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Internal Cost Allocation Plan for FY 2017-18 and 2018-19MEETING DATE: PREPARED BY DEPARTMENT: SUBJECT: September 20, 2017 Tim Nash Finance Director Finance AGENDA REPORT City Cound DEPT. DIRECTOR: Tim Nash CITY MANAGER: Karen P. Brust Adoption of the City of Encinitas Cost Allocation Plan for FY 2017-18 and 2018-19 RECOMMENDATION: It is recommended that City Council take the following action: 1. Adopt the Cost Allocation Plan (CAP) and authorize those charges to non -general fund programs and services as identified in Attachment 1. STRATEGIC PLAN: This agenda item falls within the Organizational Efficiency and Effectiveness focus area of the Strategic Plan by maintaining the City's financial health. FISCAL CONSIDERATIONS: There is no direct fiscal impact associated with this report. Costs for General Fund support will be allocated to other funds as described in the plan and have been included in the FY 2017-18 and 2018-19 operating budgets. The General Fund will receive $1,665,337 per year in both FY 2017-18 and FY 2018-19 for costs allocated to other funds. This first -year allocation of $1,665,337 was included in the FY 2017-18 operating budget adopted on June 28, 2017. BACKGROUND: In 2005, the City Council adopted the first comprehensive CAP, which calculates the costs of the support services provided by City administrative departments to other City funds and programs, including business -type activities such as water and wastewater operations. That plan has been updated four times, in 2007, 2009, 2011 and 2015, as directed by the City Council. This is the fifth update. The updated CAP is attached hereto as Attachment 2, and will also be available for review on the City's website. The charges in the attached CAP have been included in the operating budget that was adopted on June 28, 2017. The purpose of the CAP is two -fold: (1) to determine fair and reasonable charges to non -general fund programs and activities, and (2) to determine fair and reasonable charges to City general fund operating departments. The City does not do an actual charge to other general fund departments, either through its budgeting process or when it publishes its Comprehensive Annual Financial Report. However, the calculated charges to the General Fund departments of Planning and Building, Engineering, and Fire Prevention are utilized in calculating the full cost of 2017-09-20 Item 8H 1 of 43 providing services to the public, and in determining appropriate fee levels for various types of development applications. The development of the CAP is a component of the consulting contract for a Development Services Fee Study (the "Study"). The Study is prepared by an independent third -party consultant, Willdan Financial Services ("Willdan"), which specializes in fee studies for municipalities all over the United States. The Public Hearing to consider the adoption of updated fee schedules for development processing fees is also on the September 20, 2017 City Council agenda, and a representative from Willdan will present the study. ANALYSIS: The City of Encinitas has five funds that provide support services to other funds or programs. Two of those funds: the (101) General Fund and the (520) Fleet Maintenance Fund are included in the Cost Allocation Plan. The other three funds: the Risk Management Fund, Fleet Replacement Fund and Wastewater Support Fund, are not included in the Cost Allocation Plan as they are calculated in-house. Overall, there are $11.5 million in support costs allocated in the Cost Plan. A summary of inter -fund charges for General Fund (101) support services and Fleet Maintenance (621) is shown in Attachment 1. As with prior plans, this Cost Plan provides for a waiver of charges to certain programs that have been determined to have significant public benefits, such as Community Development Block Grants and the Section 8 Affordable Housing Program. Experience has shown that attempting to charge activities such as Federal Grants for support services (while technically allowable) can be very challenging, since the Federal agencies involved typically disallow such charges. Credits have also been included for funds that do not utilize all of the central services that are allocated. Funds not utilizing all allocated services include San Dieguito Water District and Encinitas Ranch Golf Authority. Of the $11.5 million in allocated costs, $9.4 million is allocated to General Fund operating departments and not charged. Inter -fund charges total the remaining $2.1 million. Credits as described above total $0.6 million, resulting in net inter -fund charges of $1.6 million. The CAP report is included as Attachment 2. The CAP report describes the reasons for preparing a CAP and calculates the internal or indirect costs of 16 central service functions. The report provides a detailed explanation of the distribution bases used in each of the 16 central service functions. Internal costs have been calculated on both a full cost allocation basis and on a basis, that is compliant with the Federal Office of Management and Budget (OMB) Super Circular CFR Part 200 cost principles. For purposes of calculating the inter -fund charges the full cost basis is used. The Cost Plan and the in-house calculations for other support services ensure that the funds providing support services (primarily the General Fund) are reimbursed, and that taxpayer monies are not being used to subsidize activities that have their own revenue sources. ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a "project' under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical changes in the environment. ATTACHMENTS: 1. Summary of Inter -fund Charges 2. Internal Cost Allocation Plan Report 3. Willdan Powerpoint Presentation 2017-09-20 Item 8H 2 of 43 EXPENDITURES Description General Coastal Zone Management Government Education Access Solid Waste Senior Nutrition Community Development Block Grant CSA-17 Benefit Fees Villanitas Road MID Cerro Street MID Village Park MID Wiro Park MID Encinitas Lighting and Landscaping Encinitas Ranch Lighting and Landscaping Cardiff Sanitation Division Encinitas Sanitation Division San Dieguito Water District Section 8 Housing-Admin Section 8 Housing -HAP Pacific Pines Wastewater Support Services Community Facilities District #1 Encinitas Ranch Golf Course City of Encinitas Summary of Interfund Charges Internal Cost Allocation Plan (Study) FY 2017-18 & FY2018-19 Attachment 1 FY2017-18 & FY2018-19 Fleet Total Adjustment/ Maintenance Fund Number Allocation Credits Adjustment Net Allocation 101 $ 9,374,743 $ (8,964,450) $ (410,289) $ 4 212 22,113 (70) 22,043 213 19,770 (9) 19,761 214 33,409 (15) 33,394 221 5,919 (5,916) 1 (3) - 222 19,078 (19,026) 2 (52) - 230 3,584 (2) 3,582 291 1,998 (2) 1,996 292 3,457 (3) 3,454 293 3,766 (4) 3,762 294 2,058 (2) 2,056 295 93,072 (87) 92,985 297 44,694 (52) 44,642 511/512/513 214,861 (36,743) 178,118 521/522 112,170 (8,194) 103,976 531/532/534 1,276,566 (47,452) 3 (134,868) 1,094,246 551 23,035 (22,974) 4 (61) - 552 48,733 (48,660) 5 (73) - 561 9,210 (17) 9,193 611 125,343 (125,260) 6 (83) - 712 14,913 (7) 14,906 931 68,688 (31,469) 7 - 37,219 $ 11,521,180 $ (9,265,207) $ (590,636) $ 1,665,337 Footnotes: 1. Cost not allocated to Senior Nutrition due limit on grant funds available to reimburse the General Fund 2. Cost not allocated to Community Development Block Grant due to limit on grant funds available to reimburse the General Fund. 3. Credit given to SDWD for allocated costs not used by SDWD 4. Cost not allocated to Section 8 Housing Admin due to limit on grant funds available to reimburse the General Fund. 5. Cost not allocated to Section 8-HAP due to limit on grant funds available to reimburse the General Fund. 6. Wastewater support cost allocated to CSD and ESD. 7. Credit given to ERGA for allocated costs not used by ERGA FLEET MAINTENANCE PROGRAM General Cardiff Sanitation Division Encinitas Sanitation Division San Dieguito Water District City of Encinitas Other Interfund Charges/Allocations Revenue/Expenditure Summary FY2017-18 & FY 2018-19 101 $ 431,013 511/512/513 35,322 521/522 5,887 531/532/534 116,484 � 72525,/Vb 2017-09-20 Item 8H 3 of 43 This page intentionally left blank 2017-09-20 Item 8H 4 of 43 Attachment 2 CITY OF ENCINITAS COST ALLOCATION PLAN AUGUST 29, 2017 CORPORATE OFFICE: 27368 Via Industria Suite 200 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 OFFICE LOCATIONS: Anaheim, CA Oakland, CA Sacramento, CA wwr� : willdan. com New York, NY Orlando, FL W"'W I UDAN 'NANcw' SERVICES 4 1 2017-09-20 Item 8H 5 of 43 Attachment 2 Table of Contents Listof Tables............................................................................................................................................... 3 ExecutiveSummary...................................................................................................................................4 Introduction.................................................................................................................................................. 7 Approach..................................................................................................................................................... 8 Methodology............................................................................................................................................ 8 Applications............................................................................................................................................. 9 OMB Super Circular and 2 CFR Part 200..........................................................................................9 Central Service Departments.............................................................................................................10 DistributionBases................................................................................................................................11 Allocable Costs and Distribution Bases................................................................................................12 AllocableCosts.....................................................................................................................................12 Section 1: City Clerk - Administration.................................................................................................. 13 Section 2: City Clerk - Elections........................................................................................................... 14 Section 3: City Council — Administration.............................................................................................. 14 Section 4: City Council — City Attorney................................................................................................ 15 Section 5: City Manager - Administration............................................................................................. 