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HomeMy WebLinkAboutDiamond Bar Citywide Fee Study Proposal_Willdan Financial Services.pdf City of Diamond Bar Citywide Fee Study Citywide Fee Study i City of Diamond Bar, CA Table of Contents A. Cover Letter ...............................................................................................................................................................ii B. Project Team ............................................................................................................................................................. 1 Chris Fisher ......................................................................................................................................... 2 Tony Thrasher ..................................................................................................................................... 3 Priti Patel ............................................................................................................................................. 4 Robert Quaid ....................................................................................................................................... 5 C. Firm’s Experience .................................................................................................................................................. 6 Firm Profile ........................................................................................................................................ 6 Willdan Financial Services ............................................................................................................... 6 References ......................................................................................................................................... 8 Similar Studies ................................................................................................................................ 10 D. Methodology/Project Understanding ........................................................................................................ 13 Project Understanding .................................................................................................................... 13 Comprehensive User Fee Study Methodology .............................................................................. 15 Project Timeline............................................................................................................................... 21 Quality Control Procedures ............................................................................................................ 22 E. Cost for Services ................................................................................................................................................... 24 Citywide Fee Study ......................................................................................................................... 24 F. Insurance ................................................................................................................................................................. 25 G. Consultant Services Agreement .................................................................................................................. 26 Execution of Contract ..................................................................................................................... 26 T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com ii A. Cover Letter December 14, 2023 Ms. Dannette Allen Senior Management Analyst City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765 Re: Proposal to Conduct a Citywide Fee Study for the City of Diamond Bar Dear Ms. Allen, Municipalities throughout California are constantly challenged to do more, with less. Even as cities are faced with limited financial resources to address competing priorities and objectives, they strive to maintain high standards of service and responsiveness to their communities. Processes and staffing often evolve as staff seek out efficiency and more cost- effective service models; or sometimes practices change out of necessity in response to events such as the recent pandemic. Considering this, it is critical for the City of Diamond Bar (“City”) to ensure that its fees for requested for related services have been developed and updated to reflect current practices, account for the true cost of providing the services, incorporate provision for overhead rates and costs related to indirect support, and ensure maximum appropriate cost recovery, so that the revenues generated by fees cover the cost of those services to the greatest extent possible. City staff, and ultimately the City Council, need a clear understanding of standards, service levels and the associated costs. Recognizing this, the City has responded by soliciting proposals for a Citywide Fee Study. Willdan Financial Services (“Willdan”) is uniquely qualified to assist the City of Diamond Bar with this project, following are specific advantages that Willdan brings to the City for this study: Extensive Local Experience with Similar Projects and direct experience in Southern California — Willdan is the leading firm providing these types of studies in California. We have worked with numerous cities that are similar to and near Diamond Bar on Fee Study projects, with objectives very similar to those for this study. This experience enables us to bring valuable perspective and insight from local cities’ approaches to fees and their policies on fee setting and subsidies and will also assist us in conducting meaningful and efficient fee comparisons. Recent and ongoing studies include Cities of Claremont, Chino Hills, Chino, Pomona, Eastvale, Burbank, El Monte, Los Alamitos, Lynwood, Stanton, Montebello, West Hollywood, Arcadia, Cudahy, Lomita, Fontana, Yucaipa, Murrieta, and Palm Desert. Collaborative Approach, Commitment to Support and User-friendly Models and Reports — Willdan prides itself on working closely with City staff to develop and explain an approach that is targeted toward your specific objectives, and then working together with you to gather first -hand information regarding the processes and tasks required to provide services to those requesting them. This is a distinct advantage we will bring in our approach with the City of Diamond Bar. A collaborative approach and dedicated support ensure we clearly understand your goals and challenges, and just as importantly, you understand and are comfortable with the process, assumptions, key drivers, and the results. We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the model collaboratively with City staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City’s budget format wherever possible. As a result, the information contained in our models is easy for City staff to interpret, and the familiar software ensures ease of navigation. Created directly from the models, our reports clearly and graphically illustrate full and recommended levels of cost recovery and projections of revenue for fee programs, break down the costs into direct and indirect overhead categories, and present the fee methodologies. Our approach is geared toward delivering work on schedule and presenting results at public meetings and Council workshops to stakeholders and elected officials. Our approach is geared toward delivering work on schedule and presenting results at public meetings and council workshops to stakeholders and elected officials who typically don’t want or need to see the deep detailed analysis. Ms. Dannette Allen, Senior Management Analyst City of Diamond Bar Proposal to Conduct a Citywide Fee Study December 14, 2023 | Page iii Unique Combination of Services and Expertise/Public Engagement — Established in 1988, Willdan is a team of nearly 80 professionals who provide essential financial consulting services throughout California, and the United States. Willdan has provided the requested services to municipal clients for over two decades; and is the only firm providing these types of consulting services that also has a long history of providing contract staff support to public agencies for the delivery o f municipal services. This direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement. We are excited about this opportunity to serve the City of Diamond Bar. To discuss any aspect of our proposal, please contact me; my contact information is provided in the table below. Willdan Financial Services Proposal Contact Chris Fisher Vice President / Director 27368 Via Industria, Suite 200 | Temecula, CA 92590 Tel #: (951) 587-3500 | Fax #: (951) 587-3510 Email: CFisher@Willdan.com As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement. Respectfully, WILLDAN FINANCIAL SERVICES Chris Fisher Vice President / Director Citywide Fee Study 1 City of Diamond Bar, CA B. Project Team Our management and supervision of the project team is very simple: staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance. City of Diamond Bar Project Team Key Team Member Project Role Responsibility to the Engagement Chris Fisher Vice President/Director Principal-in-Charge ▪ Ensure client satisfaction, flow of communication, and oversight of the project ▪ Technical guidance; ▪ Project oversight; ▪ Quality assurance & control; and ▪ Meeting and presentation attendance. Tony Thrasher Principal Consultant Project Manager ▪ Task oversight; ▪ Model development; ▪ Produce key elements of the analyses; ▪ Responsible for project deliverables; ▪ Report preparation and evaluation; and ▪ Meeting and presentation attendance. Priti Patel Senior Project Analyst Financial Analyst ▪ Collect, interpret, and disseminate key data; ▪ Assistance with model development; ▪ Report preparation; and ▪ Meeting and presentation attendance. Robert Quaid Principal Consultant Technical Advisor ▪ Third party reviewer; and ▪ Report evaluation. Project Team Stability Mr. Fisher has been assigned to serve as the City’s representative; he has been selected for this role due to his vast experience, which includes the preparation and supervision of numerous fee studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups. Resumes Resumes for Willdan’s project team are presented on the following pages. It is important to note that Mr. Fisher has been with Willdan for 24 years, ensuring the City of Diamond Bar of continuity and dedication in staffing during the completion of the project. Citywide Fee Study 2 City of Diamond Bar, CA Education San Francisco State University, Bachelor of Science, Finance Areas of Expertise Cost of Service Analyses Multi-disciplinary Team Management Special District Formations Client Presentations Proposition 218 Affiliations California Society of Municipal Finance Officers Municipal Management Association of Northern California California Municipal Treasurers Association 24 Years’ Experience Chris Fisher Principal-in-Charge Mr. Chris Fisher, Vice President / Director of Willdan’s Financial Consulting Services group, will serve as Principal-in-Charge for the City of Diamond Bar project. He will also share his extensive knowledge related to cost-of-service principles with members of the project team. Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects for public agencies in California, Colorado, Texas, Arizona, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working on these projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety. Related Experience City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan: Mr. Fisher is the principal-in-charge for the City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, managing the overall execution of the project, providing technical guidance and quality control. City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Fisher oversaw the City’s recently completed Citywide User Fees and Charges Study. City of Pomona, CA – Master Fee Schedule Update: Mr. Fisher was the principal-in-charge for the City’s master fee schedule update and update of the development impact fees. Mr. Fisher provided quality control and served as the primary contact with the City. City of Laguna Hills, CA — Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher oversaw the update of the City’s general overhead allocation plan and cost -of- service user fees. City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City’s Finance Commission and to the City Council. City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher is the principal-in-charge for the ongoing full cost allocation plan and user fee study. Willdan’s work includes the gathering of necessary data and information, interviews with City Staff to identify overhead support services and how they are u sed and interviews to gather information related to fee-based services. We are also developing financial models to calculate overhead allocations and personnel rates and the full cost of services for which fees are charged. We are working with Staff to finalize cost recovery targets, prepare reports and present the results. City of Murrieta, CA — Cost Allocation & OMB Compliant Plan and Comprehensive User Fee Study: Mr. Fisher served as the project manager on the City’s fee study. The primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds. The City recently re-engaged Willdan to conduct an update to both studies. City of Signal Hill, CA — Cost Allocation Plan and User Fee Study: As principal-in-charge, Mr. Fisher oversaw the development and review of a Full and OMB compliant cost allocation study and a comprehensive user fee and rate study for the City’s master list of fees. City of West Covina, CA — Comprehensive Cost Allocation Plan and User Fee Study: Mr. Fisher served in the role of project manager for the City’s engagement. The cost allocation plan developed will aid the City in the recovery of overhead costs related to central service activities. Housing Authority of the County of San Bernardino – Cost Allocation Plan: Mr. Fisher is the principal-in-charge for the Authority’s full and OMB cost allocation plan engagement, and the ongoing update. Willdan was brought in and worked with the Housing Authority and HUD to respond to unfavorable OIG audit findings related to the Authority’s’ approach to the allocation of overhead costs. We developed a new Cost Allocation Plan and are currently working on an update to that plan. The initial work resulted in the clearance of the HUD findings with no penalty to the Housing Authority. Citywide Fee Study 3 City of Diamond Bar, CA Education Bachelor of Science in Economics; California State Polytechnic University, Pomona Areas of Expertise Cost Allocation Plans Fiscal Analysis for User Fees and Rates District Administration Services Utility Rate Studies 14 Years’ Experience Tony Thrasher Project Manager Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Project Manager for the City’s engagement. Mr. Thrasher is a Principal Consultant within the Financial Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses for cost allocation plans, user fees, and utility rate studies. Mr. Thrasher’s prior employment was as a financial analyst working in bond, equity, and mortgage - backed security markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank. His experience includes portfolio accounting, differential analysis, and forecasting. Related Experience City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan: As the project manager for City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, Mr. Thrasher is overseeing the project analysts and is heavily involved in the analysis, development of models, preparation of reports and delivery of results. City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Thrasher was the project manager for the City’s recently completed study, He directed the preparation of the model and reports and was responsible for the delivery of results to the City. City of Pomona, CA – Master Fee Schedule Update: Mr. Thrasher served as the project manager for the master fee schedule update portion of the City of Pomona’s engagement, which also included an update of the development impact fees. Mr. Thrasher was responsible for the development of models and reports and coordinating analytical support. City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City’s Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement. City of Indian Wells, CA — User Fee Study: Mr. Thrasher served as the technical project manager for the City’s Administrative, Building, Planning and Public Works Departments. The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs cost recovery levels. City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Thrasher is currently serving as the technical project manager for the City’s full cost allocation plan and user fee study. He is directly responsible for the creation of both models for the study, gathering and verification of the data, managing the a nalysts working to support him and presenting results to the City. City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Serving as the project’s analyst, Mr. Thrasher provided analytical support; and designed micro -level allocation models to ensure full-cost recovery for public safety, public works, community development, community services, and administrative departments. City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City of San Marcos’ full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive User Fee Study engagement. He is the primary in developing the model, which contains all City personnel and expenditures broken down into the ICRP tables. The project is ongoing, and the User Fee Study is now underway. City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Thrasher was the project manager for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through a competitive bid, been re-selected to update the cost allocation plan. City of Mission Viejo, CA — Cost Allocation Plan and User Fee Study: Mr. Thrasher was assigned to work with the City on this project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure full-cost recovery for building and safety, planning, community development, and public works departments. Citywide Fee Study 4 City of Diamond Bar, CA Education Bachelor of Arts; Business Management, Information Systems and International Business, University of Cincinnati Areas of Expertise Cost Allocation Plans User Fee Studies Proposition 218 9 Years’ Experience Priti Patel Financial Analyst Ms. Priti Patel is a Senior Analyst within the Financial Consulting Services group, whereby she supports project managers in conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 compliance, and forming special districts. Coordinating and conducting activities associated with Cost Allocation Plans and User Fee Studies, including database integration and manipulation, revenue and expenditure analyses, and documentation preparation are just some of Ms. Patel’s duties. With these duties, she interacts with clients on a regular basis . Ms. Patel joined Willdan as an analyst with the District Administration Group, while with DAS she performed research and analysis needed for local government financial issues related to district administration, including document data entry and updating, database management, research and report preparation. She also provided general information on questions pertaining to Assessment Districts and special taxes (such as Mello-Roo’s Pools), as well as the status of property delinquencies. Related Experience City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan: Ms. Patel is serving as the primary financial analyst for City of West Hollywood’s Fee Study engagement. Ms. Patel has been instrumental in collecting the necessary data and collaborating with the City and Willdan senior project team members in conducting the study, including development of the model, researching similar fees in comparable cities and preparation of reports. City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Ms. Patel provided analytical support and gathered budget and allocation basis data for this engagement. She also assisted in the development of the financial model. City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study, Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing , structure, and service delivery methods. She is also assisting in the preparation of user-friendly Excel- based models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services. City of Laguna Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided analytical support in the preparation of a full cost allocation plan and fee study for the development of a master list of fees. City of Fillmore, CA — Full Cost Allocation Plan and User Fee Study: Ms. Patel helped develop a cost allocation plan and model that fully allocated central overhead costs to appropriate operating departments, funds, and/or programs. She assisted in the completion of the model and report and worked directly with senior staff on their feedback and revisions. City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided support to senior team members in the preparation of the cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Ms. Patel provided analytical support in the preparation of this study, her primary duties included development of the models, finalizing model figures and results, and generating reports. City of Yucaipa, CA — Cost Allocation Plan and Comprehensive User Fee Study: Provided analytical support in the preparation of a Cost Allocation Plan and OMB compliant cost allocation plan and comprehensive fee study for the development of a master list of fees. Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. City of Pittsburg, CA — Cost Allocation Plan and User Fee Study: Ms. Patel was assigned to provide assistance to senior project team members on the City of Pittsburg Cost Allocation Plan and User Fee Study engagement. She will be a technical lead for the gathering of data, creation of the models and preparation of study reports and presentations. The City hired Willdan for the original study, and for two subsequent updates. Citywide Fee Study 5 City of Diamond Bar, CA Education Bachelor of Science, University of Southern California Areas of Expertise Fiscal Analysis for User Fees and Rates Cost Allocation Plans Acquisition Audit Services Statutory Financial Reporting Fund Audits Quality Review of Community Facilities, Lighting & Landscaping, and Assessment Districts Affiliations California Society of Municipal Finance Officers California Society of CPAs 35 Years’ Experience Robert Quaid Technical Advisor With his 35 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr. Quaid provides project management, procedural support, technical support, and quality review for Willdan’s District Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis. Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance. He began his career with the public accounting firm formerly known as Haskins & Sells (currently known as “Deloitte & Touche”). His experience includes financial statement analyses, asset administration, computer conversion, and reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA. Related Experience City of Thousand Oaks, CA — Cost Allocation Plan: Mr. Quaid served as project manager for the development of an OMB A-87 compliant cost allocation plan model using fiscal year actual costs as the basis for the allocations. He was responsible for the preparation of the Cost Allocation Plan report and provided cost allocation model training to City staff. The objective of this project was to determine the appropriate allocation of indirect costs from City General Fund central service departments to the General Fund operating departments/programs and the non-General Fund departments/programs. The plan model included 16 allocation bases allocating costs to over 100 departments and divisions. Both full and OMB A-87 cost allocation models were delivered to the City. Willdan was awarded a four-year contract. Cities of Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For each of these cities, Mr. Quaid served in the role of task manager for the development of an OMB A -87 compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff on how to use the cost allocation model. City of Cathedral City, CA — Comprehensive User Fee Study: Mr. Quaid served as project manager for a user fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance. Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients throughout California. Provided below are a few examples of clients for which services have been provided in the previous three years. ▪ City of Arcadia, CA ▪ City of Belmont, CA ▪ City of Burbank, CA ▪ City of Cerritos, CA ▪ City of Chino Hills, CA ▪ City of Claremont, CA ▪ City of Coalinga, CA ▪ City of El Cerrito, CA ▪ City of Fillmore, CA ▪ City of Hayward, CA ▪ City of Indian Wells, CA ▪ City of Lynwood, CA ▪ City of Monterey, CA ▪ City of Murrieta, CA ▪ City of Petaluma, CA ▪ City of Richmond, CA ▪ City of Rocklin, CA ▪ City of St. Helena, CA ▪ County of San Benito, CA ▪ City of San Bruno, CA ▪ City of Irvine, CA ▪ City of Salinas, CA ▪ City of Upland, CA ▪ City of Watsonville, CA ▪ City of West Hollywood, CA ▪ City of Yucaipa, CA Citywide Fee Study 6 City of Diamond Bar, CA C. Firm’s Experience Firm Profile Willdan Financial Services is an operating division within Willdan Group, Inc. (WGI), which was founded in 1964 as an engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through its divisions, provides prof essional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since its inception—ensuring the success of its clients and enhancing its surrounding communities. A financially stable company, Willdan has approximately 1,500 employees working in more than a dozen states across the U.S. Our employees include a number of nationally recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—four of whom are committed to contributing their expertise throughout the duration of the City of Diamond Bar’s Citywide Fee Study engagement. Willdan has solved economic, engineering and energy challenges for local communities and delivered industry -leading solutions that have transformed government and commerce. Today, we are leading our clients into a future accelerated by changes in resources, infrastructure, technology, regulations, and industry trends. Willdan Financial Services Established on June 24, 1988, Willdan Financial Services, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges. Our staff of nearly 80 professionals support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. Willdan assists local public agencies by providing the following services: Willdan Financial Services Services ▪ User fee studies; ▪ Cost allocation studies; ▪ Utility rate and cost of service studies; ▪ Real estate economic analysis; ▪ Feasibility studies; ▪ Municipal Advisory; ▪ Arbitrage and continuing disclosure services; ▪ Economic development strategic plans; ▪ Development impact fee establishment and analysis; ▪ District administration services; ▪ Property tax audits; ▪ Tax increment finance district formation and amendment; ▪ Housing development and implementation strategies; ▪ Debt issuance support; and ▪ Long-term financial plans and cash flow modeling. Citywide Fee Study 7 City of Diamond Bar, CA Firm Experience Willdan Financial Services has provided User Fee Study and Cost Allocation Plan services to municipal clients for 25 years; and has prepared comprehensive user fee studies as well as cost allocation plans, and OMB compliant cost allocation plans for clients throughout California, and the United States. Since 1998, we have developed the expertise to successfully integrate this service into the Financial Consulting Services group’s primary functions. Willdan’s Financial Consulting Services staff has assisted well over 100 California government agencies with the development and/or update of all fee types. Each project has required defensible documentation and thorough coordination of fee program changes for different agency departments and stakeholders within the business community. In some cases, Willdan has been required to negotiate fees with stakeholders and, on occasion, defend them in meetings and public forums. We are particularly strong in advising our clients on the advantages and disadvantages of different fee schedule structures (Citywide versus multiple-fee districts/zones; more versus fewer land-use categories; etc.) and methods of fee calculation that are based on the City’s and stakeholder priorities and applicable regulations that comply with Proposition 26 and Proposition 218. Our record of success within the industry provides assurance of the professionalism and capability we will bring to this engageme nt. A team composed of project managers and analysts develop and/or update user fee studies and cost allocation plans. Willdan has extensive experience with the range of fees charged in the region and the state, and the typical pros, cons, and challenges of each, both in implementation and management. Willdan will bring its expertise to the City’s process of considering financial, practical and policy issues in deciding on its future fee program. Extensive Public Sector Experience Willdan has delivered industry-leading financial, energy and engineering solutions that have transformed government and commerce for 59 years. Willdan Financial Services advises governments throughout the United States and abroad about financial and economic consulting. We serve all levels of government and collaborate with government staff, constituents, developers, officials, and other professional services firms. Experienced Team Our employees know and understand the problems facing local government under the current economic climate, and we have oriented our practice to support an agency’s modified budget policies and public service priorities. Project Dedication Willdan has assembled a project team of four (4) subject matter experts within the Financial Consulting Services group, to conduct the City of Diamond Bar Fee Study engagement. This team has coordinated or participated in numerous public stakeholder and staff workshops regarding fees and cost of service-based charges. Financial Stability Willdan Group, Inc. (WGI) has sustained a healthy financial performance record due to the outstanding performance of our operating divisions and a strong, dependable reputation in municipal consulting. Detailed financial statements and annual reports are included on our webpage (http://ir.willdangroup.com/). As a publicly traded company (WLDN), Willdan must provide public financial information as required by the SEC. Furthermore, Willdan Financial Services is not currently involved in any condition (e.g., bankruptcy, pending litigation, planned office closures, impending merger) that may impede our ability to complete this engagement. Financial Stability ▪ In business for 59 years ▪ Over 1,500 employees ▪ Fiscal Year 2022 Consolidated Contract Revenue of $429M ▪ Market capitalization of $231M (January 2023) ▪ $50 million Line of Credit with the ability to increase up to $60 million Citywide Fee Study 8 City of Diamond Bar, CA References Below are recent project descriptions, including client contact information, which are similar in nature to those requested by the City of Diamond Bar engagement. We are proud of our reputation for customer service and encourage you to contact these clients regarding our commitment to completing the projects within budget and agreed upon timelines. City of Chino Hills, CA | Full Cost Allocation Plan and Comprehensive User Fee Study The City of Chino Hills engaged Willdan to complete a comprehensive Cost Allocation Plan and Comprehensive User Fee Study. Willdan staff met with City staff to verify the City’s objectives for the study, independently gathered most of the necessary data for the development of the CAP