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CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF APRIL 20, 1999 <br />TO: HONORABLE MAYOR & CITY COUN IL <br />APPROVAL: HENRY T. GARCIA, CITY NAGERt----/ <br />FROM: DILU DE ALWIS, ACTING FINANCE DIRECTOR bVI <br />SUBJECT: AWARD A CONTRACT FOR COST ALLOCATION PLAN PREPARATION SERVICES <br />FOR THE CITY TO DMG-MAXIMUS, INC. IN THE AMOUNT OF $18,000 <br />DATE: APRIL 12,1999 <br />BACKGROUND <br />The City allocates costs to enterprise and other revenue generating departments to cover costs of support <br />departments such as Finance, Personnel, etc. The method the City has been using is not adequate and <br />may not be in line with Proposition 218 guidelines for cost allocations. <br />DISCUSSION/ANALYSIS <br />Finance has solicited a proposal from DMG-Maximus, Inc. to provide cost allocation plan services for the <br />City. A copy of their proposal is attached for your review. The cost of these services for the first year will <br />be $18,000. If the City extends the contract for an additional year, the cost for the second year would be <br />$15,500 and they would credit $2,500 toward the first year services. <br />Professional services contracts are awarded on a variety of factors, including experience and knowledge <br />of the subject area, to name a few. The fee for services to be charged shall be considered, but shall not <br />be an overriding factor. The City's Purchasing Ordinance allows the City Council to waive the "Request <br />for Proposal" process for professional services, if it finds that the public interest will not best be served by <br />a formal proposal process. At this time, DMG-Maximum, Inc. is providing cost allocation services to <br />approximately 250 California cities. Staff is recommending the Council waive the formal proposal process <br />and award a contract to DMG-Maximum, Inc. <br />ALTERNATIVES <br />Solicit formal "Request for Proposals" which may delay the City's compliance with Proposition 218 <br />guidelines. <br />FINANCIAL IMPACT <br />The funds are available in the Finance Dept. professional services account #100-6040-6041-2350. <br />r< <br />ENVIRONMENTAL IMPACT <br />None <br />RECOMMENDATION <br />Staff recommends Council award a contract for cost allocation plan preparation and services to DMG- <br />Maximus in the amount of $18,000 with an option to renew for one additional year. <br />Report prepared by Mary J. Milroy, Purchasing Coordinator item # 11 <br />Attachments: None <br />r, <br />Page 1 of 1 <br />1 <br />