15 Section 6: City Manager — Geographic Info.......................................................................................... 16 Section 7: City Manager - Human Resources........................................................................................16 Section 8: City Manager - Information Tech......................................................................................... 17 Section 9: Finance - Administration...................................................................................................... 17 Section 10: Non -Departmental — Central Purchases............................................................................. 18 Section 11: Non -Departmental — Shared Expenses.............................................................................. 18 Section 12: Public Works — Facility Maintenance Civic Center............................................................. 19 Section 13: Public Works — Facility Maintenance Fire Stations.............................................................19 Section 14: Public Works — Facility Maintenance Library ..................................................................... 20 Section 15: Public Works — Facility Maintenance PW Yard.................................................................. 20 Section 16: Fleet Maintenance.............................................................................................................. 21 IterativeAllocation................................................................................................................................22 AppendixA................................................................................................................................................ 23 AppendixB................................................................................................................................................30 W 1 LLDAN 2 FINANCIAL SERVICES 5 2017-09-20 Item 8H 6 of 43 Attachment 2 List of Tables Table 1: Allocated Costs to Recipient Departments (OMB Compliant CAP) ...... Table 2: Allocated Costs to Recipient Departments (Full CAP) .......................... Table 3: Allocable Cost Summary........................................................................ Table A-1: Initial Allocation Percentages (OMB Compliant CAP) ..................... Table A-2: Initial Allocation Percentages (OMB Compliant CAP) Continued. Table A-3: Final Allocation Percentages (OMB Compliant CAP) ...................... Table A-4: Final Allocation Percentages (OMB Compliant CAP) - Continued.. Table A-5: Final Allocation Amounts (OMB Compliant CAP) ............................ Table A-6: Final Allocation Amounts (OMB Compliant CAP) Continued........ Table B-1: Final Allocation Amounts (Full CAP) ................................................ Table B-2: Final Allocation Amounts (Full CAP) - Continued ............................ 5 6 ..... 12 ..... 24 ..... 25 ..... 26 ..... 27 ..... 28 ..... 29 ..... 31 ..... 32 W I LLDANFINANCIAL SERVICES s 2017-09-20 Item 8H 3 7of43 Attachment 2 Executive Summary This cost allocation plan ("CAP") summarizes a comprehensive analysis that has been completed for the City of Encinitas, California (the "City") to determine the appropriate allocation of costs from central service departments to the operating departments. The primary objective is to allocate costs from departments that provide services internally to operating departments that conduct the day-to-day operations necessary to serve the community. These internal service costs are those (a) incurred for a common or joint purpose benefiting more than one cost objective, and (b) not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. The term "indirect costs," as used herein, applies to costs of this type originating in the central service departments. To ensure central service department costs are appropriately allocated to the operating departments, Willdan analyzed the City's cost code structure to determine which types costs are allowable versus unallowable in accordance with standard and accepted cost allocation principles. The term "allocable costs" as used herein, applies to costs that are allowable for allocation. The study is comprised of two separate allocation plans. Table 1 is the summary results of the allocation in compliance with the Office of Management and Budget Super Circular (the OMB Super Circular) and CFR Part 200 (Cost Principles). Table 2 that follows is the summary results of the full plan. The report below includes descriptions of the differences between the two plans, their separate purposes, and specific details of when the plans deviate from each other. NVW I LLDAN SERVICES IFA 4 2017-09-20 Item 8H 8 of 43 Attachment 2 Table 1: Allocated Costs to Recipient Departments (OMb Compliant CAP) Allocated Cost Summa General Fund Fiscal Year 2016-2017 $10,957,259 $61,106,011 18% 101: City Manager - Arts Admin $23,909 $190,630 13% 101: City Manager- Economic Dev $4,125 $108,500 4% 101: Comm Ctr $41,950 $373,508 11% 101: Engineering $1,162,995 $4,486,978 26% 101: Parks Rec $1,137,962 $5,260,553 22% 101: Plan Bldg $1,225,340 $5,444,745 23% 101: Public Safety $4,420,615 $27,890,492 16% 101: Public Works $863,565 $3,093,318 28% 101: Recreational Facilities $35,124 $494,529 7% 101: Senior Center $52,555 $424,182 12% Coastal Zone Management 212: Coastal Zone Management $21,193 $201,087 11% Government Education Access 213: Government Education Access $19,149 $188,824 10% Solid Waste, Recycling & HHW 214: Solid Waste, Recycling & HHW $32,210 $474,344 7% Senior Nutrition Grant 221: Senior Nutrition Grant $5,740 $122,443 5% C.D.B.G Grant 222: C.D.B.G Grant $18,318 $187,639 10% CSA-17 Benefit Fees 230: CSA-17 Benefit Fees $3,475 $67,550 5% Villanitas Road M.I.D 291: Villanitas Road M.I.D $1,933 $20,874 9% Cero Street M.I.D 292: Cero Street M.I.D $3,344 $35,480 9% Village Park M.I.D 293: Village Park M.I.D $3,642 $45,248 8% Wiro Park M.I.D 294: Wiro Park M.I.D $1,990 $18,931 11% Enc Lighting Landscape District 295: Enc Lighting Landscape District $90,009 $1,337,909 7% Enc Ranch Lighting Landscaping 297: Enc Ranch Lighting Landscaping $43,186 $547,275 8% CSD Operations 511: CS Operations $209,203 $1,802,420 12% ESD Operations 521: ESD Operations $108,884 $968,764 11% SDWD Operations 531: SDWD Operations $1,160,201 $5,980,613 19% Section 8 Housing - Admin 551: Section 8 Housing -Admin $22,121 $184,522 12% Section 8 Housing -HAP 552: Section 8 Housing -HAP $46,974 $75,000 63% PAC Pines Affordable Housing 561: PAC Pines Affordable Housing Wastewater Support 611: Wastewater Support CFD #1 Administration 712: CFD #1 Administration ERGA Operations 931: ERGA Operations 878 $128,651 7% $118,854 $933,827 13% $14,431 $14,755 98% 387 2289% W"W I LLDAN SERVICES 2017-09-20 Item 8H 9 of 43 Attachment 2 Table 2: Allocated Costs to Recipient Departments (Full CAP) Allocated Cost Summa Fiscal Year 2016-2017 $11,621,180 $61,106,011 19% General Fund 101: City Manager - Arts Admin $24,946 $190,630 13% 101: City Manager- Economic Dev $4,251 $108,500 4% 101: Comm Ctr $44,150 $373,508 12% 101: Engineering $1,303,033 $4,486,978 29% 101: Parks Rec $1,184,591 $5,260,553 23% 101: Plan Bldg $1,322,016 $5,444,745 24% 101: Public Safety $4,518,301 $27,890,492 16% 101: Public Works $881,465 $3,093,318 28% 101: Recreational Facilities $36,780 $494,529 7% 101: Senior Center $55,208 $424,182 13% Coastal Zone Management 212: Coastal Zone Management $22,113 $201,087 11% Government Education Access 213: Government Education Access $19,770 $188,824 10% Solid Waste, Recycling & HHW 214: Solid Waste, Recycling & HHW $33,409 $474,344 7% Senior Nutrition Grant 221: Senior Nutrition Grant $5,919 $122,443 5% C.D.B.G Grant 222: C.D.B.G Grant $19,078 $187,639 10% CSA-17 Benefit Fees 230: CSA-17 Benefit Fees $3,584 $67,550 5% Villanitas Road MID 291: Villanitas Road MID $1,998 $20,874 10% Cero Street MID 292: Cero Street MID $3,457 $35,480 10% Village Park MID 293: Village Park MID $3,766 $45,248 8% Wiro Park M.I.D 294: Wiro Park MID $2,058 $18,931 11% Enc Lighting Landscape District 295: Enc Lighting Landscape District $93,072 $1,337,909 7% Enc Ranch Lighting Landscaping 297: Enc Ranch Lighting Landscaping $44,694 $547,275 8% CSD Operations 511: CSD Operations $214,861 $1,802,420 12% ESD Operations 521: ESD Operations $112,170 $968,764 12% SDWD Operations 531: SDWD Operations $1,276,566 $5,980,613 21% Section 8 Housing - Admin 551: Section 8 Housing - Admin $23,035 $184,522 12% Section 8 Housing -HAP 552: Section 8 Housing -HAP $48,733 $75,000 65% PAC Pines Affordable Housing 561: PAC Pines Affordable Housing $9,210 $128,651 7% Wastewater Support 611: Wastewater Support $125,343 $933,827 13% CFD #1 Administration 712: CFD#1 Administration $14,913 $14,755 101% ERGA Operations 931: ERGA Operations $68,688 $2,420 2838% '&�W I LLDAN 9 fINAN(.IAL SERVICES 2017-09-20 Item 8H 10of43 Attachment 2 Introduction In the early 1970s, the cost allocation plan concept was introduced to many government agencies. The purpose of a typical cost allocation plan is to identify costs related to rendering internal central support services and allocate those costs to operating departments or programs that utilize and benefit from them, in a fair and equitable manner. Before indirect costs and central support service charges may be claimed for reimbursement by an operating department, there must be some formal means of identifying, accumulating and distributing these types of costs to all benefiting departments. Regardless of whether an agency has a formal comprehensive cost accounting system, the best method of accumulating, identifying, and determining a distribution of indirect costs is a cost allocation plan. A City is made up of many departments, each with their own specific purposes or functions. Departments whose primary function is to provide support internally to other City departments are called central services. Examples of central services are the City Council, City Clerk, City Manager, Finance, and Human Resources. Within these groups there are numerous functions performed that provides support to the direct cost centers. The direct cost centers, or departments and funds, that require support from Central Services and provide services directly to the community through their day-to-day operations, are called operating departments. Examples of operating departments are Community Center, Public Safety, Public Works, Engineering, and the Recreational Facilities. The Cost Allocation Plan allocates the costs of the central services to the operating departments based on the nature of the functions of each central service, upon which the operating departments depend. This is done to determine the total cost associated with providing direct services. The overall goal of the cost allocation plan process is to allow cities to allocate a portion of the central service costs to the operating departments, thus 1) accounting for "all" costs, direct and indirect, for each operating department, and 2) facilitating the calculation of a fully burdened cost estimate of providing services to the public. The purpose of this study is to: Identify the central support and operating