ClearSource Financial Consulting - LQ RFP Fees Update
User & Regulatory Master Fee Schedule
and Full Cost Allocation Plan Updates
CITY OF LA QUINTA
NOVEMBER 23, 2020
PROPOSAL TO PERFORM CONSULTING SERVICES
TERRY MADSEN | PRINCIPAL CONSULTANT
tmadsen@clearsourcefinancial.com | 831.288.0608
7960 B Soquel Drive, Suite 363 | Aptos, California 95003
www.clearsourcefinancial.com
CLEARSOURCE Proposal to the CITY OF LA QUINTASECTION 1
CONTENTS
PROPOSAL ORGANIZATION
Proposal
The following content has been organized following the specifications of the Request for Proposals
(RFP).
1 Cover Letter
2 Firm’s Background, Qualifications, and Experience
3 References of California Government Agencies
4 Complete Pricing List
5 List of Complementary Services Offered by Proposer
6 Staffing and Project Organization
7 Subcontracting Services
8 Disclosures
9 Acknowledgement of Insurance Requirements
Forms
The following forms have been attached to this proposal, as instructed by the RFP:
Insurance Requirements Acknowledgment
Non-Collusion Affidavit
Acknowledgement of Addenda
7960 B SOQUEL DRIVE, SUITE 363 | APTOS, CALIFORNIA 95003
831.288.0608 | WWW.CLEARSOURCEFINANCIAL.COM
SECTION 1
November 23, 2020
CITY OF LA QUINTA
Attention: Monica Radeva, City Clerk
78495 Calle Tampico
La Quinta, California 92253
Via Email Submission: MRadeva@LaQuintaCA.gov
Proposal for User and Regulatory Master Fee Schedule and Full Cost Allocation Plan Updates
Dear Ms. Radeva and Other Members of the Evaluation Team:
Thank you for the opportunity to once again provide cost allocation, cost of service, and user/regulatory
fee consulting for the City of La Quinta. Partnering successfully with the City on these topics since 2012,
ClearSource Financial Consulting is well-qualified, available, and equipped to complete the scope of
work envisioned by the City. We bring an open mind for change and exhibit the energy to do the heavy
lifting it takes for a fresh look on the subject, as we have endeavored to do in each of our past
engagements for the City. As always, we commit to the City of La Quinta to provide premier service, on
time, and within budget:
PREMIER SERVICE ON TIME WITHIN BUDGET
We routinely demonstrate care
about the details and the rightful
influence of local conditions. We
do the hard work to achieve
modern and meaningful outcomes
that reflect the way our clients
serve their communities today.
We know time is of the essence in
this work: a key determination of
success and satisfaction for many
of our city clients. All project
reporting for a comprehensive
study in 2021 will be ready 120
days from project start.
We will finish the scope of services
without change orders, which is
our standard practice. We do not
ask our clients to bear the risk in
estimating what it takes to do this
work thoroughly and with
successful enactment of results.
I am the President of ClearSource Financial Consulting, authorized to negotiate and bind ClearSource
contractually. I have read and will comply with all terms and conditions of the RFP without exception.
ClearSource staff assigned to the City’s project are free of any conflict of interest. My signature obligates
ClearSource to the terms of this proposal and confirms that this proposal shall remain valid for a period
of 90 calendar days from the date of this submittal.
Sincerely,
TERRY MADSEN, PRESIDENT | CLEARSOURCE FINANCIAL CONSULTING
COMPANY NAME: ClearSource Financial Consulting
MAILING ADDRESS: 7960 B Soquel Drive, Suite 363, Aptos, CA 95003
CONTACT NAME: Terry Madsen, President and Principal Consultant
PHONE NUMBER: 831.288.0608
EMAIL ADDRESS: tmadsen@clearsourcefinancial.com
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 2
FIRM QUALIFICATIONS
INTRODUCTION TO CLEARSOURCE
ClearSource History
As a service partner to the City of La Quinta
since 2012, ClearSource is pleased to submit our
qualifications to continue our relationship with
the City as it contemplates a User and
Regulatory Master Fee Schedule Update and
Full Cost Allocation Plan Update. We look
forward to the chance to continue our service
to the leaders, direct service providers,
constituents, and stakeholders of the City.
ClearSource Financial Consulting (ClearSource)
is a privately owned California-based boutique
consulting firm intentionally sized and
structured to emphasize a highly tailored, high
quality study experience for our public sector
clients. ClearSource is staffed by a five-person
team of seasoned individuals with decades of
combined experience in local government
financial analysis. We are particularly focused
on equitable forms of locally controlled cost
recovery within the challenges and constraints
of the ever-evolving California statutory and
legal environment, informed respectfully and
strategically by the voter driven principles
embedded in Propositions 218 and 26.
Our firm is centered on the philosophy and
principles of ClearSource founder and
President, Terry Madsen, who will lead our
tasks from start-to-finish. For 20 years, Terry
has provided financial consulting services
exclusively to local government agencies. In
October 2011, he founded ClearSource, a firm
dedicated to providing local government
agencies with premier financial consulting,
serving with the:
Energy and enthusiasm to dive deep into
the details,
Willingness to do the heavy lifting necessary
to implement modernization and lasting
change,
Exclusive staffing on projects of only
tenured professionals able to enact both
science and art, and
Commitment to on-time delivery and not-
to-exceed consulting fees.
Contact ClearSource
Please refer to the following information and
statistics about ClearSource:
Project Manager and Key Personnel
Please refer to Section 6 for a complete
discussion of our proposed project staff
assigned to the City of La Quinta.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 2
FIRM QUALIFICATIONS
CLEARSOURCE QUALIFICATIONS
ClearSource Service Expertise
ClearSource provides professional services to
California municipal agencies, consulting on
topics focused on revenue management
through cost of service-based resources.
EXHIBIT 1 | CLEARSOURCE SERVICES
ClearSource specializes in conducting the
following common areas of study and
consultation on a wide cross-section of
governmental services and funds:
User and regulatory fee studies
Master fee schedule development and
ongoing management
Comparative/market analysis
Cost allocation plans
Internal service fund rate studies
Our primary focus is in revenue streams linked
to cost of service principles, equity, and local-
government control. Throughout these areas of
expertise, we often work in harmony with
internal and external stakeholders to achieve
successful implementation of the necessary
solutions.
As with every study of this type, the successful
completion of this project for the City will
require positive, professional relationships
with agency staff, contract service providers,
stakeholders, and the City Council and/or
subcommittees. ClearSource clientele can
attest to our ability to successfully navigate
timing, competing values, and other challenges
that arise when completing large scale projects.
During his career, Terry Madsen has been
awarded for his integrity, client service,
dedication, and perseverance. His treatment of
internal staff, and respect for the challenges
they face and the results they require in order
to successfully accomplish their goals and
objectives, results in working relationships that
span multiple years and projects.
ClearSource Organization Capacity
The ClearSource organization is comprised of
five senior consultants, each with no less than
15 years of experience in financial consulting or
directly in municipal finance. Our corporate
organization chart is shown in Exhibit 2.
EXHIBIT 2 | CLEARSOURCE FIRM ORGANIZATION
ClearSource is a registered corporation in the
State of California. We formed our practice in
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 2
FIRM QUALIFICATIONS
2011 after joining together from service in
other California consulting firms and California
public agencies prior to that time.
ClearSource Experience
FEE & COST RECOVERY TOPICS | ClearSource
has performed consulting services within the
past 24 months comparable to the City of La
Quinta’s scope of work for its User and
Regulatory Master Fee Schedule and Full Cost
Allocation Plan Updates for the sample of
California cities and their specific fee/cost
recovery-based programs listed in Exhibit 3 on
the following page. This includes identification
of trending topics in California fee design, such
as short term vacation rentals, cannabis retailer
regulation, electric vehicle charging stations,
stormwater regulation and inspections, and
technology enhancement recovery.
