HomeMy WebLinkAboutDiamond Bar UF & CAP Proposal_Feb 2024_Willdan Financial Services.pdf
City of Diamond Bar
Citywide Fee Study and
Cost Allocation Plan
Citywide Fee Study and Cost Allocation Plan 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
Samantha Labitan ............................................................................................................................... 5
Robert Quaid ....................................................................................................................................... 6
C. Firm’s Experience .................................................................................................................................................. 7
Firm Profile ........................................................................................................................................ 7
Willdan Financial Services ............................................................................................................... 7
References ......................................................................................................................................... 9
Similar Studies ................................................................................................................................ 11
D. Methodology/Project Understanding ........................................................................................................14
Project Understanding .................................................................................................................... 14
Project Methodologies .................................................................................................................... 16
Scope of Work ................................................................................................................................. 19
Project Schedules ........................................................................................................................... 26
Quality Control Procedures ............................................................................................................ 27
E. Cost for Services ................................................................................................................................................... 29
Fixed Fee ......................................................................................................................................... 29
F. Insurance .................................................................................................................................................................. 31
G. Consultant Services Agreement .................................................................................................................. 32
Execution of Contract ..................................................................................................................... 32
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
February 8, 2024
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 and Cost Allocation Plan for the City of Diamond Bar
Dear Ms. Allen,
Municipalities throughout California are consistently challenged to do more with less. Even as cities contend with limited
financial resources to address competing priorities and objectives, they strive to maintain high standards of service to thei r
communities. Processes and staffing often evolve as staff seek efficiencies 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 services have been developed and
updated to reflect current practices, account for the true cost of providing City 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 . This effort will help
ensure effective use of the City’s financial resources and enhance fiscal sustainability . 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 User Fee Study and Full Cost Allocation Plan.
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 these studies:
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, San Dimas, Eastvale, Burbank, El Monte, Los Alamitos,
Lynwood, Stanton, Montebello, West Hollywood, Arcadia, Cudahy, Lomita, Fontana, Yucaipa, Murrieta, and Palm Desert.
Collaborative Approach, Proven Results and User-friendly
Models and Reports — Willdan prides itself on working closely with
City staff to develop an approach that is targeted toward your specific
objectives and reality, 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 ensures we clearly understand
your goals and challenges, and just as importantly, you
understand the process 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.
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 Cost Allocation methodologies and
models have been reviewed and approved
by Cognizant Agencies such as the US
Army and recently, the US Department of
Housing and Urban Development,
providing evidence of our thorough and
defensible approach to the development
of Cost Allocation strategies.
Ms. Dannette Allen, Senior Management Analyst
City of Diamond Bar
Proposal to Conduct a Citywide Fee Study and Cost Allocation Plan
February 8, 2024 | Page iii
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 do not want or
need to see the deep detailed analysis. The Willdan Team is
experienced at communicating complex analytical results in a manner
that is easy to understand by non-finance-oriented individuals. We
have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.
Unique Combination of Services and Expertise/Public Engagement — Established in 1988, Willdan is a team of over
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
Willdan will work with the City to create
new Cost Allocation Plan and User Fee
models that provides the benefit of a fresh
approach and new perspectives.
Citywide Fee Study and Cost Allocation Plan 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 Financial Analyst
Senior Analyst
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review;
▪ Report preparation; and
▪ Meeting and presentation attendance.
Samantha Labitan
Senior Analyst Analytical Support
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review; and
▪ Report preparation.
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 and Cost Allocation Plan 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 and Cost Allocation Plan 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 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 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 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 and Cost Allocation Plan 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
Senior 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, d atabase 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 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 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 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 and Cost Allocation Plan 5
City of Diamond Bar, CA
Samantha Labitan
Analytical Support
Ms. Samantha Labitan is Senior Analyst within Willdan’s Financial Consulting and District
Administration Services groups. Ms. Labitan provides analytical support under the guidance of the
project team. Her primary function is to support project managers and senior analysts with cost
allocation plans and user fee studies. She specializes in analysis for a variety of clients, including cities,
water districts, public utilities, and school districts.