departments in the City; Identify the functions and services provided by the central departments; Identify allocable and non -allocable costs associated with the City's central service departments; and Distribute those costs to operating entities in a fair and equitable manner. AVV�W I LLDAN fINANCIAL SERVICES `1t 2017-09-20 Item 8H 11 of 43 Attachment 2 Approach Methodoloo The way in which each Indirect Service provides support to the operating departments is determined in order to perform allocations in a manner consistent with the nature of that Indirect Service. This ensures that the costs can be allocated to each operating department in a fair and equitable way. The Cost Allocation Plan identifies the functions of each central service department, and then determines a methodology to allocate or spread the central service costs in a manner that best represents the nature of those functions. The mathematical representations of central service functions used to allocate indirect costs are commonly called distribution bases. A distribution basis is a set of data displayed as the level of measure of each department's participation in a specific activity or City function. This basis is then used to distribute costs that reasonably relate to the activity or City function that the basis represents. Some examples of distribution bases are salary and benefits costs, number of full-time equivalent employees, frequencies of city council agenda items, and number of processed transactions. The data sets associated with these distribution bases for each department is collected to facilitate the allocation of indirect costs. The methodology used for this Cost Allocation Plan is the iterative method, which is one of the most equitable methods for allocating costs from central services to operating departments. While not used as prevalently as simpler allocation methods, it is widely considered to be the most accurate. The iterative method utilizes a recursive application of central service cost distribution to allocate indirect costs. In the first step, the allocable costs of central service departments are identified and distributed to all departments including the central service departments themselves, based on the appropriate allocation bases that were selected to represent the manner in which central services are utilized. This is repeated ad infinitum until all costs have been distributed to the operating departments, and none remain with the central service departments. As an example, consider the allocation of central service costs associated with Fleet Maintenance. The function of Fleet Maintenance is identified, and the appropriate distribution basis is determined to be the number of maintained fleet per department and fund. The allowable costs are then distributed to all City departments and funds based on their proportional share of fleet, including other central services. The costs allocated from central service to central service in the initial allocation are then allocated out using the same distribution methodology. This function is performed as many times as necessary until all costs for Fleet Maintenance have been allocated. All central service departments are treated equally. That is to say, this method is performed concurrently for the allowable costs in each of the central service departments for each iteration until all costs associated with the central service departments have been allocated to each direct service department. The method is complete when the total amount of allocable costs remaining in the central service departments is equal to zero. W 1 LLDAN FINANCIAL SERVICES "i E: 2017-09-20 Item 8H 12 of 43 Attachment 2 Applications Public agencies use cost allocation plans for many purposes such as internal accounting, the justification of userfees, application for reimbursement from federal programs or the determination of administrative effort associated with special districts and/or municipal service activities. In many of these cases, the agency will be required to certify that the costs identified are "reasonable". Per the Code of Federal Regulations, a cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when determining the amount that a public agency should be reimbursed for central service overhead activities associated with a federally funded program. Additionally, public agencies should take care to only identify that portion of central service costs that have not been reimbursed through other means (such as grants, user fee revenues, transfers from other departments or internal service funds) to avoid double -counting. These cost reductions are done before the allocation methodologies are used and are detailed within the model itself. OMB 'duper Circular and 2 CFR Part 200 This report details the allocations for two separate cost allocation plans. The primary model, presented in text and tables in the below sections and in Appendix A, provides a plan that complies with the Office of Management and Budget Super Circular (the OMB Super Circular) and CFR Part 200 (Cost Principles) that are used to determine central overhead costs incurred while carrying out activities associated with Federal awards, cost reimbursement contracts and some other intergovernmental agreements (as required). The secondary model presented in Appendix B of this report is the full cost allocation plan, which the City should use for standard City operations and budgeting. Unless otherwise indicated, the details of this report and Appendix A contain the OMB compliant allocation plan. The Appendix B tables contain the full cost plan, and utilize the same distribution methodology as the OMB Compliant plan. While the overall methodology used for both plans is the same, there are specific guidelines that require additional cost exemptions for OMB Super Circular compliance outside of what was done for the full cost plan. Where such exemptions are done in the methodology has been explained below. Some commonly encountered examples that are usually exempt under OMB Super Circular guidelines are: General Advertising Bad Debt Contingencies Litigation Debt Service Entertainment Capital Lobbying Legislative Body (City Council) Promotional Items AVV�W I LLDAN fINANCIAL SERVICES PAI 2017-09-20 Item 8H 13 of 43 Attachment 2 Central Service Departments Sixteen (16) central service functions were identified for the purposes of this cost allocation plan: City Clerk - Administration City Clerk - Elections City Council —Administration City Council — City Attorney City Manager - Administration City Manager — Geographic Info City Manager — Human Resources City Manager — Information Tech Finance - Administration Non -Departmental —Central Purchases Non -Departmental — Shared Expenses Public Works — Facility Maintenance Civic Center Public Works — Facility Maintenance Fire Stations Public Works — Facility Maintenance Library Public Works — Facility Maintenance PW Yard Fleet Maintenance AVV�W I LLDAN fINANCIAL SERVICES 13 10 2017-09-20 Item 8H 14 of 43 Attachment 2 Distribution Bases Distribution bases are the allocation factors that may be used to distribute the allocable costs to all departments and funds. As discussed previously, distribution bases are measurable and readily available data that are utilized to represent activities or functions, and which are then used to distribute costs matching that activity or function. Below are the bases that were analyzed in this study and used to allocate Central Services costs to operating departments. City Council Agenda Frequency— City Council agendas spanning a 12-month period were used to determine the number of times each department and fund had matters brought before the City Council. Number of FTE Employees —The number of full-time equivalent personnel for each department and fund. Number of FTE Employees at City Hall — the number of full-time equivalent personnel for each department and fund at City Hall. Total Allocable Costs —The total allowable expenditure budgeted for each department and funds. Total Accounts Payable —The number of accounts payable processed for each department and fund in a year. Total Accounts Receivable —The number of accounts receivable processed for each department and fund in a year. IT Distribution —The total number of computers, printers, phones, and tablets for each department and fund that is maintained by Information Technology. Fleet— The number of vehicles utilized by each department and fund that is maintained by Fleet Maintenance. AVV�W I LLDAN fINANCIAL SERVICES 14 11 2017-09-20 Item 8H 15 of 43 Attachment 2 Allocable Costs and Distribution Bases Allocable Costs Table 3 identifies the allocable cost of each central service department for the OMB compliant allocation plan, with the total allocable costs for this study being $10,957,259. The total expenditures from the central service departments were $11,980,334. However, $1,023,075 of the expenditures identified as unallowable by the 200 CFR Part 200 and have been excluded from allocation. The primary exclusions were related to City Council, Contingency, and Capital. The remaining amount was distributed to the operating departments and the central services departments by distribution factor(s) that best represents the functions of each central service department and the demand placed on that central service by all City departments, as previously described in the Methodology section of this report. The allocation methodology for each central service is detailed in the following section of this report. Table 3: Allocable Cost Summary Allocable Cost Summary - Central Services Fiscal Year 2016-2017 Unallocable Total Cost Cost Allocable Cost Summary $ 11,980,334 $ 1,023,075 $10,957,259 Central SeNce 101: City Clerk - Administration 584,014 - 584,014 101: City Clerk - Elections 101,900 101,900 - 101: City Council -Administration 462,021 462,021 - 101: City Council - City Attorney 375,500 - 375,500 101: City Manager - Administration 1,154,441 - 1,154,441 101: City Manager - Geographic Info 677,469 - 677,469 101: City Manager - Human Resources 842,598 - 842,598 101: City Manager- Information Tech 1,704,344 - 1,704,344 101: Finance -Administration 1,877,388 - 1,877,388 101: Non Dept - Central Purchases 153,136 - 153,136 101: Non Dept - Shared Expenses 2,198,673 452,654 1,746,019 101: Public Works - Fac Maint Cvc Ctr 433,430 - 433,430 101: Public Works - Fac Maint Fire St 242,647 - 242,647 101: Public Works - Fac Maint Library 336,995 - 336,995 101: Public Works - Fac Maint PW Yrd 238,609 - 238,609 621: Fleet Maintenance 597,169 6,500 590,669 AVV�W I LLDAN fINANCIAL SERVICES 12 2017-09-20 Item 8H 16 of 43 Attachment 2 Allocation Percentages The first step of the iterative allocation method is to distribute the allocable costs of the central service departments to other central service departments and operating departments based on the distribution methodology and bases that best represent the activity of the central service, and the functions it serves. The sections below describe each central service and the methodology