COMPARABLE REGIONAL SERVICE | Within the
past three years, ClearSource has served the
following clients in the Coachella Valley on
comparable project subject matter and
deliverables to the City of La Quinta’s
forthcoming study, including for:
City of La Quinta | Citywide user/regulatory
fees, overhead cost allocation, and other
specialized cost recovery services
City of Rancho Mirage | Citywide
user/regulatory fees and indirect cost
allocation
City of Cathedral City | (ongoing)
user/regulatory fees and indirect cost
allocation
Through this regional work, including on behalf
of the City of La Quinta, ClearSource has also
successfully engaged the Riverside County
Building Industry Association (BIA) and the
Desert Valley Builders Association (DVBA),
which represent some of the most vigorous
stakeholders in the entire state of California
with powerful influence over fee management
by municipalities in the Coachella Valley.
Please refer to Section 3 of this proposal for
specific comparable project profiles and client
references.
ClearSource Approach
GUIDING PRINCIPLES | ClearSource follows
several guiding principles as we approach this
subject matter for our clients:
Create cost allocations, fees, and associated
practices that are understandable,
implementable, and maintainable.
Care about the details. Documentation
matters. Communication with stakeholders
matters.
Identify estimated reasonable costs of
service and use this information to set a
coordinated and mutually consistent system
of fees, internal charges, and associated
policies.
Balance the additional effort required for
ongoing administration and maintenance
when attempting to achieve a greater
degree of accuracy.
Consider legality, existing systems, resource
capacity, and staff and community
preferences when determining the best
course of action.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 2
FIRM QUALIFICATIONS
EXHIBIT 3 | SAMPLING OF COST OF SERVICE AREAS STUDIED RECENTLY
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 2
FIRM QUALIFICATIONS
SOLUTIONS | For comprehensive services in
2021, ClearSource expects to spend 200 hours
over a 120-day timeframe performing on-time,
in-budget service for the City of La Quinta. Our
efforts across both studies will focus in the
following key areas:
Development and Documentation of Critical
Inputs:
- Remodeled Fee Structures and Service
Categories (as merited)
- Financial Foundation for the Costs of
Service: revenues, personnel costs and
organization, operating costs, and
allocated administration/central
services
- Annual Service Time
- Individual Unit Service Time
- Volume of Applications, Permits, and
Service Population (as feasible)
Development and Documentation of
Quantitative Analysis:
- Overhead Cost Allocation Plan: full cost
iteration compliant with 2 CFR 200
federal cost principles
- Fully Burdened Hourly Rates: by
department/division, by functional
classification, by staffing classification,
and/or by individual
- Activity Costs of Service: by individual
fee-related service, by broad service
category, and/or by functional program
- Cost Recovery Policy: how much of the
costs of service should be recovered by
a fee?
- Regional Fee Comparison: does the
market influence the City’s decision-
making?
- Master Fee Schedule for 2021-22 fiscal
year, including tools for annual updates
- Project Fee and Revenue Impacts
Engagement and Approval:
- Departmental Interaction: project
commencement, onsite data
development, interim review points,
and training
- City Leadership Interaction:
coordination of direction and strategy
- Stakeholder Engagement: outreach and
mutual understanding
- City Council Interaction: presentation of
findings and public hearing
Deliverables:
- Reporting: draft report, summary
presentation, staff report, and final
report
- Tools: cost allocation model, fully-
burdened hourly rate models, activity
costs of service models, master fee
schedule, and reporting
Please refer to Section 4 of this proposal to
review our detailed approach and work plan
accompanying our complete pricing list.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 3
CALIFORNIA REFERENCES
CLEARSOURCE CLIENT REFERENCES
ClearSource Service to the City of La Quinta
ClearSource has partnered with the City of La Quinta since 2012 to address cost of service based fees
and related topics. We are proud of our ongoing work to serve successfully the direct staff, leadership,
policymakers, and stakeholders of La Quinta and positively impact the financial position of the City.
City of La Quinta, California
CITYWIDE USER AND REGULATORY
MASTER FEE SCHEDULE AND COST
ALLOCATION PLAN
Dates of Service:
Original Study: 2012
Most Recent Update: 2019-20
Contact City Project Manager:
Monica Radeva
City Clerk
Phone: 760.777.7035
Email: mradeva@laquintaca.gov
La Quinta Features Influencing Fees:
- Positive collaboration with
community stakeholders
- High value on premier customer
service
- Proactive fee-based revenue
management to sustain
organizational goals
- Fees in alignment with changing
business processes
ClearSource History with the La Quinta | ClearSource
was selected to work with the City beginning in 2012.
Prior to that first comprehensive study of its user and
regulatory fees, the City had not emphasized agency fees,
choosing instead to focus efforts on fostering positive
collaboration with its community stakeholders and
citizens. However, the economic conditions in the years
preceding that study had stressed City resources in a
manner that jeopardized its ability to continue robust and
expected service to those community interests. Teaming
with ClearSource, the City was able to use fees as a way
of ensuring continuity of staff and other assets, thereby
strengthening its ability to continue service year after
year at a level demanded by its constituents.
ClearSource Solutions for La Quinta | In 2012,
ClearSource conducted the City’s first comprehensive
user and regulatory fee study in ten years. While similar
efforts in neighboring communities were simultaneously
stalling, through the collaboration of ClearSource and La
Quinta City staff, a Citywide Master Fee Schedule was
successfully approved by the City Council, and despite
representing a considerable change in fee amount and
structure, that passage was accompanied by letters of
support from regional trade organizations directly
impacted by it.
In the decade after that original study, through continued
collaboration between ClearSource and City staff, the
City of La Quinta has produced a positive revenue
impact of over $1 million annually. To support this
achievement, since 2012, ClearSource has
Built a cost of service based master fee schedule
across all City program areas, customized to the
changing business processes and systems that
support service to the community.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 3
CALIFORNIA REFERENCES
City of La Quinta (continued)
CITYWIDE USER AND REGULATORY
MASTER FEE SCHEDULE AND COST
ALLOCATION PLAN
Additional City of La Quinta personnel
across the organization can attest to
their interaction with ClearSource
through the years of ongoing
management of the City’s user and
regulatory fees, including staff from:
- Building
- Planning
- Land Development
- Facilities and Recreation
- Contract Sheriff
- Contract Fire
Annually maintained user and regulatory fees as
underlying costs and service provisions have changed,
ensuring direct and current linkage to practices and
requirements.
Structured user and regulatory fees unlike previous
fee schedules: completely new and in alignment with
La Quinta community values, unique customer
service features, and organizational goals.
Designed wholly customized fee structures in
Building, Planning, Engineering, and Fire.
ClearSource Support of La Quinta Organization | In our
recurring support of the City, ClearSource supports
departmental goals, including organizational shifts, such
as those in The Hub (permit center), and customer service
attributes, such as onsite County Fire staff to ensure
quality of service and responsiveness expected by La
Quinta’s constituents. In nearly every project,
ClearSource engages the very active and dynamic regional
development and construction stakeholders to foster
mutual understanding, transparency, and acceptance of
underlying fee drivers, which has been critical to the
City’s successful implementation of fee changes. In other
program areas, ClearSource has developed solutions for
the City as new issues or trends emerge, including short
term vacation rental regulation, aquatics programming
with passionate stakeholder involvement, and fee-based
rentals of City property stemming from large-scale
events, among many others.
ClearSource References from Other California Government Agencies
Please contact the following references to discuss their experience with cost allocation, cost of service
analysis, and user/regulatory fee projects completed by ClearSource.
City of Torrance, California
USER/REGULATORY FEE STUDY AND
INDIRECT SERVICE RATES
Dates of Service:
Original Study: 2017-18
Most Recent Update: 2020
ClearSource completed a Comprehensive
User/Regulatory Fee Study for the City of Torrance. Fee-
related services reviewed included the following
programs City Clerk, Building & Safety, Engineering,
Planning, Environmental Design & Protection, Library,
Parks & Recreation, Parks Services, Finance, Fire
Prevention & Hazardous Materials, Airport, Cultural Arts
Center, Police, Animal Control, and Water (Non-Rate).
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 3
CALIFORNIA REFERENCES
City of Torrance (continued)
Contact:
Sheila Poisson
Assistant Finance Director
Phone: 310.618.5854
Email: spoisson@torranceca.gov
This work also included update of the City’s Indirect Cost
Rate for use in recovering central services. ClearSource
has continued to serve the City of Torrance as stand-
alone cost of service and cost recovery issues arise.