She regularly speaks with individuals representing title companies, real estate agencies, and appraisal
firms, together with staff from cities and counties. Willdan’s proprietary computer system allows him to
readily access the owner’s name, the Assessor’s Parcel Number, existing and future taxes or
assessments, and more; thus, enabling expedient service. Community Facilities Districts, Local
Improvement Districts, Landscape and Lighting Districts, and County Service Areas are some of the
special districts she administers.
Select Relevant Experience
City of West Hollywood, CA — Cost Allocation Plan and Comprehensive User Fee Study: For
this project, Ms. Labitan provides analytical support. Primary duties include gathering and verifying
necessary data, finalizing model figures and generating reports.
City of Lynwood, CA — Cost Allocation Plan & OMB Compliant Cost Allocation Plan and User
Fee Study: Ms. Labitan provided support to the project team specific to the preparation of a
comprehensive fee study, full and OMB compliant cost allocation plan. Ms. Labitan worked in tandem
with the project managers to identify and account for direct and indirect costs, along with changes in
staffing, structure, and service delivery methods.
City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:
Ms. Labitan is currently providing support to senior team members in the preparation of a cost
allocation plan, OMB compliant plan and comprehensive user fee study.
City of Richmond, CA — Cost Allocation Plan & User Fee Study: As analytical support, Ms.
Labitan provided assistance to the project team. Primary duties included gathering and verifying
necessary data, finalizing model figures and generating reports.
City of Gilroy, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Labitan
worked on the team for the City’s fee study 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.
City of El Centro, CA — Full & OMB Compliant Cost Allocation Plan and User Fee Study:
Ms. Labitan served as the analyst in the preparation of a full & OMB compliant Cost Allocation Plan
and Comprehensive User Fee Study, for the City of El Centro engagement.
City of Goleta, CA — Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee
Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive fee
study, full and OMB compliant cost allocation plan.
City of Los Banos, CA — Full & OMB Compliant Cost Allocation Plan and Comprehensive User
Fee Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive
fee study, full and OMB compliant cost allocation plan.
City of Blythe, CA — Full and OMB Compliant Cost Allocation Plan: Ms. Labitan served as the
analyst in the preparation of a full and OMB compliant cost allocation plan, for the City of Blythe
engagement.
City of Pismo Beach, CA — Comprehensive User Fee Study: Ms. Labitan served in the capacity
of assistant analyst for the City’s comprehensive fee study.
City of Brighton, CO — Cost Allocation & OMB Compliant Plan: Ms. Labitan is providing
analytical support for the City’s cost allocation plan.
Education
University of California,
Santa Barbara
Bachelor of Arts,
Mathematics
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Benefit/Maintenance
Assessment Districts
Community Facilities
Districts
Local Improvement
Districts
7 Years’ Experience
Citywide Fee Study and Cost Allocation Plan 6
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 and Cost Allocation Plan 7
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—five of whom are committed to
contributing their expertise throughout the duration
of the City of Diamond Bar’s Citywide Fee Study and
Cost Allocation Plan 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 over 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 and Cost Allocation Plan 8
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 engagement. 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 60 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 five 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 60 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 and Cost Allocation Plan 9
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 w orked
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 and Cost Allocation Plan 10
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 analysis. 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 and Cost Allocation Plan 11
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 and Cost Allocation Plan 12
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 and Cost Allocation Plan 13
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 and Cost Allocation Plan 14
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 and Cost Allocation Plan that will enhance fiscal sustainability and equitable distribution of
financial resources within the community, align fees and charges with the cost of providing the services, 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;
▪ Developing a well-documented Cost Allocation Plan for both full and OMB compliant purposes, that is flexible and
able to accommodate changes in City structure, staffing and processes going forward, and which allows for inflation
adjustments;
▪ 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 models that incorporate 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 p resenting the results in a way that is readily understood
by decision makers.
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.