used to allocate their costs. Corresponding tables detailing each distribution are attached in the Appendices as tables A-1 through A- 3 for the OMB compliant plan and B-1 for the full cost plan. Section 1: City Clerk - Administration The City Clerk/Director of Legislative Services is appointed by and serves under direction of the City Manager. Responsibilities include: Maintain all official municipal records through the records management system, Council agendas and minutes, municipal elections, legal public notices, Sheriff regulated business permits, business registration, commission recruitment, maintain Municipal Code, FPPCfilings, supply records and information to City Council, other departments and public - public records requests. The Clerk also serves as Board Clerk for the San Dieguito Water District, Housing Authority, Finance Authority and Encinitas Ranch Golf Authority. Allocation Method Based on the assessment of duties of the City Clerk — Administration, it is reasonable to distribute the allocable cost by using the method(s) described below. Due to the many functions, duties, and responsibilities of the City Clerk - Administration multiple distribution bases were used to allocate the costs to represent the pull on their resources and were given equal weight. The distribution factors used for the City Clerk - Administration include the total number of Council agendas and the total number of FTE's per department and fund. 101: City Clerk - Administration Total FTE's 50% Total Agendas 50% VV"W I LLDAN FINANCIAL SERVICES II V' 13 2017-09-20 Item 8H 17 of 43 Attachment 2 Section 2: City Clerk - Elections In election years, the Division handles all phases of municipal and special elections: prepare election resolutions, candidate packets, coordinate with County Registrar of Voters, publish required notices, responsible for obtaining candidate/committee campaign reports, prepare post -election resolutions, swear in elected candidates. Expenses are based on estimates from the County Registrar of Voters. Based on the assessment of costs of City Clerk — Elections, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factors used for the City Clerk - Elections include the total number of FTE's per department and fund. For the OMB plan the costs of the City Clerk - Elections are not allocated to ensure OMB compliance. 101: City Clerk - Elections Total FTE's 1 100% Section 3: City Council —Administration This division funds the general legislative and policy making expenses for the City including costs associated with supporting the City Council. This division also covers the City's legislative advocacy, and annual memberships in the League of California Cities (LCC), the San Diego Association of Governments (SANDAG), and the Local Agency Formation Commission (LAFCO). Based on the assessment of the duties of City Council - Administration, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for the City Council - Administration include the total number of Council agendas per department and fund. For the OMB plan the costs of the City Council - Administration are not allocated to ensure OMB compliance. 101: City Council - Administration Total Agendas 100% AVV'VYI LLDAN FINANCIAL SERVICES 17 14 2017-09-20 Item 8H 18 of 43 Attachment 2 Section 4.• City Council — City Attorney The City Attorney operates under a contract approved by the City Council by resolution. The Contract City Attorney serves at the pleasure of the City Council and provides legal services at all regular meetings of the City Council, Planning Commissions, Boards and provides legal advice to staff upon request of the City Manager. The City Attorney budget includes costs for the City Attorney's retainer, additional legal miscellaneous services, professional development, vehicle allowance and for library and computer resources. The budget also includes additional miscellaneous services provided by outside legal counsel for special projects for the City. All other attorney expenses to include public liability and workers' compensation legal costs are budgeted in the Risk Management Department's 601 Insurance Fund budget. Based on the assessment of the duties of City Council - Attorney, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for the City Council — Attorney include the total number of Council agendas per department and fund. 101: City Council - City Attorney Total Agendas 100% Section 5.• City Manager -Administration The City Manager is the administrative head of the City, reporting directly to City Council and guiding the implementation of their policies. The City Manager provides overall organizational leadership to ensure the effective daily delivery of services and implementation of capital improvements. The City Manager's Office is responsible for regional government coordination, economic development, legislative tracking, public relations, citizen assistance, law enforcement contract administration, community engagement and outreach, and city-wide resource allocation. Allocation Method Based on the assessment of duties of the City Manager - Administration, it is reasonable to distribute the allocable cost by using the method(s) described below. Due to the many functions, duties, and responsibilities of the City Manager - Administration, multiple distribution bases were used to allocate the costs to represent the pull on their resources and were given equal weight. The distribution factors used for the City Manager - Administration include the total allowable budget and the total number of FTE's per department and fund. W 1 LLDAN FINANCIAL SERVICES 18 15 2017-09-20 Item 8H 19 of 43 Attachment 2 101: City Manager - Administration Total FTE's 1 50% Total Allowable FY 2016-17 Budget 1 50% Section 6.• City Manager — Geographic Info The GIS Division is responsible for the design, implementation, management, and support of the City's enterprise geographic information systems (GIS) and related business systems. GIS includes the software applications and authoritative data that departments rely on to support day-to-day operations, decision - making, and planning. Public access to location -based data is enabled through GIS applications on the City website. Based on the assessment of costs of the City Manager — Geographic Info, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for City Manager — Geographic Info is the total number of computers & laptops distributed per department and fund. 101: City Manager - Geographic Info Total IT Unit Equivalents 1 100% Section 7.• City Manager - Human Resources This Division is responsible for providing a human resources management system which supports managers and City Council in the delivery of public services while assuring that the City has a skilled and competent workforce. The division is responsible for maintenance of a personnel system that is consistent with established policies, procedures, sound professional practices and the law. The division conducts all City and District recruitments; administers employee performance evaluation, classification, compensation, and benefits programs; labor relations; and coordinates staff training opportunities. Based on the assessment of the duties of City Manager - Human Resources, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for City Manager - Human Resources is the total number of FTE's per department and fund. 101: City Manager - Human Resources Total FTE's 1 100% WOO'VIII LLDAN FINANCIAL SERVICES I 16 2017-09-20 Item 8H 20 of 43 Attachment 2 Section S. City Manager - Inform tion Tech The role of the Information Technology Division is to deliver reliable and efficient technology systems and services to staff and the public. The division leverages a comprehensive range of technology solutions to improve public access to city services and information, as well as optimize city government business processes. Based on the assessment of costs of City Manager - Information Tech it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for City Manager - Information Tech is the total number of IT units maintained for each department and fund. 101: City Manager - Information Tech Total IT Unit Equivalents 1 100% Section 9: Finance - Administration Finance is responsible for managing the City and Districts' fiscal resources in order to protect and enhance the financial position and assure adequate resources are provided for City and District services. The department is further responsible for financial services and management information through the maintenance of budgeting, accounting and investments to other City divisions and Funds Based on the assessment of the duties of Finance - Administration, it is reasonable to distribute the allocable cost by using the method(s) described below. More than any other central service, the many functions, duties, and responsibilities of Finance — Administration dictated that multiple distribution bases were needed to allocate the costs. A personnel analysis was completed to determine the amount of time each staff member in Finance spends on the varied tasks involved. As a result, the distribution bases chosen reflect the results of that analysis. The distribution factors used for Finance - Administration include the total number of accounts payable, total number of accounts receivable, total allowable budget, direct to CFD, ERGA and the total number of FTE's per department in proportion to the level of effort the Department spends on functions that relate to the distribution bases. W 1 LLDAN FINANCIAL SERVICES 0 17 2017-09-20 Item 8H 21 of 43 Attachment 2 101: Finance Administration Total Allowable FY 2016-17 Budget 59% Total FTE's 12% Total Accounts Payable 9% Total Accounts Receivable 18% Finance - CFD, ERGA Time Survey I 2% Section 10. Non -Departmental — Central Purchases The Non -Departmental division was created to appropriate funds for those activities beneficial on a citywide basis and not directly chargeable to any one department or division. This division includes centralized purchasing of office supplies, telephone charges, postage, office ergonomic improvements and shredding services. Central Services is for the collection of expenses which are not attributable to a specific department and are used to support the entire City and certain District operations. Some of the expenses accounted for are office supplies, postage service, and copy paper supplies. Allocation Method Based on the assessment of costs of Non -Departmental — Central Purchases, it is reasonable to distribute the allocable cost by using the method(s) described below. The distribution factor used for Non -Departmental- Purchases is the total number of FTE's per department and fund. 101: Non Dept - Central Purchases Total FTE's 1 100% Section 11.