Topics have included the Police Department’s parking
enforcement and citation program and taxicab
permitting.
City of Rancho Mirage, Calif.
USER/REGULATORY FEE STUDY AND
INDIRECT SERVICE RATES
Dates of Service:
Original Study: 2017
Most Recent Update: 2020
Contact:
Joseph Carpenter
Finance Manager
Phone: 760.324.4511
Email: josephc@ranchomirageca.gov
ClearSource prepared a Comprehensive User/Regulatory
Fee Study and subsequent updates for the City of Rancho
Mirage since 2017.
Fee-related services studies include the following
programs: Planning, Public Works and Engineering,
Building, Technology Enhancement, Community
Planning/Long-Range Planning, Fire Prevention, Short-
Term Rentals, and Business Licensing.
City of Lake Forest, California
USER/REGULATORY FEE STUDY AND
INDIRECT COST ALLOCATION PLAN
Dates of Service:
Original Study: 2019
Continuing Service: 2020
Contact:
Brett Channing
Director of Management Services
Phone: 949.461.3419
Email: bchanning@lakeforestca.gov
ClearSource conducted a Fee Policy, Overhead Cost
Allocation, and Comprehensive Fee Study for the City of
Lake Forest. The onset of the work included establishing
the framework for evaluation of cost recovery factors and
user fee goals. The Cost Allocation Plan ensures
reasonable distribution and recovery of Citywide central
services within indirect rates, internal charges, and
application to forms of cost recovery. Fee-related services
reviewed in the cost of services analysis include
regulatory activities, permitting, facility rentals, program
participation, operations and public services, response to
individual action, licensing/billing/records
management/administration, and hourly rates for direct
billing. ClearSource has continued to serve the City of
Lake Forest as stand-alone cost of service and cost
recovery issues arise. Topics have included parking
permitting and facility use fees.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 3
CALIFORNIA REFERENCES
City of Azusa, California
USER/REGULATORY FEE STUDY
Dates of Service:
Original Study: 2016
Most Recent Update: 2017-18
Contact:
Richard Lam
Budget Analyst
Phone: 626.812.5200
Email: rlam@ci.azusa.ca.us
ClearSource completed a User/Regulatory Fee Study for
the City of Azusa. The City had gone many years without a
fee study and the findings of the prior fee study had not
been implemented. Completing a fee study with findings
that were implementable by the City was critical.
Additionally, the City required the consultant to commit
to a fixed project timeline. Services studied included
Building and Safety, Planning, Engineering, Utilities, Fire,
Police, Business Licensing, Recreation, Transportation,
Library, and Administration.
City of Ventura, California
USER/REGULATORY FEE STUDY &
INDIRECT COST ALLOCATION PLAN
Dates of Service:
Original Study: 2013
Most Recent Update: 2019-20
Contact:
Greg Morley
Budget Manager
Phone: 805.654.7800
Email: gmorley@cityofventura.ca.gov
ClearSource completed a Comprehensive
User/Regulatory Fee Study for the City of Ventura. Fee-
related services reviewed included the following program
areas: planning, land development, construction, fire
prevention, traffic engineering, utilities, stormwater
quality inspection, parks, recreation and community
partnerships, special events, treasury, police, and clerk.
As part of this effort, ClearSource routinely develops an
accompanying Citywide full cost allocation plan to ensure
recovery of central services in the City’s various fee and
charge structures.
ClearSource has served the City for a total of eight years
on multiple projects. Other areas of analysis have
included: the City’s central services indirect cost
allocation plan and internal service fund rates for
information technology, fleet, and facilities.
ClearSource has enthusiastic references from our California city clients. Should additional references be
desired by the City’s Review Team, please let us know. We will furnish them immediately.
ClearSource Clientele Reach in California
The following list is a sampling of the California public agencies for whom ClearSource has performed
cost allocation, cost of service, and user/regulatory fees since our founding:
City of Azusa
City of Bell Gardens
City of Campbell
City of Costa Mesa
City of Escalon
City of Gustine
City of Huntington Beach
City of La Quinta
City of Laguna Woods
City of Lake Forest
City of Larkspur
City of Lincoln
City of Long Beach
City of Malibu
City of Milpitas
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 3
CALIFORNIA REFERENCES
City of Monte Sereno
City of Novato
City of Ojai
City of Palos Verdes
Estates
City of Rancho Mirage
City of Roseville
City of Santa Ana
City of San Leandro
City of Sebastopol
City of Seal Beach
City of Shafter
City of Torrance
City of Ventura
City of West Sacramento
City of Wheatland
Town of Woodside
El Dorado County
Kern County
Sacramento Regional
Transit
San Diego Metropolitan
Transit
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
CONSULTING COST
Maximum Price Options
For a comprehensive study to prepare a User
and Regulatory Master Fee Schedule Update
and Full Cost Allocation Plan Update expected
to be prepared in 2021, ClearSource presents
the following fee:
TOTAL COMPREHENSIVE COST: $30,000
For this total consulting cost, the study will
deliver a full cost overhead cost allocation plan
and a comprehensive analysis for a cost of
service-based master schedule of Citywide user
and regulatory fees, including full cost
quantitative analysis for direct and indirect
costs, cost recovery policy, comparison,
documentation, stakeholder engagement, and
legislative process facilitation and
implementation support.
Should the City choose a more condensed
annual update of fees for 2021, for abridged
services focused on annual review and update
of the master fee schedule alongside
development of the Full Cost Allocation Plan,
ClearSource presents the following fee:
ABRIDGED COST: $4,200
For this total consulting cost, the study will
deliver an abridged analysis to update the
master schedule of Citywide user and regulatory
fees, including cost index adjustment to fees,
targeted cost of service analysis for discrete
areas of existing and new fees, documentation,
stakeholder engagement, and legislative process
facilitation and implementation support.
These total fee options are based on our
consulting team’s history of prior
comprehensive studies and updates for the
City, understanding City service provisions,
organizational structure, and known financial
performance and noting the breadth of direct,
fee-related services that will fall under review in
this effort. Our proposal ensures that all user
and regulatory eligible for the methodology
can be analyzed without shortcuts or
explanations for non-analysis and that process
is carried through to successful
implementation of feasible outcomes.
This consulting fee includes all direct and
indirect costs associated with our professional
labor. ClearSource does not bill for direct
expenses such as travel and document
production.
ClearSource commits to this consulting fee as a
maximum, not to exceed cost. It is our practice
to complete our defined scope of services
without requests for contract amendments.
Components of the Maximum Price
Exhibits 7 and 8 on the following pages
illustrate the detail behind our presented
maximum price for the User and Regulatory
Master Fee Schedule Update and Full Cost
Allocation Plan Update under either a
comprehensive approach or an abridged
approach to user/regulatory fees. This includes
labor time paired with hourly rates by study and
task described in the work plans included later
in this section of the proposal.
Manner of Payment
ClearSource will issue monthly progress reports
to the City. Accompanying monthly invoices will
be based on progress recorded to the project
following the major tasks described in our work
plan. We will not invoice for tasks not yet
completed, and we will not submit a final
invoice until work is completed as scoped in our
separate technical proposal. Total invoices
issued over the course of the study will not
exceed the maximum price presented here.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
EXHIBIT 7 |COST DETAIL BY STUDY TASK FOR THE
USER AND REGULATORY MASTER FEE SCHEDULE AND FULL COST ALLOCATION PLAN UPDATES
(COMPREHENSIVE APPROACH TO FEE ANALYSIS)
(This section continues on the following page.)
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
EXHIBIT 8 |COST DETAIL BY STUDY TASK FOR THE
USER AND REGULATORY MASTER FEE SCHEDULE AND FULL COST ALLOCATION PLAN UPDATES
(ABRIDGED APPROACH FOR FEE UPDATE)
PROJECT SCOPE OF SERVICES
ClearSource Project Understanding
The City of La Quinta is initiating a User and
Regulatory Master Fee Schedule Update and
Full Cost Allocation Plan Update. This type of
project is focused on the ethic of “the costs to
serve” from the following perspectives:
What are the full costs (direct and indirect)
of the comprehensive line-up of services
provided to the community, which
currently have or may be eligible for a user
or regulatory fee?