We will meet directly with departmental representatives at the City at the beginning of the project, to discuss the approach
and process for the studies. Discussions will include ways to combine tasks and efforts among the cost allocation plan and
user fee study components to maximize efficiencies and ensure adherence to specified timelines.
The completion of a CAP is a key component and first step in the analysis necessary to calculate the cost of providing
services. A well thought out CAP ensures that indirect costs associated with central overhead services, such as
finance, human resources, or city clerk, are appropriately allocated to operating departments, and ultimately
included as a cost component of fees for services . We will work collaboratively with City staff to identify the overhead
support services that are provided to operating departments in the City and develop a fair and defensible means of
allocating these costs.
Rather than a 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 and Cost Allocation Plan 15
City of Diamond Bar, CA
Our unique model allows us to provide a CAP that will also be compliant with 2 CFR Part 200 Federal regulations
related to cost reimbursement and grant funding, formerly known as OMB A-87 and 2 CFR Part 225 guidelines, which have
now been superseded by the Omni Circular. The new circular did not completely overhaul the guidelines, and the intent is
still the same, but it did add new limitations to consider and incorporate into a compliant CAP.
For the Citywide User Fee Study, we will work directly with personnel at the City who provide services and interact directly
with residents and customers, to understand the personnel and procedures involved. By carefully examining these
processes, we will be able to identify associated costs such as direct staff costs (salaries and benefits) associated with
personnel involved in the activities, and appropriate overhead allocations from both the department and city levels.
For a successful and effective engagement, it is important to have a thorough understanding of specific City policies and
objectives, the structure and organization of the City, and the relationships between the central and operating departments.
We bring years of successful experience working directly with hundreds of cities throughout California.
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 studies. 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 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 for this engagement has
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 , and present recommendations to the City
Council and public in a way that clearly demonstrates the rationale and supporting analysis. 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 rather than using an inflexible proprietary software.
These models are 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
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.
The model will be developed
to allow the City to run “what-
if” scenarios to address
possible changes in staffing
levels, working hours, etc.
Citywide Fee Study and Cost Allocation Plan 16
City of Diamond Bar, CA
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.
After the project is completed, we will provide training, so that staff can independently and efficiently evaluate the effect s
of changes in certain factors. Created directly from the models, our reports clearly and graphically illustrate the full cost
recovery level of fee programs and provide projections of revenue from fee programs.
Project Methodologies
The following describes our proposed approach, and work plan to prepare a Cost Allocation Plan and Citywide User Fee
Study.
Cost Allocation Plan Methodology
The purpose of this cost allocation plan engagement is to ensure that the City of Diamond Bar is maximizing the recovery
of indirect costs from identified operating departments, as well as enterprise and other chargeable funds and capital
projects. Furthermore, a sound cost allocation plan is a foundational element of a user fee study, ensuring that the
full cost of providing services that is calculated for setting fees includes provision for internal overhead support.
The Cost Allocation Plan is also integral in the development of internal hourly rates, including CIP billing rates.
We will work closely with staff in identifying the proper balance of allocation factors appropriate for the City.
To achieve the maximum cost recovery objective, the City must have a method of identifying and distributing administrative
costs that is fair, comprehensive, well documented, and fully defensible. A cost allocation plan coupled with comprehensive
overhead rates will enable the City to achieve this goal.
The allocation models utilize an iterative method which is the most accurate allocation methodology. Unlike a direct or
“step-down” methodology, an iterative method uses the chosen distribution bases and allocates central service costs
iteratively until all allocable costs have been distributed. Using this method, the model can detail the allocation for each
central function individually for complete transparency and accountability, while removing bias that might result from the
order in which allocations occur in a step-down approach.
A direct methodology is essentially a one-iteration methodology, while a step-down method is typically only two iterations
and is less precise and unable to accurately track the allocations from start to finish .
Approach for Managing the Project
Willdan’s “hands-on” supervision of Cost Allocation Plan studies, include the following methods:
▪ Effective Project Management — Principal-in-Charge Chris Fisher will manage the entire project with an eye toward
high responsiveness, while ensuring that all stakeholders are “on board” with the direction of the project, as well as
with the final results. Mr. Fisher will ensure that re gular status updates are provided to City staff, conference calls are
scheduled, and that in-person meetings are conducted (as necessary).