model and methodology and worked directly with City staff to gather additional detail or clarify information where necessary. We worked with City staff to understand the various functions served by indirect staff in various City departments, and which operating departments or funds they served. We worked directly with City staff to develop and verify allocation bases and make adjustments through several iterations of the CAP model, as necessary. We developed a cost-of-service analysis and model that updated existing fees and incorporated new fees and used it to create an updated comprehensive fee schedule. Willdan is currently providing an update to the User Fee Study and Cost Allocation Plan. Client Contact: Christa Buhagiar, Finance Director 14000 City Center Drive, Chino Hills, CA 91709 Tel. #: (909) 364-2642 | Email: cbuhagiar@chinohills.org Project Dates: May 2018 – Ongoing City of Claremont, CA | Comprehensive User Fee Study and Full Cost Allocation Plan Willdan was engaged to prepare for the City of Claremont a Cost Allocation Plan and Comprehensive User Fee Study. Willdan developed a cost allocation plan and model that fully allocated central overhead costs to appropriate operating departments, funds, and/or programs. Our primary objective for the cost allocation study was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. Willdan reviewed and analyzed existing user fee programs, and based upon conversations with staff, made suggestions, as necessary, for fees that may need to be added to the City’s fee schedule for which fees were not currently being charged. Utilizing the full CAP, the comprehensive user fee study phase was completed with full interviews and being conducted on site, and a comprehensive fee model developed. Willdan has recently been re-selected to provide an update to the User Fee Study and Cost Allocation Plan. Client Contact: Adam Pirrie, City Manager 207 Harvard Avenue, Claremont CA 91711 Tel #: (909) 399-5328 | Email: APirrie@ci.Claremont.ca.us Project Dates: May 2018 – Ongoing City of El Monte, CA | Full & OMB Compliant Cost Allocation Plan, Comprehensive User Fee Study and Development Impact Fee Study Willdan completed a full cost allocation plan, OMB compliant cost allocation plan, comprehensive user fee study, along with a development impact fee study for the City of El Monte. The Willdan team worked collaboratively with City staff to gather the data to develop the cost allocation model. Our primary objective for the cost allocation study update was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. The Cost Allocation Plan was also created to develop OMB compliant overhead allocations and indirect rates. Willdan developed a cost-of-service analysis and model that updated existing fees and incorporated new fees and used it to create an updated comprehensive fee schedule. Willdan also prepared a facility rental fee analysis and filming fee study for the City. The project team is currently preparing a User Fee Study for the Police Department. Client Contact: Steven Wright, Consultant 11333 Valley Boulevard, El Monte, CA 91731 Tel. #: (626) 826-4695 | Email: swright@interwestgrp.com Project Dates: October 2019 – June 2021 Citywide Fee Study 9 City of Diamond Bar, CA City of Burbank, CA | Comprehensive User Fee Study In Spring of 2023 Willdan completed a comprehensive master user fee study for the City of Burbank. Burbank is a large, diverse city with a full range of municipal services. We worked with City staff to gather the necessary data to incorporate appropriate central service overhead factors from the City’s current Cost Allocation Plan into this ana lysis. Following this, we analyzed the current fee schedule, developed a detailed cost -of-service analysis, and calculated the full cost of providing services for which fees are charged. We also evaluated opportunities to implement new fees and eliminate obsolete ones. Finally, we conducted fee comparisons with other local municipal agencies and worked with City Staff to develop fee-setting recommendations that incorporated policy guidelines and presented these to the City Council for adoption. Willdan updated many of the fee programs and their structures. Final master fee recommendations were made to address the City’s goal to maximize the recovery of the costs of providing services, to the best extent possible, including overhead. The final steps of the process included a detailed presentation to the City Council, and delivery to the City of the fee model for their future use. Client Contact: Justin Hess, City Manager 275 E. Olive Avenue, Burbank, CA 91510 Tel #: (818) 238-5800| Email: jhess@burbankca.gov Project Dates: August 2022 – April 2023 City of Tustin, CA | Comprehensive User Fee Study Willdan prepared a Comprehensive User Fee Study for the City of Tustin. Willdan reviewed and analyzed existing user fee programs, and based upon conversations with staff, made suggestions, as necessary, for fees that may need to be added to the City’s fee schedule for which fees were not currently being charged. The comprehensive user fee study was completed with full interviews and being conducted, and a comprehensive fee model developed. Client Contact: Jason Al-Imam, Director of Finance 300 Centennial Way, Tustin, CA 92780 Tel #: (714) 573-3061 | Email: jalimam@tustinca.org Project Dates: September 2020 – May 2021 City of Eastvale, CA | Comprehensive User Fee Study and Full & OMB Cost Allocation Plan Through competitive bid, the City of Eastvale engaged Willdan Financial Services to conduct a comprehensive study of the City’s user fees, as well as the preparation of a Full and OMB compliant Cost Allocation Plan. Our primary objective for the cost allocation study was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. The Cost Allocation Plan was also created to develop OMB compliant overhead allocations and indirect rates. Willdan is currently wrapping up the Comprehensive User Fee Study. The Cost Allocation Plan and primary User Fee Study are complete. We are working with the City to incorporate some minor adjustments and conduct meetings with local stakeholder groups, Willdan developed the Cost Allocation Plan and model, reviewed and analyzed existing user fee programs, and working collaboratively with staff, made suggestions as necessary for additions to the City’s fee schedule for activities for which fees were not currently being charged. Client Contact: Amanda Wells, Finance Director/ City Treasurer 12363 Limonite Ave. Suite 910, Eastvale, CA 91752 | Tel #: (951) 703-4430 | Email: finance@eastvaleca.gov Project Dates: July 2021 - Ongoing Citywide Fee Study 10 City of Diamond Bar, CA Similar Studies Provided in the table below is a list of the public agencies in which similar services are currently in progress, or have been completed, in the previous five years. Willdan Financial Services Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description City of Amarillo, TX Cost Allocation Plan City of Arcadia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Arroyo Grande, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of Arvin, CA Cost Allocation Plan City of Aurora, CO Cost Allocation Plan and Comprehensive User Fee Study City of Barstow, CA Cost Allocation Plan City of Bedford, TX Cost Allocation Plan City of Belmont, CA Development Services User Fee Study City of Bellflower, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of Benicia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Blythe, CA Cost Allocation Plan and Comprehensive User Fee Study City of Brighton, CO Cost Allocation Plan City of Burbank, CA Comprehensive User Fee Study City of Calexico, CA EMS User Fee Study City of Canyon Lake, CA Comprehensive User Fee Study & EMS User Fee Study City of Capitola, CA Cost Allocation Plan and Comprehensive User Fee Study City of Cave Creek, AZ Cost Allocation Plan and Comprehensive User Fee Study City of Chino, CA Comprehensive User Fee Study, Cost Allocation Plan and Indirect Cost Rate Studies City of Chino Hills, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Claremont, CA Cost Allocation Plan and User Fee Study City of Clermont, FL Building & Safety Department User Fee Study City of Commerce City, CO Comprehensive User Fee Study and Development Impact Fee Study City of Coppell, TX Full Cost Allocation Plan City of Cudahy, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of DeSoto, TX Comprehensive User Fee Study City of Dinuba, CA Cost Allocation Plan & User Fee Study City of El Cerrito, CA Cost Allocation Plan and Community Development Department User Fee Study City of El Monte, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Updates, and Development Impact Fee Study City of Eastvale, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Encinitas, CA Development Services User Fee Study and Cost Allocation Plan and Updates City of Escondido, CA Comprehensive User Fee Study, Full Cost Allocation Plan, and OMB Compliant Plan City of Fillmore, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of Foster City, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Fountain Hills, AZ Comprehensive User Fee Study City of Fountain Valley, CA Cost Allocation Plan and Comprehensive User Fee Study City of Fontana, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Fullerton, CA Community Development Department User Fee Study and Fire Department User Fee Study Citywide Fee Study 11 City of Diamond Bar, CA Willdan Financial Services Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description City of Georgetown, TX Cost Allocation Plan City of Gilroy, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study & 2023 CPI Updates City of Goleta, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Hayward, CA Comprehensive Master User Fee Study, Full Cost Allocation Plan, and Updates, and Rental Inspection Program Fee Analysis City of Hesperia, CA Comprehensive User Fee Study City of Hollister, CA Planning User Fee Study City of Indian Wells, CA Comprehensive User Fee Study & Updates City of Irvine, CA Cost Allocation, OMB Compliant Plan, Comprehensive User Fee Study, and Building & Safety Fee Update City of Irwindale, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Kingsburg, CA Full & OMB Compliant Cost Allocation Plan City of La Puente, CA Cost Allocation Plan and Comprehensive User Fee Study City of Lake Elsinore, CA User Fee Study and Cost Allocation Plan and Updates City of Lindsay, CA Cost Allocation Plan, User Fee Study, and Impact Fee Analysis City of Lomita, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Analysis City of Los Alamitos, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Los