What structure of fee provides a
reasonable means for recovering
appropriate costs of service?
What are the cost recovery targets or
policies of the City as to the amounts that
should be paid for those who request or
cause these services?
What is the impact to the source funds –
typically the General Fund – of changes to
user/regulatory fees?
City Objectives
The City of La Quinta has outlined the following
broad objectives for the project:
Conduct a comprehensive cost of service
and fee analysis for the City’s user and
regulatory Master Fee Schedule.
Conduct annual Master Fee Schedule
updates.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
Identify additional service fees charged by
other surrounding cities that are not part of
the City’s existing Master Fee Schedule.
Update the City’s Full Cost Allocation Plan.
The City recently conducted a professionally
prepared comprehensive study of user fees in
2019. Original comprehensive analysis was first
conducted in 2012, and since that time, the City
maintained its Master Fee Schedule with annual
updates.
City Services for Study
For the User and Regulatory Master Fee
Schedule Update, it is expected that direct, fee-
related services under review in this element
will focus on services eligible for user fee
methodology, as well as identification during
this study of any relevant additions for services
performed without a fee or for under-
quantified or ineffectively structured fees.
All direct services throughout the City
organization for which a user or regulatory fee
is or can be imposed can be included in the
study as desired. This can encompass activities
such as:
Regulatory activities, such as review and
inspection of land development,
construction/building, and improvements
to infrastructure, and other areas of code
review, compliance, and enforcement
Permitting, such as special events and use
of public facilities, infrastructure, and
services
Facility rentals and use of public spaces,
such as community centers, recreational
sites, parks, and athletic field use
Program participation
Operations and services of individual
benefit/request or in response to individual
action
Licensing, billing, records management, and
administrative service
Hourly rates for direct-billing City staff time
From the City’s existing Master Fee Schedule,
we expect the study to include in the analysis
the following areas with fee-based services, in
addition to new fees ClearSource may identify
through the study:
Building Fees
Planning Fees
Public Works Fees
Fire Fees
NPDES Ongoing Inspection Fees
Short-Term Vacation Rental Permit Fees
Medical Cannabis Delivery Application Fees
False Alarm Response Fees
Vehicle Impound Cost Recovery Fees
Code Enforcement Fees
Pool Drain and Golf Cart Permit Fees
Home Occupation Permit Fees
Film/Photography Permit Fees
Bingo Permit Fees
Administrative Fees
Appeal Fees
Facility Use Fees
SilverRock Event Site Facility Rental Fees
Parking Lot and Open Space Rental Fees
Revenue streams generally excluded from this
type of methodology due to differing authority,
implementation and analytical methodologies,
and approval procedures would include: utility
rates and other property-related fees subject to
Proposition 218 proceedings, assessments, in-
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
lieu fees, development impact fees, fees
intended and codified more as “taxes,” punitive
fines/penalties, and general taxes.
While cost recovery for the above listed direct
services are the focus of User and Regulatory
Master Fee Schedule Update, the Full Cost
Allocation Plan Update focuses on potential
cost recovery for the “indirect” services of the
municipal organization through interfund
transfers and/or indirect rates. Indirect services
represent City budget units commonly found in
the General Fund that might include:
Legislative and general governmental
activities
Organization-wide management and
administration
Central support services outside of billed
internal service funds
Our standard practice – and built into our
expected work plan – is an open mind for
additions or deletions of direct services for
which a fee is established or indirect services
for which an overhead charge is applicable
WORK PLAN
ClearSource Work Plan | Full Cost Allocation Plan Update
The following work plan for the Full Cost Allocation Plan Update represents the step-by-step approach of
ClearSource, following our understanding of the City’s Scope of Services, direct citation of the City’s
required processes and deliverables, and additional processes and deliverables we believe provide
thorough, defensible services.
1 | STUDY ORIENTATION
City Required Deliverable (#):
- The Consultant will convene up
to two strategy sessions with
the City to determine the
project scope, purpose, uses
and goals of the City’s Full Cost
Allocation Plan to ensure that
the study is both accurate and
appropriate to the City’s needs.
The Consultant will thoroughly
review the project schedule and
answer any questions the City
may have pertaining to the
successful development of the
study. (2.1)
To commence the study on solid ground, ClearSource will
generate common understanding of objectives, known issues that
must be addressed by study end, participant roles, expected
procedural requirements, schedule and pre-established dates,
and data collection and development procedures. Subtasks
include:
Facilitate project kick-off event(s)
Assess prevailing cost allocation models, methods, and
applications. Particular attention will be paid to annual
procedures, internal opinions and impacts, and balance of
workload with the requirements of the City’s uses for
overhead, including internal transfers/reimbursements and
external agency reimbursement.
Review readily available budgetary documents to gain a
working knowledge of City structure and accounting practices.
Determine a plan for generating current indirect cost
allocations for the host of uses identified by the City. This will
likely include development of a new Excel-based model in
alignment with current needs but may include modification of
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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existing tools if City personnel prefer to sustain existing tools.
ClearSource will remain flexible.
2 | FINANCIAL AND
ORGANIZATIONAL INPUTS
City Required Deliverable (#):
- With a strategy in place, the
Consultant and the City will
hold a kick-off meeting to
discuss the project,
deliverables, timetables, and
tasks. The Consultant will meet
with staff and conduct
interviews as needed to gain an
understanding of the City’s
practices and operations. This
includes where certain
services/functions are
performed together/shared
through cooperation between
different departments. Costs
should be identified so that
they can be allocated
to/tracked by the appropriate
department, i.e. fire, public
works, planning, finance, etc.
(2.2)
ClearSource will develop the necessary foundation for
subsequent quantitative analysis. Particular focus will be
generating necessary data and documentation of inputs and
assumptions as required by the application of plan outcomes.
(For example, an OMB 2 CFR Part 225 compliant plan requires a
specific inventory of information that may not be as essential if
applications are entirely internal to the City.) Subtasks include:
Access organizational and line-item detail to support costs,
allocation factors, workload metrics, and accounting structure
in the cost allocation model.
Acquire and parse statistics that may be useful as bases for
distributing costs and where necessary, develop and
document alternate data sets to serve as distribution
methods.
Conduct targeted engagement with representatives from
support services departments if useful to influence data
accessibility and relevance in the cost allocation plan, such as
work order records, inventories, and other volumetric or
organizational tools.
3 | COST ALLOCATION MODEL
City Required Deliverable (#):
- Working closely with City staff,
the Consultant will collect all
data required to identify the
total cost of providing each City
service at the appropriate
activity level and in a manner
that is consistent with all
applicable laws, statutes, rules
and regulations governing the
collection of fees, rates, and
charges by public entities. The
Consultant should develop a
Full Cost Allocation Model for
calculating the full costs of
ClearSource will generate the quantitative model in Microsoft
Excel to allocate indirect costs Citywide. The model will be built to
accommodate change in the organization: the ability to add or
remove direct and indirect costs and to adapt to a range of
activities, from simple to complex. Structure and detail of the
final model will be dependent upon the ultimate application of its
results, as a plan submitted for cognizant agency approval in
compliance with OMB 2 CFR Part 225 and/or the State
Controller’s Office for Cost Claiming will require aspects
unnecessary in applications where cost recovery is expected to be
entirely internal to the agency.
The model is expected to identify:
Citywide fund and accounting structure and fiscal year data for
allocation outcomes
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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providing City service.