▪ Adherence to Time Schedule — Willdan recognizes that the use of “timelines” is highly effective in meeting all
required deadlines. To keep the project on schedule, there are several tasks that must be completed in a timely manner.
Therefore, we will present a project timeline at the kick-off meeting that should be closely followed.
Although the establishment of an experienced project team and a detailed project timeline work extremely well in general,
Willdan understands that outside influences can create uncontainable situations for everyone involved in the project. In
rare circumstances like these, our team quickly adapts to changes, and communicates our recommended schedule
adjustments to the City.
Approach in Communicating with the City
Willdan staff is accustomed to interfacing with local government councils, boards, staff, community organizations, and the
public in general in a friendly and helpful manner ; we are always mindful that we represent the public agency. We are
sensitive to the need of delivering a quality product, with the highest level of service and professionalism.
Therefore, as the work on the project progresses, we understand that it will be necessary for our staff t o work closely with
you and City personnel. To accomplish this, we employ a variety of tools, including monitoring project status and budget
costs; and ensuring effective communication through several options that are based on the City’s preferences.
Experience with Development Service Processes
A unique aspect of our firm is our relationship with our Engineering Division. For many agencies throughout California and
other Western states, this division provides contracted services in planning, engineering, and building and safety. When
conducting cost recovery studies, we regularly consul t with our engineering and land-development staff of experts on
development-related issues. By working with our planners, engineers, and building officials, we understand development -
related agency service procedures and workflow functions, which often make the entire user fee study process smoother
for your staff.
Citywide Fee Study and Cost Allocation Plan 17
City of Diamond Bar, CA
Citywide User Fee Study Methodology
To comprehensively update fees, the City should develop a citywide user 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.
While Proposition 218 does not directly apply to non -property-related fees, we employ principles from this important
constitutional article to make certain that your user fee 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 estimat es.
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 you at each step in the fee study process to make sure that
staff “buys in” to the fee study approach and results.
Citywide User Fee Study Approach
Our approach to preparing the user fee study and documentation for Diamond Bar 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 each fee category;
▪ 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 to ensure State compliance, and to anticipate and resolve potential policy issues using
a combination of industry standards as well as City specific methods .
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:
Citywide Fee Study and Cost Allocation Plan 18
City of Diamond Bar, CA
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.
Citywide Fee Study and Cost Allocation Plan 19
City of Diamond Bar, CA
Scope of Work
Our proposed work plans, described in detail by task, are provided below. We will maximize efficiency and cost-
effectiveness by combining meetings and data gathering efforts between the user fee study and cost allocation plan
wherever possible. We explain how each task will be accomplished and identify associated meetings and deliverables. We
will work in concert with the City to adjust scopes as needed during the course of the studies.
Cost Allocation Plan
This proposed scope of services addresses the completion of both the full and OMB compliant versions of the Cost
Allocation Plan (CAP). We have noted where activities specific to the OMB compliant plan occur.
Task 1: Initial Document Request
Objective: Initial due diligence.
Description: Prior to the kick-off call, relevant documentation will be obtained and reviewed in order to enhance our
understanding of the City’s current cost allocation plan and internal structure of the agency. A written
request for specific data will be sent to the City. The data provided in this task will provide the building
blocks for later model development.
Our request may include (but is not limited to):
▪ Detailed budget and accounting data;
▪ Prior year’s financial data, salary, position, and staffing data;
▪ Organizational structure;
▪ Prior cost allocation plan and/or user fee documentation and models; and
▪ Data related to various allocation bases that may be incorporated as part of the methodology, i.e., City
Council agenda frequencies by department, AP/AR transactions by department, IT equipment
distribution by department, etc.
Deliverables: Willdan: Submit information request to City.
City: Provide requested data to Willdan (prior to Task 2, Kick-off Call/Refine Scope). We will follow up with
the City to confirm in writing the data that we have received, or which is still outstanding.
