HomeMy WebLinkAboutGovernment Services Group Cost Allocation Plan 2002
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Government Services Group, Inc.
Dedicated to solving funding and serv~ce delivery issues in the public sector
1500 Mahan Drive, Suite 250 · Tal/ahassee, Fl 32308. Phone (850) 681.3717 .
Fax (850/224-7206 · f.nwZ' gsg@govserv.com
July 15, 2002
VIA FEDERAL EXPRESS
Mr. Ronald W. McLemore
City Manager
City of Winter Springs
1126 East State Rd. 434
Winter Springs, FL 32708-2799
Re: City of VVinter Springs - Work Plans to Conduct (1) a Central Service Cost
Allocation Plan, (2) a User Fee Analysis of the Building-Code Enforcement
Department, and (3) a User Fee Analysis of the Planning and
Development Review Departments.
Dear Ron:
Government Services Group, Inc. (GSG) is pleased to present the City of Winter
Springs (City) the enclosed work plans to conduct a Central Service cost allocation plan,
a user fee analysis of the Building-Code Enforcement Department, and a user fee
analysis of the Planning and Development Review Departments.
First, GSG will analyze all necessary and relevant cost data in order to develop a
Central Service Allocation Plan.- This plan will determine the share of Central Service
costs assignable to each Central Service client, including the Building-Code
Enforcement Department and the Planning and Development Review Departments.
Next, GSG will determine the full cost for the delivery of fee related services for the
Building-Code Enforcement and .Planning and Development Review Departments.
Services provided by the Building-Code Enforcement Department include services such
as electrical permits, plumbing permits, and plan reviews. Services provided by the
Planning and Development Review departments include services such as site plan
reviews, comp plan amendments, and lot splits. Once the costs are determined, then
GSG will make recommendations to update the current fee schedules for these
departments utilizing a methodology that is both fair and equitable, but also provides for
full cost recovery. This in,cludes the addition'of new fee areas where appropriate.
Our technical approach has been developed over an 11-year periOd and reflects our
experience on similar projects, This lends credibility to our recommendations and
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subsequently, increases the probability of achieving management objectives. The user
fee cost analyses will accomplish the following objectives for the City:
. Develop an ~)verall approach that will provide both a consistent costing
methodology, as well as an emphasis on the implementation of specific
recommended fees;
. Identify opportunities for increased revenues based on reducing subsidies for
services where charges are currently levied and establishing new charges in
other services where appropriate; and,
. Develop a better understanding of the City's cost structure and position as an
operating organization. Traditional budgetary and reporting systems' generally
focus on funding operations, rather than the cost of such services.
Attached, as appendices are the following:
. Appendix A - Scope of Services work plan to develop the City's Central Service
Cost Allocation Plan;
. Appendix B - Scope of Services work plan to conduct a user fee analysis of the
City's Building,.Code Enforcement Department;
. Appendix C - Scope of Services work plan to conduct a user fee analysis of the
City's Planning and Development Review Departments;
. Appendix D - Hours and fees matrix for the scope of services outlined in all three
work plans; and,
. Appendix E - List of project deliverables, a delivery schedule, and a payment
schedule.
GSG appreciates the opportunity to work with the staff and management of the City of
Winter Springs. The results of these projects will provide ongoing benefits to the
citizens of Winter Springs and direction to City management in obtaining long-term
goals and objectives related to growth management. P lease do not hesitate to call if
you have any questions.
Sincerely, .
~tSLuil) I ~J1b
Robert E. Sheets
RES/mm
Enclosures
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APPENDIX A - SCOPE OF SERVICES
WORK PLAN TO DEVELOP THE CITY'S CENTRAL
SERVICE COST ALLOCATION PLAN
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The following scope of services provides the major tasks required to prepare a central
service cost allocation plan for the City of Winter Springs:
Task 1. Data request and project initiation
Prepare data request letter identifying the expenditure, allocation statistical and
organizational data in an automated format needed to prepare the costs allocation plan.
Conduct meeting with City staff to develop a consensus on' project tasks to be
perfonned, data to be provided, project time frames and cost plan documents to be
provided. Deliver the data request letter to City staff at the meeting.