Consultant should also
determine the appropriate
General and Administrative
overhead allocations to City
activities and applicable
overhead rates for use in
calculating the City’s Billable
Hourly rates. The requirements
of the model should allow for:
additions, revisions, or removal
of direct and overhead costs so
that the full cost allocation plan
can be easily adapted to a
range of activities, both simple
and complex; the addition of
hypothetical service area
information for future service
enhancements, and ability to
calculate the estimated costs of
providing the service under
consideration (i.e. ad-hoc
analysis); calculate a citywide
overhead rate and an overhead
rate for each department that
can be updated annually; and
the ability of the City to
continuously update the model
and overhead cost allocation
plan easily from year to year as
the organization structure
changes and/or cost structures
change. (2.3)
Allocable indirect service centers
Allocation bases and related distribution factors for indirect
service centers
Direct service centers
Primary and secondary allocations
Resulting annual cost allocations
Resulting indirect service rates
Resulting interfund transfers
ClearSource understands the City may have already identified
specific areas of capability for the model, including distinct rates
for certain funds or program areas, as well as ensuring allocations
of administrative costs and any unbilled/allocated internal service
funds. ClearSource will remain flexible as to cost centers allocated
and beneficiaries modeled.
ClearSource will also generate a comparison of outcomes under
the updated Cost Allocation Plan to prior year outcomes,
including explanation for substantive differences.
4 | REPORTING AND TOOLS
City Required Deliverable (#):
- The Consultant will prepare
and provide a comprehensive
administrative draft, as well as
technical reports, including but
not limited to, methodology,
findings, and supporting
justification. The Consultant
will document all work
assumptions, analysis
procedures, findings, graphics,
ClearSource will provide the formal documentation encompassing
the work and outcomes of the study, as well as deliver the tools
developed throughout the study for the City’s ownership and
future use, including preparation or inclusion of:
A narrative description of the study, describing key data and
assumptions, and impacts.
Tables and charts to explain findings
The complete quantitative analysis as the justification for
updated indirect cost allocations and associated rates and
transfers.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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impacts, and
recommendations, with
technical documentation in
appendices. The administrative
draft and individual technical
reports will include an
executive summary and
conclusion. In general, the
administrative draft will consist
of a discussion of the
framework, description of the
project, applicable
statutory/legal framework,
methodologies used, and
analysis. The Consultant also
will revise the administrative
draft according to one set of
consolidated comments on the
draft reports from the City.
(2.4)
- The Consultant is to provide the
necessary training and
instruction materials to City
staff on how to continuously
update the model and
overhead cost allocation plan.
(2.3)
For a cost allocation plan in compliance with OMB 2 CFR Part 225,
the report/quantitative analysis will include:
Description of each allocated central service
Identification of the units rendering services and the units
receiving services
Items of expense included in the allocated cost of service
Method used to distribute the cost of service to benefitted
units
Schedule showing the allocation of each service to the specific
benefitting units
Organizational chart
Upon review and feedback from the City staff, consultants will
revise the draft report and accompanying outcomes to
incorporate direction received. The final report will be issued for
the City’s implementation and as a data source for incorporation
in the Cost of Services Study. Reports will be issued in PDF for
digital distribution and any necessary printing by the City beyond
the requested bound and unbound copies delivered by
consultants.
Upon issuance of the final report, ClearSource will deliver
editable versions of all models, documentation, and associated
work papers to the City for future use. Models will be delivered in
Microsoft Excel and PDF. Documentation will be delivered in
Microsoft Word and PowerPoint and in PDF. Additional work
papers developed will be delivered in the format in which they
were created and in PDF.
At the time of the City’s choosing, ClearSource will provide
training to City staff on the use and ongoing management of the
final Full Cost Allocation Plan model.
5 | ENGAGEMENT
City Required Deliverable (#):
- The Consultant shall make
revisions, if any, requested by
staff or the City Council. The
Consultant shall provide one (1)
digital file copy in PDF format
of the final full cost allocation
plan. Additionally, Consultant
shall provide the full cost
allocation plan, including but
ClearSource will facilitate a meaningful level of interaction
between consultants, City personnel, and City Councilmembers:
At least two interim review points to engage with designated
City personnel managing cost allocation practices
At City management discretion, an event with the City Council
to present the draft report and receive feedback and direction
on cost allocation proposals that would impact the City’s
budgetary and financial practices.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
not limited to all models,
tables, charts, and graphs, in
editable digital format for
Microsoft Word and Microsoft
Excel affording the City, for its
exclusive use, the ability to add,
delete, and/or update the
information as needed.
Consultants will prepare materials for these sessions, present the
plan (or elements relevant), and respond to inquiries.
Consultants will also respond to any direction from City staff and
City Council by revising underlying analysis and final reporting, as
needed.
Consultants will be available to City staff in the future to advise on
the overhead cost allocation plan.
ClearSource Work Plan | User and Regulatory Master Fee Schedule Update
(Comprehensive Analysis)
The following work plan for the User and Regulatory Master Fee Schedule Update represents the step-
by-step approach of ClearSource to provide a comprehensive analysis of fees, following our
understanding of the City’s Scope of Services, direct citation of the City’s required processes and
deliverables, and additional processes and deliverables we believe provide thorough, defensible
services.
1 | STUDY ORIENTATION
City Required Deliverable (#):
- Work and meet with City staff
to refine the project scope,
purpose, uses and goals of the
City’s MSF to ensure that the
study will be both accurate and
appropriate to the City’s needs
(1.2)
- Prepare and deliver a timeline
for reference purposes to the
City’s project manager (1.2)
To commence the study on solid ground, ClearSource will
generate common understanding of objectives, known issues that
must be addressed by study end, participant roles, expected
procedural requirements, schedule and pre-established dates,
and data collection and development procedures. Most
significantly, this task includes a major upfront effort to examine
prevailing fees for known issues and to discuss initial and
potential modifications to structures and practices. Subtasks
include:
Facilitate project kick-off event(s)
Assess prevailing fees and methods to understand
effectiveness of current structures, including perceived cost
recovery, perceived equity, alignment of fee categories with
the manner in which work is performed, perceived
competitiveness in the region, and feasibility or accuracy of
billing within current capabilities
Draft initial user/regulatory fee structures, where remodeling
is predicted, to direct down-stream data development steps
2 | FINANCIAL AND LABOR
TIME INPUTS
Consultants will develop the necessary foundation for subsequent
quantitative analysis, focusing this initial work to prepare the
body of data that will inform every downstream element of the
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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City Required Deliverable(#):
- Develop expert knowledge of
the City’s organizational and
financial structure (1.2)
- Work and meet with staff city-
wide to obtain necessary
information for the rate
structure of each fee (1.2)
- Review documentation
supporting the current fee and
rate structures for all
Departments (1.2)
fee study. To develop financial inputs, consultants will gather
and/or prepare and model financial data, including:
Current and historical fee revenues,
Personnel and contractor costs and organization,
Adopted line-item expenditures,
Forecasted periodic outlays, and
Allocated indirect/overhead costs via existing plan.
To develop and test labor time inputs, based on prevailing and
future business processes, consultants will gather and develop
expressions of time several ways:
Utilize any existing labor time-tracking data,
Conduct interviews to estimate a distribution of annual time
across core functions of service,
Develop service time questionnaires linked to remodeled fee
structures to estimate average or a range of service times for
fee-related services,
Apply industry experience to populate under-developed or
unavailable time estimates, particularly from prospective
changes in workflow resulting from the project,
Analyze any existing data sets that inform
workload/activity/use levels and project profiles for fee-
related services, and
Reconcile annual time, service time estimates, and service
volumes to test reasonableness of critical assumptions.
3 | LABOR TIME VALUATION
Recommended Deliverable:
- Fully burdened hourly rates for
personnel in departments or
divisions or by function or
position who perform fee-
based services.
ClearSource will develop fully burdened hourly labor rates in each
department/division participating directly in the provision of
services associated with a fee under review. Rates will be built to
encompass labor costs, non-labor operating costs, departmental
and/or divisional administration, central services/general City
administration, and periodic investments. Rates will be expressed
by function of direct and indirect service within each
department/division, where applicable and to enable cost
recovery considerations for certain fee categories. Rates may be
expressed as composite for the department/division, for the
position class, and/or by individual position.
The City has clarified that it maintains and existing Cost Allocation
Plan. ClearSource will expect to utilize prevailing indirect cost
rates published by the City but will also plan to conduct separate
indirect cost analysis or cost allocation modeling to ensure
current and fully expressed overhead rates are applied within the
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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labor rates generated in this task and informing updated user
fees.