Task 2: Kick-off / Confirm Project Strategy / Refine Scope
Objective: Confirm project goals and objectives and develop overall project strategy. Identify and discuss policy
considerations related to the study and determine appropriate fee categories.
Description: Willdan will identify and discuss policy matters typically associated with these studies and address data
gaps in order to gain a full understanding of the City’s goals for the cost allocation plan.
We will establish effective lines of communication and processes for information gathering and review, and
conduct discussions with City staff to verify the scope, purposes, and objectives for the CAP.
We will also discuss costs that may not be allocable for OMB purposes, and the potential impact on the
OMB version of the CAP.
During this call, we will ask that the City assign a project manager to serve as its primary contact. The
selected City project manager will ensure that available data is provided to Willdan in a timely manner,
thereby maintaining adherence to the project’s schedule.
We will obtain and review the current cost allocation methodology and discuss with City staff. The objective
of this review is to determine specific areas of focus as they relate to the City’s objectives, and to discuss
and evaluate current and potential allocation factors.
Meetings: One (1) project kick-off meeting or call to initiate the project, discuss data needs and methodologies , and
to address policy issues. We would propose to conduct the user fee study kick-off during this same
meeting, to maximize efficiency and cost effectiveness of City staff and Willdan time.
Deliverables: Willdan: If needed, a revised project scope and schedule.
City: Provide further data requirements and select/introduce City’s project manager.
Citywide Fee Study and Cost Allocation Plan 20
City of Diamond Bar, CA
Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model
Description: This task involves the gathering of specific information, directly from City staff, through interviews and
discussion, related to the functions served by indirect staff and the departments served by their activities.
This task also focuses on the development of, and/or adjustment of existing, allocation bases, and the
development and testing of a model that will ultimately be used to calculate the proper cost allocations
derived from data gathered in prior tasks.
The model will be developed to incorporate any recent changes in the provision of City services, identify
the total cost of providing indirect overhead support services, fully allocate central service costs to
operating groups such as Development Services, and will include provision for appropriate inflationary
adjustments going forward. The model will also be developed to allocate only those costs eligible under 2
CFR Part 200. This is accomplished by loading relevant data into the model, identifying whic h costs are
not allocable under the OMB guidelines. The OMB Super Circular compliant model is valuable as the City
may receive Federal or State grant funding that mandates compliance with Federal OMB regulations.
The model will include flexibility to add or delete support service and/or operating groups as changes occur
and also the ability to adjust the model and the results annually for inflation, salary , and benefit increases,
as well as contract rates.
We will utilize budget and organizational information, and other required information gathered from City
staff to complete the work in this task. Specific discussions will be held to discuss allocation bases, services
provided by indirect groups, how central overhead services are pr ovided to and utilized by other
departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation
methodology.
The model and methodology will produce indirect cost rates and overhead percentages which support the
development of fully-burdened hourly City staff rates. These hourly rates can be used for a variety of
purposes including incorporation into the User Fee Study’s fully burdened personnel rates, billing to Capital
Improvement projects work orders, recovery of costs for services provided to City customers working with
various City departments, and in the OMB Super Circular compliant CAP, to Federal grants.
Meetings: Online meetings with staff to understand structure and operations as model and allocation bases are
developed. Key staff will be interviewed to best understand central overhead staffing and functions and the
departments served.
Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format that provides both a full cost allocation plan
and an OMB Super Circular compliant cost allocation plan.
Task 4: Test and Review Cost Allocation Methodology
Objective: Test and review model and results with City.
Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure
that preliminary allocations provide an accurate depiction of how the central overhead costs should be
borne by the operating programs and funds. Over the past several years, we have successfully integrated
online meetings by using WebEx™ as an element to our approach.
This allows us to remotely guide staff through the model review and allows you the opportunity to
interactively change inputs and test approaches.
Meetings: One (1) online meeting and demonstration with City staff to review the model.
Deliverables: Willdan and City: Draft cost allocation plan model review.
Task 5: Prepare and Present Draft Report
Objective: Prepare the draft cost allocation report.