Task 2. Receive and review automated data and import into software
worksheets
The expenditure, allocation statistical and organizational data received in an automated
format will be reviewed and reformatted as necessary and imported into the software
worksheets to be used for performing the allocations.
Task 3. Perform calculations resulting in allocations
The allocation statistical data will be applied to the expenditure data resulting in
allocated costs.
Task 4. Prepare draft report and provide to the City for review and comment
A description of the City's central service entities and organization will be provided
along with summary explanations of the effect of the application of the statistical data to
'the expenditure data and resulting allocations will be prepared and compiled in to a draft
cost plan and provided to the City for review and comment.
Task 5. Prepare final cost plan
Upon receipt of any comments from the City in response to review of the draft plan,
revisions will be made as appropriate and a final cost plan will be published and
transmitted to the City.
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Fees and Costs
For professional consulting services provided and printing of the cost plan document
rsu t to the proposed scope of services, a fixed fee professional services fee of
! 9,000 s proposed. A fixed fee method of compensation eliminates uncertainty in the
tal f . The hours and fees matrix provided as Appendix 0 describes the level of work
e for each task.
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APPENDIX B - SCOPE OF SERVICES
WORK PLAN TO CONDUCT A USER FEE ANALYSIS OF THE
CITY'S BUILDING-CODE ENFORCEMENT DEPARTMENT
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The following scope of services provides the major tasks required conduct a user fee
analysis of the Building-Code Enforcement department for the City of Winter Springs:
Task 1. Project Ilnitiation
There will be an initial project kick off meeting involving all key staff from the Building-
Code Enforcement Department to include cross over staff from the Storm water,
Engineering Inspections, Utility/Meter Services and Fire Department as appropriate.
This will provide an opportunity both for the staff and GSG to clearly outline the project's
goals and objectives and, just as important, what the project is not intended to
accomplish.
We will develop this initial understanding of key study issues by conducting interviews
with staff on-site to determine time per task involvement in all fee areas, the
determination of new fees where appropriate and the provision and discussion of
budget, organizational, level of service and volume of service issues. This on-site
information developed by GSG and City representatives will form the basis for data
input into a fee analysis database, resulting in a spreadsheet analysis of all fee areas to
include direct, indirect, administrative and cross-over costs,
Task 2. Data Inventory, Gathering and Evaluation
This task will be conducted in Tallahassee. GSG will organize and analyze the entire
budget, permit volume by category, time per task information and organizational
information. This data will then be input into a user fee software model and full cost fee
recommendations will be developed. This information will be provided at the individual
permiUfee area level, however, aggregate revenue and budget impacts will be
determined as well. Please note that GSG will utilize' the results of the cost allocation
plan and the user fee study for Planning and Development Review, which have been
included as separate work plans.
Task 3. Prepare Draft Report and Provide to City for review and comment
The data analysis developed in Task 2 and a corresponding written narrative will be
provided to the City in draft form for review. This procedure provides an opportunity to
discuss individual recommendations in detail prior to report finalization.
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Task 4. Prepare Final User Fee Report
Upon receipt of any comments from the City in response to review of the draft report,
revisions will be made as appropriate and a final report will be published and
transmitted to the Cit~'.
Task 5. Present Final Report
After transmission of the final report to the City, GS G will perform the following:
1, An in-depth presentation to staff/department analysts of the methodology
underlYing the cost and revenue analysis; and,
2. An engagement presentation to the leadership to provide an overview of the
project and its findings. Any questions concerning the project would be answered at
this time.
Fees an d Costs
F ssional consulting services provided and printing of the user fee analysis report
ursuant the proposed scope of services, a fixed fee professional services fee of
$12,000 is roposed. A fixed fee method of compensation eliminates uncertainty in the
\ otal fas. he hours and fees matrix provided as Appendix D describes the level of work
a ort f each task.
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APPENDIX C - SCOPE OF SERVICES
WORK PLAN TO CONDUCT A USER FEE ANALYSIS OF THE
CIlY'S PLANNING AND DEVELOPMENT REVIEW DEPARTMENTS
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. , . ' .
The following scope of services provides the major tasks required conduct a user fee
analysis of the Plannir'g and Development Review departments for the City of Winter
Springs:
Task 1. Data Request and Project Initiation
There will be an initial project kick off meeting involving all key staff from the Planning
and Development Review Departments to include cross over staff from the Stormwater,
Engineering Inspections, Utility/Meter Services and Fire Department as appropriate.