4 | FEE DESIGN
Recommended Deliverable:
- A draft master fee schedule
incorporating any targeted and
proposed changes to fee
categories, structures, and
bases that will inform
necessary cost of service
analysis.
ClearSource will apply the outcomes from Tasks 1 and 2 – an
assessment of existing fees and interaction with City staff to
understanding current practices and work flow – to ensure cost of
service analysis aligns with the fee structures recommended from
that work, which may include elements of prevailing fees,
recommendations based on prevailing business processes, system
capabilities, and relevant market or industry practices applicable
to City work flow. Consultants will prepare a working model of a
master fee schedule.
5 | COST OF SERVICE ANALYSIS
City Required Deliverable(#):
- Develop and deliver a well-
documented, understandable,
cost of service analysis and fee
- Schedule (1.2)
ClearSource will prepare a cost of service model to join fully
burdened hourly labor rates, time estimates associated with
current work flow and business processes, and existing or any
redesigned fee structures, in order to calculate the full unit cost
of service associated with each fee category and layers within
them.
The full cost of service informs the maximum fee amount allowed
under California framework for establishing user/regulatory fees
by City Council action.
The full cost of service at the fee-based activity level or the
programmatic level is composed of:
Direct labor and non-labor costs,
Indirect labor and non-labor costs,
Periodic outlays or investments of direct or indirect benefit,
Departmental overhead, and
Citywide overhead.
Analysis will include modeling of activities with under-developed
or no fee imposed but where one is warranted and practical to
improve the City’s cost recovery from private benefit activities.
6 | COST RECOVERY AND
IMPACT ANALYSIS
City Required Deliverable(#):
- Complete a regional fee
comparison that provides an
overview of fees charged by
Consultants will recommend cost recovery targets for fee-based
services or work with City staff in developing cost recovery policy
to inform final fee amounts, particularly where full cost recovery
is deemed undesirable. Development of cost recovery policy and
practices will optimize the City’s array of funding sources
considering public/private benefits, market sensitivity,
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other communities for similar
services (1.2)
- Identify revenue impacts of
proposed fee modifications
(1.2)
- Provide the City with
recommendations of industry
best practices for consideration
(1.2)
compliance and behavior modification, and fiscal constraints, as
reflected in Exhibit 5.
EXHIBIT 5 | COSTS AND COST RECOVERY
Consultants will develop a master fee schedule for the City, useful
in presenting proposals, as well as communicating fee
descriptions, fee amounts, and charge bases to other City
departments, who may have responsibility for maintaining
Citywide schedules of fees. If desired, the master fee schedule
developed can also include a tool for subsequent annual
inflationary adjustments to the established fee structures.
Final proposed fee amounts will be applied in the master fee
schedule alongside information useful in communicating fees to
the public. To the extent existing data systems enable it, revenue
estimates based on historical or projected performance will be
attempted. Finally, comparison to prior fees will be completed in
targeted service categories to assist in explaining impacts of
changes.
Consultants will prepare a comparison of fees to other
municipalities in targeted service categories as needed, likely by
creating profiles for an array of “typical” uses in addition to one-
for-one comparisons. Consultants will review associated fee
practices, including waivers, deposit amounts, fee/deposit
collection practices, and economic incentive practices.
Where needed, consultants will provide recommendations and
industry information regarding relevant fee policies and practices
which may impact cost recovery, including the use of waivers, any
billing and deposit management procedures, and collections
issues.
7 | REPORTING AND TOOLS ClearSource will prepare the administrative record for pursuing
implementation of revised fees. This focuses on the draft and
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City Required Deliverable(#):
- Document findings and prepare
updated fee schedule (1.2)
- Provide all study materials and
cost of service models to the
City (1.2)
- Provide on-site training, if
necessary (1.2)
final reports of cost of service findings, including assumptions,
critical data, and discussion of expected impacts. Analytical detail
will be included, as well as executive summary and infographics
useful in public presentation and legislative processes.
Consultants will deliver the analytical models used to develop
fees in Microsoft Excel format for future update and
management, including the working master fee schedule and its
publishable version.
For reporting and the delivery of all tools, subtasks include:
Deliver formal documentation and tools for the City’s
ownership and future use in editable formats (e.g., Microsoft
Office suite) and publishable format (PDF)
Draft and final draft report iterations
Presentation/summary materials for communicating proposals
Assistance with staff report and public hearing noticing
Document the statutory and legal framework and annual and
five-year reporting requirements
Discuss best practices to ensure better collection of the fees
Final report, including all background information,
methodology, supporting justification, calculations, and
administrative processes
Delivery of technical models and work papers
Training event for City staff in annual updates and analytical
use of delivered models
8 | ENGAGEMENT AND
APPROVAL
City Required Deliverable(#):
- Present findings to City staff,
stakeholders, and the City
Council (1.2)
- Serve as an on-going City
resource regarding the study
(1.2)
ClearSource will facilitate a meaningful level of interaction
between consultants, City personnel, and City Councilmembers
with the goal of successful approval, implementation, and
ongoing maintenance of study proposals. Subtasks include:
Departmental interaction – to develop data and provide
interim reviews points by lead service areas.
City leadership interaction – to receive direction on proposals
and outcomes prior to pursuit of approval.
City Council engagement – to present the final draft report and
receive direction.
City Council / public hearing – to adopt the proposed fees
contained in the final report.
Stakeholder outreach – to facilitate successful implementation
of proposals.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
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ClearSource does not impose a limit on the amount of interaction
(i.e., events/meetings) to complete the project within our
proposed consulting fee.
ClearSource is proud to be available to its clients as questions and
needs arise in the future on the work and sustainability of the
project.
ClearSource Work Plan | User and Regulatory Master Fee Schedule Update
(Abridged for Annual Update Procedures)
In 2021, should the City choose to study user and regulatory fees following a typical annual update
process, rather than a comprehensive cost of service analysis, ClearSource will follow an abridged
version of the previous step-by-step work plan elements, focusing cost of service analysis on application
of chosen cost indices for fee adjustment (e.g., All Urban Consumer Price Index Riverside-San
Bernardino-Ontario), targeted analysis of fees with discrete cost of service changes, and targeted
analysis of any new fee areas desired by City staff or discovered by ClearSource. This abridged process
also would not include development of a new Full Cost Allocation Plan.
SCHEDULE
Estimated Project Timeline
ClearSource forecasts to deliver final draft
reporting for the User and Regulatory Master
Fee Schedule Update and Full Cost Allocation
Plan Update 120 days from project
commencement. These reporting documents
will enable final presentation, final edits based
on management and/or legislative review and
input, and any necessary public/stakeholder
procedure thereafter along the City’s timeline
and legislative priorities.
Exhibit 6 illustrates the estimated time for
completion of our previously described work
plan tasks, timing of deliverables, and a sample
2021 timeline. Based on the City’s targeted
project start date of February 1, 2021,
ClearSource forecasts final draft reporting
available for the City’s legislative review and
stakeholder engagement processes ready by
May 2021.
This timeline assumes comprehensive study of
user and regulatory fees. If the City chooses the
abridged annual update process in 2021, study
time to final draft reporting is expected to be
reduced by at least 30 days.
(It is important to note that California law
requires a 60-day period after City Council
approval (public hearing) before modified
and/or new development review fees may go
into effect.)
COVID-19 CONDITIONS | During the COVID-19
pandemic response, the ClearSource consulting
team will remain flexible to serve the City
within the formats it prefers and requires, as
our society adapts and reacts to changing stay-
at-home orders and social distancing guidelines.
We will accommodate either in-person and
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 4
COMPLETE PRICING LIST
onsite events when needed and participate in
or facilitate live video conferencing to conduct
the work and proceedings of the project and
implementation of its results. We will be guided
by the City on its preferred operations. From
our perspective, the adaptations needed to
work within changing COVID-19 protocols
should have no diminishing effect on our
team’s performance or expected schedule of
the study.