Description: This task involves the draft report preparation. The cost allocation plan’s background, model
methodologies, and results will be discussed; calculations and supporting data will be presented textually
and in easily understood tables and provided to the City.
Meetings: One (1) online meeting to present the draft report to City staff.
Deliverables: Willdan: Draft report for City review and input.
City: Review of draft report, with comments, and edits.
Citywide Fee Study and Cost Allocation Plan 21
City of Diamond Bar, CA
Task 6: Discuss and Revise Report
Objective: Review of draft report, cost distribution methods, and model.
Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation method
for each expenditure type.
Often, through the course of an engagement, comments usually revolve around issues of
understandability; appropriate levels of enterprise funds’ cost recovery, etc.; ease of calculation; and
overhead costs’ distribution methods.
Our reports are structured to include both the overhead and OMB compliant plan, but in the course of
review if a separate report is desired for each or just one of the plans, they will be split.
Following a round of comments from City staff concerning the draft report, the final report will be prepared
for presentation to the Council.
Meetings: One (1) conference call with City staff to review the report with changes and revisions.
Deliverables: Draft report, and revised draft/final report.
Task 7: Prepare and Present Final Report and Model
Objective: Prepare and present the final report to City Council. Educate City staff on the operation and use of the
model for future modifications.
Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report,
Willdan will prepare the final report for presentation to City Council.
Meetings: One (1) meeting with the City Council to present the final plan if necessary. This meeting would be held in
conjunction with the presentation of the user fee study results.
We will also provide staff training on the operation and use of the model , and consult with the City as
needed to respond to challenges or questions related to the CAP.
Deliverables: Willdan: Provide one (1) electronic PDF file copy of the final report and models (full and OMB Super
Circular compliant), and five (5) bound copies, and one (1) unbound copy to the City. Using Microsoft Word
and Excel, an updateable electronic copy of the study and models, as well as related schedules, will be
provided on CD.
Citywide User Fee 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 on-site
interviews described in Task 5.
We will request information and 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.
Deliverables: Willdan: Submit information request to City.
City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). As with the cost
allocation plan, 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
Objective: Willdan will identify a schedule of fees and methodology for calculating the fees.
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.
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).
City: Review completed fee schedule with comments/revisions to be discussed during the kick -off meeting.
Citywide Fee Study and Cost Allocation Plan 22
City of Diamond Bar, CA
Task 3: Kick-off Conference Call / Refine Scope
Objective: Confirm goals and objectives for the Citywide User Fee Study. Identify and discuss policy considerations
typically associated with a User Fee Study, for instance cost recovery/subsidy policies, address gaps in
data, and refine appropriate existing or new fee categories (based on Task 2).
Description: Verify our understanding of the City’s goals, the City’s cost-recovery policy for user fees, and to 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 call, 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 to initiate the entire project, discuss data needs, and address policy objectives.
As mentioned in the cost allocation plan work plan, we suggest combining the kick -off calls to increase
efficiency.
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 User Fee Model
Objective: Develop and test model.
Description: This task involves the development of the model ultimately used to calculate the departmental fees, based
on data and information gathered in previous tasks and in the Time Survey Interviews.
Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on
salaries and benefits.
Most of this information will be developed during the cost allocation plan phase of this project and will be
incorporated directly into the user fee model. We will request clarification and/or additional data if
necessary.
The model will build upon the cost allocation plan results , to provide an allocation of administrative and
overhead costs to fee related activities and departments providing services to customers , 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: Staff Interviews and On-site 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 two (2) days of
meetings with staff; however, the number of meetings needed may vary depending on the number of staff
and departments involved.
The Willdan Team will conduct interviews with supervisors/managers, as well as other staff , as deemed
appropriate and/or necessary, from each department involved in the user fee study to determine the
average time required by City staff to provide each of the services for which a fee is collected.
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 staff to minimize any disruption to their normal workflow.
Meetings: Two (2) business days 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.