• Non -Departmental — Shared Expenses The Non -Departmental division was created to appropriate funds for those activities beneficial on a citywide basis and not directly chargeable to any one department or division. This division includes OPEB and pension unfunded liability lump sum payments, County admin fees for property tax collection, and General fund fleet maintenance allocation. Based on the assessment of costs of Non -Departmental — Shared Expenses, it is reasonable to distribute the allocable cost by using the method(s) described below. The expenditures of Non -Departmental — Shared Expenses we analyzed to determine the source of cost for each. As a result, the distribution methodology was designed to allocate the cost items therein based on what departments and funds those items support. W 1 LLDAN FINANCIAL SERVICES PAI 18 2017-09-20 Item 8H 22 of 43 Attachment 2 The distribution factors used for Non -Departmental - Shared Expenses include the total non- fire number of FTE's per department and an allocation directly to public safety. The listing of direct to public safety twice is reflecting two separate cost items that support Public Safety directly. 101: Non Dept - Shared Expenses Direct to Public Safety 57% Non -Fire FTE's 11% Direct to Public Safety 32% Section 12.• Public Works — Facility Maintenance Civic Center The Facility Maintenance Division is responsible for the maintenance of the Civic Center, all Fire Stations and Lifeguard Towers, the Public Works Yard and the Library. This division includes costs associated with the maintenance of the Civic Center. In house personnel complete the day-to-day repairs. Specialized work such as security, pest control, janitorial, plumbing, and HVAC services is outsourced. .Allocation Method Based on the assessment of costs of Public Works - Facility Maintenance Civic Center, it is reasonable to distribute the allocable cost by using the method(s) described below. The total number of Civic Center FTE's per department that Public Works — Facility Maintenance Civic Center maintains provides a direct measure for how departments and funds place a burden on Public Works - Facility Maintenance Civic Center resources. 101: Public Works - Fac Maint Cvc Ctr Civic Center FTE Allocation 1 100% Section 13.• Public Works — Facility Maintenance Fire Stations This division includes costs associated with the maintenance of all Fire Stations and Lifeguard Towers. In- house personnel complete the day-to-day repairs. Specialized work such as security, pest control, janitorial, plumbing and HVAC services is outsourced. Allocation Method Based on the assessment of costs of Public Works — Facility Maintenance Fire Stations, it is reasonable to distribute the allocable cost by using the method(s) described below. Public Works — Facility Maintenance Fire Stations provides support directly to Public Safety. W 1 LLDAN FINANCIAL SERVICES 1►1 19 2017-09-20 Item 8H 23 of 43 Attachment 2 101: Public Works - Fac Maint Fire St Direct to Public Safety 1 100% Section 14.• Public Works —Facility Maintenance Library This division includes costs associated with the maintenance of the Library. In-house personnel complete the day-to-day repairs. Specialized work such as security, pest control, janitorial, plumbing and HVAC services is outsourced. Allocation Method Based on the assessment of costs of Public Works — Facility Maintenance Library, it is reasonable to distribute the allocable cost by using the method(s) described below. Public Works — Facility Maintenance Library provides support directly to Library. 101: Public Works - Fac Maint Library Direct to Recreation 1 100% Section 15.• Public Works —Facility Maintenance PW Yard This division includes costs associated with the maintenance of the Public Works Yard (160 Calle Magdalena). In-house personnel complete the day-to-day repairs. Specialized work such as security, pest control, janitorial, plumbing, and HVAC services is outsourced. Allocation Method Based on the assessment of costs of Public Works — Facility Maintenance PW Yard, it is reasonable to distribute the allocable cost by using the method(s) described below. Public Works — Facility Maintenance PW Yard provides support directly to the departments and funds that utilize the Yard. 101: Public Works - Fac Maint PW Yrd PW Yard Allocaiton 1 100% '&'VIII LLDAN FINANCIAL SERVICES 23 20 2017-09-20 Item 8H 24 of 43 Attachment 2 Section 16.• Fleet Maintenance This Division, created in FY96/97, is responsible for the repair, maintenance, and administration of the City's vehicles and major equipment. Each Department budgets for and is charged for services performed and outsourced by this Division. The amount charged to each benefiting Department is based on the cost of parts, services contracted out, and labor hours of staff. One hundred percent of this division's budget is charged back to City Departments. Allocation Method Based on the assessment of costs of Fleet Maintenance, it is reasonable to distribute the allocable cost by using the method(s) described below. The total number of vehicles/equipment per department that Fleet Maintenance maintains. 621: Fleet Maintenance Fleet 1 100% Woo'VIII LLDAN FINANCIAL SERVICES 24 21 2017-09-20 Item 8H 25 of 43 Attachment 2 Iterative Allocation The total allocable expenditures of each central service department were allocated to other departments based on the methodologies outlined above in Sections 1 through 16 of the Allocation Percentages chapter. After completion of the iterative allocation method, a total combined allocable cost of $10,957,259 was distributed to all departments and funds (including both operating departments and other central service departments) until the allocable cost remained only in the operating departments and funds, and the amount of allocable costs remaining in central service departments was equal to zero. The full cost plan follows the same methodology with the exception that all costs that were excluded solely for OMB compliance, but were reasonable for the full plan, were made allowable and included in the allocation. See Table B-1 for additional details for the full cost plan. After implementing the iterative allocation methodology, all allocable central service costs have been distributed to the operating departments and funds. Table 1 in the Executive Summary of this report summarized the distribution of the total allocable cost of $10,957,259 to each recipient department for the OMB compliant CAP. Table 2 summarized the distribution of the total allocable cost of $11,521,180 to each recipient department for the full cost CAP. AVV�W I LLDAN fINANCIAL SERVICES W. 22 2017-09-20 Item 8H 26 of 43 Attachment 2 Appendix A Appendix A lists theta bles detailing the allocation methodology performed in allocating central service costs for the OMB Compliant cost allocation plan. WIVILLDAN �i(:14 SERVICES W, 2017-09-20 Item 8H 27 of 43 23 Attachment 2 Table A-1: Initial Allocation Percentages (OMB Compliant CAP) 101: City 101: City 101: City 101: City Central Service/Operating Departments 101: City Clerk - Clerk - 101: City Council - Council -City 101: City Manager - Manager - Manager - 101: City Manager - Administration Elections Administration Attorney Administration Geographic Info Human Information Tech Resources 101: City Clerk - Administration 6.8% 2.0% 11.6% 11.6% 1.4% 2.3% 2.0% 2.3% 101: City Clerk - Elections 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council -Administration 3.5% 2.4% 4.5% 4.5% 1.2% 0.7% 2.4% 0.7% 101: City Council - City Attorney 0.0% 0.0% 0.0% 0.0% 0.3% 0.2% 0.0% 0.2% 101: City Manager - Administration 7.1 % 2.6% 11.6% 11.6% 2.1 % 2.5% 2.6% 2.5% 101: City Manager - Geographic Info 0.9% 1.7% 0.0% 0.0% 1.3% 4.5% 1.7% 4.5% 101: City Manager - Human Resource 1.4% 2.2% 0.6% 0.6% 1.7% 2.4% 2.2% 2.4% 101: City Manager - Information Tech 1.6% 3.2% 0.0% 0.0% 2.8% 12.9% 3.2% 12.9% 101: Finance -Administration 9.0% 5.4% 12.7% 12.7% 4.0% 5.0% 5.4% 5.0% 101: Non Dept - Central Purchases 0.0% 0.1% 0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 101: Non Dept - Shared Expenses 0.0% 0.0% 0.0% 0.0% 1.2% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Cvc Ci 0.2% 0.3% 0.0% 0.0% 0.5% 0.0% 0.3% 0.0% 101: Public Works - Fac Maint Fire S1 0.1% 0.2% 0.0% 0.0% 0.2% 0.0% 0.2% 0.0% 101: Public Works - Fac Maint Library 0.1% 0.2% 0.0% 0.0% 0.4% 0.0% 0.2% 0.0% 101: Public Works - Fac Maint PW Yi 0.1% 0.3% 0.0% 0.0% 0.3% 0.0% 0.3% 0.0% 621: Fleet Maintenance 0.7% 1.3% 0.0% 0.0% 1.1% 0.0% 1.3% 0.0% 101: City Manager -Arts Admin 0.2% 0.4% 0.0% 0.0% 0.3% 0.0% 0.4% 0.0% 101: City Manager - Economic Dev 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 101: Comm Ctr 0.4% 0.9% 0.0% 0.0% 0.7% 0.0% 0.9% 0.0% 101: Engineering 15.5% 10.2% 20.9% 20.9% 8.2% 10.5% 10.2% 10.5% 101: Parks Rec 5.4% 5.8% 5.1 % 5.1 % 6.5% 10.4% 5.8% 10.4% 101: Plan Bldg 11.3% 10.1 % 12.4% 12.4% 8.8% 12.2% 10.1 % 12.2% 101: Public Safety 15.1% 28.2% 2.0% 2.0% 33.4% 21.0% 28.2% 21.0% 101: Public Works 3.1 % 6.2% 0.0% 0.0% 5.3% 9.1 % 6.2% 9.1 % 101: Recreational Facilities 0.3% 0.6% 0.0% 0.0% 0.6% 0.0% 0.6% 0.0% 101: Senior Center 0.5% 1.0% 0.0% 0.0% 0.8% 0.0% 1.0% 0.0% 212: Coastal Zone Management 0.2% 0.4% 0.0% 0.0% 0.3% 0.0% 0.4% 0.0% 213: Government Education Access 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 214: Solid Waste, Recycling & HHW 0.1% 0.2% 0.0% 0.0% 0.4% 0.0% 0.2% 0.0% 221: Senior Nutrition Grant 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 222: C.D.B.G Grant 0.1% 0.3% 0.0% 0.0% 0.3% 0.0% 0.3% 0.0% 230: CSA-17 Benefit Fees 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 291: Villanitas Road M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 292: Cero Street M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 293: Village Park M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 294: Wiro Park M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 295: Enc Lighting Landscape District 0.1% 0.3% 0.0% 0.0% 1.1% 0.0% 0.3% 0.0% 297: Enc Ranch Lighting Landscapinc 0.1% 0.2% 0.0% 0.0% 0.5% 0.0% 0.2% 0.0% 511: CS Operations 0.0% 0.0% 0.0% 0.0% 1.3% 0.0% 0.0% 0.0% 521: ESD Operations 0.0% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 0.0% 531: SDWD Operations 13.1% 9.8% 16.4% 16.4% 9.0% 6.3% 9.8% 6.3% 551: Section 8 Housing - Admin 0.2% 0.3% 0.0% 0.0% 0.3% 0.0% 0.3% 0.0% 552: Section 8 Housing -HAP 0.2% 0.3% 0.0% 0.0% 0.2% 0.0% 0.3% 0.0% 561: PAC Pines Affordable Housing 0.0% 0.1% 0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 611: Wastewater Support 1.4% 2.9% 0.0% 0.0% 2.1% 0.0% 2.9% 0.0% 712: CFD #1 Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 931: ERGA Operations 1.1% 0.0% 2.3% 2.3% 0.0% 0.0% 0.0% 0.0% Vv W I LLDAN FINANCIAL SERVICES 24 27 2017-09-20 Item 8H 28 of 43 Attachment 2 Table A-2: Initial Allocation Percentages (OMB Compliant CAP) - Continued 101: Public 101: Public Central Service/Operating Departments 101: Finance - 101: Non Dept - 101: Non Dept - Works -Fac 101: Public Works - 101: Public Works - Works -Fac 621: Fleet Administration Central Purchases Shared Expenses Fac Maint Fire St Fac Maint Library Maintenance Maint CvcCtr Maint PW Yrd 101: City Clerk - Administration 0.8% 2.0% 0.3% 4.3% 0.0% 0.0% 0.0% 0.0% 101: City Clerk - Elections 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council -Administration 0.4% 2.4% 0.4% 5.1% 0.0% 0.0% 0.0% 0.0% 101: City Council - City Attorney 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Administration 1.3% 2.6% 0.4% 5.6% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Geographic Info 0.8% 1.7% 0.3% 3.6% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Human Resource 1.1 % 2.2% 0.3% 4.6% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Information Tech 2.0% 3.2% 0.5% 6.6% 0.0% 0.0% 0.0% 0.0% 101: Finance -Administration 2.3% 5.4% 0.8% 11.3% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Central Purchases 0.3% 0.1% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Shared Expenses 1.