EXHIBIT 6 | PROJECT TIMELINE FOR STUDY ELEMENTS ABD REPORTING
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 5
COMPLEMENTARY SERVICES
COMPLIMENTARY SERVICES AND PRICE OFFERED
ClearSource has submitted a comprehensive work plan and maximum not to exceed price for the
services required by the City of La Quinta in its RFP. Though our expertise extends beyond those
proposed in this document, as introduced in Section 2, at this time we propose no additional or
complimentary services to the City.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 6
PROJECT STAFF ORGANIZATION
CLEARSOURCE PROJECT TEAM ORGANIZATION
This project will be led from start-to-finish by
Terry Madsen. He will conduct all meetings,
present all reports, and oversee development of
all analysis and outcomes. Analytical and
strategic support will be provided only by
senior-level professionals: Jeanette Hahn and
David Schroeder, as described by Exhibit 4.
Their experience includes more than 50 years of
direct support to local government agencies.
ClearSource utilizes a uniform billing rate for all
of our personnel, set to $150 per hour.
Additional information on consulting hours and
project costs in Section 8 of this proposal.
EXHIBIT 4 | PROJECT TEAM STRUCTURE
CLEARSOURCE PROJECT MANAGER
We introduce Terry Madsen as our Project
Manager for the City of La Quinta. Terry is
highly regarded by his clients. Please contact
the following agency leaders for their
experience working with Terry on cost of
service and fee studies:
Sheila Poisson, Assistant Finance Director
CITY OF TORRANCE, CALIFORNIA
Phone: 310.618.5854
Email: spoisson@torranceca.gov
Richard Lam, Budget Analyst
CITY OF AZUSA, CALIFORNIA
Phone: 626.812.5200
Email: rlam@ci.azusa.ca.us
Joseph Carpenter, Finance Manager
CITY OF RANCHO MIRAGE, CALIFORNIA
Phone: 760.324.4511
Email: josephc@ranchomirageca.gov
Mike Nichols, Fire Prevention Captain
COUNTY OF KERN, CALIFORNIA
Phone: 661.391.7000
Email: mnicholas@kerncountyfire.org
Terry Madsen
PROJECT MANAGER AND
PRINCIPAL CONSULTANT
40% of Total Hours for the
City of La Quinta’s Project
Terry Madsen is the President and Principal
Consultant of ClearSource Financial Consulting.
For 20 years, he has provided financial
consulting services to local government
agencies. In October 2011, Terry founded
ClearSource Financial Consulting (ClearSource),
a firm dedicated to providing local government
agencies with premier financial consulting
services. From October 2001 to October 2011
Terry was employed by a competing California
firm, NBS. Terry’s depth of knowledge includes
numerous service areas including user fee
studies, indirect cost allocation studies, internal
service fund rate studies, water and wastewater
rate studies, and special financing district
administration.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 6
PROJECT STAFF ORGANIZATION
During his career, Terry has served the
following diverse sampling of California
agencies, among many others: the Cities and
Towns of Atherton, Chula Vista, East Palo Alto,
Gustine, Hesperia, Indio, Laguna Woods, La
Quinta, Long Beach, Los Angeles, Napa,
Oakdale, Sacramento, San Carlos, Sierra Madre,
Taft, and Ventura, as well as Oro Loma Sanitary
District, Sacramento Regional Transit District,
the San Diego Metropolitan Transit System, and
Union Sanitary District.
Within the past year, Terry has support cost
allocation, cost of service, and user/regulatory
fee studies for the following sampling of
California public agencies:
County of Kern, CA | Project Manager – Fire
prevention fees, fire department indirect
cost rates
City of Lake Forest, CA | Project Manager –
Citywide user and regulatory fees, formal
cost recovery policy, Citywide indirect cost
allocation
City of La Quinta, CA | Project Manager –
Citywide user and regulatory fees
City of Long Beach, CA | Project Manager –
Engineering development review fees
City of Roseville, CA | Project Manager –
Citywide user and regulatory fees, internal
service fund rates
City of Ventura, CA | Project Manager –
Citywide user and regulatory fees, Citywide
indirect cost allocation, internal service
fund rates
Terry has worked closely with every level of the
public body including property owners,
community organizations, City Council/Board
members, special commissions, agency
managers, all members of the agency finance
team, directors of every agency department,
management analysts, and the direct service
staff that are the primary contact points for
members of the community, such as inspectors,
plan reviewers, operators, maintenance
personnel, and records staff.
Terry’s experience in performing fee studies
includes all phases of the work, from project
initiation to completion and presentation of
final findings. His efforts include data
gathering, conducting interviews with agency
staff, model development, report preparation,
and presentation and delivery of study
narratives. He has analyzed fees for a
comprehensive array of municipal services, such
as planning, land development, building, fire
protection, code enforcement, community
services, parks, recreation, administration,
general governmental, public infrastructure,
utilities, and others.
Terry is a member of the California Society of
Municipal Finance Officers. He received his
undergraduate degree (Cum Laude) from Cal
Poly, San Luis Obispo. He was awarded a
Bachelor of Science in Business Administration
with a Finance Concentration and an Economics
Minor. He received his graduate degree from
California State University, San Bernardino. He
was awarded a Master of Business
Administration with an Entrepreneurship
Concentration.
PROJECT ROLE | Terry will serve as our Project
Manager to the City of La Quinta, responsible
for the performance of all study elements and
fulfillment of our agreement with the City. In
addition to his oversight role, he will also be the
Principal Consultant for the study. In this role,
he will direct analysis for our assigned staff,
implement analytical direction, perform
targeted analysis, troubleshoot, provide quality
assurance, facilitate onsite and remote
interaction with City staff and leadership, and
represent our team and work in public
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 6
PROJECT STAFF ORGANIZATION
procedures. In the City’s Comprehensive User
Fee and Rate Study, we estimate his efforts at
40-50% of total consulting hours.
Continuity of Service
As an intentionally structured small firm that
believes our size is integral to the way we
provide personalized and high quality service
to our client communities, ClearSource is
nonetheless asked by agencies about our plans
for ensuring continuity of service if a team
member faces personal emergency disruptive
to the project. In fact, this is essential to our
business and reputation. In addition to our
collegiality and cross-discipline synergy, this is
one of the key reasons our staff is comprised
only of seasoned professionals in this area of
expertise.
Three of our five company consultants are each
two or more decades into consulting careers
rich with successful project management, direct
project performance, and accomplished public
engagement for successful implementation of
outcomes. For the City of La Quinta, in the
unlikely event our proposed project manager
Terry Madsen became unable to complete
these services, fellow team member Jeanette
Hahn will step into his place, able to perform at
equal level, effectiveness, and achievement to
Terry.
CLEARSOURCE SUPPORT STAFF
We introduce the following professionals who
will be assigned to the City of La Quinta for
specific elements of the project.
Jeanette Hahn
SENIOR CONSULTANT
20% of Total Hours for the
City of La Quinta’s Project
Jeanette Hahn is a Senior Consultant for
ClearSource Financial Consulting. She has over
20 years of experience advising municipal
agencies on equitable and effective costs of
service, cost recovery, and strategic financial
planning.
Jeanette has analytical and policy expertise in
the following subject matter:
Cost of service analysis and cost allocation
for cost recovery opportunities, including
user fees, regulatory fees, and
contracts/partnerships
Water, wastewater, reclaimed water, and
storm water/drainage utility rates and fees
Development impact fees and capacity
charge nexus analysis/justification
Economic feasibility/decision analysis
Long-range financial planning
Benchmarking
Prior to becoming part of the ClearSource team
in 2017, Jeanette succeeded at competing
consulting firms. She was Director of Financial
Consulting for California-based NBS from 2007
to 2011 and served progressive roles at FCS
GROUP from 1997 to 2007, including California
Regional Manager from 2004 to 2007. Jeanette
stepped down from these executive roles in
2011 to balance family needs.
Jeanette has performed over 225 separate
engagements for public agencies of diverse size
and situation throughout the Western United
States, including in California, Washington,
Oregon, Idaho, Nevada, Utah, Montana, and
Alaska. She is articulate and agile when working
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 6
PROJECT STAFF ORGANIZATION
within the legal framework of rate and fee-
setting across these states, with particular
emphasis on California’s Proposition 218 and
the state’s Mitigation Fee Act.