Altos, CA Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study City of Los Angeles, CA Building & Safety User Fee Study City of Los Banos, CA Full Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study City of Lynwood, CA User Fee Study and Cost Allocation Plan, and Updates City of McFarland, CA Cost Allocation Plan and Utility Rate Study City of Manteca, CA Cost Allocation Plan and Comprehensive User Fee Study City of Maywood, CA Comprehensive User Fee Study City of Mesquite, TX Cost Allocation Plan and OMB Compliant Plan, and Updates City of Mission Viejo, CA Comprehensive User Fee Study and Cost Allocation Plan, and Updates City of Missouri City, TX Full and OMB Compliant Cost Allocation Plan and User Fee Study City of Montebello, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey Park, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey, CA Cost Allocation Plan and Indirect Cost Rate City of Murrieta, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan and Updates City of Napa, CA Comprehensive User Fee Study, Full Cost Allocation Plan, and OMB Compliant Plan City of National City, CA Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study City of Oroville, CA Cost Allocation Plan and Updates City of Oviedo, FL Cost Allocation Plan City of Palm Desert, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Patterson, CA Comprehensive User Fee Study, Full and OMB Compliant Cost Allocation Plan City of Paramount, CA Cost Allocation Plan and Comprehensive User Fee Study City of Petaluma, CA Cost Allocation Plan, User Fee Study, CIP Admin Rate & Work Order Rate Analysis, Hourly Overhead Rates, and ISF Allocation Study, and Updates City of Pismo Beach, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pittsburg, CA User Fee Study and Cost Allocation Plan, and Updates City of Pleasant Hill, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pomona, CA Master Fee Schedule Update and Development Impact Fee Review Citywide Fee Study 12 City of Diamond Bar, CA Willdan Financial Services Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description City of Richmond, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of Rosemead, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of St. Helena, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study, and Updates City of San Anselmo, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Bruno, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan, and Updates City of San Dimas, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Fernando, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study, and Updates City of San Jacinto, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of San Luis, AZ Cost Allocation Plan City of San Marcos, CA Cost Allocation Plan, Indirect Cost Rate Studies and Comprehensive Citywide User Fee Study City of Santa Cruz, CA Citywide Overhead Cost Allocation Plan, Santa Cruz Library Cost Allocation Plan, and Fleet and Facility Services Cost Allocation Plan, and Updates City of Santa Paula, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study City of Selma, CA EMS User Fee Study City of Sierra Madre, CA Comprehensive User Fee Study, Full and OMB Compliant Cost Allocation Plan City of Soledad, CA User Fee Study City of Stanton, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan City of Tamarac, FL Building & Safety Department User Fee Study City of Temple, TX Comprehensive User Fee Study City of Tulare, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan City of Tustin, CA Comprehensive User Fee Study, and Updates City of Twentynine Palms, CA Comprehensive User Fee Study, Full and OMB Compliant Cost Allocation Plan, City of Upland, CA Cost Allocation Plan and Comprehensive User Fee Study City of Vernon, CA Cost Allocation Plan and Comprehensive User Fee Study City of Watsonville, CA Comprehensive User Fee and Rate Study, Cost Allocation Plan, and OMB Compliant Plan, and Updates City of West Hollywood, CA Cost Allocation Plan and User Fee Study, and Updates City of West Sacramento, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study, and Updates City of Yucaipa, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan, and Updates Coachella Valley Cemetery, CA User Fee Study County of Mono, CA Comprehensive User Fee Study County of Placer, CA Land Development Fee Study Housing Authority of the City of Alameda, CA Cost Allocation Plan and Updates Housing Authority of the County of San Bernardino, CA Cost Allocation Plan and Updates Placer County Water Agency, CA Cost Allocation Plan and Overhead Rate Study Town of Apple Valley, CA Cost Allocation Plan Town of Paradise Valley, AZ Master User Fee Study Town of Sunnyvale, TX Comprehensive User Fee Study Town of Yucca Valley, CA Comprehensive User Fee Study Citywide Fee Study 13 City of Diamond Bar, CA D. Methodology/Project Understanding Project Understanding Willdan Financial Services (“Willdan”) understands that the City of Diamond Bar (“City”) is seeking a comprehensive citywide user fee study that will enhance fiscal sustainability and equitable distribution of financial resources within the community, while promoting transparency, fairness, and responsible financial management. Given our experience, we have a clear understanding of the issues and concerns that are encountered with this type of project, and more importantly, how to address and overcome them and meet the City’s objectives. Key City issues and objectives that are addressed within our scope of services include the following: ▪ Meeting with City Staff to review existing fee schedules, conduct interviews and gather information necessary to understand the processes, operations, structure and staffing necessary for the City to provide services for which fees are charged; ▪ Conducting analysis that clearly identifies the full (100%) cost of providing services for which fees are charged, and ensuring that there is a reasonable relationship between these costs, the services being provided, and the recipients of these services – all to support compliance with Prop 26 and Prop 218; ▪ Incorporating overhead allocations from the City’s existing Cost Allocation Plan; ▪ Comparing costs of providing services with current cost recovery levels and evaluating and adjusting fees and charges to ensure they align with the cost of the services being provided by the City ; ▪ Identifying and evaluating opportunities to develop and implement fees for services being provided for which fees don’t currently exist; ▪ Identifying the amount of revenue being recovered based on current fee levels and activity levels, and projecting future estimates so that recommended fees recover appropriate amounts of revenue; ▪ Focusing on changes that may have occurred in the City’s staffing and cost structures to ensure that future fees adequately recover anticipated costs; ▪ Working with City Staff to develop meaningful recommendations for fee setting and subsidies where charging fees that represent full cost recovery may not be reasonable for policy or political reasons; ▪ Providing meaningful ‘apples to apples’ comparisons of key fees charged by the City of Diamond Bar to other similar and/or nearby cities chosen in discussions between Willdan and City Staff. The comparisons will involve applicable fees for sample representative projects which the City could anticipate encountering; ▪ Providing the City with a model that incorporates data and information used in developing updated fees, and allows for updates for CPI, new added personnel, updated time estimates and volumes, or other factors as necessary ; and ▪ Preparing a report that clearly identifies services for which fees are charged, the cost of those services, current and recommended cost recovery levels, and fee amounts, and presenting the results in a way that is readily understood by decision makers. The overall goal is to establish an updated schedule of fees that is objective, fair and equitable. We will deliver a straightforward model and report that clearly identifies the full cost of providing services, including overhead, direct and indirect costs; and provide recommendations for setting fees that maximize cost recovery in accordance with the City’s policies. The end products will include user-friendly Excel-based models, which City staff will retain, and which can be easily updated to add or remove services and/or costs, update budgets in future years, determine the proper allocation of expenditures, and on-going full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable. Using our comprehensive knowledge developing and analyzing cost allocation methodologies and approaches, we will work with City Staff to incorporate appropriate central service overhead factors from the City’s current Cost Allocation Plan into this analysis. Inclusion of overhead is a principal element of any fee study, as it ensures that the full cost of service which we calculate, and upon which fee recommendations are based, includes costs of direct and indirect overhead, in addition to the direct cost of providing the services. Rather than costly and inflexible proprietary software, which can require expensive licensing fees, Willdan builds models utilizing Excel, from the ground up, employing the City’s budget as the gauge. This model, which is then the City’s to retain, gives City Staff the control to make on- the-fly adjustments and updates. Citywide Fee Study 14 City of Diamond Bar, CA For this fee study, we will meet directly with Department representatives at the City, to discuss the best-suited approach and process; and then in more detail to identify processes and levels of activity and effort involved in providing services f or which fees are paid. Through this process we will identify the full cost recovery amount for each fee related activity , compare this with the City’s current cost recovery levels, and then discuss with staff, policy and/or political concerns that need to be considered in developing recommended fees. Final recommended fees will be the result of these collaborative discussions, so that they reflect realities and considerations that are specific to the City of Diamond Bar. We will review and analyze existing user fee programs, and based upon conversations with City Staff, a review of other neighboring cities, and our experience with fee programs in other cities, make suggestions as necessary for fees that may need to be added to the City’s fee schedule, for activities that occur with some regularity, or for which a fee is not currently being charged. For a successful and effective engagement, it is important to have a thorough understanding of the structure and organization of the City. We bring years of successful experience working directly with hundreds of cities throughout California, and the United States. Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan brings to the City include the following: On-site Data Gathering Our experience has taught us that working together, via face-to-face discussions, is the most efficient and thorough way to ensure that results are accurate, and that studies are completed in a timely manner, which again, is critical in this proposed engagement. Consequently, through on-site interviews with your staff, Willdan will collect the majority of required data for the study. This method is better than the typical “time and motion surveys” that are provided to agency staff when studies like these are conducted. This process ensures that we gather the data we need in one coordinated step, rather than having to go through repeated follow-up and clarification. This approach and the dedication of our staff will help ensure we meet the City’s timeline and objectives and provide important information to City Staff and the City Council as soon as possible. Public Engagement Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and Council workshops. While we understand that the City Council and local business community may be generally supportive of increasing fees where necessary, it will be important to present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis. The Willdan Team is experienced at communicating complex analytical results in a manner that is ea sy to understand by non-finance-oriented individuals and facilitates discussion. Our proposed principal-in-charge and project team for this engagement have coordinated or participated in numerous public and staff workshops regarding fees and cost of service- based charges. As previously mentioned, our objective is to provide useful, detailed information to the City Council and City Staff, necessary to make important decisions. Our experience ensures that we can meet this objective. User-friendly Models and Reports Willdan prides itself on creating user-friendly Excel-based models that the City can retain and conducting our analysis and developing the models collaboratively with City Staff. With City Staff’s immediate input and collaboration, Willdan will design extremely flexible, intuitive Excel-based models. In the future, as the City assumes new responsibilities, modifies existing processes, and/or eliminates unnecessary services or programs, the models will be capable of adding or deleting funds, objects, departments, programs, staff positions, and activities. Willdan understands that issues facing the City are unique; consequently, we design our models to match your immediate and desired needs to ensure that end-results exceed staff expectations. This model is then the City’s to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy. A key element of these studies is presenting results and recommendations in a straightforward manner, which allows the City Council and staff to confidently make fee setting policy decisions and understand the impacts of those decisions. Rather than using an inflexible proprietary software program, we construct our models from the ground up, as previously discussed, mirroring the City’s budget format wherever possible. As a result, the information contained in our models are easy for City Staff to interpret, and the familiar software ensures ease of navigation. As the models are being designed and constructed, we will work together with City Staff to determine the best and most effective features to include. The model will be developed to allow the City to run “what -if” scenarios to address potential changes in staffing levels, working hours, etc. Citywide Fee Study 15 City of Diamond Bar, CA After the project is completed, we will provide training, so that your staff can independently and efficiently evaluate the effects of changes in certain factors. Created directly from the models, our reports clearly and graphically illustrate bases for the full cost recovery level of fee programs, provide projections of revenue from fee programs, both at full cost recovery and at recommended levels, and present the fee methodologies. Comprehensive User Fee Study Methodology The following describes our proposed methodology and approach to prepare a Citywide User Fee Study. To comprehensively update fees, the City should develop a fee schedule that accurately accounts for the true cost of providing services. Once the study is complete, the fee study model must be flexible so that the City can add, delete, and revise fees in the future. To meet this goal, we will bring our expertise and unique perspectives to your fee study by approaching the project with these three principles: 1) Defensibility Our user fee projects have not been legally challenged since the inception of this practice area in our firm. We have accomplished this by closely working with legal counsel familiar with user fee studies, our engineering division and with agency staff. In this way, we can tailor the correct approach to ensure full cost recovery combined with a sound and reasonable basis for each user fee you implement. We employ principles from Proposition 218 to make certain that your user fee and rate schedule is developed with fairness, equity, and proportionate cost recovery principles in mind. With the addition of Proposition 26, Willdan will review each analyzed user fee for compliance and appropriateness to ensure continued defensibility. 2) Project and Staff Time The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as applicants approach the City for its services. Our standards and approaches serve to get to the issues of your fee study quickly. Starting with the project kick-off, we will make certain that your staff understands the purpose and scope of the study and its corresponding on-site departmental interview. As Willdan is able to communicate directly with the service providers, this face-to-face interaction provides valuable time estimates. 3) Responsiveness We take great pride in providing responsive service to our client agencies. Frequent communication is critical to a successfu l user fee study experience. We will provide a list of data requirements in advance of the project kick -off. Due to this simple step, the introductory meeting can focus on the survey input process, answering questions, determining policy goals, and defining next steps in the project. We will follow up weekly with the City at each step in the fee study process to make sure that staff “buys in” to the fee study approach and results. Approach Our approach to preparing the user fee study and documentation for the City includes: ▪ Close coordination with your staff to devise a consensus approach. Different programs and/or different service delivery methods will necessitate different approaches. We will discuss specific pros and cons with City Staff as we determine which methods work best for various categories of fees; ▪ Strict adherence to key legal and policy issues with regard to user fees, including the percent of cost recovery that the City seeks to achieve. A user fee shall not be set higher than the reasonable cost of providing a fee -generating service. Our approach provides you with a fee schedule that achieves maximum legal cost recovery while ensuring that each fee is supported by technically defensible documentation; and ▪ Technical analysis necessary for project participants to resolve policy issues. Citywide Fee Study 16 City of Diamond Bar, CA As described below, there are two basic approaches to calculating user fees: Approach 1: Case Study Method This is also sometimes referred to as a cost build -up approach. Using a time and materials approach, the “Case Study Method” examines the tasks, steps and City Staff involved in providing a particular ‘unit’ of service, such as a permit review, and then uses that information to develop estimates of the actual labor and material costs associated with providing a unit of service to a single user. It is often used when a service is provided on a regular basis, and staff and other costs associated with the service can be segregated from available budget data. A typical case study fee model should comprise the following three general cost layers: 1) Central Services Overhead: This category may involve such costs as labor, services, and supplies that benefit more than one department, division, or project. The exact benefits to specific areas are impossible to ascribe to a single activit y. Examples are purchasing, human resources, and liability insurance. As part of the user fee study, these costs are calculated in the overhead cost review. 2) Department Overhead: This category may include expenses related to such items as office supplies, outside consultants, and membership dues. It may include management, supervision, and administrative support that are not provided to a direct fee-generating service. Typically, these items are charged, on an item-by-item basis, directly to the department, division, or project. 3) Personnel Costs: This category refers to direct salary and benefit costs of staff hours spent on providing a fee-generating service (e.g., on-site building inspector). Approach 2: Average Cost Method This is also sometimes referred to as a programmatic approach, because it looks at costs at a program level, and then allocates them to participants on an occurrence basis. By taking total service costs across a substantial sample period (a year) and dividing by the total number of service units delivered over that same period, costs per unit of service is estimated. This approach is useful when services or programs are provided in a more aggregate manner, where it might be difficult to identify a specific sequence of steps associated with one user or participant; or where it is not feasible to cost-effectively segregate costs associated with specific activities. Central Services Overhead Departmental Overhead Personnel Costs Fully - Burdened Hourly Rate Citywide Fee Study 17 City of Diamond Bar, CA Citywide Fee Study Our proposed work plan, described in detail by task, is provided below. We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City’s needs and specific local circumstances. We will work in conce rt with the City to adjust the scope as needed during the course of the study. Task 1: Initial Document Request Objective: Initial due diligence; obtain study-related data. Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the interviews described in Task 5. We will request information, data sets, documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already available) related specifically to programs and activities which have associated fees, and for which the City has this level of detail. Since this proposed engagement does not include completion of a new or updated Cost Allocation Plan (CAP), we will request detail and data from the City’s current cost allocation model/analysis. These overhead factors and costs will be incorporated into t he cost-of-service analysis to support updated fee recommendations. Deliverables: Willdan: Submit information request to City. City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). We will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding. Task 2: Compile Inventory of Current and Potential Fees/Review Existing Cost Allocation Method Objective: Willdan will identify the schedule of fees and develop the methodology for calculating the fees, obtain and review the City’s current CAP methodology and approach to allocating indirect service costs, and obtain staffing, salary, and benefit information. Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study. We will review the existing fee schedule to ensure consistency and that it addresses areas where fees could be charged for services being provided and confer with Staff to identify potential new fees. As mentioned in the Project Understanding, we will work with staff to incorporate reasonable indirect overhead factors from the City’s current Cost Allocation Plan to ensure the costs associated with central service overhead support are included in the full cost of providing services. Reasonable indirect cost allocation percentages will be used in calculating fully-burdened hourly personnel rates. We will gather and review data and supporting analysis as necessary, related to the City’s cost allocation approach. This information will be used to verify or calculate the allocation of indirect service costs to operating departments, and then will be incorporated with staffing, and salary and benefit data to develop a comprehensive schedule of Fully-Burdened Hourly Rates (FBHR). These rates will form a basis for the calculation of the costs of providing services to residents and customers, for which fees are charged. Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required. Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed and finalized during the kick-off call), and a schedule of Fully-Burdened Hourly Rates. City: Review completed fee schedules with comments/revisions to be discussed during the kick -off meeting. Task 3: Kick-off / Refine Project Requirements, Objectives and Scope Objective: Confirm goals and objectives for the Citywide User Fee Study. Identify and discuss policy issues typically raised, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2). Citywide Fee Study 18 City of Diamond Bar, CA Description: Verify our understanding of the City’s goals, the City’s cost-recovery policy for user fees, and fill any gaps in data/information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process. During this discussion, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project’s schedule. Meetings: One (1) project kick-off call/web meeting to initiate the project, discuss data needs, and address policy matters. Deliverables: Willdan: 1) Revised project scope and schedule (if needed); and 2) brief summary of policy decisions (if needed). City: 1) Provide further data needs; and 2) determine/introduce City’s project manager. Task 4: Develop Comprehensive Fee Model and Incorporate Overhead Allocation Factors Objective: Develop and test fee model and incorporate overhead factors. Description: This task involves the development of the model ultimately used to calculate fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5. To ensure that City policies are met through the imposition of the calculated fees, the model will be formatted to include appropriate costs. We will utilize the data from the City’s current Cost Allocation Plan to determine the appropriate indirect cost factors to apply to personnel rates, to develop fully burdened hourly rates. These rates will serve as a basis for calculating the full cost of providing services. Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on staffing, salaries and benefits. This information will be obtained directly from the City and incorporated directly into the user fee model. We will request clarification and/or additional data if necessary. We will also update, as appropriate, available fee volumes (occurrences) and revenue generation. The model will provide an allocation of administrative and overhead costs to fee related activities, so that fees and billable rate schedules incorporate applicable costs. Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations. Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City Staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council. Task 5: Time Survey Interviews and On-site or Virtual Information Gathering Objective: Meet with City Staff to complete Time Surveys and understand service delivery processes. Description: In order to assist staff with the completion of the survey worksheets, we will schedule up to one-and-a- half (1.5) day of meetings with staff; however, the number of meetings needed may vary depending on the number of staff involved. The Willdan Team will conduct interviews with managers, as well as other staff , as deemed appropriate and/or necessary, to understand the processes and staffing involved in delivering fee-based City services and determine the average time required by City Staff to provide each of the services. During this process we will identify instances of cross-departmental support and calculate associated costs. The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels. This will allow Willdan and City Staff to conclude with a final meeting to review the draft full cost recovery fees and adjust any times as necessary once all information has been compiled and input into the fee model. We will schedule the interviews with City Staff to minimize any disruption to their normal workflow. Meetings: One-and-a-half (1.5) business day of meetings/staff interviews. Depending upon circumstances and availability, we may discuss the option with City Staff of conducting these meetings via WebEx or Zoom. These tools have proven to be highly effective and efficient, particularly for follow-up questions and/or discussions. Deliverables: Willdan and City: Time surveys and draft full cost recovery fees. Citywide Fee Study 19 City of Diamond Bar, CA Task 6: Data Analysis, Calculate Full Cost of Providing Services, Final Fee Schedule Objective: Incorporate information obtained from surveys to fully develop model and calculate the cost of providing services. Description: We will update the model, based on information received during the on -site surveys, to generate a Citywide fee schedule. In addition, it is very common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting. Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs and suggest potential areas where fees could be collected, where they are not currently. We will present the cost of service and full cost recovery level for fees, both current and projected under the new calculated fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees. We will begin the discussion of subsidies and fee-setting, and the implementation of policy and political objectives. We will provide guidance based upon our recent experience as to policy factors and approaches used by other similar cities. Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee p rograms for compliance with Propositions 218 and 26. The fee data analysis and model development may take three (3) to five (5) weeks with frequent correspondence with City Staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity. Meetings: Web meetings and/or conference calls, as necessary, to gather additional input, complete analysis and finalize fee schedule. Please see the note in Task 5 regarding in-person meetings. Deliverables: Final user fee model for the City Council presentation and discussion. Task 7: Common Fees Comparison Objective: Examine up to five (5) comparable cities/agencies in the Los Angeles County, or jurisdictions that are similar in either geography or profile to the City of Diamond Bar. Description: We will access and use our knowledge of other jurisdictions to benchmark all applicable fees for up to five projects as determined by City Staff and Willdan. The purpose is to select sample projects (such as a 5-unit residential project or a 10,000 square foot commercial building) that the City may reasonably expect to encounter, and determine the total fee burden, as compared to the other selected cities . Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs. The survey will contain the following, a comparison of fees and charges used by the City and other jurisdictions for comparable sample projects; current and proposed fees and charges unique to the City of Diamond Bar; fees and charges used by other public entities not currently used in the City; and if possible, identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions. Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination. Task 8: Prepare and Present Draft Results and Report, Conduct Presentations Objective: Prepare and present draft results and report. Description: This task involves the preparation of the draft report that discusses the study’s background, the methodologies utilized in the study, and the results and presentation to various stakeholder groups. As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy to understand tables. Individual fee summaries and a comprehensive fee schedule will be included as well. The draft report will include the following: Citywide Fee Study 20 City of Diamond Bar, CA ▪ Key results and findings; ▪ Current and recommended fees and charges; ▪ Basic descriptions of each service; ▪ The full cost of each service and current cost recovery levels; ▪ Costs broken down graphically into indirect and direct components, with a graphic display of the level of cost recovery; ▪ Fee recommendations with associate levels of cost recovery; ▪ Projections of potential fee revenue; ▪ Assessment of reasonableness of each City’s costs; ▪ Review of reasonableness of current consultant cost structure (for Building Division services); ▪ As appropriate, recommend alternative methodologies for building permit fee calculation; and ▪ Summary and recommendations. The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic. Meetings: One (1) web meeting or conference call with the City Staff, to present draft results, address questions , and receive feedback. Deliverables: Willdan: Draft report for City review and comment. City: Review of draft report, with comments and edits. Task 9: Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review of draft report and fee model. Description: The goal of this task is to conduct an in-depth review of the draft report and model, incorporate feedback and changes as a result of previous discussions and meetings, and arrive at an optimum fee structure. During this Task, we will finalize the actual fee levels, with consideration given to policy and current practices. Often through the course of an engagement, City Staff will volunteer insightful likes and dislikes regarding the existing fee structure. We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of: ▪ Understandability; ▪ Fairness to applicants; ▪ Ease of calculation ▪ Appropriate levels of cost recovery; and ▪ Full cost recovery hourly rates. When adjusting fee recovery levels, we believe it is important to address these concerns. Following one (1) round of comments and feedback from City staff on the draft report, we will prepare the final report for presentation to the City Council. Meetings: Two (2) web meetings to review the model and finalize cost recovery levels. Deliverables: Draft report, revised draft /final report. Task 10: Prepare and Present Final Report/Instruct Staff on Model Objective: Prepare and present final report to City Council. Instruct staff on the operation and use of the model for future modifications. Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation. We will provide Staff with guidance on how to update the model in future years, to incorporate cost increases and changes in staffing or processes. Meetings: One (1) conference call/web meeting with City Staff to discuss the presentation of the results. Follow-up offline discussions may occur as necessary with City Staff to review questions and/or requested clarifications from the City Council. Deliverables: Provide one (1) bound hard copy, and one (1) electronic PDF file copy of the final report and models . Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ROM. Citywide Fee Study 21 City of Diamond Bar, CA City Staff Support To complete our tasks, we will need the cooperation of City Staff. We suggest that the City of Diamond Bar assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City’s project manager will: 1) Coordinate responses to requests for information; 2) Coordinate review of work products; and 3) Help resolve policy issues. Willdan will endeavor to minimize the impact on City Staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City’s proj ect manager to steer the project back on track. We will keep the City’s project manager informed of data or feedback we need to keep the project on schedule. Project Timeline Willdan understands time is of the essence for the City of Diamond Bar to begin this engagement. The schedules can only be met with the cooperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule. Scope of Services 1 8 15 22 29 5 12 19 26 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 Task 1: Initial Document Request z1 Task 2: Compile Inventory of Current and Potential Fees z2 Task 3: Kick-off / Refine Scope (web meeting/conference call)z3 Task 4: Develop User Fee Model z4 Task 5: Staff Interviews and On-site Information Gathering (web meetings)z5 Task 6: Data Analysis and Final User Fee Schedule (Web mtgs/conf calls)z6 Task 7: Common Fees Comparison z7 Task 8: Prepare and Present Draft Report (conference call)z8 Task 9: Revise Draft Report/Determine Cost Recovery Levels (conference call)z9 Task 10: Prepare and Present Final Report/Instruct Staff on Model (web meeting)z10 Deliverables: z1: Information Request z6: Draft Fee and Rate Model Review z2: Draft List of Current Fees z7: Common Fee Comparison z3: Revised Project Scope and Schedule (if needed) z8: Draft Report z4: User-friendly Model in Microsoft Excel z9: Revised Draft Report/Final Report z5: Time Surveys and Draft Full Cost Recovery Fees z10: Final Report – Hard and Electronic Copies June City of Diamond Bar Citywide Fee Study Project Schedule May AprilJanuaryFebruaryMarch Citywide Fee Study 22 City of Diamond Bar, CA Quality Control Procedures Project Management Approach At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model. Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate. Project Management Define the Project Plan the Project Manage the Project Review the Project Communicate the Project ▪ Identify the project scope, set objectives, list potential constraints, document assumptions. ▪ Define a course of action and develop an effective communication plan. ▪ Provide a forum for applying the team’s collective expertise to solving difficult analytical issues that arise in complex projects. ▪ Collaborate with the project team and client staff and agree upon timeline to meet the estimated project timeline. ▪ Assign workload functions to appropriately qualified staff to ensure milestones are met, on time. ▪ Pre-schedule quality control meetings with the project team to maintain the progressive motion of the project. ▪ Manage the execution of the project. ▪ Direct existing and upcoming project tasks. ▪ Control and monitor work in progress. ▪ Provide feedback to client and project team. ▪ Identify and resolve deviances from project timeline. ▪ Review all work products and deliverables. ▪ Utilize structured quality assurance process involving up to three levels of review at the peer level, project manager level. ▪ Procure executive officer level review. ▪ Communicate with the client regarding work status and progress. ▪ Ensure client is in receipt of regular status updates. ▪ Schedule regular conference calls to touch base. ▪ Inform client of roadblocks, work outside of projected scope. Through the process of providing regular updates and conducting status conference calls, potential issues will be highlighted, discussed, and resolved. Any deviances from the project timeline will be identified and plans will be developed for course corrections. Citywide Fee Study 23 City of Diamond Bar, CA Quality Assurance / Quality Control Process Our quality control program is incorporated as a required element of Willdan’s day -to-day activities. There are three levels of reviews incorporated for our deliverables: 1) Peer review; 2) Project Manager review; and 3) Final quality assurance manager review. Peer reviews involve one analyst reviewing the work of another, while project manager reviews are conducted prior to delivery to the quality assurance manager. The quality assurance manager then performs a final review. This assures that our final product has been thoroughly evaluated for potential errors; thus, providing quality client deliverables, and high levels of integrity and outcomes. The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established. Quality Assurance Goals Goal Lead Task Quality Assurance / Control Process Chris Fisher ▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; ▪ Emphasize quality in every phase of work; ▪ Ensure efficient use of resources; ▪ Establish a consistent and uniform approach to the services performed; and ▪ Implement appropriate quality control measures for each work task of the project. Quality Control Plan Chris Fisher, Tony Thrasher, & Robert Quaid ▪ Contract deliverables; ▪ Specific quality control procedures; ▪ Special quality control emphasis; ▪ Budget and manpower requirements; ▪ Overall project schedule and budget; and ▪ Project documentation requirements; Citywide Fee Study 24 City of Diamond Bar, CA E. Cost for Services Citywide Fee Study Willdan Financial Services proposes a fixed fee of $26,840 to conduct the Citywide Fee Study on the City’s behalf. The table below provides a breakdown of the fee to complete the study by task and project team member. Notes ▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. ▪ City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan's rates in effect at the time of such response. ▪ The cost of preparing the user fee study can be included in the resulting new user fee schedule. Therefore, over time, the City can recover the initial outlay of funds that was required to complete the studies. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party. Hourly Fee Schedule Our current hourly rates are listed below. C. Fisher Principal-in- Charge T. Thrasher Project Manager P. Patel Analytical Support R. Quaid QA/QC Total $ 250 $ 210 $ 135 $ 210 Hours Cost Scope of Services Task 1: Initial Document Request - 1.0 1.0 - 2.0 345$ Task 2: Compile Inventory of Current and Potential Fees - 1.0 2.0 - 3.0 480 Task 3: Kick-off /Refine Scope - 1.0 2.0 - 3.0 480 Task 4: Develop User Fee Model/Incorporate Overhead 1.0 6.0 20.0 1.0 28.0 4,420 Task 5: Staff Interviews and On-site Information Gathering - 12.0 12.0 - 24.0 4,140 Task 6: Data Analysis and Final Fee and Rate Schedule 1.0 6.0 48.0 1.0 56.0 8,200 Task 7: Common Fees Comparison - 2.0 16.0 - 18.0 2,580 Task 8: Prepare and Present Draft Report 1.0 2.0 12.0 1.0 16.0 2,500 Task 9: Revise Draft/Determine Cost Recovery Levels 0.5 3.0 10.0 - 13.5 2,105 Task 10: Prepare and Present Final Report/Model Instruction - 5.0 4.0 - 9.0 1,590 Total – Citywide Fee Study 3.5 39.0 127.0 3.0 172.5 26,840$ City of Diamond Bar Citywide Fee Study Fee Proposal Willdan Hourly Rate Schedule Position Team Member Hourly Rate Group Manager Chris Fisher $250 Managing Principal $240 Principal Consultant Tony Thrasher & Bob Quaid $210 Senior Project Manager $185 Project Manager $165 Senior Project Analyst Priti Patel $135 Senior Analyst $125 Analyst II $110 Analyst I $100 Citywide Fee Study 25 City of Diamond Bar, CA F. Insurance Citywide Fee Study 26 City of Diamond Bar, CA G. Consultant Services Agreement Execution of Contract Willdan has reviewed the City’s Consultant Services Agreement included within the Citywide Fee Study RFP, and kindly request the deletion of the following language. 20. Liquidated Damages. Consultant shall pay City, or have withheld from monies due it, as liquidated damages, the sum of _______ Dollars ($___) per day for each and every calendar day's delay in finishing the work within the time specified, including any written extensions which may be granted, in writing, in accordance with this Agreement. [Optional, include in situations in which untimely delivery of a product or service would interfere with City's ability to serve its constituents. Must have Section 18 and 19 to include.] 27368 Via Industria, Suite 200 Temecula, CA 92590 800.755.6864 | Fax: 888.326.6864 www.willdan.com