Over the past three years we have used these tools very successfully and found them 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 and Cost Allocation Plan 23
City of Diamond Bar, CA
Task 6: Data Analysis and Final User Fee Schedule
Objective: Incorporate information obtained from on-site surveys to fully develop model.
Description: We will update the model, based on information received during the on -site surveys, to generate a
comprehensive user 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
(i.e., building fees) and suggest potential areas where fees could be collected where they are not currently.
We will calculate and present the full cost recovery level for fees, both current and projected under the new
fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees.
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 programs for compliance with Propositions
218 and 26.
In developing the fee schedules for each division, we will make recommendations for new fees where
appropriate, based on our experience with other cities. Some areas for new fees may be due to changes
in law (legalized cannabis), or for activities that the City finds itself performing regularly, but for which no
fee is collected.
Where possible, we will incorporate discussion of the City’s economic development policies, and where
these may intersect with fee programs, for instance setting fees in a manner that encourages certain
activities.
The user fee data analysis and model development may take three (3) to four (4) weeks with frequent
correspondence with City staff to discuss current cost recovery amounts, necessary to recover full cost
and frequency activity.
Meetings: One (1) meeting, 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 City Council presentation and discussion.
Task 7: Common Fees Comparison
Objective: Examine selected user fees charged by up to five (5) comparable cities in Los Angeles County or other
jurisdictions that are close in proximity or similar to the City of Diamond Bar.
Description: We will access and use our knowledge of other jurisdictions to benchmark the City’s five (5) most common
visible fees or highest yielding fees with comparable jurisdictions.
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. For this reason, Willdan takes a selection of the City’s most commonly used and/or
highest yielding fees.
The survey will contain the following, a comparison of common or similar fees and charges used by the
City and other jurisdictions; 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 Report
Objective: Prepare draft 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 nex t 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 by department and a comprehensive fee schedule will be included.
Citywide Fee Study and Cost Allocation Plan 24
City of Diamond Bar, CA
The draft report will include the following:
▪ Key results and findings;
▪ Basic descriptions of each service;
▪ The full cost of each service at lowest reasonable activity level 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) conference call with 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 arrive at an optimum fee structure.
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 from City staff on the draft report and feedback from City staff, we
will prepare the final report for presentation to the City Council.
Meetings: One (1) online demonstration (WebEx) to review the report and model, with any revisions.
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.
Meetings: One (1) meeting with City Council to present the results and adopt the updated fee schedule. We will also
provide staff training on the operation and use of the model on the same day, during regular business
hours.
Deliverables: Provide one (1) electronic PDF file copy of the final report and models ; and, if requested, provide five (5)
bound copies, and one (1) unbound copy to the City. 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.
Citywide Fee Study and Cost Allocation Plan 25
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.
Citywide Fee Study and Cost Allocation Plan 26
City of Diamond Bar, CA
Project Schedules
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.
Cost Allocation Plan
Citywide User Fee Study
Scope of Services 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: Kick-off / Refine Scope (conference call)z2
Task 3: Gather Staffing Information and Develop Model (conference call)z3
Task 4: Test and Review Cost Allocation Methodology (conference call)z4
Task 5: Prepare and Present Draft Report (meeting)z5
Task 6: Discuss and Revise Report (conference call)z6
Task 7: Prepare and Present Final Report/Instruct Staff on Model (meeting)z7
Deliverables:
z 1: Information Request z 5: Draft Report
z 2: Revised Project Scope and Schedule (if needed) z 6: Revised Draft Report/Final Report
z 3: User-friendly Model in Microsoft Excel z 7: Final Report – Hard and Electronic Copies
z 4: Draft Cost Allocation Plan Model Review
City of Diamond Bar
Cost Allocation Plan
Project Schedule
March April May June
Scope of Services 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26
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
City of Diamond Bar
Citywide User Fee Study
Project Schedule
March April May June July August
Citywide Fee Study and Cost Allocation Plan 27
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 and Cost Allocation Plan 28
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 and Cost Allocation Plan 29
City of Diamond Bar, CA
E. Cost for Services
Fixed Fee
Willdan proposes a not to exceed fixed fee of $36,400 to conduct the Cost Allocation Plan and Citywide User Fee Study
on the City’s behalf. The tables below provide a breakdown of the fee to complete each study by task and project team
member.