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Cw Ci 0.6% 0.3% 0.1% 0.0% 0.0% 0.0% 0.0% 1.3% 101: Public Works - Fac Maint Fire S 0.5% 0.2% 0.0% 0.3% 0.0% 0.0% 0.0% 1.3% 101: Public Works - Fac Maint Library 0.4% 0.2% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint PW Y 0.3% 0.3% 0.0% 0.4% 0.0% 0.0% 0.0% 1.3% 621: Fleet Maintenance 1.3% 1.3% 0.2% 0.0% 0.0% 0.0% 0.0% 4.6% 101: City Manager -Arts Admin 0.3% 0.4% 0.1% 0.9% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Economic Dev 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Comm Ctr 0.6% 0.9% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Engineering 6.8% 10.2% 1.5% 18.8% 0.0% 0.0% 0.0% 6.6% 101: Parks Rec 6.0% 5.8% 0.8% 8.5% 0.0% 100.0% 0.0% 0.0% 101: Plan Bldg 9.1% 10.1% 1.5% 21.3% 0.0% 0.0% 0.0% 9.2% 101: Public Safety 27.7% 28.2% 89.5% 3.9% 100.0% 0.0% 0.0% 27.0% 101: Public Works 4.0% 6.2% 0.9% 0.0% 0.0% 0.0% 50.0% 20.4% 101: Recreational Facilities 0.6% 0.6% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Senior Center 0.9% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 212: Coastal Zone Management 0.2% 0.4% 0.1% 0.8% 0.0% 0.0% 0.0% 0.0% 213: Government Education Access 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 214: Solid Waste, Recycling & HHW 0.9% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 221: Senior Nutrition Grant 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 222: C.D.B.G Grant 0.3% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 230: CSA-17 Benefit Fees 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 291: Villanitas Road M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 292: Cero Street M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 293: Village Park M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 294: Wiro Park M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 295: Enc Lighting Landscape District 2.7% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 297: Enc Ranch Lighting Landscapinc 1.3% 0.2% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% 511: CSD Operations 6.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.9% 521: ESD Operations 3.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.3% 531: SDWD Operations 8.0% 9.8% 1.4% 0.0% 0.0% 0.0% 50.0% 21.1% 551: Section 8 Housing - Admin 0.4% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 552: Section 8 Housing -HAP 1.4% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 561: PAC Pines Affordable Housing 0.2% 0.1% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 611: Wastewater Support 1.3% 2.9% 0.4% 0.4% 0.0% 0.0% 0.0% 0.0% 712: CFD #1 Administration 0.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 931: ERGA Operations 1.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1W I LLDAN FINANCIAL SERVICES 25 28 2017-09-20 Item 8H 29 of 43 Attachment 2 Table A-3: Final Allocation Percentages (OMB Compliant CAP) 101: City 101: City 101: City 101: City Central Service/Operating Departments 101: City Clerk - Clerk- 101: City Council - Council -City 101: City Manager - Manager - Manager - 101: City Manager - Administration Elections Administration Attorney Administration Geographic Info Human Information Tech Resources 101: City Clerk - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Clerk - Elections 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council - City Attorney 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Geographic Info 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Human Resource 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Information Tech 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Finance - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Central Purchases 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Shared Expenses 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Cvc Ci 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Fire S 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Library 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint PW Y 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 621: Fleet Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager -Arts Admin 0.3% 0.5% 0.1% 0.1% 0.4% 0.1% 0.5% 0.1% 101: City Manager- Economic Dev 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 101: Comm Ctr 0.6% 1.0% 0.3% 0.3% 0.8% 0.1% 1.0% 0.1% 101: Engineering 20.0% 13.2% 26.8% 26.8% 10.6% 14.8% 13.2% 14.8% 101: Parks Rec 8.1 % 7.9% 8.4% 8.4% 8.4% 13.8% 7.9% 13.8% 101: Plan Bldg 15.4% 13.1 % 17.8% 17.8% 11.2% 16.7% 13.1 % 16.7% 101: Public Safety 24.6% 34.8% 14.5% 14.5% 39.7% 30.5% 34.8% 30.5% 101: Public Works 5.1 % 8.1 % 2.2% 2.2% 6.8% 12.0% 8.1 % 12.0% 101: Recreational Facilities 0.4% 0.7% 0.2% 0.2% 0.7% 0.1% 0.7% 0.1% 101: Senior Center 0.7% 1.1 % 0.3% 0.3% 0.9% 0.1% 1.1 % 0.1% 212: Coastal Zone Management 0.3% 0.4% 0.1% 0.1% 0.4% 0.0% 0.4% 0.0% 213: Government Education Access 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% 0.1% 0.1% 214: Solid Waste, Recycling & HHW 0.2% 0.3% 0.2% 0.2% 0.5% 0.1% 0.3% 0.1% 221: Senior Nutrition Grant 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 222: C.D.B.G Grant 0.2% 0.3% 0.1% 0.1% 0.3% 0.0% 0.3% 0.0% 230: CSA-17 Benefit Fees 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 291: Villanitas Road M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 292: Cero Street M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 293: Village Park M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 294: Wiro Park M.I.D 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 295: Enc Lighting Landscape District 0.6% 0.5% 0.6% 0.6% 1.3% 0.2% 0.5% 0.2% 297: Enc Ranch Lighting Landscapinc 0.3% 0.3% 0.3% 0.3% 0.6% 0.1% 0.3% 0.1% 511: CSD Operations 0.9% 0.6% 1.2% 1.2% 1.7% 0.5% 0.6% 0.5% 521: ESD Operations 0.5% 0.3% 0.7% 0.7% 0.9% 0.3% 0.3% 0.3% 531: SDWD Operations 17.4% 12.7% 22.0% 22.0% 11.4% 9.6% 12.7% 9.6% 551:Section 8Housing -Admin 0.2% 0.4% 0.1% 0.1% 0.3% 0.1% 0.4% 0.1% 552: Section 8 Housing -HAP 0.4% 0.4% 0.3% 0.3% 0.3% 0.1% 0.4% 0.1% 561: PAC Pines Affordable Housing 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% 0.0% 611: Wastewater Support 1.9% 3.1% 0.7% 0.7% 2.3% 0.3% 3.1% 0.3% 712: CFD #1 Administration 0.1% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 931: ERGA Operations 1.5% 0.2% 2.8% 2.8% 0.1% 0.2% 0.2% 0.2% Vv W 1 LLDAN r�NRNCiAL SERVICES 26 R 2017-09-20 Item 8H 30 of 43 Attachment 2 Table A-4: Final Allocation Percentages (OMB Compliant CAP) - Continued 101: Public 101: Public Central Service/Operating Departments 101: Finance - 101: Non Dept - 101: Non Dept - Works -Fac 101: Public Works - 101: Public Works - Works -Fac 621: Fleet Administration Central Purchases Shared Expenses Fac Maint Fire St Fac Maint Library Maintenance Maint Cvc Ctr Maint PW Yrd 101: City Clerk - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Clerk - Elections 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council - Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Council - City Attorney 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager -Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Geographic Info 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Human Resource 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Information Tech 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Finance -Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Central Purchases 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Non Dept - Shared Expenses 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Cvc; Ci 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Fire S1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint Library 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Public Works - Fac Maint PW Yi 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 621: Fleet Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager -Arts Admin 0.3% 0.5% 0.1% 1.0% 0.0% 0.0% 0.0% 0.0% 101: City Manager - Economic Dev 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 101: Comm Ctr 0.6% 1.0% 0.1% 0.2% 0.0% 0.0% 0.0% 0.0% 101: Engineering 8.4% 13.2% 1.9% 24.7% 0.0% 0.0% 0.0% 7.2% 101: Parks Rec 7.5% 7.9% 1.2% 12.8% 0.0% 100.0% 0.0% 0.2% 101: Plan Bldg 10.8% 13.1% 1.9% 27.0% 0.0% 0.0% 0.0% 10.0% 101: Public Safety 32.9% 34.8% 90.4% 16.7% 100.0% 0.0% 0.0% 29.9% 101: Public Works 5.2% 8.1% 1.2% 3.1% 0.0% 0.0% 50.0% 22.1% 101: Recreational Facilities 0.7% 0.7% 0.1% 0.2% 0.0% 0.0% 0.0% 0.0% 101: Senior Center 1.0% 1.1% 0.2% 0.3% 0.0% 0.0% 0.0% 0.0% 212: Coastal Zone Management 0.3% 0.4% 0.1% 0.9% 0.0% 0.0% 0.0% 0.0% 213: Government Education Access 0.7% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 214: Solid Waste, Recycling & HHW 1.0% 0.3% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 221: Senior Nutrition Grant 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 222: C.D.B.G Grant 0.3% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 230: CSA-17 Benefit Fees 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 291: Villanitas Road M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 292: Cero Street M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 293: Village Park M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 294: Wiro Park M.I.D 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 295: Enc Lighting Landscape District 2.8% 0.5% 0.1% 1.1% 0.0% 0.0% 0.0% 0.0% 297: Enc Ranch Lighting Landscapinc 1.3% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 511: CSD Operations 6.4% 0.6% 0.1% 1.0% 0.0% 0.0% 0.0% 6.2% 521: ESD Operations 3.8% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 1.4% 531: SDWD Operations 9.6% 12.7% 1.9% 5.4% 0.0% 0.0% 50.0% 22.8% 551: Section 8 Housing - Admin 0.4% 0.4% 0.1% 0.7% 0.0% 0.0% 0.0% 0.0% 552: Section 8 Housing -HAP 1.5% 0.4% 0.1% 0.9% 0.0% 0.0% 0.0% 0.0% 561: PAC Pines Affordable Housing 0.2% 0.1% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 611: Wastewater Support 1.4% 3.1% 0.5% 1.0% 0.0% 0.0% 0.0% 0.0% 712: CFD#1 Administration 0.6% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 931: ERGA Operations 1.4% 0.2% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% 1W I LLDAN FINANCIAL SERVICES 27 W 2017-09-20 Item 8H 31 of 43 Attachment 2 Table A-5: Final Allocation Amounts (OMB Compliant CAP) Department Classification Department Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Vv W I LLDAN FINANCIAL SERVICES 101: City Clerk - Administration 584,014 I 101: City Clerk - Administration 0 101: City Clerk - Elections 0 101: City Council -Administration 0 101: City Council - City Attorney 0 101: City Manager - Administration 0 101: City Manager - Geographic Info 0 101: City Manager- Human Resources 0 101: City Manager- Information Tech 0 101: Finance -Administration 0 101: Non Dept - Central Purchases 0 101: Non Dept - Shared Expenses _ 0 101: Public Works - Fac Maint C\/c Ctr 0 101: Public Works - Fac Maint Fire St 0 101: Public Works - Fac Maint Library 0 101: Public Works - Fac Maint PW Yrd 0 621: Fleet Maintenance 0 101: City Manager-ArtsAdmin 1,715 101: City Manager- Economic Dev 119 101: Comm Ctr 3,675 101: Engineering 116,696 101: Parks Rec 47,501 101: Plan Bldg 90,071 101: Public Safety 143,700 101: Public Works 29,909 101: Recreational Facilities 2,592 101: Senior Center 4,276 212: Coastal Zone Management 1,537 213: Government Education Access 532 214: Solid Waste, Recycling & HHW 1,421 221: Senior Nutrition Grant 164 222: C.D.B.G Grant 1,194 230: CSA-17 Benefit Fees 99 291: Villanitas Road M.I.D 64 292: Cero Street M.I.D 114 293: Village Park MAD 133 294: Wiro Park M.I.D 66 295: Enc Lighting Landscape District 3,303 297: Enc Ranch Lighting Landscaping 1,702 511: CSD Operations 5,034 521: ESD Operations 2,848 531: SDWD Operations 101,357 551: Section 8 Housing - Admin 1,403 552: Section 8 Housing -HAP 2,069 561: PAC Pines Affordable Housing 449 611: Wastewater Support 11,271 712: CFD#1 Administration 392 931: ERGA Operations 8,608 101: City Clerk - Elections 0 101: City Council Administration 0 101: City Council - City Attorney 375,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 477 111 989 100,641 31,441 66,677 54,292 8,180 860 1,243 425 485 817 152 384 91 48 82 89 49 2,239 1,048 4,375 2,547 82,613 464 1,057 205 2,718 352 10,347 ]PnF. 101: City Manager - 101: City Manager - 101: City Manager - 101: City Manager - Administration Geographic Info Human Resources Information Tech 1,154,441 677,469 842,598 1,704,344 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 _ 0 0 0 0 _ 0 0 0 0 _ 0 0 0 0 _ 0 0 0 0 0 0 0 0 0 4,370 364 3,878 917 960 77 94 194 9,065 758 8,387 1,907 121,988 100,463 110,899 252,740 96,791 93,656 66,516 235,616 129,329 113,304 110,283 285,044 458,175 206,329 292,824 519,073 78,138 81,203 67,948 204,286 8,024 639 5,548 1,608 10,352 958 9,549 2,410 4,159 321 3,481 806 1,964 369 446 928 5,588 605 2,267 1,522 1,110 108 131 273 3,413 289 2,584 727 620 66 80 166 235 36 78 91 408 62 144 157 516 67 184 168 221 37 80 94 14,460 1,651 4,507 4,155 6,460 782 2,562 1,967 19,259 3,314 4,710 8,338 10,305 1,940 2,503 4,880 131,040 65,199 107,090 164,024 3,709 354 3,006 _ 890 3,449 844 3,599 _ 2,124 1,668 151 836 380 26,520 2,097 26,424 5,274 470 282 341 710 1,675 1,142 1,621 2,873 28 ca 2017-09-20 Item 8H 32 of 43 Attachment 2 Table A-6: Final Allocation Amounts (OMB Compliant CAP) - Continued Department Classification Department 101: Finance - 101: Non Dept - 101: Non Dept - 101: Public Works- 101: Public Works - 101: Public Works- 101: Public Works - Administration Central Purchases Shared Expenses Fac Maint Cvc Ctr Fac Maint Fire St Fac Maint Library Fac Maint PW Yrd 1,877,388 153,136 1,746,019 433,430 242,647 336,995 238,609 i Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Central Service Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department Operating Department 1W I LLDAN FINANCIAL SERVICES 0 101: City Clerk -Administration 0 0 0 0 101: City Clerk - Elections 0 0 0 0 101: City Council - Administration 0 0 0 0 101: City Council - City Attorney 0 0 0 0 101. City Manager - Administration 0 0 0 0 101. City Manager - Geographic Info 0 0 0 0 101. City Manager - Human Resources 0 0 0 0 101. City Manager - Information Tech 0 0 0 0 101: Finance -Administration 0 0 0 0 101: Non Dept - Central Purchases 0 0 0 0 101: Non Dept - Shared Expenses 0 0 0 0 101: Public Works - Fac Maint Cw Ctr 0 0 0 0 101: Public Works - Fac Maint Fire St 0 0 0 0 101: Public Works - Fac Maint Library 0 0 0 0 101: Public Works - Fac Maint PW Yrd 0 0 0 0 621: Fleet Maintenance 0 0 0 0 101: City Manager - ArtsAdmin 6,046 705 1,179 4,161 101: City Manager- Economic Dev 2,400 17 28 100 101: Comm Ctr 12,110 1,524 2,550 936 101: Engineering 158,610 20,155 33,720 107,130 - 101: Parks Rec 140,623 12,089 20,225 55,366 336,995 101: Plan Bldg 201,938 20,043 33,533 117,182 - - 101: Public Safety 618,065 53,219 1,578,852 72,387 242,647 101: Public Works 97,072 12,349 20,661 13,527 - 101: Recreational Facilities 12,272 1,008 1,687 799 101: Senior Center 17,885 1,736 2,904 1,189 212: Coastal Zone Management 4,944 633 1,058 3,736 213: Government Education Access 13,692 81 136 479 214: Solid Waste, Recycling & HHW 18,018 412 689 776 221: Senior Nutrition Grant 3,570 24 40 141 222: C.D.B.G Grant 5,621 470 786 2,773 230: CSA-17 Benefit Fees 2,215 14 24 86 291: Villanitas Road M.I.D 1,253 14 24 84 292: Cero Street M.I. D 2,142 26 44 155 293: Village Park M.I.D 2,186 33 56 198 294: Wiro Park M.I.D 1,315 14 24 85 295: Enc Lighting Landscape District 52,529 819 1,370 4,652 297: Enc Ranch Lighting Landscaping 24,529 466 779 2,749 511: CSD Operations 120,547 856 1,432 4,300 521: ESD Operations 71,782 455 761 2,518 531: SDWD Operations 181,036 19,463 32,562 23,411 551: Section 8 Housing -Admin 7,528 546 914 3,226 552: Section 8 Housing -HAP 28,172 654 1,094 3,862 561: PAC Pines Affordable Housing 3,846 152 254 897 611: Wastewater Support 27,158 4,802 8,035 4,421 712: CFD#1 Administration 11,352 62 104 366 931: ERGA Operations 26,936 295 493 1,739 119,305 119,305 621:Fleet Total Allocation Maintenance 590,669 10,957,259 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 78 23,890 2 4,103 18 41,919 42,750 1,165, 791 1,041 1,137,861 59,233 1,226,638 176,525 4,416,087 130,609 863,184 15 35,051 22 52,524 70 21,169 9 19,120 15 32,129 3 5,716 52 18,293 2 3,462 2 1,930 3 3,338 4 3,634 2 1,988 87 89,773 52 43,096 36,743 208,908 8,194 108,733 134,868 1,161, 967 61 22,101 73 46,997 17 8,857 83 118,803 7 14,438 33 55,762 29 32 2017-09-20 Item 8H 33 of 43 Attachment 2 Appendix B Appendix B provides the table detailing the allocation performed in allocating central service costs for the full cost allocation plan. The methodology for the full plan is the same as for the OMB compliant plan, as it is the most reasonable and represents how indirect support is provided in the City. The difference between the two plans, as has been described in this report, is in the costs that can be allocated. WIVILLDAN �i(:14 SERVICES 33 2017-09-20 Item 8H 34 of 43 '01 Attachment 2 Table 13-1: Final Allocation Amounts (Full CAP) Department Classification Department 101: City Clerk - 101: City Clerk - 101: City Council - 101: City Council - 101: City Manager - 101: City Manager - 101: City Manager- SOS: City Manager- SOS: Finance - 101: Non Dept - 101: Non Dept - Administration Elections Administration City Attorney Administration Geographic Info Human Resources InformationTerh Administration Central Purchases Shared Expenses 584,014 101,900 462,021 375,500 1,154,441 677,469 842,598 1,704,344 1,877,388 153,136 1,746,019 Central Service 101: City Clerk -Administration 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: City Clerk - Elections 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: City Council - Administration 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: City Council -City Attorney 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: City Manager -Administration 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: City Manager - Geographic Info 0 0 0 0 0 0 0 0 0 0 0 Central Service 101: City Manager - Human Resources 0 0 0 0 0 0 0 0 0 0 0 Central Serice 101: Tity Manager - Information Tech 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: Finance -Administration 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: Non Dept - Central Purchases 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: Non Dept - Shared Expenses 0 0 0 0 0 0 0 0 0 0 0 Central Service 101: Public Works - Fac Maint Cvc Ctr 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 101: Public Works - Fac Maint Fire St 0 0 0 0 0 0 0 0 0 0 0 Central Service 101: Public Works - Fac Maint Library 0 0 0 0 0 0 0 0 0 0 0 Central Service 101: Public Works - Fac Maint PW Yrd 0 0 0 0 0 0 0 0 0 0 0 Central SeMce 621: Fleet Maintenance 0 0 0 0 0 0 0 0 0 0 0 Operating Department 101: City Manager- Arts Admin 1,715 469 587 477 4,370 364 3,878 917 6,046 705 1,179 Operating Department 101: City Manager - Economic Dev 119 11 137 111 960 77 94 194 2,400 17 28 Operating Department 101: Comm Ctr 3,675 1,014 1,217 989 9,065 758 8,387 1,907 12,110 1,524 2,550 Operating Department 101: Engineering 116,696 13,412 123,830 100,641 121,988 100,463 110,899 252,740 158,610 20,155 33,720 Operating Department 101: Parks Rec 47,501 8,044 38,685 31,441 96,791 93,656 66,516 235,616 140,623 12,089 20,225 Operating Department 101: Plan Bldg 90,071 13,337 82,041 66,677 129,329 113,304 110,283 285,044 201,938 20,043 33,533 Operating Department 101: Public Safety 143,700 35,413 66,802 54,292 458,175 206,329 292,824 519,073 618,065 53,219 1,578,852 Operating Department 101: Public Works 29,909 8,217 10,064 8,180 78,138 81,203 67,948 204,286 97,072 12,349 20,661 Operating Department 101: Recreational Facilities 2,592 671 1,058 860 8,024 639 5,548 1,608 12,272 1,008 1,687 Operating Department 101: Senior Center 4,276 1,155 1,530 1,243 10,352 958 9,549 2,410 17,885 1,736 2,904 Operating Department 212: Coastal Zone Management 1,537 421 523 425 4,159 321 3,481 806 4,944 633 1,058 Operating Department 213: Government Education Access 532 54 596 485 1,964 369 446 928 13,692 81 136 Operating Department 214: Solid Waste, Recycling & HHW 1,421 274 1,005 817 5,588 605 2,267 1,522 18,018 412 689 Operating Department 221: Senior Nutrition Grant 164 16 187 152 1,110 108 131 273 3,570 24 40 Operating Department 222. C.D.B.G Grant 1,194 312 473 384 3,413 289 2,584 727 5,621 470 786 Operating Department 230. CSA-17 Benefit Fees 99 10 112 91 620 66 80 166 2,215 14 24 Operating Department 291. Villanitas Road M.I.D 64 9 59 48 235 36 78 91 1,253 14 24 Operating Department 292. Cero Street M.I.D 114 17 101 82 408 62 144 157 2,142 26 44 Operating Department 293. Village Park M.I.D 133 22 110 89 516 67 184 168 2,186 33 56 Operating Department 294. Wiro Park M.I.D 66 10 60 49 221 37 80 94 1,315 14 24 Operating Department 295. Enc Lighting Landscape District 3,303 545 2,755 2,239 14,460 1,651 4,507 4,155 52,529 819 1,370 Operating Department 297: Enc Ranch Lighting Landscaping 1,702 310 1,289 1,048 6,460 782 2,562 1,967 24,529 466 779 Operating Department 511: CSD Operations 5,034 570 5,383 4,375 19,259 3,314 4,710 8,338 120,547 856 1,432 Operating Department 521: ESD Operations 2,848 303 3,134 2,547 10,305 1,940 2,503 4,880 71,782 455 761 Operating Department 531: SDWD Operations 101,357 12,951 101,649 82,613 131,040 65,199 107,090 164,024 181,036 19,463 32,562 Operating Department 551: Section 8 Housing-Admin 1,403 364 571 464 3,709 354 3,006 890 7,528 546 914 Operating Department 552: Section 8 Housing -HAP 2,069 435 1,301 1,057 3,449 844 3,599 2,124 28,172 654 1,094 Operating Department 561: PAC Pines