect costs of each central service department in
such detail This detail facilitates review, explanation and audit, leading to reduced
errors and re runs of reports
e) Developing Allocation Bases After the departmental functions are created, and costs
are distributed across functions, a separate meaningful allocation base will be selected
that best reflects the benefit each department in the city receives from the various
services For example, in accounting, once the payroll functional cost pool is
developed, an allocation base will be selected to distribute the payroll cost to all
departments that benefit from the payroll service Using OMB A-87 as a guide, the
allocation base must reflect a connection between the service provided and the service
received An example for payroll could be the number of paychecks issued per
department during the fiscal year — in other words — the more paychecks the
department received, the more payroll cost is allocated
City of Calve, City 12 PRM Cost Allocation Plan Proposal
14III. Description of Project Team & References
T
he project will be conducted by Mr Brad Wilkes, Ms Enn Payton and Ms Nicky
Cass Both Mr Wilkes and Ms Payton have over 17 years of expenence in local
governmental consulting, specifically, in cost allocation and indirect cost rate calculation
Ms Payton is well known to the city — having completed the city's cost allocation plan
many times in the past, including just last year
A Expenence
A sample of the agencies our PRM team members have personally prepared cost
allocation plans for include
City/County of San Francisco
City of Sacramento California
City of Burbank California
City of Culver City California
City of Concord California
City of Watsonville California
City of Stockton California
City/County of Kauai Hawaii
City of Los Angeles California
County of Sacramento California
Counties of Glenn Inyo Lassen
Mono and Mann California
City of Portland Oregon
County of Clackamas Oregon
County of Pierce Washington
City of Provo Utah
County of Salt Lake Utah
City of Tacoma Washington
City Gresham Oregon
City of Hillsboro Oregon
State of Nevada
State of Hawaii
In addition to the direct consulting work represented by the partial list above, Mr Wilkes
also led the development of the DMG cost allocation plan software In this role, he
assisted in the requirement definition, documentation, programming, packaging and
testing of the cost allocation plan software
B Tnnehne
PRM has had great success in meeting timelines and client expectations PRM staff
routinely completes cost plan projects in a quicker timeframe than the city is accustom to
PRM will work with the city to develop a schedule that meets its requirements Typically
Gu y of Culver City 13 PRM Cost Allocation Plan Proposal
/3the timeframe for a citywide cost allocation project is one month to three months
depending on how quickly the city can provide access to allocation data
C References and Resume
Since beginning PRM just under two years ago, PRM has already developed a very solid
list of clients The list below represents a few of PRM full cost and OMB A-87 cost
allocation plan projects These are all full service contracts
References for PRM are as follows
Ms Jill Taura
City of Santa Barbara
Finance Department
(805) 564 5528
Justin Hess
Management Service Department
City of Burbank
275 E Olive Ave
Burbank CA 91502
818 238 5500
Mr Rod Hill
Assistant City Manager
City of La Mirada
(562 464 3340
City of Calve' City 14 PRM Cost Allocation Plan Proposal
/9Mr Brad Wilkes Proiect Director
Mr Wilkes specializes in governmental cost of service studies He has a 20 year background in
local government consulting focusing on cost allocation development, user fee rate calculations,
indirect cost rate calculations, information technology, operations reviews, and cost of services
for state and local governments He is the former Regional Director for all DMG-Maximus
consulting offices in the Western United States His areas of expertise include state and local
OMB A-87 cost allocation plans and user fee analyses, information technology requirement and
cost-benefit studies project management, and rate and service cost analyses During his
consulting career, Mr Wilkes has served as a consultant, manager, senior manager, vice
president, regional director and board member of DMG and DMG-Maximus, both national
management consulting firms Mr Wilkes received his B A from Brigham Young University,
and his M B A from California State University
Representative Experience
• 1982-1985 As a consulting staff member Mr Wilkes was responsible for approximately 20
annual cost allocation plan and indirect cost rate calculations for city and county
governments in California, Oregon and Washington As a team member, Mr Wilkes
participated in data gathering efforts, departmental interviews, and document preparation
• 1985-1987 As a consulting manager and senior manager, Mr Wilkes was responsible for all
phases of a consulting project Responsibility for client management and project scheduling
were added to the day-to-day responsibilities of project work
• 1987 1992 As a vice president, Mr Wilkes became responsible for project staff, project
scheduling, and project management During this time, Mr Wilkes was responsible for over
100 annual cost allocation plan and indirect cost rate projects
• 1992-2002 DMG-Maximus Regional Director for all consulting offices in the Western
States Duties included the direction of 90 employees, five consulting offices, and over 400
annual individual consulting engagements
• 1982-2002 Each year during this 20 year period, Mr Wilkes continued to participate in all
phases of consulting projects In addition to his management responsibilities, he consistently
maintained a list of local government clients for whom he completed cost allocation plan and
indirect cost rate projects By maintaining a continuous exposure to on-site client work Mr
Wilkes maintained all the consulting skills needed to complete any cost analysis related
consulting project
• 2002-present Founded Public Resource Management Group (PRM) and led its growth form
a one person, one client firm to what is now the West's leading consulting firm focused
solely on the calculation of the cost of city and county governmental services
City of Culvei City 15 PRM Cost Allocation Plan Proposal
Ls'The following is a sample of representative governmental entities for which Mr Wilkes has
provided professional services
Local Government Entities
City of San Jose California
City/County of San Francisco
City of Sacramento California
City of Concord California
City of Ventura California
City of Burbank California
City of Culver City California
City of Watsonville California
City of Fresno California
City of Campbell California
City of Watsonville California
County of Los Angeles California
County of Ventura California
County of Orange California
County of Yolo California
County of Sacramento California
Multnomah County Oregon
City of Tacoma Washington
City of Spokane Washington
County of Spokane Washington
County of Pierce Washington
City of Portland Oregon
Clackamas County Oregon
State Agencies
State of Nevada Department of Administration
State of Nevada Department of Administration
Budget Division
State of California Health and Welfare Data
Center
State of Oregon Department of Administration
State of Hawaii Department of Finance
State of Hawaii Department of Information
Services
State of Hawaii Department of Human Services
City of Culver City 16 PRM Cost Allocation Plan Proposal
lbIV. Project Budget
p
RM offers to complete the cost allocation and indirect cost rates work outlined in this
proposal on a fixed fee basis We have structured our prices to match services levels
desired by the city We anticipate that the final pnce and service levels will be developed
after discussing these options with the city PRM can match the city's current cost plan
contract and service levels (A) or provide a higher level of service (B) if desired We
look forward to designing a project that reflects the needs of your City
A For the completion of the traditional OMB A-87 and full cost allocation plans, the
proposed fixed fee is eight thousand dollars ($8,000)
> Initial Year of the contract $8,000
> Second Year of the contract $8,400
> Third Year of the contract $8,800
> Our fees can be reduced if a less detailed level (a similar level of service
that existed before the PRNI project last year) of service is desired
B This option is reflective of what most of our other clients have selected Roseville,
Sacramento, Burbank and others, have all requested better service than they had
traditionally received The project we have designed for these clients included
both the OMB A-87 and the full cost plan with
> Initial citywide "Cost 101 Workshop"
City of Culver City 17 PRM Cost Allocation Plan Proposal
/7> Thorough cost plan and ICRP interviews
> Additional meetings with enterprise funds during and at the completion of
the project
C As requested by the RFP PRM has made our cost plan system available to
selected clients The software could be made available to the city for a fixed fee
of $6,000 Training would be at an hourly rate of $125 per hour
a
City of Culver City 18 PRM Cost Allocation Plan Proposal