Cost Allocation Plan
Willdan Financial Services proposes a fixed fee of $10,815 to conduct the Cost Allocation Plan on the City’s behalf.
Citywide Fee Study
Willdan Financial Services proposes a fixed fee of $27,565 to conduct the Citywide User Fee Study on the City’s behalf.
C. Fisher
Principal-in-
Charge
T. Thrasher
Project
Manager
P. Patel
Senior
Analyst
S. Labitan
Analytical
Support
R. Quaid
QA/Tech
Advisor Total
$ 250 $ 210 $ 135 $ 125 $ 210 Hours Cost
Scope of Services
Task 1: Initial Document Request - - 1.0 - - 1.0 135$
Task 2: Kick-off /Refine Scope - 2.0 1.0 - - 3.0 555
Task 3: Gather Staffing Information & Develop CAP Model 1.0 3.0 8.0 8.0 1.0 21.0 3,170
Task 4: Test and Review Cost Allocation Methodology - 3.0 6.0 4.0 0.5 13.5 2,045
Task 5: Prepare and Present Draft Report 1.0 3.0 4.0 4.0 1.0 13.0 2,130
Task 6: Discuss and Revise Report 1.0 3.0 4.0 2.0 - 10.0 1,670
Task 7: Prepare and Present Final Report/Instruct Staff on Model - 4.0 2.0 - - 6.0 1,110
Total – Cost Allocation Plan 3.0 18.0 26.0 18.0 2.5 67.5 10,815$
City of Diamond Bar
Cost Allocation Plan
Fee Proposal
C. Fisher
Principal-in-
Charge
T. Thrasher
Project
Manager
P. Patel
Senior
Analyst
S. Labitan
Analytical
Support
R. Quaid
QA/Tech
Advisor Total
$ 250 $ 210 $ 135 $ 125 $ 210 Hours Cost
Scope of Services
Task 1: Initial Document Request - - 1.0 - - 1.0 135$
Task 2: Compile Inventory of Current and Potential Fees - 1.0 1.0 - - 2.0 345
Task 3: Kick-off /Refine Scope - 2.0 1.0 - - 3.0 555
Task 4: Develop User Fee Model 1.0 4.0 6.0 12.0 1.0 24.0 3,610
Task 5: Staff Interviews and On-site Information Gathering - 14.0 14.0 4.0 - 32.0 5,330
Task 6: Data Analysis and Final Fee and Rate Schedule 1.0 6.0 25.0 24.0 1.0 57.0 8,095
Task 7: Common Fees Comparison - 3.0 4.0 14.0 - 21.0 2,920
Task 8: Prepare and Present Draft Report 1.0 3.0 6.0 8.0 1.0 19.0 2,900
Task 9: Revise Draft/Determine Cost Recovery Levels 0.5 4.0 8.0 2.0 - 14.5 2,295
Task 10: Prepare and Present Final Report/Train Staff on Model - 4.0 4.0 - - 8.0 1,380
Total – Citywide User Fee Study 3.5 41.0 70.0 64.0 3.0 181.5 27,565$
City of Diamond Bar
Citywide User Fee Study
Fee Proposal
Citywide Fee Study and Cost Allocation Plan 30
City of Diamond Bar, CA
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.
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 Samantha Labitan $125
Analyst II $110
Analyst I $100
Citywide Fee Study and Cost Allocation Plan 31
City of Diamond Bar, CA
F. Insurance
Citywide Fee Study and Cost Allocation Plan 32
City of Diamond Bar, CA
G. Consultant Services Agreement
Execution of Contract
Willdan has reviewed the City’s Consultant Services Agreement included within the Citywide Fee Study RFP, and kindly
request the deletion of the following language.
20. Liquidated Damages. Consultant shall pay City, or have withheld from monies due it, as liquidated damages, the
sum of _______ Dollars ($___) 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