Affordable Housing 449 101 253 205 1,668 151 836 380 3,846 152 254 Operating Department 611: Wastewater Support 11,271 3,196 3,345 2,718 26,520 2,097 26,424 5,274 27,158 4,802 8,035 Operating Department 712: CFD #1 Administration 392 41 433 352 470 282 341 710 11,352 62 104 Operating Department 931: ERGA Operations 8,608 196 12,731 10,347 1,675 1,142 1,621 2,873 26,936 295 493 1 LLDAN 31 VvW 34 FINANCIAL SERVICES 2017-09-20 Item 8H 35 of 43 Attachment 2 Table 13-2: Final Allocation Amounts (Full CAP) - Continued Department Classification Department 101: Finance - 101: Non Dept - 101: Non Dept - 101: Public Works - Administration Central Purchases Shared Expenses Fac Maint Cvc Ctr 1,877,388 153,136 1,746,019 433,430 Central Service 101: City Clerk -Administration 0 0 0 0 Central Service 101: City Clerk - Elections 0 0 0 0 Central Service 101: City Council - Administration 0 0 0 0 Central Service 101: City Council - City Attorney 0 0 0 0 Central Service 101: City Manager - Administration 0 0 0 0 Central Service 101: City Manager - Geographic Info 0 0 0 0 Central Service 101: City Manager - Human Resources 0 0 0 0 Central Service 101: City Manager - Information Tech 0 0 0 0 Central Service 101: Finance -Administration 0 0 0 0 Central Service 101: Non Dept - Central Purchases 0 0 0 0 Central Service 101: Non Dept - Shared Expenses 0 0 0 0 Central Service 101: Public Works - Fac Maint Cvc Ctr 0 0 0 0 Central Service 101: Public Works - Fac Maint Fire St 0 0 0 0 Central Service 101: Public Works - Fac Maint Library 0 0 0 0 Central Service 101: Public Works - Fac Maint PW Yrd 0 0 0 0 Central Service 621: Fleet Maintenance 0 0 0 0 Operating Department 101: City Manager -Arts Admin 6,046 705 1,179 4,161 Operating Department 101751 Manager- Economic Dev 2,400 17 28 100 Operating Department 101: Comm Ctr 12,110 1,524 2,550 936 Operating Department 101: Engineering 158,610 20,155 33,720 107,130 Operating Department 101: Parks Rec 140,623 12,089 20,225 55,366 Operating Department 101: Plan Bldg 201,938 20,043 33,533 117,182 Operating Department 101: Public Safety 618,065 53,219 1,578,852 72,387 Operating Department 101: Public Works 97,072 12,349 20,661 13,527 Operating Department 101: Recreational Facilities 12,272 1,008 1,687 799 Operating Department 101: Senior Center 17,885 1,736 2,904 1,189 Operating Department 212: Coastal Zone Management 4,944 633 1,058 3,736 Operating Department 213 Government Education Access 13,692 81 136 479 Operating Department 214: Solid Waste, Recycling & HHW 18,018 412 689 776 Operating Department 221: Senior Nutrition Grant 3,570 24 40 141 Operating Department 222: C.D.B.G Grant 5,621 470 786 2,773 Operating Department 230. CSA-17 Benefit Fees 2,215 14 24 86 Operating Department 291: Villanitas Road M.I.D 1,253 14 24 84 Operating Department 292: Cero Street M.I.D 2,142 26 44 155 Operating Department 293. Village Park M.I.D 2,186 33 56 198 Operating Department 294: Wiro Park M.I.D 1,315 14 24 85 Operating Department 295: Enc Lighting Landscape District 52,529 819 1,370 4,652 Operating Department 297: Enc Ranch Lighting Landscaping 24,529 466 779 2,749 Operating Department 511: CSD Operations 120,547 856 1,432 4,300 Operating Department 521: ESD Operations 71,782 455 761 2,518 Operating Department 531: SDWD Operations 181,036 19,463 32,562 23,411 Operating Department 551: Section 8 Housing -Admin 7,528 546 914 3,226 Operating Department 552: Section 8 Housing -HAP 28,172 654 1,094 3,862 Operating Department 561: PAC Pines Affordable Housing 3,846 152 254 897 Operating Department 611:Wastewater Support 27,158 4,802 8,035 4,421 Operating Department 712: CFD#1 Administration 11,352 62 104 366 Operating Department 931: ERGA Operations 26,936 295 493 1,739 W I L LDAN FINANCIAL SERVICES 101: Public Works- 101: Public Works- 101: Public Works- Fac Maint Fire St Fac Maint Library Fac Maint PW Yrd 242,647 336,995 238,609 336,995 242,647 119,305 119,305 621: Fleet Total Allocation Maintenance 590,669 11,521,180 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 78 24,946 2 4,251 18 44,150 42,750 1,303,033 1,041 1,184,591 59,233 1,322,016 176,525 4,518,301 130,609 881,465 15 36,780 22 55,208 70 22,113 9 19,770 15 33,409 3 5,919 52 19,078 2 3,584 2 1,998 3 3,457 4 3,766 2 2,058 87 93,072 52 44,694 36,743 214,861 8,194 112,170 134,868 1,276,566 61 23,035 73 48,733 17 9,210 83 125,343 7 14,913 33 68,688 32 35 2017-09-20 Item 8H 36 of 43 Attachment 3 8/30/2017 Presentation to the City of Encinitas Community Development Department Service Fees & Charges Study September 20, 2017 W • Chris Fisher, Project Director ■ Cost -of -service expert ■ Resource coordination, QA/QC ■ Review of reports and models ■ 15 years experience at Willdan with cost of service studies, including cost allocation, user fee, impact fee, utility rates • Tony Thrasher, Technical Project Manager ■ Lead analytical and modeling efforts, strategy development ■ Develop models, provide support and direction to analysts ■ Extensive Cost Allocation Plan (CAP), user fee (UF), utility rate experience • Priti Patel, Financial Analyst ■ Assist with analytical and modeling efforts, additional support as necessary ■ Incorporate direct data and City feedback -o/W1unwa Kb: 2017-09-20 Item 8H 37 of 43 1 Attachment 3 8/30/2017 • Cost Allocation Plan (CAP) ensures that costs associated with City central service departments are appropriately allocated to respective City operating functions. • Tool that formulates an equitable methodology to identify and allocate indirect costs to direct cost programs. • Allocations should represent how operating departments use and benefit from central support services. • Used in the formation of personnel rates, budgeting and cost reimbursement. wiunNa • Evaluate costs of central service departments to determine which amounts are appropriately allocable to each operating department and fund. • Identify the major functions of each central service. • Determine how branches utilize and benefit from central overhead service functions. • Identify distribution bases that best represent those functions and collect necessary data. • Allocate the cost of central services using the distribution bases. vv wiu m 37 2017-09-20 Item 8H 38 of 43 2 Attachment 3 8/30/2017 City Manag City Clerk Finance Central Service departments provide support to operating departments MngineeringA Operating Departments provide services directly to the public • Work with staff to understand objectives, challenges, and policy direction. • Develop defensible allocation of OH to departments, funds and enterprises. • Develop efficient updatable full cost CAP and model. • Conduct interactive data gathering to ensure accuracy, integrity of model inputs and a clear understanding of the organization. • Provide accurate custom model, analysis, report - easy to interpret, clearly present data, methodology, approach and results. w1UnM 38 2017-09-20 Item 8H 39 of 43 3 Attachment 3 8/30/2017 • Kick-off discussion. • Gather financial and expenditure data. • Review and analyze expenditure to identify allocable costs. • Review existing CAP, identify feasibility, effectiveness and areas for improvement. • Identify central support and direct operating services and ISFs. • Interview Staff to: • Understand structure and functions of departments, divisions and funds • Highlight and resolve issues or anomalies • Discuss appropriate and defensible allocation bases • Gather necessary data regarding selected allocation bases. • Develop model to reflect City's budget structure. - (i.e. fund, department, cost codes, etc.) WIUMAu • Grant, federal, and state funding programs often require compliance with the Super Circular and 2 CFR 200 Cost Principles for cost reimbursement: ■ The Cost Principles identify additional cost types that are unallowable for reimbursement through a cost allocation plan. Examples Include. o City Council, advertising, lobbying, contingencies, idle capacity, litigation, bad debt, etc. ■ The model can switch compliance for these purposes on and off as needed. • The report provided details both plans and the results for the Full or non OMB compliant plan. wiu m KR 2017-09-20 Item 8H 40 of 43 21 Attachment 3 8/30/2017 • Most accurate and equitable. • Recommended by OMB. • Preserves the allocation methodology throughout the allocation process. • First Step: ■ Identify allocable budget of each central service department ■ Distribute allocable budget to various city departments, based on functions provided and selected allocation bases • Second Step: ■ Allocate indirect costs that were allocated to central service departments in first step is reallocated out using the same methodology in the first step o This second step is performed ad infinitum until all allocable costs are distributed to the operating functions WIULMM City Council 100% -�- City Clerk 50% 50% City Manager 50% 50% (Administration) City Attorney 100°% Finance 59% 12% M/WivaAu �lI 2% 9% 18% Cft 2017-09-20 Item 8H 41 of 43 5 Attachment 3 8/30/2017 Allocable Cost Summary - Central Services Fiscal Year 2016-2017 Unallocable Summary Central Service Yy WILL:IIIN Total Cost Cost Allocable Cost $ 11,980,334 $ 459,154 $ 11,521,180 101: City Clerk- Administration 584,014 584,014 101: City Clerk- Elections 101,900 101,900 101: City Council -Administration 462,021 462,021 101: City Council -City Attorney 375,500 375,500 101.City Manager -Administration 1,154,441 _ 1,154,441 101: City Manager - Geographic Info 677,469 677,469 101: City Manager - Human Resources 842,598 842,598 101: City Manager - Information Tech 1,704,344 1,704,344 101: Finance - Administration 1,877,388 1,877,388 101: Non Dept- Central Purchases 153,136 153,136 101: Non Dept:Shared Expenses 2,198,673 452,654 1,746,019 101: Public Works - Fac Maint Cvc Ctr 433,430 - 433,430 101: Public Works - Fac Maint Fire St 242,647 242,647 101: Public Works - Fac Maint Library 336,995 336,995 101: Public Works - Fac Maint PW Yrd 238,609 - 238,609 621: Fleet Maintenance 597,169 6,500 590,669 Summary of Cost Allocated to Operating Departments YY WIUU1AK Allocated Cost Summary aclry $11,521,180 Fiscal Year 2016-2017 Sst,tos,ott ts^io Managervrts vnmin clry Manager -Economic Dev 101 101 Engl l atery ilrties 101 Sen­ Center $24,9a6 $a,25� $14,150 $1,303,033 $'I,'1-591 $'1,322, 0'16 $1,518,301 $-11465 $36,780 $55,208 $190,630 $108,500 $3 ,508 $4,466,9�8211 $5260,553 $5,444,�45 $27,890,492 $3,093, 31a $49a, 529 71 --,182 13% $22,113 $201,087 ill ess in $19,770 $I_,824 1- ecycing BHHW -3,409 nhon Grant $5,919 $15% $19,078 $22,M3 ,6�,639 10% e� $3,564 $67,550 - g M I D $1,998 $-,8�4 10% ID $3457 $35480 10% 293 u5lage Park M. I $3,766 $45,248 8°h $2,058 $18,931 11 h nct -3,072 $1,3-,909 - L1gMngaS ntldsc ng CSD -,694 $-,275 8h 511 DtOperatl $214,861 $1,802,420 12A s $112,170 $968,764 12A $1,-6,566 $5,9-,613 21% 551 Sect_- stlingn-n -3,035 $184,522 '12% - $48,733 $75,000 65% ade Ho-nq $9,210 $128,651 - Support $125,343 $933,827 13h nistra n $14,913 $14,755 101% 931 E-Ope-ons $8,688 $2,420 283- 11 12 Ell 2017-09-20 Item 8H 42 of 43 0 Attachment 3 8/30/2017 Ey 2017-09-20 Item 8H 43 of 43