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File #: 0672-2021    Version: 1
Type: Ordinance Status: Passed
File created: 3/9/2021 In control: Finance Committee
On agenda: 4/5/2021 Final action: 4/9/2021
Title: To authorize the Director of the Department of Finance and Management to enter into contract with Raftelis Financial Consultants, Inc. to provide for cost of service studies, review and develop direct/indirect cost allocation formulas, and internal fee analyses; to authorize the expenditure of $76,960.00 from the Fleet Management Fund ($76,960.00).
Attachments: 1. Ord 0672-2021 Raftelis Financial Consultants Inc.pdf

Explanation

 

BACKGROUND:  This legislation authorizes the Director of the Department of Finance and Management to enter into contract with Raftelis Financial Consultants, Inc. to provide for cost of service studies, review and develop direct/indirect cost allocation formulas, and internal fee analyses.

A cost allocation plan will evaluate the basis of applying comprehensive indirect and direct charges, and accurately account for the true cost of providing various City services (and shared services) by and between departments. This plan will allocate all direct and indirect costs within the departments and across departments, as appropriate.  It will also allow the City to appropriately allocate general and administrative costs in its budget, and properly identify overhead rates that can be used in the calculation of billable hourly rates, user fees, and reimbursements from other departments and governmental agencies.  Results from the cost allocation plan may assist with fee studies.

The Department of Finance and Management utilized a Request for Proposals (RFP) process to identify and assess qualified firms.  Proposals were submitted in accordance with the relevant provisions of Section 329 of the Columbus City Code.  Proposals were due December 16, 2020, and five (5) proposals were received.

A committee of three (3) individuals reviewed proposals and determined preliminary scores.  The committee then identified a short list of three (3) vendors to conduct presentations.  After the evaluation of proposals and presentations, Raftelis Financial Consultants, Inc. received the highest overall score from the RFP committee and as such is being recommended for this contract.  The term of the contract would be one (1) year, expiring May 31, 2022, with the option to renew for one (1) additional year.

Raftelis Financial Consultants, Inc.; Federal Tax ID# 20-1054069

Fiscal Impact:  Funding in the amount of $76,960.00 is budgeted and available within the 2021 Fleet Management Fund Budget.  

 

Title

 

To authorize the Director of the Department of Finance and Management to enter into contract with Raftelis Financial Consultants, Inc. to provide for cost of service studies, review and develop direct/indirect cost allocation formulas, and internal fee analyses; to authorize the expenditure of $76,960.00 from the Fleet Management Fund ($76,960.00).

Body

 

WHEREAS, the City has a need for cost of service studies; review and development of direct/indirect cost allocation formulas; and internal fee analyses; and

WHEREAS, a cost allocation plan will evaluate the basis of applying comprehensive indirect and direct charges and accurately account for the true cost of providing various City services (and shared services) by and between departments; and

WHEREAS, a cost allocation plan will allocate all direct and indirect costs within the departments and across departments, as appropriate; and

WHEREAS, the plan will also allow the City to appropriately allocate general and administrative costs in its budget and properly identify overhead rates that can be used in the calculation of billable hourly rates, user fees, and reimbursements from other departments and governmental agencies; and

WHEREAS, the City of Columbus utilized a Request for Proposals (RFP) process to identify and assess qualified firms; and

 

WHEREAS, through this process, Raftelis Financial Consultants, Inc. received the highest overall score from the RFP committee and as such is being recommended for this contract; and

 

WHEREAS, it has become necessary in the usual daily operation of the Department of Finance and Management to authorize the Director of Finance and Management to enter into a contract with Raftelis Financial Consultants, Inc.; now, therefore

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

SECTION 1.  That the Director of the Department of Finance and Management is hereby authorized to enter into contract with Raftelis Financial Consultants, Inc. to provide for cost of service studies; review and develop direct/indirect cost allocation formulas; and internal fee analysis. 

 

SECTION 2. That the expenditure of up to $76,960.00, or so much thereof as may be needed pursuant to the action authorized in SECTION 1, is hereby authorized in the Fleet Management Fund 5200, in Object Class 03 - Contractual Services, per the accounting codes in the attachment to this ordinance.

 

SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.

 

SECTION 4.  That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.

 

SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.