As an accomplished and highly regarded
speaker, Jeanette has earned a reputation for
crafting effective and persuasive messages for
attaining legislative and public approval of
financial plans and accompanying rates and
fees. Her skills have been deployed frequently
in municipal work to defuse contentious or
actively contested matters. Furthermore, she
has been repeatedly invited to present in
educational and industry forums, such as the
California Society of Municipal Finance Officers,
League of California Cities, Association of
California Water Agencies, and California
Special Districts Association, among many
others.
Within the past year with ClearSource, Jeanette
has support cost allocation, cost of service, and
user/regulatory fee studies for the following
sampling of California public agencies:
City of Milpitas, CA | Senior Consultant –
Citywide indirect cost allocation plan,
Citywide fully burdened hourly labor rates
County of Kern, CA | Senior Consultant –
Fire department indirect cost rates
City of Lincoln, CA | Senior Consultant –
Citywide indirect cost allocation plan
Rancho Murieta Community Services
District, CA | Senior Consultant – recycled
and raw water rates, indirect cost allocation
plan
City of Huntington Beach, CA | Senior
Consultant – Citywide user and regulatory
fees, indirect cost allocation plan
City of Ventura, CA | Senior Consultant –
Citywide indirect cost allocation plan
Jeanette holds a Bachelor of Arts in Economics
with a Public Finance concentration from the
University of Washington, Seattle.
PROJECT ROLE | Jeanette will provide senior
level analysis, including framework of
quantitative models, strategic positioning in
targeted subjects, and quality assurance/quality
control. Her contributions are estimated at 20%
of total consulting hours.
David Schroeder
SENIOR CONSULTANT
40% of Total Hours for the
City of La Quinta’s Project
David Schroeder is a Senior Consultant for
ClearSource Financial Consulting. He has served
the public sector for more than 15 years,
focusing on recovery of municipal service costs,
particularly within the varied structures of
California special financing districts used by
cities, counties, and special purpose districts
across the state.
David’s technical expertise is centered on large-
scale and complex database analysis on
multiple platforms, geographic information
systems and science (GIS), and auditing of
records and systems. Project areas in which
David applies these skills for public sector
clients have included:
Special financing district administration,
formation, annexation, auditing, and
continuing disclosure reporting.
Advanced GIS, including design and analysis
to support district formation, annexation,
Proposition 218 procedures, rate studies,
and development impact fee analysis.
Solutions generation for complex issues
facing municipal clients, including fund
close-outs, independent auditing of special
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 6
PROJECT STAFF ORGANIZATION
financing districts, design and
administration of refund programs, and
data-driven public outreach.
David’s expertise has supported a variety of
public services including: lighting and
landscaping, public safety, public facilities and
maintenance services, and other municipal
activities spanning general and special benefit.
He is conversant in and has trained client
agencies on GIS, including systems such as ESRI
ArcGIS and the creation and usage of GIS web
applications on the platform.
Within the past year with ClearSource, David
has support cost allocation, cost of service, and
user/regulatory fee studies for the following
sampling of California public agencies:
City of Santa Ana, CA | Senior Consultant –
Citywide indirect cost rates and charges,
internal service fund rates
City of Lincoln, CA | Senior Consultant –
Citywide user/regulatory fees, indirect cost
allocation
County of Kern, CA | Senior Consultant –
Fire prevention fees
City of Bell Gardens, CA | Senior Consultant
– Citywide user/regulatory fees, indirect
cost allocation
City of Seal Beach, CA | Senior Consultant –
Citywide user/regulatory fees, indirect cost
allocation, budget analysis of labor
allocations
David earned a Bachelor of Science in Business
Administration, concentrating in Accounting
Information Systems, from California State
University San Bernardino. He is also certified
from the University of West Florida’s Graduate
Geographic Information Science program.
PROJECT ROLE | David will provide large scale
data analysis, financial modeling, and research
in support of analytical tasks. His contributions
are estimated at 40% of total consulting hours.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 7
SUBCONTRACTING
SUBCONTRACTING SERVICES
ClearSource proposes to complete the City of La Quinta’s required scope of services for a User and
Regulatory Master Fee Schedule Update and Full Cost Allocation Plan Update entirely within the
resources and expertise of our firm. We do not propose use of any subcontracted services.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 8
DISCLOSURES
DISCLOSURE STATEMENTS
ClearSource does not disclose any alleged significant prior or ongoing failure, any civil or criminal
litigation or investigation pending, which involved ClearSource or in which ClearSource has been judged
guilty or liable with the last five (5) years. ClearSource discloses no negative history.
CLEARSOURCE Proposal to the CITY OF LA QUINTA SECTION 9
INSURANCE REQUIREMENTS
ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS
If selected by the City of La Quinta to complete the services described in this proposal, ClearSource will
provide the minimum insurance coverage and indemnification noted in Exhibits E and F, respectively, of
the City’s Agreement for Contract Services included in Attachment 1 of the RFP.
The City’s separate form acknowledging this readiness to comply with the City’s terms and
requirements without exception is attached to this proposal.
CLEARSOURCE Proposal to the CITY OF LA QUINTA ATTACHMENTS
CITY FORMS
ATTACHMENTS
ClearSource has completed the required forms enclosed with the RFP. Following this page, City forms
are attached in the order presented here:
Insurance Requirements Acknowledgement
Non-Collusion Affidavit
Acknowledgement of Addenda
Page 46 of 48
ATTACHMENT 2
INSURANCE REQUIREMENTS ACKNOWLEDGEMENT
Must be executed by proposer and submitted with the proposal
I, ________________________________________ (name) hereby acknowledge and
confirm that __________________________________ (name of company) has reviewed
the City’s indemnification and minimum insurance requirements as listed in Exhibits E and
F of the City’s Agreement for Contract Services (Attachment 1); and declare that insurance
certificates and endorsements verifying compliance will be provided if an agreement is
awarded.
I am _________________________________ of ______________________________,
(Title) (Company)
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence); $2,000,000 (general aggregate)
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Noncontributory
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Personal Auto Declaration Page if applicable
Errors and Omissions Liability $1,000,000 (per claim and aggregate)
Worker’s Compensation (per statutory requirements)
Must include the following endorsements:
Worker’s Compensation Waiver of Subrogation
Worker’s Compensation Declaration of Sole Proprietor if applicable
Page 47 of 48
ATTACHMENT 3
NON-COLLUSION AFFIDAVIT FORM
Must be executed by proposer and submitted with the proposal
I, ________________________________________ (name) hereby declare as follows:
I am _________________________________ of ______________________________,
(Title) (Company)
the party making the foregoing proposal, that the proposal is not made in the interest of,
or on behalf of, any undisclosed person, partnership, company, association, organization,
or corporation; that the proposal is genuine and not collusive or sham; that the proposer
has not directly or indirectly induced or solicited any other proposer to put in a false or
sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed
with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain
from proposing; that the proposer has not in any manner, directly or indirectly, sought by
agreement, communication, or conference with anyone to fix the proposal price of the
proposer or any other proposer, or to fix any overhead, profit, or cost element of the
proposal price, or of that of any other proposer, or to secure any advantage against the
public body awarding the agreement of anyone interested in the proposed agreement;
that all statements contained in the proposal are true; and, further, that the proposer has
not, directly or indirectly, submitted his or her proposal price or any breakdown thereof,
or the contents thereof, or divulged information or data relative hereto, or paid, and will
not pay, any fee to any corporation, partnership, company, association, organization,
proposal depository, or to any member or agent thereof to effectuate a collusive or sham
proposal.
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
Proposer Signature: __________________________________________________
Proposer Name: __________________________________________________
Proposer Title: __________________________________________________
Company Name: __________________________________________________
Address: __________________________________________________
Page 48 of 48
ATTACHMENT 4
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA
Must be executed by proposer and submitted with the proposal;
If no addenda has been issued, mark “N/A” under Addendum No. indicating
Not Applicable and sign
ADDENDUM NO. SIGNATURE INDICATING RECEIPT