This will provide an opportunity both for the staff and GSG to clearly outline the project's
goals and objectives and, just as important, what the project is not intended to
accomplish.
We will develop this initial understanding of key study issues by conducting interviews
with staff on-site to determine time per task involvement in all' fee areas, the
determination of new fees where appropriate and the provision and discussion of
budget, organizational, level of service and volume of service issues. This on-site
information developed by GSG and City representatives will form the basis for data
input into a fee analysis database, resulting in a spreadsheet analysis of all fee areas to
include direct, indirect, administrative and cross-over costs.
Task 2. Data Inventory, Gathering and Evaluation
This task will be conducted in Tallahassee. GSG will organize and analyze the entire
budget. permit volume by category, time per task information and organizational
information. This data will then be input into a user fee software model and full cost fee
recommendations will be developed. This information will be provided at the individual
permit/fee area level, however, aggregate revenue and budget impacts will be
determined as well. Please note that GSG will utilize the results of the cost allocation
plan and the user fee study for Building-Code Enforcement, which have been included
as separate work plans.
Task 3. Prepare Draft Report and Provide to City for review and comment
The data analysis developed in Task 2 and a corresponding written narrative will be
provided to the City in draft form for review. This procedure provides an opportunity to
discuss individual rec:ommendations in detail prior to report finalization.
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Task 4. Prepare Final User Fee Report
Upon receipt of any comments from the City in response to review of the draft report,
revisions will be made as appropriate and a final report will be published and
transmitted to the City.
Task 5. P resent Final Report
After transmission of the final report to the City, GSG will perform the following:
1. An in-depth presentation to staff/department analysts of the methodology underlying
the cost and revenue analysis; and,
2. An engagement presentation to the leadership to provide an overview of the project
and its findings. Any questions concerning the project would be answered at this
time.
Fees and Costs
~OfeSSiOnal consulting services provided and printing of the user fee analysis report
ursuant the proposed scope of services, a fixed fee professional services fee of
,/ {$12,OOO is roposed, A fixed fee method of compensation eliminates uncertainty in the
otal fee he hours and fees matrix provided as Appendix 0 describes the level of work
e or each task.
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APPENDIX 0 - SCOPE OF SERVICES
HOURS & FEES MATRIX
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Task 1 . Data request and project initiation 9 $1,125
Task 2 . Receive and revIew automated data and (mport into software worksheets 9 $1,125
Task 3 . Perfonn calculations resufting In allocations 25 $3,125
Task 4 . Prepare draft report and provide to the CIty for review and comment 21 $2,625
Task 5 - Prepare final cost plan 5 $G25
Note:
(1) A maximum of one meeting will be conducted on site at the City within the professional service fees
provided. Any additional meetings required will be subject to reimbursement by the City in aCcordance with
section 112.061, Florida Statutes. The estimated cost of publishing and transmitting the draft and final cost
plan documents has been included.
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Task 1 - Data request and project initiation 12 $1,500
Task 2 - Data inventory! gathering and evaluation 28 $3,500
Task 3 - Prepare Draft Report & Receive City Comments 31 $3,875
Task 4 - Prepare Final User Fee Report 10 $1,250
Task 5 - Present Final Report 8 $1,000
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Task 1 - Data request and project initiation 12 $1,500
Task 2 - Data Inventory, gathering and evaluation 28 $3,500
Task 3 - Prepare Draft Report & Receive City Comments 31 $3,875 .
Task 4 - Prepare Final User Fee Report 10 $1,250
Task 5 - Present Final Report 8 $1,000
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APPENDIX E
PROJECT DELlVERABlES, DELIVERY SCHEDULE
AND PAYMENT SCHEDULE
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Deliverable Schedule
Notice to Proceed by the City By March 31, 2002
Project Initiation By April 15, 2002
Draft Reports By June 3D, 2002
Final Reports Within 15 days of Receipt of City
Comments
Payment Schedule
Payment will be 1/4 of the lump sum fee each month beginning May 1, 2002,
assuming notice to proceed occurs in August 2001. Payment will be pro-rated on
the basis of the anticipated number of months included in the project if notice to
proceed is received after March 2002.
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